According to a report by the State Bank of Vietnam, as of March 12, credit growth increased by 1.24% compared to the beginning of the year (down 0.74% in the same period last year). Estimated by the State Bank’s data, the credit scale of the entire banking system reached VND 15,810,000 billion by March 12, an increase of nearly VND 194,000 billion compared to the end of 2024, and an increase of approximately VND 164,000 billion since the Lunar New Year.
Earlier, the State Bank set a credit growth target of 16% for credit institutions this year to meet the capital needs of people and businesses and promote economic development.
According to a leader of the State Bank, in the first two months of the year, the State Bank issued ten documents directing credit institutions to implement credit growth solutions and simplify procedures and apply digital transformation in the credit granting process. Credit institutions were also requested to strictly follow the Government’s, Prime Minister’s, and State Bank’s directions in stabilizing interest rates and reducing lending rates.
Thanks to these synchronous solutions, credit growth at the beginning of the year has shown positive signs compared to the same period last year, although there is usually a decline in the first months due to seasonal factors and the Lunar New Year holiday.
High credit growth but small businesses still struggle to access bank loans (Photo: Nhu Y) |
According to this leader, many businesses face challenges in accessing loans because they do not meet the bank’s requirements. “Banks cannot achieve credit growth at all costs. Therefore, businesses must meet the conditions to ensure credit quality and prevent bad debt from increasing,” he said.
Talking to reporters, economist Nguyen Quang Huy analyzed that recently, statistics show that credit growth in Vietnam has been quite impressive. The State Bank continuously reports that credit capital has been injected into the economy at a rapid pace to support economic recovery post-pandemic and promote production and business. However, ironically, many enterprises, especially small and medium-sized enterprises, constantly reflect that accessing bank capital is very difficult.
According to Mr. Huy, credit has increased but is unevenly distributed. One of the main reasons is that credit is not evenly distributed across industries and business types. In reality, most credit flows to large enterprises, reputable corporations, or real estate projects, while small and medium-sized enterprises – which account for a large proportion of the economy – have less access. Banks tend to prioritize lending to customers with high-value collateral and good credit histories, putting small businesses at a disadvantage.
Mr. Huy added that although interest rates have been reduced at some points, the loan conditions of banks are still stringent. Enterprises need to demonstrate strong financial capabilities, have clear business plans, and stable profits. However, after the challenging period of the pandemic and global economic fluctuations, many enterprises cannot meet these standards. This leads to a situation where, despite credit growth, not all enterprises are eligible to access this capital.
“After a series of bad debt-related issues in recent years, commercial banks have become more cautious in lending. They tightened the approval and risk management process and even refused to lend if they felt that the enterprise might not repay the debt. This particularly affects new or recovering enterprises, despite their urgent capital needs,” said Huy.
The expert suggested that solving the capital problem for enterprises requires the coordination of all parties. Accordingly, the State Bank can consider providing more specific incentives for small and medium-sized enterprises, such as credit guarantees or reduced loan conditions. Commercial banks also need to be more flexible in evaluating loan applications, not just relying on collateral. Enterprises, on their part, can improve their capital access chances by enhancing governance capabilities, financial transparency, and developing feasible business plans.
“High credit growth is a positive sign for the economy, but to ensure that capital effectively reaches enterprises, there needs to be an improvement in both policies and practical operations. Otherwise, the complaint of ‘difficulty in borrowing capital’ from enterprises will remain a pressing issue in the coming time,” concluded Huy.
Ngoc Mai
“A Bank’s Ambitious Target: Soaring Pre-Tax Profits by 2025”
The Board of Directors of the Joint Stock Commercial Bank for Prosperity and Development (PGBank, UPCoM: PGB) has approved an ambitious business plan for 2025, targeting a remarkable 70% increase in profits.
The Struggle is Real: Businesses Navigate a Treacherous Path to Banking
Many banks have lowered interest rates to support businesses in accessing capital. However, businesses claim that interest rates are still high, and accessing capital is difficult due to a lack of collateral.
The Central Bank Injects an Additional 164 Trillion VND into the Economy Since the Lunar New Year of 2025
According to estimates released by the State Bank of Vietnam, the credit scale of the entire banking system as of March 12 reached VND 15,810 trillion, an increase of nearly VND 194 trillion compared to the end of 2024, and a further VND 164 trillion surge since the Lunar New Year.
The New Interest Rate Cuts: A Strategic Move by Banks to Boost Their Economy.
As per the State Bank of Vietnam’s (SBV) update on deposit interest rate movements at commercial banks from February 25 to March 18, 2025, a significant 23 banks adjusted their deposit interest rates, with reductions ranging from 0.1% to 1% per annum, depending on the term. Notably, the SBV also recorded up to six instances of banks lowering their interest rates within this period.
The Latest Credit Growth Figures: Unveiling the Banking System’s Performance
“The banking sector is off to a strong start this year, with credit growth outpacing that of the previous year. According to Vice Governor of the State Bank of Vietnam, Pham Thanh Ha, as of March 12, credit growth in the banking system had increased by 1.24% compared to the end of 2024, indicating a significant improvement.”
