Credit growth expanded 7.33 percent in H1

The banking sector reported a credit growth of 7.33 percent in the first half of this year compared to the end of 2018, Governor of the State Bank of Vietnam (SBV) Le Minh Hung said.

Governor of the State Bank of Vietnam Le Minh Hung speaks at the conference. (Photo: baochinhphu.vn)

The rise was higher than that of the same period last year, when thecredit rose by 6.14 percent.

 


At a Government teleconference with leaders of all 63 cities andprovinces nationwide on July 4, the SBV Governor attributed the rise tothe contribution from the processing and manufacturing sector as well asexports.

“We see loans in these areas have increased quite well,” Hung said,adding that the lending continually focused on production and business, and theGovernment’s prioritised sectors including agriculture and rural development,exports, parts-supply industry, small- and medium-sized enterprises (SMEs) andhigh-tech firms, while the capital to risky sectors, such as real estate andsecurities, was further controlled.

He also reported that the SBV managed interest rates in line withmacroeconomic developments and the monetary markets, with credit institutionsapplying reasonable lending rates on the basis of deposit rates and the risksof loans.

The central bank had all necessary tools to effectively control therate, the Governor said, adding since the beginning of the year, the fourState-owned commercial banks – Vietcombank, Vietinbank, BIDV, and Agribank –had thoroughly followed the Government and SBV’s direction in reducing interestrates for prioritised sectors. The work helped businesses lower costs and thebanking system keep a stable interest rate.

According to Hung, bank loans met the capital demand for production,investment and business, with deposit and lending interest rates stable.Currently, short-term lending rates are at 6-9 percent per year and 9-11 percentfor medium and long term. For customers with a healthy financial situation andhigh creditworthiness, lending rates for short-term loans are lower at some 4-5percent per year.

As for the foreign exchange market, the Governor said the SBV bought alarge amount of foreign currencies in the first half of 2019, pushing foreignexchange reserves recorded in the period to the highest level to date.

He said fluctuations in the global market in the first six months wereunpredictable but proactive and flexible measures had been taken to keep thedomestic foreign exchange market stable.

During the period, the central bank’s reference exchange rate for the USdollar against the Vietnamese dong was adjusted up by 1 percent, while therate listed at commercial banks and inter-bank rate were up by 0.3-0.4 percent.

The SBV would continue to follow a pro-active, flexible and cautiousmonetary policy as well as working in close conjunction with fiscal and otherpolicies to control inflation, sustain the macro-economy and support economicgrowth in the remaining months of this year, Hung said.-VNA 

 
 

Other News

.
Alibaba.com rolls out export-focused program for Vietnamese SMEs
Alibaba.com rolls out export-focused program for Vietnamese SMEs
BUSINESSicon  07/09/2020 

Alibaba.com, the global business-to-business (B2B) e-commerce platform of Alibaba Group, has launched a landmark initiative to help businesses in Vietnam go online and reach an enormous pool of qualified global buyers.

E-commerce gives impetus to woodworking sector
E-commerce gives impetus to woodworking sector
BUSINESSicon  06/09/2020 

In the rapid development of e-commerce, online stores and factories are one of the solutions with which enterprises can cope with the prolonged Covid-19 pandemic while laying a foundation for digitalized business

The path to economic recovery and further growth
The path to economic recovery and further growth
BUSINESSicon  06/09/2020 

While Vietnam has experienced an unprecedented boom in recent decades, the current pandemic is now having a clear negative impact on the economic outlook. 

Vietnam’s plywood suppliers under scrutiny over practices
Vietnam’s plywood suppliers under scrutiny over practices
BUSINESSicon  06/09/2020 

As the trade tensions between the United States and China refuse to slow down, Vietnam-based plywood exporters are under pressure of investigation for alleged issues with the sources of their input materials.

Local wood industry overshadowed by sourcing issues
Local wood industry overshadowed by sourcing issues
BUSINESSicon  05/09/2020 

Vietnam’s wood industry has shown signs of recovery in the third quarter of 2020. However, legal complications may arise through illegally-sourced raw materials from foreign suppliers and a lack of uniformity.

