70th anniversary of Hanoi's Liberation Day Vietnam - Asia 2023 Smart City Summit Hanoi celebrates 15 years of administrative boundary adjustment 12th Vietnam-France decentrialized cooperation conference 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.

TAG: Vietnam economic recovery Hanoi credit growth covid-19
Other news
13:50, 2024/04/19
Hanoi district governments urge new plans for old apartment blocks
Local authorities need new plans to speed up the rebuilding of dilapidated blocks of flats in their areas.
21:54, 2024/04/18
Day-as-a-farmer tour in Duong Lam attracts visitors
Duong Lam is committed to developing sustainable tourism products linked to the preservation of tangible and intangible cultural heritage.
21:14, 2024/04/18
Vietnam Book and Reading Culture Day kicks off in Hanoi
A large number of activities have been carried out so far to spread and encourage the culture of reading in the community.
16:08, 2024/04/18
Hanoi tourism festival launched to showcase city's charm
At the festival, Hanoi is expected to show off local landscapes, destinations and cultural values to visitors.
20:35, 2024/04/17
Firefighting and rescue skills competition in Hanoi
A firefighting and rescue skills competition for households was organized in Ba Dinh District, offering locals basic steps when a fire occurs, and technical skills to escape.
20:26, 2024/04/17
Hanoi's liberation anniversary: Golden opportunity for tourism development
All the activities celebrating the 70th anniversary of Hanoi’s Liberation Day will be carried out in an initiative and creative manner.