Credit growth remains slow and uneven in first six months of 2024

The State Bank of Vietnam (SBV) reported that credit growth remains slow and uneven in the first six months of 2024.

At the conference

The State Bank today in Hanoi held an online conference for the entire industry on solutions to boost credit growth in 2024.

According to the SBV's report, as of June 14, 2024, credit growth nationwide increased by 3.79 percent compared to the end of 2023. The credit growth rate has gradually improved over the months; however, credit growth in some localities remains low, and some credit institutions (CIs) have credit growth lower than the general credit growth rate, even negative growth.

This shows that in general, domestic credit demand has not recovered strongly. Many traditional economic drivers, such as manufacturing and service industries, are still facing certain difficulties. A number of customers have a need to borrow capital but have not yet developed feasible business production plans and do not meet the conditions for borrowing capital and changes in consumer trends among buyers.

Therefore, from now until the end of the year, the SBV will continue to identify key tasks and flexible, timely, and effective solutions for credit management. The SBV will coordinate synchronously, harmoniously, and closely with fiscal policy and other macroeconomic policies to contribute to supporting economic growth in accordance with the targets set out in the Government’s Resolution No. 01.

At the same time, the SBV encourages CIs to reduce costs to lower the lending rate floor, create harmony between lending rates and deposit rates, and continue to direct CIs to publicly disclose average lending rates; promptly issue guiding documents for the Law on CIs in 2024 to ensure the effective enforcement of the law from July 1, 2024, and direct credit flows into prioritized sectors.

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