Credit growth among banks in Ho Chi Minh City has decreased slightly in early 2025, with notable figures showing a 0.17% decline compared to December 2024, while still achieving a year-on-year increase of 12.2%. Despite this decline, lending in vital economic sectors has remained stable, positioning the banks to target a 16% growth for the year.
In the beginning of 2025, banks in Ho Chi Minh City have encountered a slight decline in credit growth, despite their initiatives to provide preferential loans. As reported by Nguyen Duc Lenh, Deputy Director of the State Bank of Vietnam’s HCM City Office, the outstanding credit reached 3.936 trillion VND in February, marking a decrease of 0.17% since December 2024, but a notable year-on-year increase of 12.2%.
While overall credit growth has decreased, lending to essential economic sectors has remained stable. Notably, foreign currency lending to import-export businesses experienced a month-on-month increase of 1.37%. The banks’ lending focus continues to emphasize production, business, trade, services, and consumption, which collectively represent 75% of total loans, primarily addressing short-term funding requirements.
February saw a significant 14% rise in lending compared to January, indicating a positive trend in demand for credit. The HCM City office of the central bank indicated that various economic growth strategies have enhanced capital absorption capacities and facilitated credit expansion. Stable interest rates and collaborative programs between banks and businesses are anticipated to further invigorate production and consumption.
With the objectives set, the State Bank of Vietnam aims to achieve a credit growth target of 16% for the year. This consistent growth strategy is intended to support the overarching economic targets of the region as it navigates the challenges of the global economy.
In summary, Ho Chi Minh City’s banks are currently facing a slight decline in credit growth despite efforts to provide favorable loan options. Although there has been a minor decrease in overall credit, key economic sectors like production and export-import activities remain stable. Strategies to bolster economic growth and maintain low interest rates are pivotal components in aiming for a 16% credit growth in 2025.
Original Source: en.vietnamplus.vn
