Despite recent declines, credit growth in Ho Chi Minh City exhibited a positive trend in January 2025, contrasting with decreases of 0.93 percent and 0.48 percent observed in January 2024 and 2023 respectively.
Deputy Director Nguyen Duc Lenh of the State Bank of Vietnam, Ho Chi Minh City branch today said that by the end of January 2025, total outstanding loans in the city reached nearly VND3.95 quadrillion, up 0.04 percent compared to the end of 2024 and up 12.43 percent compared to the same period last year.
Despite experiencing negative growth in the previous two years with -0.93 percent in January 2024, and -0.48 percent in January 2023, credit in Ho Chi Minh City demonstrated a positive trend in January 2025, although growth remained modest. This is noteworthy considering the typical seasonal decline in credit activity during the period before the Lunar New Year.
Credit growth in Ho Chi Minh City in the first months of 2025 was positive thanks to favorable factors after Tet such as good growth in trade, services and tourism activities, and increased orders. In addition, monetary and credit policy adjustments, including interest rate adjustments, credit limits, and preferential loan programs, have facilitated improved credit access for businesses, contributing to overall credit growth in the region.
To sustain economic growth in the coming months and meet target objectives, the city's banking sector will prioritize strengthening business-bank connections and accelerating credit disbursement, according to Mr. Lenh. The initiative aims to support small and medium-sized enterprises, boost exports, and stimulate consumption by ensuring businesses and local households have the necessary capital for expansion.
