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Ho Chi Minh City: Credit surged

27/04/2022

Outstanding loans in Ho Chi Minh City in the first four months of the year reached over  VND 3 million billion, an increase of about 7% compared to the end of 2021.

According to Mr. Nguyen Duc Lenh, Deputy Director of the State Bank of Vietnam (SBV) Ho Chi Minh City branch: It is estimated that by the end of April 2022, the amount of outstanding loans in the area will reach over VND 3 million billion, an increase of about 7% compared to the end of 2021. This is the highest growth rate compared to the same period many years ago.

The high credit growth in the first four months of the year is mainly due to the increased demand for capital for business activities, and economic recovery of the city. In which, credit in VND accounted for a high proportion of total outstanding loans (93%) and grew by 7.6% compared to the end of 2021.

Also according to data from leaders of the State Bank of Vietnam branch in Ho Chi Minh City, by the end of April, the total value of debt support for businesses, cooperatives and business households in the area reached over VND 3.2 million billion, for nearly 2 million loans of customers; directly contribute to helping businesses, cooperatives and business households in the area overcome difficulties due to the impact of the pandemic to stabilize and restore growth.

Particularly, credit to enterprises in industrial parks - export processing zones (IZs - EPZs) in the area (as of the end of March 2022) reached over VND 400,000 billion, an increase of 23.4% compared to the end of 2021, much higher than the general credit growth in the area.

This result is consistent with the positive changes of enterprises operating in IZs and EPZs with import and export activities growing quite well in the first three months of the year and over the past year.

Short-term credit outstanding in VND for five groups of industries and fields (exports; agriculture and rural areas; small and medium-sized enterprises; supporting industries and high-tech enterprises) reached VND 196,000 billion, with low interest rates (not exceeding 4.5%/year) have created favorable conditions for groups of industries and fields that are the growth engines of the economy to recover and develop.

In which, outstanding loans to small and medium-sized enterprises still account for the highest proportion, 76% of the total outstanding loans of this program.

 

Kylie Nguyen

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