Credit grows 6.82% in H1

The Saigon Times | Tue, Jul 5, 2016 02:20:10 PM Share this on

Credit inched up 6.82% in the first six months of this year against the end of 2015, above 6.37% in the same period last year, showed data of the Credit Department under the State Bank of Vietnam.

Loans in the Vietnam dong had jumped 8.11% as of June 24 over end-2015 and picked up 22.95% versus the first six months of 2015. It accounted for 90.8% of total outstanding loans, while foreign currency credit edged down 4.64% against end-2015.

Nguyen Tien Dong, head of the department, was quoted by the Vietnam News Agency as saying that the credit growth matched the nation’s macro-economic performance in the period and the central bank’s fight against dollar hoarding. Higher credit growth supported business operations.   

Dong said more loans went to the manufacturing sector and the five priority sectors of agriculture and rural development, production of export goods, small- and medium-sized enterprises (SMEs), supporting industries and high-tech enterprises.

Outstanding loans for SMEs surpassed VND1,029 trillion (US$46.17 billion) in the January-June period, up 2.62% against last year’s end and accounting for 20.1% of the total.

The agricultural and rural development sector saw outstanding loans from credit institutions, excluding Vietnam Bank for Social Policies and Vietnam Development Bank, reaching around VND886 trillion, increasing 4.98% from late 2015 and making up some 18% of the total. 

Regarding the five priority sectors, credit expanded by 5.53% to some VND183.42 trillion for production of export goods, 2.37% to VND121.53 trillion for supporting industries, and 1.45% to VND28.62 trillion for hi-tech enterprises. 

The central bank projected credit would rise by 18-20% this year and said it would make adjustments to support gross domestic product (GDP) to grow 6.7% as set by the National Assembly.

Source: The Saigon Times