Credit rises 6.2% in first half of 2016

Friday, 2016-07-01 11:42:14
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Credit rose 6.2% in the first half of this year.
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NDO/VNA – Credit in the first half of this year rose by 6.2% in comparison with the end of last year, according to the General Statistics Office.

The rise was slightly lower than the 6.28% rate witnessed in the first six months of 2015.

Among the cities and provinces, Hanoi and HCM City each reported a high credit growth of 5.9% and 5.1%, respectively.

In this period, capital mobilisation has also increased 8.23% against the end of last year, much higher than the 4.58% of 2015.

Deposit interest rate in the first half remained stable at 4.5-5.4% per year on average for short-term deposits and 5.4-7.2% per year for terms of over six months.

The central bank this year targeted credit growth of 18% and industry insiders forecast the target to be feasible as lending often surges sharply in the second half of the year.

General Director of Vietnam Bank for Industry and Trade (Vietinbank) Le Duc Tho said lending growth in his bank, targeted at 18% this year by the central bank, has been good, reaching 6% by the end of May. Lending to small- and medium-sized enterprises (SMEs) showed the strongest growth.

Many new SMEs have been set up and the economy has improved, helping boost the firms’ capital needs, he said.

Tho believes Vietinbank could meet the lending quota set by the central bank as it often rises sharply in Q3 and Q4. However, Tho said, depending on market demands, the bank could adjust the target after making a proposal to the central bank.

Bank for Foreign Trade of Vietnam (Vietcombank) also reported a credit growth of 7.5% by the end of May, the bank’s chairman, Nghiem Xuan Thanh, said. In addition to boosting growth, Vietcombank will also focus on supervising credit quality, he added.

Other banks such as the Bank for Investment and Development of Vietnam (BIDV), LienVietPostBank and VP Bank are also optimistic about their projected lending figures for this year.