Vietnam's credit growth expands by over 17 percent

Customers at a branch of Vietnam Prosperity Joint Stock Commercial Bank (VPBank). (Photo: VNA)

Hanoi - Vietnam’s credit growth as of June 9 expanded by 17.09 percent against the same period last year, Deputy Governor of the State Bank of Vietnam (SBV) Dao Minh Tu said on June 15.

He revealed the figure at a press conference held by the central bank to review the performance of the banking sector in the first six months of this year, adding that it is in line with the more positive developments of the economy.

According to the SBV Deputy Governor, during the period, credit and monetary policies have gradually been harmonised with the new normal, focusing on increasing investment in various fields of the economy. Since the beginning of this year, the SBV has directed institutions to concentrate credit on business and production, and prioritised fields as well as strictly controlling credit for potential risk areas.

In the coming time, positive credit growth along with the impact of the economic stimulus package will support the nation's economic recovery, he said.

By the end of April, credit institutions have extended the payment deadline and reduced interest rates for debts worth over 695 trillion VND (29.8 billion USD) for 1.1 million customers. Banks have also frozen and waived interest rates for about 490,000 clients with combined outstanding loans of nearly 91 trillion VND.

Vietnam is likely to face the risk of inflation in the future, he said, adding that the global monetary and financial situation has many fluctuations that will affect the country because its economy is open.

He said that the SBV will monitor market developments at home and abroad as well as the pandemic situation to synchronously and flexibly manage monetary policies to control inflation, stabilise the macro-economy and support economic recovery.