Consumers beware of e-swindlers preying on fledgling cashback apps
Consumers beware of e-swindlers preying on fledgling cashback apps
BUSINESSicon  06/09/2020 

While cashback is considered a strong method to encourage cashless payments, numerous websites and apps are taking advantage of uninformed consumers with untransparent and illegal multi-level marketing models.

One fewer thing to worry for enterprises
One fewer thing to worry for enterprises
BUSINESSicon  06/09/2020 

Businesses will have one fewer thing to worry about in 2021 as the minimum wage is not expected to be increased for privately-owned enterprises.

New strategies required to set deeper roots for wood industry
New strategies required to set deeper roots for wood industry
BUSINESSicon  06/09/2020 

To expand Vietnam’s wood industry sustainably, its development strategy must not only focus on the policies of importing countries but also domestic priorities.

Four Vietnamese-born billionaires in the US
Four Vietnamese-born billionaires in the US
BUSINESSicon  06/09/2020 

These are the most famous businessmen of Vietnamese origin in the US.

Airline service fees reduced by half for next six months
Airline service fees reduced by half for next six months
BUSINESSicon  05/09/2020 

Fees for takeoff and landing and aircraft operating services for domestic flights will continue to be cut by 50 per cent for the next six months to support airlines affected by the COVID-19 pandemic, according to a Transport Ministry circular.

Funds enjoy growth in August
Funds enjoy growth in August
BUSINESSicon  05/09/2020 

Investment funds involved in Vietnam’s equity market reported positive growth in net asset value (NAV) in August due to a stock market upturn.

Local authorities tighten control over investments in condotels
Local authorities tighten control over investments in condotels
BUSINESSicon  07/09/2020 

Hanoi local authorities are seeking to strengthen management over the construction, investment and trade of condotels, officetels and resort villas.

Vietnam aims to diversify local retail market
Vietnam aims to diversify local retail market
BUSINESSicon  05/09/2020 

The Ministry of Industry and Trade (MoIT) plans to consolidate traditional markets in rural areas while developing a large number of convenience stores and diversifying types and methods of modern business.

8-month trade surplus at record high, experts warn of risks
8-month trade surplus at record high, experts warn of risks
BUSINESSicon  05/09/2020 

Vietnam's trade surplus in the first eight months of the year was a record high. However, experts still see risks.

VIETNAM'S BUSINESS NEWS HEADLINES SEPTEMBER 6
VIETNAM'S BUSINESS NEWS HEADLINES SEPTEMBER 6
BUSINESSicon  06/09/2020 

Trading accounts of foreign investors highest in 8 months

90 percent of Vietnamese millionaires invest in real estate
90 percent of Vietnamese millionaires invest in real estate
BUSINESSicon  04/09/2020 

While COVID-19 continues to impact the whole economy, most millionaires in Vietnam have been investing in the real estate market.

Vietnam retaining fast-growing status
Vietnam retaining fast-growing status
BUSINESSicon  04/09/2020 

Over past decades, Vietnam has weathered all difficulties to orchestrate economic miracles, with its deepened international integration bringing about massive opportunities to expand trade and investment.

Tough spot for steel ventures as pandemic cuts off progress
Tough spot for steel ventures as pandemic cuts off progress
BUSINESSicon  04/09/2020 

The global coronavirus developments coupled with the falling demand are adding more pressure for some steelmakers to lay idle their projects, cut products, or ponder mergers and acquisitions strategies to ensure their cash.

Corporate bond issuance expected to drop after new policies take effect
Corporate bond issuance expected to drop after new policies take effect
BUSINESSicon  04/09/2020 

Warnings from management agencies plus new policies that take effect soon will make it more difficult to issue corporate bonds, a capital mobilization channel that was worth $8.5 billion in the first seven months of the year.

Selling assets to pay debts, 'Boss Duc' still cannot escape difficulties
Selling assets to pay debts, 'Boss Duc' still cannot escape difficulties
BUSINESSicon  04/09/2020 

The enterprise of Doan Nguyen Duc, or Boss Duc as he is known, is still in doubt, though the businessman, once the richest man in Vietnam, has sold many assets to restructure his company.

 
 
 
Leave your comment on an article

OR QUICK LOGIN