Vietnam 2015 Credit Growth Misses Forecasts

Tuan Minh

08:00 03/02/2016

BizLIVE - Total lending at the Vietnamese banking system expanded by lower-than-expected 17.29% in 2015.

Vietnam 2015 Credit Growth Misses Forecasts

Vietnam posted credit growth of 17.29% in 2015. (Photo: Internet)

Total outstanding loans at banks in Vietnam grew 17.29% in 2015 from of 2014, lower than the 18% estimate of the central bank and industry insiders, according to data of the State Bank of Vietnam’s Credit Department.
Lending for the agricultural and rural development as of December 31 rose 13.32% year-on-year.
Meanwhile, lending for the hi-tech sector, one of the five priority areas, jumped 43.07% in the 11 months through November 2015, nearly seven times the growth rate of Vietnam’s gross domestic product last year.
The department added that local banks had pledged to lend 27.4 trillion dong ($1.22 billion) as of the end of December 2015 under a $1.45 billion home loan program which was launch in early 2013. The amount leaped 183% from a year earlier.
The department updated that total lending by banks in the country slipped 0.21% as of January 20 from the end of 2015, compared to a 0.5% slide in the same period last year.
According to SBV data, total outstanding loans in the local banking system increased 15.51% to 4,586.43 trillion dong (roughly $204 billion) in the 11 months through November 2015.
Credit growth is aimed to growth 18%-20% this year to support a faster economic expansion.