Demand for credit may increase sharply since the second quarter, especially in fields of industrial production, exports, trade and tourism, said a senior official of the central bank.

Real estate sales will be another key driver of credit growth, as apartment supply and sales are likely to pick up in 2021.

The State Bank of Vietnam (SBV), the country’s central bank, could promote a reduction in financing costs and lower borrowing costs to help ease hardship for businesses.

The banking system has been providing support for 590,000 customers, mainly in forms of debt restructuring or freezing and waiving debt payment with outstanding loans worth over VND1,000 trillion (US$43.31 billion).

Optimism for the year ahead has been improved to the highest thanks to the country's effective control of Covid-19 pandemic.

As of November 17, the country’s credit growth was estimated at 7.26% against the end of 2019, resulting in VND8,790 trillion (US$377.7 billion) in outstanding loans.

Under the new regulation, state-owned commercial banks where the state holds more than 50% can now be able to raise their registered capital to maintain the government control.

Vietnam is one of the few Asian economies to have registered positive growth so far this year, despite the second wave of infections.

Fitch Solutions expected credit growth to weaken to 7% in 2020 from 13.7% in 2019, but the growth is predicted to pick up to 12% one year later.