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Eight months, credit increased by 7.4%


According to information from the State Bank, as of the end of August, the credit of the economy increased by about 7.4% compared to the beginning of 2021. Particularly in Hanoi, credit as of the end of August increased by 8.3 % compared to the beginning of the year and increased by 1% compared to the previous month. This is lower than the 1.2% increase in July alone.

Meanwhile, in Ho Chi Minh City, credit as of the beginning of August increased by 5.8% compared to the beginning of the year and increased by 0.2% compared to the previous month. In the 2 months since social distancing, outstanding loans increased by 1.1%, while the first 5 months of the year accumulated nearly 5%, an average increase of 1% per month.

The capital inflow of the entire banking industry remains focused on priority areas and supports a number of essential industries such as rice and important regions such as the Mekong Delta. After the rice sector, in the near future, the State Bank is expected to organize a conference to support the agricultural products, fruit trees and possibly the fisheries sector.

Credit growth slowed down in August and is expected to continue to be affected in September due to the negative impact of the pandemic and the implementation of social distancing, but credit is expected to recover strongly from October and the last two months of the year.

According to the scenario from the beginning of the year of the State Bank, if mass vaccination and the Covid-19 pandemic is brought under control, credit will increase by 12-13%, possibly reaching 14%.

However, if social distancing measures are still in place, the duration of vaccination is extended, credit can increase by 10-12%. If the pandemic lasts until the end of the year, credit growth will only reach about 7-8%.


Kylie Nguyen

© 2019 Vietnam Bank for Agriculture and Rural Development No. 2 Lang Ha street, Ba Dinh district, Hanoi, Vietnam
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