The Surprising Lending Speed of Ho Chi Minh City Banks

"HCM City's bank credit growth has yet to surge as expected, as businesses continue to face challenges. Despite this, there is a glimmer of hope on the horizon, with experts predicting a shift in the market that could see a surge in lending and a boost to the economy."

0
60

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. 

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…

You may also like

“FDI Boosts the Development of Serviced Apartments for Rent in Ho Chi Minh City”

The influx of FDI has led to a significant rise in the number of foreign business owners and experts flocking to Ho Chi Minh City. This has, in turn, fueled the growth of the rental serviced apartment sector.

The Surprising Lending Speed of Ho Chi Minh City Banks

“Hanoi’s bank credit growth has yet to reach its expected breakthrough as businesses continue to face challenges. Despite this, there remains an air of cautious optimism within the city’s financial sector. With a resilient economy and a dynamic business landscape, the potential for a surge in credit growth is ever-present, and banks are poised to play a pivotal role in facilitating this anticipated upswing.”

The Ultimate Bridge: Unveiling the 500-Billion-VND Masterpiece Revolutionizing Travel in Ho Chi Minh City

On the morning of August 30, the People’s Committee of Nha Be District, Ho Chi Minh City, inaugurated the construction of a bridge over the Cay Kho canal. The project, now operational, shortens travel distances for locals by nearly 10 kilometers.

The Non-Stop City: A Glimpse into the Hustle and Bustle of Ho Chi Minh City’s Most Modern Interchange

To meet the deadline for this pivotal project in Ho Chi Minh City, the contractor rallied engineers and workers to work tirelessly through the nights and holidays at the An Phu Intersection project in Thu Duc City, Ho Chi Minh City.

The Ever-Changing Landscape of Ho Chi Minh City’s Ring Road 3: A Year of Transformation

After more than a year of construction, contractors are now mobilizing equipment, manpower, and resources to accelerate the progress of the Ring Road 3 project in Ho Chi Minh City.