Credit growth among banks in Ho Chi Minh City saw a minor decline in early 2025, despite efforts to extend preferential loans. As of February, outstanding credit was reported at 3.936 trillion VND, marking a slight reduction from the previous month, although it remains up year-on-year. Lending to key economic sectors continues to be stable, with the state bank aiming for a 16% credit growth target this year.
Despite efforts by banks in Ho Chi Minh City to provide preferential loan options, credit growth has experienced a slight decline in early 2025. As reported by Nguyen Duc Lenh, Deputy Director of the State Bank of Vietnam’s HCM City office, outstanding credit stood at 3.936 trillion VND as of February, representing a decrease of 0.17% from December 2024, though still a 12.2% increase year-on-year.
While overall credit growth shows a downturn, lending to critical economic sectors remained robust. Notably, foreign currency loans extended to import-export businesses increased by 1.37% month-on-month. According to Lenh, HCM City banks have focused their lending towards production, business, trade, services, and consumption, with these sectors comprising approximately 75% of the total lending amount, primarily addressing short-term funding requirements.
In fact, lending in February accelerated by 14% when compared to the previous month. The central bank’s office in HCM City indicated that implementing economic growth solutions helps improve capital absorption and invigorate credit growth. Maintaining stable, low interest rates and fostering connections between banks and businesses is anticipated to further stimulate production and consumption, thereby enhancing credit growth prospects. The state bank has established a target of achieving 16% credit growth for the current year.
In conclusion, while Ho Chi Minh City’s banks are encountering slight credit growth setbacks in 2025, key economic sectors continue to receive substantial support. The concentration on essential industries indicates a strategic focus on maintaining economic stability, while initiatives aiming for better credit conditions are expected to stimulate future growth. The central bank’s goal of achieving 16% credit growth highlights the importance of resilience and adaptability in the financial landscape.
Original Source: en.vietnamplus.vn
