A view of Vietnamese street. (Photo: Bloomberg)
According to the government-run General Statistics Office, credit growth of the banking industry hit 10.78% as of September, the fastest rate since 2011, while banks’ mobilization increased 8.9% in the period.
Lending by banks in Vietnam could expand 16.5% this year, far above a growth rate of 14.16% in 2014, a central bank official told local press.
The brokerage house added that Vietnam’s Credit Default Swap (CDS), which measures credit exposure of the country’s government bonds, climbed from 200 points at the start of this year to 260 points in mid-September, the highest level since January 2014, in line with an uptrend of CDS in regional countries.
The rise in CDS in Vietnam and other emerging market was attributable to jitters about China’s economic slowdown and speculation of the U.S.’s Fed’s interest rate liftoff by the year’s end, MSBS said in the report.
Faster growth in bank loans helped the country’s GDP pick up 6.81% in the quarter ending September and 6.5% in the first nine months of this year, the highest level for the same period in the past five years.