Seasonal factors, weak economy behind low credit growth: Vietnam central bank

By Quang Tuyen, Minh Hue
Sun, March 3, 2024 | 8:12 am GMT+7

Vietnam’s low credit growth in the first two months of 2024 was due to seasonal factors and weak economy, Deputy Governor of the State Bank of Vietnam (SBV) Pham Thanh Ha said on Saturday.

Normally in fourth quarters, credit growth is high thanks to vibrant lending activities. In January or February, which coincides with the Lunar New Year holiday, credit activities often decrease and lending activities are not as bustling as the last months of the year, Ha told a press conference following the government's monthly meeting.

“The world economy has not yet prospered and Vietnam’s main markets have not recovered strongly, affecting our exports,” he said, adding that the national economy still faced difficulties, leading to low credit demand.

This is despite the SBV, the country's central bank, having implemented many solutions to promote credit expansion in credit institutions. Currently, banks’ liquidity is very abundant Ha noted.

Deputy Governor of the State Bank of Vietnam (SBV) Pham Thanh Ha. Photo courtesy of the government's news portal.

Deputy Governor of the State Bank of Vietnam (SBV) Pham Thanh Ha. Photo courtesy of the government's news portal.

Instead of allocating a part of the credit growth quota to banks at the beginning of the year as was done previously, the central bank set an overall credit growth quota of 15%.

At the beginning of February, it issued a document directing credit institutions to focus on promoting lending growth and simplifying procedures to increase customers' capital access. It has also stepped up digital transformation to increase credit accessibility.

On February 20, the SBV organized an industry-wide conference to promote credit growth and support businesses.

According to the deputy governor, the SBV will continue reviewing documents under the newly approved Law on Credit Institutions to make appropriate amendments, thus facilitating borrowers’ capital access.

"The SBV also encourages businesses to actively offer solutions and have more feasible production and business projects. They should make everything transparent and enhance their financial capacity to gain easier access to bank credit," Ha said.

Credit growth of Vietnam’s banking system dropped 0.6% in January over end-2023, according to the SBV.

Last year’s figure of 13.71% fell short of the 14-15% target. This year, the SBV has set a credit growth target of about 15%, saying it may be adjusted to suit the actual situation.

Comments (0)
  • Read More
Excelerate Energy eyes turning Vietnam into LNG center for ASEAN distribution

Excelerate Energy eyes turning Vietnam into LNG center for ASEAN distribution

U.S LNG giant Excelerate Energy wants to set up a joint venture with Vietnamese partners for market expansion, turning Vietnam into a center for LNG distribution to the ASEAN region.

Economy - Thu, May 22, 2025 | 9:34 am GMT+7

Vietnam's consumer finance major F88 secures additional $30 mln from London-based fund

Vietnam's consumer finance major F88 secures additional $30 mln from London-based fund

F88 Investment Joint Stock Company (F88), a leading consumer finance firm in Vietnam, has successfully raised an additional $30 million from Lendable, a London-based financial institution.

Finance - Wed, May 21, 2025 | 11:14 pm GMT+7

Hanoi Opera Theatre shapes up to be landmark of the century

Hanoi Opera Theatre shapes up to be landmark of the century

Designed by world-renowned architect Renzo Piano, the Hanoi Opera Theatre is expected to become an iconic building in Vietnam. But what is special about the design of this theatre on West Lake that it can reach global stature?

Travel - Wed, May 21, 2025 | 9:31 pm GMT+7

Vietnam's former State President Tran Duc Luong passes away

Vietnam's former State President Tran Duc Luong passes away

Tran Duc Luong, former Politburo member and former State President of Vietnam, passed away at 10:51 p.m. Tuesday, aged 88.

Politics - Wed, May 21, 2025 | 8:37 pm GMT+7

The Trump Organization breaks ground on $1.5 bln property project in Vietnam

The Trump Organization breaks ground on $1.5 bln property project in Vietnam

The Trump Organization on Wednesday broke ground on its $1.5 billion golf, eco-tourism and urban complex in northern Vietnam, with the witness of Prime Minister Pham Minh Chinh.

Real Estate - Wed, May 21, 2025 | 8:12 pm GMT+7

Fast food stores in Vietnam rise 12% in 2025, led by Korea's Lotteria

Fast food stores in Vietnam rise 12% in 2025, led by Korea's Lotteria

The number of fast food outlets in Vietnam surged nearly 12% year-on-year to 1,022 in 2025, according to a newly released report by Q&Me, a market research firm under Asia Plus Inc.

