On-lending credit in Ho Chi Minh City rose by 1.9% in March to VND3,570 trillion ($154.7 billion), up 0.6% from the end of 2023, Nguyen Duc Lenh, deputy director of the State Bank of Vietnam’s (SBV) branch in Ho Chi Minh City, has said.
Although credit growth in the first quarter was lower than in the same period in the last three years, it picked up in March after slowing in January and February, Lenh said.
Credit growth was negative 0.93% in January and rose by only 0.01% in February.
The figures reflect the positive effects of the central bank’s monetary policies and the demand for support for economic growth.
Credit growth in the first quarter reflected not only favorable conditions from economic growth, production, trade and tourism in the city, but also a general recovery trend.
Lenh attributed the growth to low interest rates and a favorable investment environment, which have stimulated production and encouraged businesses to expand.
Credit has also helped fuel a recovery in the real estate market, with demand and transactions increasing in recent months, and has had a positive effect on consumer credit in the city.
Personal loans, especially those from the preferential lending package worth VND20,000 billion ($865 million) provided by consumer finance companies in the city, reached nearly VND259 billion ($11.2 million) and were disbursed to 10,554 customers.
Although these loans are small, they meet the capital needs of people, especially workers in industrial and processing zones, and contribute to social security and reducing illegal lending.
According to the SBV branch in Ho Chi Minh City, economic growth and favorable policies not only create an environment conducive to business and production activities, but are also an important source of support for businesses to develop and grow, which in turn stimulates credit growth.
This is an important factor in removing bottlenecks and creating capital circulation in the economy.
If the current trend of economic growth and credit growth continues in April and the following months, it will lay the foundation for a new growth cycle for the economy and credit.
Credit growth in the first quarter is a positive sign for economic recovery and stable growth amid many remaining difficulties and challenges.
