credit limit

Businesses have for long faced a crunch of capital and difficulty in accessing credit from banks.

The long-term credit push to support the economy has a distorted capital flow. 

After the recent increase in credit limit, the State Bank of Vietnam (SBV) has granted 13.6 percent of the total 14 percent credit room in 2022. The SBV continues to prioritize inflation control and macroeconomic stability, maintaining low lending interest rates to support businesses and economic recovery.

The State Bank of Vietnam has announced adjustment of credit limit for 2022 for fifteen commercial banks by 1 percent to 4 percent, and at the same time requested banks to step up disbursement of the 2-percent interest rate support package as per Decree 31/2022/ND-CP. 

The last two quarters of the year are the time when production, business activities, and consumer demand typically see an uptick. As a result, commercial banks are actively introducing interest rate incentive programs to boost credit demand.

From October 2022, Vietnam's leaders aimed at a stable macro policy with a focus on controlling inflation. However, from the beginning of April 2023 until now, the Government is determined to stimulate domestic demand.

The Government Office has issued the conclusion of the Government Standing Committee in a meeting about missions and measures to stabilize the macro-economy, control inflation, promote growth, and ensure major balances in the national economy.

After the State Bank of Vietnam (SBV) reduced the benchmark interest rate by an additional 0.5 percent, effective from May 25, many commercial banks have started lowering their lending rates.

Chairman of HCMC People’s Committee yesterday led a delegation to work with Thu Duc City People’s Committee on the socio-economic status here.

After SGGP newspaper published a series of articles titled "High interest rates weaken the economy", economists and the business community contributed their opinions on this issue.

The "Restructuring the System of Credit Institutions Associated with Handling Bad Debts between 2021 and 2025" project states that the banking industry must address weak banks by 2025.

The State Bank of Vietnam (SBV) announced on February 23 that it had issued Official Letter No. 953/NHNN-TD, which outlines the continuation of the bank-business connection program.

The State Bank of Vietnam (SBV) has never issued any documents or statements ordering credit for real estate be tightened, Deputy Governor Dao Minh Tu said on February 8.

At the end of the year, forms of online fraud are continuously increasing, said the Ministry of Information and Communications.

According to the State Bank of Vietnam (SBV), by the beginning of July, the whole economy's credit reached VND11.4 quadrillion, up 9.35 percent, while it only increased by about 6 percent in the same period last year. In this context, Governor of the State Bank of Vietnam Nguyen Thi Hong has recently sent a message on maintaining the orientation of credit growth of 14 percent in 2022 and, at the same time, gave many guidelines to help enterprises access the 2-percent interest rate support loan package.

In the context of credit limitations in banks, Vietnam Thuong Tin Commercial Joint Stock Bank (VietBank) has just launched a preferential loan program of up to VND8,000 billion (US$346 million) dedicated to individual customers serving livelihood demands and business activities.

The discussion for granting credit limits to commercial banks heated up at the third session of the fifteenth National Assembly when delegate Mr. Trinh Xuan An from Dong Nai asked the Governor of the State Bank of Vietnam to explain the rationality behind the credit room allocation mechanism, and whether it interfered with bank operations.

At a meeting with Ho Chi Minh City on the task of socio-economic development, disbursement of public investment capital, and the progress of key projects, Prime Minister Pham Minh Chinh said that it is necessary to design a tool to control investment activities in corporate bonds.