Credit growth remains far from Vietnam government's target
HANOI: Credit within the banking system to the end of May 2024 increased by only 2.41 per cent against the end of 2023, far from the credit growth targets, the Government reported.

The Government has set a credit growth target of 5 per cent for the first six months of 2024 and 15 per cent for the whole year.

Credit growth of banks in HCM City and Hanoi by the end of May 2024 was double that of the average rate elsewhere in Vietnam.

According to newly released data from the Hanoi Statistics Department, total outstanding loans in the capital city by the end of May 2024 reached VNĐ3.8 quadrillion, an increase of 1.14 per cent compared to the previous month and 5.09 per cent compared to the end of 2023.

Of the total, short-term outstanding loans were VNĐ1.6 quadrillion, an increase of 6.61 per cent compared to the end of last year and medium and long term outstanding loans reached more than VNĐ2.19 quadrillion, an increase of 4.01 per cent.

According to the Hanoi Statistics Department, credit institutions in the capital have promoted credit growth through offering many preferential credit programmes and packages and applying flexible interest rate policies.

The average lending interest rate is 7.5-9.7 per cent per year, while the maximum short-term loan interest rate for priority sectors, including agriculture, rural areas, exports and SMEs, is about 3.6 per cent per year.

Meanwhile, the HCM City Statistics Department reported the total outstanding loan of credit institutions in the city as of May 31 was estimated at VNĐ3.61 quadrillion, an increase of 4.5 per cent compared to the end of 2023.

Of which, short-term outstanding loans were at nearly VNĐ1.72 quadrillion, up 6.1 per cent compared to the end of last year, and medium and long term outstanding loans were more than VNĐ1.89 quadrillion, up 3.1 per cent compared to the beginning of the year.

As for capital mobilisation, similar to the general trend of the whole country, capital mobilisation of credit institutions in the two cities decreased compared to the beginning of the year.

Banks in Hanoi raised nearly VNĐ5.32 quadrillion by the end of May 2024, an increase of 0.15 per cent compared to the previous month and a decrease of 0.38 per cent compared to the end of 2023.

Of the total, deposits reached VNĐ4.67 quadrillion and issuance of valuable papers reached VNĐ641 trillion.

Deposit interest rates offered by Hanoi-based banks at the end of May increased slightly compared to February and March, reaching 0.1-0.5 per cent per year for non-term deposits, 1.8-3.3 per cent per year for 1-6 month deposits, 3-5.2 per cent per year for 6-12 month deposits and 4.1-5.7 per cent per year for deposits above 12 months.

In HCM City, by the end of May, the total mobilised capital of credit institutions was estimated at more than VNĐ3.52 quadrillion, up 0.2 per cent compared to the previous month and down 1.2 per cent compared to the beginning of the year. — Vietnam News/ANN
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HANOI: Credit within the banking system to the end of May 2024 increased by only 2.41 per cent against the end of 2023, far from the credit growth targets, the Government reported.