Vietnam saw negative credit growth in January

A decrease in credit growh

Data announced by the State Bank (SBV) at an online conference to promote bank credit in 2024 shows that last year credit across the economy increased by 13.71% compared to the end of 2022.

However, at the beginning of 2024, system-wide credit decreased by 0.6% compared to the end of 2023.

Previously, credit had increased sharply in the last weeks of 2023. In December alone, outstanding credit debt across the economy increased by 4.56% (equivalent to more than 540,000 billion VND), accounting for one third of the total additional increase for the whole year 2023.

In terms of economic sectors, by the end of 2023, outstanding loans in the agriculture, forestry and fisheries sector increased by 6.95%; that in the industrial and construction sector increased by 10.29%; the trade and service industry saw an increase of 15.83% in outstanding loans.

Credit for priority sectors grew well. By the end of 2023, credit for the agricultural sector increased by 11.56%; for SMEs increased by 13.61%; for the export sector increased by 6.57%; for supporting industries and high-tech application enterprises increased by 26.18% and 17.52%, respectively.

Credit for potentially risky sectors continues to be under control. Loans to serve daily needs by the end of 2023 increased by 7.83% compared to the end of 2022, accounting for 21.19% of outstanding loans to the economy.

The State Bank said that in 2024, based on the economic growth target of about 6-6.5% and inflation of about 4-4.5% set by the National Assembly and the Government, the State Bank expect credit growth to be about 15%, with adjustments appropriate to developments, actual situation on December 31, 2023.

Right from the beginning of the year, the SBV assigned all credit growth targets for 2024 to credit institutions, publicly announced the determining principles for banks to proactively implement credit growth to provide credit for the economy.

On February 7, the State Bank continued to issue Official Dispatch No. 1088/NHNN-CSTT directing banks to promote the implementation of solutions proposed in Directive 01/CT-NHNN dated January 15/ 2024 to contribute to promoting economic growth.

In particular, it is necessary for banks to drastically deploy the right and targeted credit growth solutions from the beginning of the year, strengthen the review and simplification of credit granting processes and procedures, and optimize the application of digital transformation in credit granting process, creating favorable conditions in accessing bank credit capital.

Source: theleader

Compiled by VBI