According to Ms. Ha Thu Giang, total credit to the economy will increase by 13.71% by the end of 2023. Specifically, credit for agriculture and rural areas will increase by 11.56%; credit for small and medium-sized enterprises will increase by 13.61%; credit for exports will increase by 6.57%; and supporting industries and high technology will increase by 26.18% and 17.52% respectively.
According to the Head of the Credit Department for Economic Sectors, credit for high-risk sectors are being closely controlled. Specifically, by the end of 2023, credit for securities accounts for only 0.62% of the total debt of the economy; the outstanding balance of bond investments by credit institutions decreased by 30.3% compared to the beginning of the year; credit for BOT and BT transportation decreased by 6.79% compared to the end of 2022; credit for real estate reached over 2.88 trillion VND, an increase of 11.81% compared to the end of 2022, credit for real estate business increased by 3.38% and credit for real estate consumption increased by 1.08%.
Consumer loans increased by 7.83%; social policy credit reached over 336 trillion VND by the end of January 2024, an increase of 1.36%.
The 15,000 billion VND credit package for aquaculture has been fully disbursed to over 6,000 customers.
By the end of 2023, credit for real estate reached over 2.88 trillion VND, an increase of 11.81% compared to the end of 2022. Specifically, credit for real estate business increased by 3.38% and credit for real estate consumption increased by 1.08%.
(State Bank of Vietnam)
Regarding the 120 trillion VND credit package for social housing loans, Ms. Giang said that by the end of 2023, banks have committed to providing credit for 15 housing projects, with a total amount of over 7,000 billion VND. So far, 6 projects have been disbursed with a total amount of 531 billion VND, including disbursement for home buyers.
On December 31, 2023, the State Bank of Vietnam set a credit growth target of about 15% for credit institutions and branches of foreign banks in 2024, to actively and decisively promote credit growth and implement solutions to meet the capital needs of businesses and people, contributing to supporting economic growth. However, credit growth in early 2024 is relatively low compared to recent years.
Specifically, in January 2024, credit decreased by 0.6% compared to the end of 2023, with 5 out of 9 credit groups recording a decrease in credit.
The joint venture bank group recorded the highest credit decrease, at 3.41%; 100% state-owned banks decreased by 2.2%; state-owned joint-stock commercial banks decreased by 0.88%; joint-stock commercial banks decreased by 0.51%; foreign banks decreased by 0.32%.
By the end of January 2024, the average deposit and lending interest rates for new transactions were 3.38% per year and 6.84% per year, respectively. Decreased by 0.15% and 0.25% compared to the end of 2023.
(State Bank of Vietnam)
Explaining the decrease in credit in the first month of the year, bank leaders said that this is a normal phenomenon in the early months of the year due to the psychology of customers and the sluggish economic activities due to the holiday season.
However, when assessing the credit growth prospects in 2024, representatives of banks believe that the absorption capacity of capital will increase slowly.
This is because the global and domestic demand is recovering slowly. The financial capacity of businesses is still decreasing and their ability to withstand is weak. Meanwhile, the pressure of bad debts on banks in 2024 is very high; the buffer for bad debt risk is thinning, so banks will be cautious in providing credit.
Information from the Conference on Boosting Credit in 2024, organized by the State Bank of Vietnam on February 20, shows that by the end of 2023, the entire system recorded 187,907 customers who have had their repayment terms rescheduled, while keeping the debt group according to Circular 02/2023/TT-NHNN; the total principal and interest debt rescheduled is 183.536 trillion VND…