Economy - Wed, May 21, 2025 | 4:44 pm GMT+7

MoU signed to boost Vietnam-Singapore tourism ties

MoU signed to boost Vietnam-Singapore tourism ties

Singapore Tourism Board (STB), Vietnam Airlines (VNA), and Sentosa Development Corporation (SDC) have established a strategic partnership to strengthen tourism ties and connectivity between Vietnam and Singapore.

Travel - Wed, May 21, 2025 | 4:40 pm GMT+7

PowerChina keen on railway, renewable energy projects in Vietnam: exec

PowerChina keen on railway, renewable energy projects in Vietnam: exec

China Power Construction Group (PowerChina) is keen to join railway projects in Vietnam, including the Lao Cai-Hanoi-Hai Phong route, says its Asia-Pacific executive.

Infrastructure - Wed, May 21, 2025 | 3:51 pm GMT+7

Vietnam’s first tech unicorn VNG appoints new CEO

Vietnam’s first tech unicorn VNG appoints new CEO

VNG Corporation on Wednesday announced the appointment of Kelly Wong as its CEO from May 20, after half a year of this position being vacant.

Companies - Wed, May 21, 2025 | 1:21 pm GMT+7

German-backed Alliance Packing Plastic JSC builds second factory in Vietnam

German-backed Alliance Packing Plastic JSC builds second factory in Vietnam

Six years after setting up its first plant in Vietnam, German-invested Alliance Packing Plastic JSC. (Aplas) is investing $12 million in its second one in the southern province of Long An.

Industries - Wed, May 21, 2025 | 12:23 pm GMT+7

E-wallet MoMo the most used super app in Vietnam: Cimigo

E-wallet MoMo the most used super app in Vietnam: Cimigo

Mobile wallet MoMo leads the Vietnamese market in terms of super apps, being used an average of 4.16 times per week which far outpaces its competitors, according to Cimigo, a big research company in the country.

Economy - Wed, May 21, 2025 | 9:40 am GMT+7

Vietnam's major builder Coteccons must pay subcontractor $6.55 mln: court

Vietnam's major builder Coteccons must pay subcontractor $6.55 mln: court

Coteccons, one of Vietnam’s leading construction firms, has been ordered by the Ho Chi Minh City People’s Court to pay nearly VND170 billion ($6.55 million) to its subcontractor Ricons for outstanding debts related to construction contracts and additional interest for late payments.

Companies - Wed, May 21, 2025 | 8:48 am GMT+7

Thailand, Indonesia elevate bilateral ties to strategic partnership

Thailand, Indonesia elevate bilateral ties to strategic partnership

Thailand and Indonesia have declared the elevation of bilateral relationship to a strategic partnership following a high-level meeting in Bangkok on Monday between Thai Prime Minister Paetongtarn Shinawatra and Indonesian President Prabowo Subianto.

Southeast Asia - Tue, May 20, 2025 | 11:01 pm GMT+7

Indonesia backs WTO efforts to ease global trade tensions

Indonesia backs WTO efforts to ease global trade tensions

Indonesian Trade Minister Budi Santoso has affirmed Indonesia’s support for the World Trade Organisation (WTO) to ease trade tensions and discourage countries from taking unilateral maneuvers detrimental to the multilateral trade system.

Southeast Asia - Tue, May 20, 2025 | 10:59 pm GMT+7

Indonesia eyes to become world’s second biggest coffee producer

Indonesia eyes to become world’s second biggest coffee producer

Indonesia is focusing on increasing domestic coffee production, with the goal of overtaking Vietnam as the world’s second-largest coffee producer, according to Coordinating Minister for Food Zulkifli Hasan.

Southeast Asia - Tue, May 20, 2025 | 10:57 pm GMT+7

Vietnam okays property developer Sun Group’s airline project

Vietnam okays property developer Sun Group’s airline project

Prime Minister Pham Minh Chinh on Tuesday gave in-principle approval to the establishment of Sun PhuQuoc Airways (SPA) by Sun Group, one of Vietnam’s top real estate developers.

Investing - Tue, May 20, 2025 | 8:59 pm GMT+7