Many support measures, credit growth expected to be 15%

Expect 15% growth

According to the latest updated data from the State Bank of Vietnam as of September 7, credit growth for the entire economy reached 7.75%.

Deputy Governor of the State Bank of Vietnam Dao Minh Tu said that from April onwards, credit growth has been quite positive. In July and August, credit growth was even more positive. Therefore, the State Bank of Vietnam leaders believe that the 15% growth figure can be achieved.

However, according to the leader of the State Bank, the most important point at this time is the economy 's ability to absorb capital . According to Mr. Tu, the lending capacity of commercial banks today, including credit room as well as resources and liquidity, is sufficient for credit capital needs, but to accompany the banking industry, many other macro policies and solutions need to be implemented to create conditions for businesses to absorb credit capital.

There are currently positive factors to increase capital sources for businesses to borrow, such as the credit package for seafood exports approved by the State Bank - under the direction of the Prime Minister, raising the expected balance to 50,000-60,000 billion VND.

Or the credit package for social housing worth 140,000 billion VND (with 4 more commercial banks registering to participate) is continuing to increase incentives, interest rates reduced by 3%, and terms extended to 10 years for home buyers.

Many support policies

According to Lao Dong, in the first 6 months of the year, banks lending to businesses had high credit growth rates such as LPBank, HDBank, Techcombank with increases of 15.2%, 13.3%, 14.16% respectively. However, the consumer and personal lending group had poor growth.

To facilitate the growth of consumer lending, the State Bank of Vietnam recently issued Circular 12/2024/NHNN amending and supplementing a number of provisions of Circular 39 on lending activities. Accordingly, consumer loans under VND 100 million do not require a feasible capital use plan, making it easier for banks to access and support customers.

According to information experts, this new regulation has many meanings in stimulating credit in the context of economic growth that needs more motivation from consumption. Because to achieve a credit growth rate of about 15%, personal credit must also achieve a growth rate of 20%, equivalent to 2.8 million billion VND.

Expert Le Hoai An - CFA Founder IFSS and co-founder of WiResearch - said that to remove bottlenecks in consumer credit growth at banks, Circular 12 helps create favorable conditions for individuals to access loans. On the bank side, loosening conditions for personal loans helps expand the scope of consumer lending.

Not stopping there, the State Bank is making many moves to loosen policies, creating more supporting factors for credit institutions. For example, at the end of August, the State Bank issued a document loosening the credit growth target for credit institutions (CIs) that have reached 80% of the target assigned by the State Bank at the beginning of the year.

The State Bank of Vietnam has also proactively implemented solutions to increase abundant liquidity for the banking system, such as reducing interest rates in some markets such as reducing interest rates on credit note loans; reducing interest rates on valuable papers; and actively pumping net money through credit note channels and open market operations (OMO) in the past 2 months.

Previously, some banks facing liquidity risk problems increased interbank borrowing and raised deposit interest rates at some key terms. Therefore, when liquidity is more abundant, banks will have conditions to boost lending in the last months of the year without putting too much pressure on deposit interest rates.