Vietnam Credit Growth Quickens to 6.82% in H1: Central Bank

Tuan Minh

11:05 04/07/2016

BizLIVE - Bank loans increased 6.82% in the first six months of this year, higher than a 6.37% expansion in the same period of 2015.

Vietnam Credit Growth Quickens to 6.82% in H1: Central Bank

The view of the State Bank of Vietnam's headquarters in downtown Hanoi. (Photo: Minh Tuan/BizLIVE)

Total outstanding loans at banks in Vietnam grew 6.82% from the start of this year to June 24, compared to a growth rate of 6.37% in the first half of 2015, according to data of the Credit Department under the State Bank of Vietnam (SBV).
Lending in the Vietnamese dong posted an 8.11% increase in the period, accounting for 90.8% of total credit, while that in foreign currency declined 4.64% from the end of 2015.
The credit growth has mirrored developments of the macroeconomy and aligned with the central bank’s orientations of funneling loans into business and production, and curbing the dollarization, said Nguyen Tien Dong, head of the Credit Department.
Credit has been focused on the five prioritized sectors which are small- and medium-size enterprises (SMEs), agriculture, supporting industries, export and hi-tech, he added.
Loans to SMEs, for example, reached 1,029.79 trillion dong ($45.77 billion) between January and June, 2.62% higher than that at the end of 2015 and accounting for 20.1% of total credit.
The central bank has aimed credit growth at 18%-20% this year, higher than an annual expansion of 17.29% in 2015.
Vietnam’s gross domestic product (GDP) growth stood at 5.52% in the first half of this year, lower than 6.32% of the comparable period of 2015, indicating a slowdown, according to official data.