Credit growth in 2017 to reach 18.7% - 19.3%
Mid to long-term credit growth is in the declining trend after strong growth in period 2013 – 2016.
At the event releasing the financial market report 2017 on December 26, the National Financial Supervision Commission of Vietnam (NFSC) informed that in 2017, credit growth will be in range from 18.7% to 19.3%, contributing positively to the target growth rate.
Mid to long-term credit growth is in the declining trend after strong growth in period 2013 – 2016.
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In sectors, credit growth focused mainly in industrial sector, trade and services with an increase of 21.8% compared to 2016, contributing to 78.4% of total credit growth (this number in 2016 was 77.8%), contributing positively to growth in processing and related services. Credit growth in agricultural sector increased 18.7%, contributing 8.11% of total credit growth.
As of September 20, credit growth at 11.02% compared to the same period of 2016 – a high growth rate in recent years (the growth rate at 2016 was 10.46% and in 2015 was 10.78%). Credit growth is mainly for the purpose of business and production. Meanwhile, lending for some priority fields are also increased compared to the same period of 2016. Specifically, credit growth for agriculture and rural development at the end of August is 1.2 trillion VND, up 17% compared to the same period of 2016, and contributing to 20.2% of the total credit growth of the economy.
Credit growth for the 4 remaining priority fields (as of the end of August): credit growth for production and manufacturing is 207 trillion VND, up 8.14%; for high tech enterprises is 35 trillion VND, up 25.12%; for priority industrial sectors is 153 trillion VND, up 18.9%; for small and medium enterprises (SME) is nearly 57 billion USD, up 7.49%.
With regard to interest rate, SBV has instructed credit institutions to be actively implementing solutions to reduce costs and expenses, increasing efficiency in operation to reduce interest rate for priority fields. Results from implementing consistently solutions, credit institutions has reduced 0.5% per year of the interest rate for short term loan in priority fields. Besides, credit institutions also reduce interest rates for purpose of business and production with a decrease of 0.5 – 1% per year, reducing interest rate for some mid term and long term loan programs in priority fields from 8% per year (previously was 9 – 10.5% per year).
Credit institutions also implement credit package for short term, mid term and long term with preferential interest rate for essential sectors in the economy, applying interest rate in short term for qualified customers of 4 – 5% per year. At the same time, credit institutions also reduce expenses as part of the effort to reduce interst rate, and support enterprises in accordance with the instructions of the Prime Minister and the SBV. At present, the average interest rate for priority fields is as follow: short term 6-6.5% per year, mid and long term 8 – 10.5% per year; for production and business, at 6.8 – 9% per year for short term; 9.3 – 11% per year for mid and long term.
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