The latest figures from the Ho Chi Minh City Statistics Office reveal that as of the end of August 2024, credit outstanding of the banking system in the city only increased by 4.5% compared to the end of last year. This figure is significantly lower than the country’s credit growth rate of 6.63% as of August 26.
Notably, the city’s banks’ lending growth has shown signs of slowing down in the past two months, with a 4% increase in June, 3.9% in July, and 4.5% in August compared to the end of 2023.
Credit growth remains sluggish despite declining lending rates. As of August, lending rates in Ho Chi Minh City were 0.9 to 1 percentage point lower for short-term loans in Vietnamese dong compared to the end of last year, even as deposit rates inch upwards.
According to the Ho Chi Minh City Statistics Office, these figures indicate that the city’s economy is not absorbing capital as expected, and achieving the 15% credit growth target for the year will be challenging without effective solutions.
Banks in Ho Chi Minh City have experienced a slowdown in lending growth over the past two months |
The State Bank of Vietnam noted that while the credit growth of the entire system reached 6.63% in the first eight months, there was a disparity among banks, with some experiencing low or even negative growth, while others approached their previously assigned targets.
Statistics from VPBank Securities show that several banks had credit growth of less than 5% in the first half of the year, including Sacombank, TPBank, BVBank, PGBank, SeABank, and ABBank.
Dr. Ho Hoang Anh from the University of Economics Ho Chi Minh City, pointed out that various indicators suggest local businesses in the city are facing challenges and have not shown robust recovery in investment activities so far this year. Therefore, Ho Chi Minh City should focus more on stimulating domestic consumption and investment, which would aid in faster economic recovery and reduce dependence on exports.
Thai Phuong
The Ultimate Bridge: Unveiling the 500-Billion-VND Masterpiece Revolutionizing Travel in Ho Chi Minh City
On the morning of August 30, the People’s Committee of Nha Be District, Ho Chi Minh City, inaugurated the construction of a bridge over the Cay Kho canal. The project, now operational, shortens travel distances for locals by nearly 10 kilometers.
The Non-Stop City: A Glimpse into the Hustle and Bustle of Ho Chi Minh City’s Most Modern Interchange
To meet the deadline for this pivotal project in Ho Chi Minh City, the contractor rallied engineers and workers to work tirelessly through the nights and holidays at the An Phu Intersection project in Thu Duc City, Ho Chi Minh City.
The Ever-Changing Landscape of Ho Chi Minh City’s Ring Road 3: A Year of Transformation
After more than a year of construction, contractors are now mobilizing equipment, manpower, and resources to accelerate the progress of the Ring Road 3 project in Ho Chi Minh City.
The Golden Standard: A Comprehensive Review of Ho Chi Minh City’s Renowned Jewelry Shops
Authorities in Ho Chi Minh City have recently conducted inspections on a series of gold shops within the municipality, uncovering a number of gold products with unclear origins.
