The latest figures from Ho Chi Minh City Statistics Office revealed that by the end of August 2024, the credit debt of the credit institution system in the area reached only 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 banking system’s lending rate 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.Â
Credit growth remains sluggish despite decreasing lending rates. Statistics in Ho Chi Minh City up to August show that VND lending rates are 0.9 to 1 percentage point lower for short-term periods compared to the end of last year, despite rising deposit rates.
According to the Ho Chi Minh City Statistics Office, these figures indicate that the city’s economy’s capital absorption capacity has not improved much, and the target of a 15% credit growth rate for the year will face challenges without effective solutions.
The credit growth rate of banks has slowed down in the past two months
The State Bank of Vietnam shared that while the credit growth rate 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 the previously assigned target.
Statistics from VPBank Securities showed that several banks had credit growth rates below 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, analyzed that many indicators point to domestic enterprises in the city facing challenges and showing no robust recovery signs in investment activities in the first half. Therefore, Ho Chi Minh City should focus more on stimulating domestic consumption and investment, which would aid in faster overall demand recovery and reduce export dependence…
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