Credit growth rebounds in Q1

Vietnam's credit growth grew 5.04% year-on-year in the first quarter, much higher than the 2.16% in the same period last year, according to the State Bank of Vietnam.

The figure as of March 31 reflects the domestic credit supply has recovered on surging capital demand as companies are ramping up production and business.

"The economy is bouncing back positively as anti-Covid measures are effective, helping to restore people's life and business activities," SBV Governor Dao Minh Tu told a cabinet meeting on Monday.

Vietnam has shifted from the "zero-Covid strategy" to safe and flexible adaptation to Covid-19, with effective control of the disease.

The General Statistics Office (GSO) said the central bank continued to keep the basic interest rate unchanged in the quarter, creating conditions for credit institutions to continue cutting their lending rates and support the country’s economic recovery.

The insurance sector saw premium revenue climb 13%. The growth of life insurance and non-life insurance premium was 15% and 9%, respectively.

Vietnam’s January-March economic recovery and good investor sentiment drove the stock market trading value per session to VND31,409 billion (around $1.4 billion) on average, up 18.1% year-on-year, while market capitalization surged 28%.

In the bond market, the average transaction value per session rose 15.3% to VND13,149 billion (roughly $582 million).

On the derivatives market, the average trading volume of futures contracts on the VN30 Index was 139,076 contracts per session, down 26%. VND30 reflects 30 leading bluechips.

The Vietnamese economy expanded by 5.03% in Q1, with signals indicating it is on track for recovery, the GSO said.