The State Bank of Vietnam targets credit growth of 14 percent this year, the same as last year. The focus of new loans would be priority sectors such as manufacturing, agriculture and small and medium enterprises, Nguyen Thi Hong, Deputy Governor of the central bank, said. Credit growth in the Vietnamese banking sector last year was 14 percent, the lowest rate since 2014.
The figure announced by the State Bank of Vietnam (SBV) Monday was well short of the 17 percent targeted for the year.
According to officials from the SBV’s Department of Credit for Economic Sectors, lending grew sharply in the early months of the year before tapering off. It was primarily targeted at priority sectors such as manufacturing and processing.
Credit to the commercial and services sectors saw the highest growth rate, 16 percent. Lending to industry and construction grew by 12.1 percent and to agriculture, by 8.8 percent.
Overall, interest rates remained steady despite rising interest rates in global markets. In Vietnam, interest rates are commonly around 6-9 percent a year for short-term and 9-11 percent a year for medium and long-term.
The non-performing loans ratio was down to 1.89 percent from 1.99 percent in 2017 and 2.46 percent in 2016.