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HCMC: Credit in August 2024 resumed growth

16/09/2024

According to data shared by Mr. Nguyen Duc Lenh - Deputy Director of the State Bank of Vietnam (SBV) Ho Chi Minh City branch, as of the end of August 2024, the total outstanding loans in Ho Chi Minh City reached over VND 3.7 million billion, an increase of 0.75% compared to the previous month; an increase of 4.68% compared to the end of the year and an increase of 11.28% compared to the same period last year. Thus, after a slight decrease in July 2024 (decreased by 0.09%), credit in August 2024 resumed growth

Of which, foreign currency loans account for a low proportion of the total outstanding loans, at about 3.6% and have been on a decline trend in recent months, but have resumed growth in August 2024, with an increase of 0.8%. According to Mr. Lenh, this development is consistent with the import-export situation in the city and the positive development of exchange rates. In particular, the exchange rate and the stable foreign exchange market are also factors that positively affect production and business activities in general and import-export activities in particular.

According to Mr. Lenh, bank credit activities in the city area continue to focus on the task of supporting businesses. In particular, restructuring the repayment term and maintaining debt groups according to the mechanism of Circular 02 and Circular 06 continue to be implemented to remove difficulties for businesses, reduce debt repayment pressure, maintain production and create cash flow for development. To date, nearly 43 thousand customers and businesses in the area have had their debts restructured, with the total outstanding loans of VND 41,498 billion. In particular, the disbursement of preferential credit packages through the bank-enterprise connection program reached a high volume, with disbursement reaching VND 425,659 billion in the first 8 months of the year, equal to 83.3% of the size of the credit package registered at the beginning of the year, with 146,906 customers supported (reduced lending interest rates; restructuring the repayment term and maintaining debt groups; preferential interest rate loans and import-export loans, etc.).

Lending to 5 sectors and fields that are the driving force of economic growth, including: import-export sector; small and medium enterprises; rural agriculture sector; supporting industries and high-tech enterprises continued to maintain positive growth rates in the first 8 months of the year. To date, the total outstanding loans for 5 industry groups have reached VND 1,688 billion, an increase of 0.7% compared to July 2024. Of which, outstanding loans for small and medium enterprises continue to maintain a high proportion, accounting for 82% of the total outstanding loans in these 5 industry groups in the area.

Besides, if analyzed by market share and credit institutions (State-owned commercial banks, joint-stock commercial banks, joint-venture banks, foreign banks, financial companies) in relation to credit growth of each credit institution and the system of credit institutions, the outstanding loans of joint-stock commercial banks and State-owned commercial banks still account for a high proportion in the total outstanding loans in the area and achieved a higher growth rate than other sectors. This will be an important factor in contributing to credit growth in the last months of the year, when credit institutions are allowed to increase their credit growth limits, creating conditions to meet capital needs for production, trade and service activities.

 

Kylie Nguyen

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