return icon Vietnamnet.vn

Lending bounces back on high year-end production season

 VietNamNet Bridge – The outstanding loans have increased again since mid- August after a long period of stagnation, though the money has been disbursed mostly to big enterprises.

VietNamNet Bridge – The outstanding loans have increased again since mid- August after a long period of stagnation, though the money has been disbursed mostly to big enterprises.

{keywords}

A report by the State Bank of Vietnam showed the higher credit growth rate in comparison with the same period of the last year. By the end of August, the capital pumped to the national economy had increased by 6.45 percent over the end of 2012.

With the more satisfactory credit growth, the watchdog agency has every reason to believe that the targeted 12 percent credit growth rate in 2013 is within reach. In 2012, the credit growth rate was modest at 8.9 percent.

With the efforts to fight against the dollarization, the outstanding loans in foreign currencies have decreased by 11.55 percent. Meanwhile, by the end of August, the dong loans had increased by 10.4 percent.

Most bankers have confirmed that they now can sigh with relief as the lending has bounced back.

Dang Bao Khanh, CEO of SeABank, said the credit grew by 2 percent only in the first half of the year, while the figure had jumped to 6 percent by August with the outstanding loans estimated at over VND1 trillion.

“SeABank plans to disburse big loans in September, which means that the credit growth rates of 8-9 percent are attainable,” Khanh said.

Nguyen Van Le from SHB also said in August alone, SHB disbursed VND3 trillion, while on the first 10 days of September, another VND1 trillion was disbursed.

“The demand for capital has increased significantly. Businesses need working capital to kick off their year-end production season,” Le explained, adding that SHB is sure the 12 percent credit growth rate target is reachable.

The finance report of Vietcombank showed the minus (-) 1.47 percent in the credit growth rate in the firs half of 2013. However, the outstanding loans had increased rapidly by 2.8 percent by the end of August in comparison with the end of 2012, according to the newly appointed CEO Nghiem Xuan Thanh.

However, analysts have warned that it’s too early to say that the capital flow to the economy has been put through. Only big enterprises with stable production and business performance can access bank loans.

The enterprises were listed as “good clients” in the past, to which banks were willing to lend money at low interest rates. They did not borrow capital in the first half of the year because of the lack of feasible production and business plans.

However, the big enterprises have come back as they need capital to implement the year-end production season. A banker said he is willing to lend at 5 percent per annum only, while the average lending interest rate now is at 8-9 percent.

“We not only expect the interests when lending to the good clients. We also hope that we can increase our income by providing other supporting services to the clients,” he said.

Vietcombank has also confirmed that its clients now are mostly state owned enterprises, which have big operation scale and good production projects. Meanwhile, small and medium enterprises are still hesitant to approach bank loans, as noted by Thanh.

VNN/VNE

MORE NEWS

Vietnam demands Taiwan to cancel illegal drills in Truong Sa’s waters

Vietnam resolutely opposes and demands Taiwan (China) to cancel its live-fire exercises in the waters around Ba Binh island that belongs to Vietnam's Truong Sa (Spratly), Vietnamese Foreign Ministry spokeswoman Le Thi Thu Hang stated on December 2.

Make-in-Vietnam cameras have high security, satisfy standards

Make in Vietnam camera manufacturers are enhancing security capability and satisfying requirements on information security set by the Ministry of Information and Communications (MIC) for devices such as cameras and Internet of Things (IoT).

Government plans to rearrange state-owned enterprises till 2025

Deputy Prime Minister Le Minh Khai has signed a decision approving a plan of rearrangement of state-owned enterprises for the period of 2022-2025 in the form of one-member limited company, equitization, re-arrangement and divestment.

Transport Ministry urges new ship channel for large vessels in Mekong Delta

The Ministry of Transport has urged Tra Vinh Province to implement compensation payment for site clearance and resettlement support to build a new ship channel for large vessels in the Hau River.

Toan retains WBA Asia belt against Amparo in Bangkok

Le Huu Toan successfully defended his World Boxing Association (WBA) Asia minimum-weight (48kg) belt during The Challenger event on November 30 in Bangkok, Thailand.

Billions of dollars from foreigners invested in Vietnam’s enterprises

Foreign capital keeps flowing into Vietnam through many different channels, helping investors regain their confidence in the stock market and the economy.

Urban areas, parks to be built on Red River alluvium grounds

Hanoi authorities plan to build new urban areas and eco-friendly housing, and develop open space with parks, urban squares and flood parks on thousands of hectares on the alluvium grounds of the Red River area.

Target of 1 million social housing units difficult to reach

The goal of developing 1 million social housing units may not be feasible.

Ministry to control rice import management

The Ministry of Industry and Trade (MOIT) fears the high level of rice imports and the failure to control imports will affect domestic production.

Gambling soars during World Cup

Football betting is taking place in the open air at venues where people gather to watch World Cup matches, or quietly online.

Michelin Guide to announce first Vietnamese restaurant selections

Hanoi and Ho Chi Minh City have been selected by Michelin as the latest destinations joining the international selection, as compiled by the Michelin Guide.

Ministry to crack down on Internet ads violations

The Ministry of Information and Communications held a conference in Hanoi on November 30 to roll out Internet advertising management measures.

Seven-day Tet holiday fixed for State employees

Officials, civil servants, public employees and workers of State administrative and socio-political organisations will enjoy a seven-day Lunar New Year (Tet) and four-day National Day holidays next year.

Vietnam has opportunity for energy transition towards green growth

Vietnam boasts substantial potential for wind power, particularly offshore wind power, providing an opportunity for the country to fulfill its energy transition target towards green growth.

PM requests combined efforts to combat IUU fishing

Prime Minister Pham Minh Chinh called for concerted efforts to fight illegal, unreported and unregulated (IUU) fishing while chairing a teleconference with 28 coastal provinces and cities on December 1.
back_to_top