Credit growth showed positive signs when it reached 4.45% near the end of June. This is the first cumulative monthly figure of the year that exceeded the growth rate in the same period last year.

According to the report on the socio-economic situation of the second quarter and the first 6 months of 2024 just announced by the General Statistics Office, as of June 24, the economy's credit growth reached 4.45%, while the same period last year only achieved growth of 3.83%.

Thus, from the beginning of the year until now, an additional VND 603,000 billion has been pumped into the economy. In particular, in the second quarter alone, the amount of money pushed into the economy was VND 422,000 billion, significantly higher than the first quarter, signaling that credit has accelerated.

In addition, this is also the first time credit recorded a higher growth rate compared to the same period last year. The goal of the Government and the State Bank (SBV) is credit growth to reach 5-6% by the end of the second quarter.

Previously, according to MBS Securities, credit growth as of June 20 had reached 4.17%. According to the State Bank's report, credit growth as of June 14 of 3.79%. According to this figure, it can be estimated that in just 10 days (from June 14 to 24), outstanding loans of the entire economy increased by VND 89,500 billion, or 0.66%.

In addition, the General Statistics Office also reported that capital mobilization of credit institutions increased by 1.50% compared to the end of 2023, while at the same time last year, a growth of  3.68% was recorded.

Assessing operating activities in the first 6 months of the year, according to the General Statistics Office, the State Bank continues to maintain policy interest rates to create conditions for credit institutions to access capital at low costs, regulate interest rates and exchange rates in accordance with the market situation, macroeconomic developments and monetary policy goals. At the same time, the State Bank has directed credit institutions to continue reducing costs to reduce lending interest rates.

As of April 2024, the average deposit interest rate in VND of domestic commercial banks is 0.2% p.a. for demand deposits and with terms of less than 1 month; 1.9%-2.8% p.a. for deposits with terms from 1 month to less than 6 months.

Interest rates at 4.8% - 5.2% p.a. for deposits with terms from 6 months to 12 months; 6% - 6.9%/year for deposits with terms from over 12 months to 24 months and 6.9% - 7.4%/year for terms over 24 months.

Kylie Nguyen