“Huge Cash Injection by Banks: Over $8.6 Billion Pumped into the Economy in Mid-September, Says Governor; A 15% Credit Growth Target is Well Within Reach.”

Mr. Luu Trung Thai, Chairman of MB, said that most of the new outstanding balance (47%) or VND 32.7 trillion was allocated to the retail segment, with production and business loans growing by about 20% year-on-year.

As of the end of August, the leader of Nam A Bank revealed that the bank’s credit growth was at 14%, corresponding to 85% of the quota assigned by the SBV, and it is expected to be further relaxed.

On the other hand, some banks still recorded credit growth below expectations.

According to Ms. Nguyen Duc Thach Diem – CEO of Sacombank, although many solutions and mechanisms have been applied to promote credit growth, Sacombank’s credit growth, in particular, has not yet met expectations due to some difficulties and obstacles: Capital demand remains low as exports and domestic consumption have not recovered; Many enterprises downsized their production scale and were cautious about risks, so they did not actively use loans.

In addition, people’s incomes decreased, while the supply of real estate for living needs at reasonable prices was not met. Companies/real estate projects are still facing difficulties as the legal framework is not yet complete, and financial capacity has deteriorated severely.

Apart from the factor of people’s reduced income due to economic difficulties, the proliferation of lending applications with relaxed lending conditions and no collateral requirements has also taken a share of the consumer credit market, resulting in slower growth in consumer credit.

Regarding solutions, the CEO of Sacombank suggested that it is necessary to continue reducing capital costs and lowering lending interest rates to enhance capital accessibility. At the same time, she proposed that the Government continue to maintain an expansionary fiscal policy to stimulate aggregate demand, thereby promoting growth. Implementing tax and fee reduction solutions to directly support consumption demand, thereby increasing purchasing power;….

In the first half of the year, VIB’s credit growth was also lower than the average growth rate of the entire system.

Sharing at the Conference of the Government Standing Committee with joint-stock commercial banks, Mr. Dang Khac Vy, Chairman of VIB, said that as the banking industry is increasing the proportion of retail credit in its credit portfolio, with real estate and apartments accounting for a significant proportion of total collateral, the recovery of the real estate market will positively affect the economy and enable banks to increase lending and handle bad debts.

The Chairman of VIB hopes that the Government and ministries and branches will continue to implement synchronous solutions to promote the healthy and sustainable development of the real estate market, thereby helping banks to increase credit safely and strongly. At the same time, continue to implement the policy of not relaxing credit conditions to achieve credit growth at all costs to avoid subsequent adverse effects on the safe operation of banks and the stability of the system.

According to the survey results of credit trends of credit institutions (CIs) in the fourth quarter of 2024, credit institutions (CIs) expected credit growth in the fourth quarter to reach 4.8% and 13.2% for the whole of 2024. This result is 0.9 percentage points lower than the previous survey’s forecast of 14.1% credit growth for the whole year.