HCMC Credit Growth Rebounds in Q1 | Business

A Sacombank office in HCM City (Photo courtesy of the bank)

Nguyen Duc Lenh, deputy branch manager, said credit growth rebounded as the pandemic was brought under control and the economy returned to normal.

He added that credit growth should give additional leverage to the post-pandemic economic recovery.

The banking sector would continue to offer credit support programs to help businesses restore production based on government and central bank guidelines and regulations.

The measures include debt restructuring, exemption and reduction of interest rates.

Commercial banks in the city have provided 1,851,864 customers with credit support programs worth VND3.2 quadrillion ($139.1 billion), according to Lenh.

At the end of February, the city’s total outstanding loans were estimated at more than VND 2.9 quadrillion ($126 billion), up 12 percent year-on-year.

In addition, outstanding loans from HCM-based Vietnam Social Policy Bank reached VND 7.186 trillion in February, up 2.9 percent year-on-year.

Outstanding loans for combating unemployment and sustainably reducing poverty accounted for the highest amount, accounting for about 57% of the total outstanding loans granted by the Viet Nam Bank for social policies.

In addition, exchange rates remain stable in line with central bank guidelines.

The central bank raised its exchange rate between the dong and the US dollar by 0.08% at the end of March, while the exchange rate of commercial banks increased by 0.35%.

Non-performing debt is well controlled below the prescribed level, he said. Commercial banks continue to promote online banking services.

At the same time, the mobilization of deposits by credit institutions in HCM City increased by 1.29% as of February 25.

Dong deposits increased by 1.3% over the year, while foreign currency deposits increased by 1.24%.

Experts said credit growth had rebounded on growing demand for capital and companies had increased production.

They recommended that the government and the central bank continue to offer more stimulus packages, accelerate the disbursement of public investments and remove challenges to stimulate credit growth.

The central bank plans to raise the country’s credit growth target to 14% this year from 12% last year.