These figures were shared by Mr. Nguyen Duc Lenh, Deputy Director of the State Bank of Vietnam (SBV)’s Ho Chi Minh City Branch.
According to Mr. Lenh, VND-denominated credit accounts for a significant proportion of the total outstanding balance, making up 96.2% and increasing by 7.41% compared to the end of 2023. Low lending rates, along with supportive credit policies and the disbursement of preferential credit packages, have been the primary drivers of VND credit growth when analyzing outstanding credit in VND and foreign currencies.
He added that credit in the remaining two months of the year will continue to play a crucial role in supporting businesses and boosting economic growth. Moreover, the capital mobilized by credit institutions in the area over ten months reached VND 3,855 million, an increase of 8.9% compared to the end of 2023 (a growth rate higher than that of credit growth), which will facilitate capital availability to meet the end-of-year demand.
Concurrently, lending activities for market stabilization have contributed to maintaining stable prices, especially for essential consumer goods during the year-end period. As of now, the lending turnover for this program has reached VND 9,778 billion, benefiting 37 participating enterprises (including price stabilization enterprises and those in the supply chain). The low-interest rates, averaging around 4%/year, have directly supported the participating enterprises’ capital usage costs, thereby reducing production costs and enabling these enterprises to lower or stabilize their selling prices (which tend to increase during the Tet holiday).
This has significant implications and aligns with the program’s objective of helping stabilize prices during the year-end period and contributing to social welfare and bringing Tet to all citizens of the city.
Credit in the area during the last two months of the year and the traditional Lunar New Year holiday is expected to continue its growth trend, outpacing the previous months. This is associated with seasonal factors as the demand for production and consumption of goods and services typically surges during the year-end and Lunar New Year holidays. Additionally, the growth in export-import activities, services, and tourism during the year-end period further stimulates credit growth in the region.
With the current performance, credit growth for the first ten months reached 12.7% year-on-year, and by the end of 2024, credit in the region is projected to achieve a growth rate that aligns with the SBV’s orientation and the city’s actual capital needs, ensuring compatibility with the city’s GRDP growth in 2024.
The Financial Currency Market: A Stable Investment Haven
According to a report by the Ministry of Planning and Investment, despite facing challenges and difficulties, the economy in October and the ten-month period showed a strong recovery. Economic and social activities rebounded quickly after natural disasters and floods. In October, several international organizations upgraded their growth forecasts for Vietnam in 2024, predicting it could be the highest among ASEAN+3.
A Year-End Monetary Policy: Striking a Balance Between Economic Support and Exchange Rate Stability
Although the State Bank of Vietnam is absorbing excess liquidity, Rong Viet Securities assesses that the monetary policy stance remains accommodative to economic growth, alongside managing short-term volatilities such as exchange rate pressures.
The New Interest: “The Coming Year’s Slashed Interest Rates”
With the Fed and many central banks entering a cycle of cutting interest rates, Vietnam will continue to maintain its accommodative stance to support economic growth. Interest rates are expected to drop by 0.7% in the coming year, providing a boost to the economy and potentially spurring investment and consumption.
The Alluring Challenge: Unveiling the Record-Breaking Bond Offering
ACB is planning to issue a massive 45,000 billion VND worth of bonds in 2024 – a record-breaking amount in the history of the bank’s operations.
Boosting Year-End Credit
As of the end of September, the banking sector’s outstanding credit increased by 9%. In September alone, banks disbursed nearly VND 300,000 billion, indicating a surge in seasonal capital demand as the year draws to a close.
