Credit growth rises 14% in 2018

The total outstanding loans of the banking system are estimated to rise 14% in 2018 with the focus on production and business sectors, contributing to supporting economic growth, the State Bank of Vietnam (SBV) said on January 7.

The SBV expects credit grow of 14% in 2019 (illustrative image)
The SBV expects credit grow of 14% in 2019 (illustrative image)

Deputy Director of the SBV Credit Department, Ha Thu Giang, said that the total loans in the agricultural, forestry and aquatic sector increased by 8.88% by the end of 2018.

In particular, outstanding loans for several strong export products of Vietnam rose significantly, including rice (up 25%), seafood (up 14.1%), coffee (up 13.65%), industry and construction (up 12.1%), and the trade and service sector (up 15.9%) compared to 2017.

In addition, loans in prioritised sectors also saw considerable increases, accounting for approximately 50% of the total outstanding loans. The agriculture and rural sector received roughly 24% of the total outstanding loans, while small and medium-sized enterprises received 18% of the total outstanding loans.

SBV Deputy Governor Nguyen Thi Hong said that the SBV expected credit grow of 14% in 2019.

She noted that the SBV will direct credit institutions to improve their credit quality and focus on the production and business sectors, especially prioritised sectors in accordance with Government guidelines, while facilitating businesses and people in getting access to bank loans.

Meanwhile, credit institutions must strictly control credit in areas of potential risks, including real estate and securities, in addition to enhancing risk management for BOT and BT transport projects and consumer credit, Hong added.