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VietNamNews

Credit growth rises in two largest cities

Update: July, 23/2014 - 08:50

The July credit growth of the capital was lower than the 2 per cent rise last month.— Photo vietstock.vn

HA NOI (VNS) — Total outstanding loans this month of Ha Noi-based credit institutions are estimated to inch up 0.5 per cent to nearly VND927 trillion (US$43.52 billion), according to the Ha Noi Statistics Office.

The July credit growth of the capital was lower than the 2 per cent rise last month.

In detail, short-term outstanding loans of credit institutions in the capital are estimated to drop 1.3 per cent over the previous month and 8.3 per cent from December 2013, while medium and long-term loans are estimated to rise by 4.1 per cent over the previous month and 12.1 per cent against December 2013.

In July, Ha Noi-based credit institutions are also estimated to have mobilised nearly VND1,140 trillion ($53.52 billion), up 2.7 per cent over the previous month and 8.9 per cent from December 2013. Meanwhile, the HCM City Statistics Office reported that the city's credit is estimated to rise 2.2 per cent from the previous month to VND979.9 trillion ($46 billion).

Medium and long-term outstanding loans accounted for 46.5 per cent, surging 14.5 per cent year-on-year, while the short-term outstanding loans accounted for 53.5 per cent, rising 5.6 per cent year-on-year.

The city's credit institutions are also estimated to mobilise a total VND1,205.6 billion ($56.6 billion), up 2.8 per cent as compared to June, and up 14.4 per cent year-on-year.

According to the latest survey on business trends of credit institutions, released last week by the State Bank of Viet Nam (SBV), 90 per cent of credit institutions expect deposits and loans of the whole banking system to grow 3.6 per cent in Q3 and 14.2 per cent in 2014.

Officials have so far shown optimism despite the slow credit growth of 3.52 per cent over the past six months, which had raised concerns over the banking system's ability to reach the credit growth target of 12 to 14 per cent this year.

SBV Deputy Governor Nguyen Dong Tien said that credit growth will possibly meet the target as it is usually slow in H1 and accelerates in H2.

Besides, Tien said, domestic production and businesses have shown signs of recovery. Some key sectors saw a high rate of growth, including exports, supporting industries and the hi-tech sector. Social and agriculture programmes also reacted positively.

The central bank will continue to closely monitor credit institutions, make appropriate adjustments and quickly deal with any problems, Tien said, adding that it will also ask the Government to revise credit policies in rural areas and the agricultural sector. — VNS

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