Ho Chi Minh City banks experienced a slight drop in credit growth at the beginning of 2025, with outstanding credit at 3.936 trillion VND, down 0.17% from December 2024 but up 12.2% year-on-year. Lending is concentrated in key economic sectors, with February registering a 14% increase from the previous month. The state bank aims for 16% credit growth this year through various economic initiatives.
Ho Chi Minh City’s banking sector has observed a slight decline in credit growth during the initial two months of 2025, despite ongoing efforts by local banks to provide preferential loans. As of February, the outstanding credit was reported at 3.936 trillion VND, marking a 0.17% decrease from December 2024, although it showed a significant year-on-year increase of 12.2%. Notably, credit flows to essential economic sectors have remained stable, with foreign currency lending to import-export businesses rising by 1.37% month-on-month.
Nguyen Duc Lenh, the Deputy Director of the State Bank of Vietnam’s Ho Chi Minh City office, indicated that lending activities are predominantly oriented towards sectors such as production, business, trade, services, and consumption. These sectors account for approximately 75% of total loans, primarily catering to short-term financial requirements. Furthermore, lending in February registered a notable increase of 14% compared to the previous month.
According to the central bank’s HCM City office, a range of economic growth solutions is expected to bolster capital absorption capabilities and stimulate credit growth further. The presence of stable, low interest rates, alongside initiatives aimed at linking banks with businesses, is anticipated to enhance both production and consumption, thereby facilitating an increase in credit growth. The state bank has set an ambitious target for a 16% increase in credit growth for the year.
In summary, despite slight declines in credit growth, Ho Chi Minh City’s banking sector has maintained stable lending to critical economic sectors. Continued efforts towards connecting banks and businesses, coupled with favorable economic measures, are pivotal for stimulating credit growth. The state bank’s target of 16% growth reflects a positive outlook for the region’s financial landscape in 2025.
Original Source: en.vietnamplus.vn
