Jan-Sep Lending Growth in HCM City Hits 4-year High

Tuan Minh

17:21 17/10/2016

BizLIVE - Credit growth in Ho Chi Minh City reached 13.26% in the first nine months of this year, the fastest pace for the same period over the past four years.

Jan-Sep Lending Growth in HCM City Hits 4-year High

Credit growth in Ho Chi Minh City reached 13.26% in the first nine months of this year. Photo: Internet

Total outstanding loans at banks in Ho Chi Minh City expanded 13.26% between January and September to nearly 1,400 trillion dong ($62.7 billion), marking the fastest pace for the same period since 2012.
Similarly, mobilization growth reached a four-year high at 11.37% in the nine-month period, totaling 1,740 trillion dong ($78 billion) at the end of September, according to the State Bank of Vietnam (SBV) – HCM City branch.
Reductions in loan interest rates and improvements in economic performance by enterprises have been attributable to the rapid credit growth in the city, said the banking authority.
Banks in the city now offer short-term loans at annual interest rates in the 6.75%-9.04% range while rates for medium- and long-term loans move between 8.7% and 9.9% per year.
Data of the banking authority showed that bad loans in the city accounted for 3.8% of total credit as of August 31, a slight slide from 3.92% recorded at end-2015.
In the first eight months of this year, banks in the city handled 35 trillion dong ($1.57 billion) worth of bad debt, of which 9.63 trillion dong ($431.5 million) was transferred to the Vietnam Asset Management Company (VAMC).
According to the municipal statistics office, the city’s gross regional domestic product (GRDP) grew 7.76% in the first three quarters of 2016, compared to a 7.44% expansion in the same period of 2015.

TUAN MINH