31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Hanoinews
High credit growth shows signs of Hanoi economic recovery
Ngoc Mai 14:45, 2021/09/30
During the January-September period, banks and credit institutions in Hanoi have restructured the payment schedule of debt worth VND75 trillion ($3.3 billion) for 57,700 customers.

For the first nine months of 2021, Hanoi’s credit growth expanded by 9.4% against late 2020, higher than the capital mobilization rate at 7.4%.

 A VP Bank branch in Hanoi. Photo: Lam Giang 

The Hanoi’s Department of Statistics Office released the figures in its monthly report, noting this shows signs of business recovery as the city is gradually lifting restriction measures.

As of September, total outstanding loans in the city stood at VND2,410 trillion (US$105.4 billion), while over VND4,138 trillion ($181.8 billion) were mobilized by banks during the period.

For the past months, the banking sector has been offering support for people and businesses affected by the pandemic, including restructuring of debt payment schedules, waiving or lowering lending rates.

During the January-September period, banks and credit institutions in Hanoi have restructured the debt payment schedule for 57,700 customers worth VND75 trillion ($3.3 billion); waived and lowered interest rates for 189,000 others for outstanding loans of VND334.8 trillion ($14.7 billion).

From January 23, 2020, to the present, banks have provided new loans at preferential rates worth VND1,159 trillion ($50.7 billion) to over 102,600 customers.

Under the instruction of the State Bank of Vietnam (SBV), banks are working on risk management by establishing an early warning system for customers struggling with debt payments.

The bad debt ratio as of late September is estimated at 1.9% of total outstanding loans.

The rate for capital mobilization is averaged at 0.1-0.2% per annum for call deposits or time deposits with maturity below one month; 3.1-3.8% for time deposits from one to below six months; 3.8-6% from six to below 12 months; and 5.5-6.8% for over 12 months.

Meanwhile, lending rates are set at 5.5-8% per annum for short-term loans; 7.5-9.5% for mid-and long-term periods. For loans in priority fields, the short-term lending rates are set at around 4.5% per annum.

Vietnam’s credit growth in the first nine months of 2021 was estimated at 7.17% year-on-year, a 1.4-fold increase compared to the 4.99% recorded in the same period of last year.

VNDirect Securities Company in its latest report has adjusted Vietnam’s credit growth forecast from 13% to 10-12%, noting credit demand may not be fully recovered due to the current Covid-19 outbreak.

As the Government is taking steps to ease restriction measures, VNDirect expected credit demand to rebound in the fourth quarter and support economic growth.

SBV Governor Nguyen Thi Hong noted for the remainder of the year, the SBV is committed to stabilizing the macro-economic foundation and controlling inflation.

“Along with efforts to support the economy, it is imperative to ensure the safety of the banking system by managing monetary policies in a flexible manner, along with keeping stable foreign exchange rates and policies,” Hong suggested.

RELATED NEWS
TAG: Vietnam economic recovery Hanoi credit growth covid-19
Other news
10:10, 2022/10/22
Hanoi wants to build second int’l airport in Thuong Tin
The project will develop urban areas around the new airport, including industrial zones, multimodal transportation, warehousing, and logistics systems.
16:33, 2022/33/20
Vietnam National University moved to Hanoi's outskirt
The Vietnam National University's Hoa Lac campus is ready with all facilities and equipment for educational and research activities.
14:18, 2022/18/20
Hanoi earmarks US$1 billion for Ring road No.4 project
Total investment capital for Ring road No.4, slated for completion by 2027, is estimated at VND85.8 trillion (US$3.73 billion).
15:01, 2022/01/19
State and Hanoi leaders commemorate President Ho Chi Minh's birthday
President Ho Chi Minh devoted all his life to the struggle for national independence, freedom, and happiness of the people.
11:58, 2022/58/19
Unique cemetery in Hanoi helps ease passing of pets
The pet graveyard will spread a message of kindness.
11:50, 2022/50/19
Hanoi starts construction of two industrial clusters
The construction of two industrial clusters would address the high demand for production spaces in localities while solving issues of environmental pollution.