Credit growth in HCM City banks slightly declined in early 2025, with outstanding credit at 3.936 trillion VND. Key economic sectors, however, showed stability, particularly in foreign currency lending for import-export businesses. The central bank remains optimistic, aiming for 16% annual credit growth amidst low interest rates and bank-business collaborations.
In the first two months of 2025, the credit growth of banks in Ho Chi Minh City has experienced a slight decline, despite ongoing efforts to provide preferential loans. According to Nguyen Duc Lenh, Deputy Director of the State Bank of Vietnam’s HCM City office, outstanding credit stood at 3.936 trillion VND by February, representing a decrease of 0.17% from December 2024, yet reflecting a year-on-year increase of 12.2%.
However, credit flows to critical economic sectors have remained resilient. There was a 1.37% month-on-month growth in foreign currency lending to import-export businesses. Lenh highlighted that lending is predominantly focused on production, business, trade, services, and consumption, with these sectors comprising approximately 75% of the total lending and primarily addressing short-term financing needs.
February witnessed a notable lending increase of 14% compared to the previous month. The central bank’s office has indicated that strategic economic growth solutions facilitate capital absorption and promote credit expansion. The maintenance of stable, low interest rates, coupled with initiatives linking banks and businesses, is anticipated to further bolster production and consumption, thereby increasing credit growth. The state bank has set a target for a 16% credit growth rate for the year.
Additional economic developments include the full resumption of the e-tax system following a temporary suspension intended to enhance tax management. The customs sector has transitioned to a streamlined operating model, and there are expectations for a surge in industrial real estate driven by the removal of legal obstacles and increased foreign direct investment. Furthermore, Vietnam Airlines and Vietjet Air plan to commence operations from the new Terminal T3 of Tan Son Nhat International Airport in May.
In summary, while credit growth in Ho Chi Minh City has experienced a slight decline in early 2025, key sectors remain stable, indicating resilience in the economy. Initiatives aimed at maintaining low interest rates and strengthening the connection between banks and businesses are expected to enhance credit growth further. The goal for a 16% increase in credit this year demonstrates the commitment to fostering economic development in the region.
Original Source: en.vietnamplus.vn
