This is a much higher growth rate than the forecasts previously made by many organizations and analysts (10 - 11%).

According to the latest data published from the State Bank of Vietnam (SBV), as of December 31, 2023, credit to the economy increased by about 13.71% compared to the end of 2022, not significantly lower than the previous year's level of 14.18%.

Credit increased at the end of the year thanks to the management of credit growth in the fourth quarter and the end of 2023.

Credit had a slow increase in the first quarters of the year, even decreased (compared to the previous month) in July, and began to improve at the end of the third quarter. As of September 29, credit growth only reached 6.92%.

Credit improved faster, especially in the last days of December. While as of the end of November, credit growth only reached 9.15%, as of the end of December this figure reached 13.71%, exceeding the forecast of many economic organizations (about 10 - 11%).

Along with that, in 2023, the amount of deposits into the banking system from residents and economic organizations reached more than VND 13.5 million billion, reaching the highest deposit level in the history of the banking industry.

The Dong (VND) has depreciated by about 2.9%, showing that it is one of the highly stable currencies and the state foreign exchange reserves have improved compared to the end of last year. These are plus points to increase Vietnam's credit rating in 2023, said Governor Nguyen Thi Hong.

Regarding interest rates, thanks to inflation being controlled at a low level and forecasting that inflation pressure is not large, the State Bank has proactively reduced policy interest rates four times and brought lending interest rates down by more than 2% compared to the end of last year, especially the interest rate level has returned to the level before the COVID-19 pandemic.

The Governor shared that the SBV is also aware that the economy will still face many difficulties and challenges in 2024. Therefore, the SBV has prepared to respond flexibly to the situation and will focus on handling potential issues for the banking system such as: handling weak banks and handling increasing bad debts.

In addition, the State Bank will closely monitor the situation and, if inflation is controlled at a low level, will make appropriate adjustments. On the contrary, if inflation increases, the State Bank will use monetary tools to control to achieve the set goal.

Kylie Nguyen