According to State Bank's Credit Department, as of the end of June 2024, the total outstanding loans to the economy reached nearly VND 14.4 million billion, an increase of 6% compared to the end of last year. Of which, consumer loans reached more than VND 3 million billion. Thus, from the beginning of the year until now, more than VND 810,000 billion has been injected into the economy.

In the second quarter alone, the economy received about an additional VND 630,000 billion, significantly higher than the first quarter, signaling that credit has accelerated since the end of the second quarter. In the last week of June alone (from June 24 to June 30), outstanding loans to the economy increased by more than VND 210,000 billion.

The Government and State Bank's goal is credit growth to reach 5-6% by the end of the second quarter.

Regarding policies in the first 6 months of the year, according to the General Statistics Office, the State Bank of Vietnam continues to maintain policy interest rates to create conditions for credit institutions to access capital at low costs; harmonize 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 at 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% p.a. for deposits with terms from over 12 months to 24 months; and 6.9% - 7.4% p.a. for terms over 24 months.

Meanwhile, the average lending interest rate of domestic commercial banks for new and existing outstanding loans at 7.3% - 9.5% p.a. The average short-term lending interest rate in VND for priority sectors at about 3.6% p.a., lower than the maximum short-term lending interest rate according to regulations of the State Bank (4% p.a.).

According to the General Statistics Office, credit continues to be strictly controlled in terms of risk, ensuring system safety and focusing on economic growth drivers, meeting new trends in growth such as green credit, implementing commitments to Net zero emissions by 2050, etc.

Kylie Nguyen