According to newly released data from the Hanoi Statistics Department, as of the end of February 2024, the total outstanding loans in the city is estimated to reach VND 3.68 million billion, an increase of 0.93% compared to last month and 1.96% compared to the end of 2023.

Of which short-term outstanding loans of VND 1.53 million billion, an increase of 2.04% compared to the end of last year; Medium and long-term outstanding loans reached VND 2.15 million billion, an increase of 1.9%. In addition, the bad debt ratio as of the end of January of credit institutions at 1.85%.

Also according Hanoi Statistics Department, loans under the bank-business connection program accounted for 15.6% of total outstanding loans; Loans to small and medium enterprises accounted for 19.05%; agricultural and rural programs accounted for 9%; loans for export finance accounted for 5.18%; loans for supporting industry accounted for 2.35%; loans to businesses applying high technology accounted for 0.36%; loans for financing social policy accounted for 0.44%.

The average lending interest rate of new and old outstanding loans of 8.1 - 10.2% p.a. Maximum short-term loan interest rate in VND for a number of priority sectors (agriculture, rural areas, exports, small and medium-sized enterprises, supporting industries, high-tech application enterprises) on average about 3.8% p.a.

According to the Ho Chi Minh City Statistics Department, the total outstanding loans of credit institutions in the city as of February 29 is estimated to reach VND 3.53 million billion, an increase of 0.6% compared to the end of 2023.

Short-term outstanding loans are estimated at VND 1.67 million billion, accounting for 47.3% of total outstanding loans, an increase of 0.7% compared to the end of last year. Medium and long-term outstanding loans at VND 1,859.5 trillion, accounting for 52.7% of total outstanding loans, an increase of 0.5% compared to the beginning of the year.

The two leading economic engines of the country still maintain positive credit growth, despite the decline in credit throughout the economy in the first two months of the year.

According to the recent updated report of Viet Dragon Securities (VDSC), according to estimates by the State Bank of Vietnam (SBV), the credit growth of the entire economy was negative in the first two months of the year. Specifically, credit growth as of the end of January decreased by 0.6% and as of February 16, decreased by 1% compared to the end of the previous year.

Low credit growth in the first months of the year is a common phenomenon, the average credit growth in the first two months of the period 2013 - 2023 is only 0.56%. Negative credit growth in the first two months of the year appeared in 2014, 2018 and 2024.

Kylie Nguyen