Sign up | Log in



Home  >>   Daily News  >>   Vietnam News  >> Economy  >> Banking growth target ‘reachable'
NEWS UPDATES Asean Affairs   26 August 2013  
Banking growth target ‘reachable'

Vietnam:The 12 per cent credit growth target set for commercial banks this year is within reach, according to a central bank official.

Nguyen Thi Hong, director of the State Bank of Viet Nam's Department of Monetary Policies, said in a meeting with the media last week that by late July, the banking sector had achieved a credit growth of 5.3 per cent over late 2012 figures.

This marks a significant improvement over the previous months, Hong said.

She attributed the high credit growth to the central bank's flexible policies that have helped slash lending interest rates and encouraged credit institutions to push up lending activities.

"The credit growth target of 12 per cent set for 2013 was based on the country's economic growth and inflation. However, the central bank has not asked credit institutions to do any ways to promote their credit growth but it has insisted them to expand credit activities in ways that can ensure the credit security," Hong said.

However, she noted that to realise the year's growth target, lending by banks would have to increase by 1.3 per cent each month.

Housing stimulus

Referring to the VND30 trillion housing stimulus package launched by the central bank, Hong said commercial banks have already made arrangements to disburse 10-year loans with a maximum interest rate of 6 per cent.

Regarding bad debts, seen as a major hindrance to credit growth, Hong said the central bank was actively perfecting a legal framework to speed up their settlement.

"The central bank is ready to set aside funds for the refinancing needed to support resolution of bad debts and begin lending to projects in agriculture and rural areas."

Hong also stressed the need for relevant ministries and branches to seriously implement measures to improve the economy's capital absorption capacity and the market's aggregate demand.

For their part, banks should adjust their business plans, to make them suitable to the current situation and restructure their operations to become more effective, she said.

In addition to implementing the central bank's guidelines, most banks have tried to increase lending on their own initiatives.

The most popular ruse, of course, is to cut lending rates.

The Ho Chi Minh Housing Development Bank (HDBank) has decided to offer enterprises loans at just 8 and 8.5 per cent per year.

Its VND1 trillion (US$47.39 million) preferential lending programme, due to last until December 31, will apply to enterprises that want to borrow the money to supplement their working capital for production and trading.

Meanwhile, the Sai Gon-Ha Noi Joint Stock Commercial Bank (SHB) has launched a VND2 trillion credit programme to support individuals and households who want to buy houses, vehicles or develop production and trading.

Under the scheme, which will start in September, the borrowers will be offered loans at interest rates of 9.4 per cent per year if their salaries are being paid through their SHB accounts.

Those who do not have accounts at the SHB will be offered loans with the interest rate of 9.9 per cent per year.

From August 1 to September 22, Vietcombank has also offered personal loans at just 8 per cent per year.

The leaders of many commercial have said that they are ready to offer loans at low interest rates if they are able to able to determine borrowers are potential customers or good enterprises.

However, the preferential interest rates can only be applied to short-term loans since they had plenty of short-term capital, they said.

Cao Sy Kiem, chairman of the Small and Medium Enterprises Association, said that in addition to cutting the lending rates commercial banks should seek ways to cut input costs so that the low rates can be offered for longer periods.

This would create conditions for enterprises to access long-term loans that they need to restore production and other business activities, he said.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below

Today's  Stories    26  August 2013 Subsribe Now !
• Tablet sales volume in Vietnam surged by 233 percent in first half of 2013: GfK Subcribe: Asean Affairs Global Magazine
• Transparency and Integration Will Drive Singapore’s Economic Future Asean Affairs Premium
• Singapore's Supreme Court hosts ASEAN chief justices meeting
Research Reports
on Thailand 2007-2008

•Textiles and Garments Industry

•Coffee industry

•Leather and footwear industry

•Shrimp industry

• Banking growth target ‘reachable'
• Manufacturing continues to lead nation's FDI charge
• Maybank IB eyes Cambodia, Laos capital markets
• ADB: Manufacturing is key to becoming high-income economy
Asean Analysis           23 August 2013 Advertise Your Brand
• Asean Analysis- August 23, 2013
Engagement in the Indo-Pacific: The Pentagon Leads by Example
• Asean Analysis- August 23, 2013
Singapore's future way/challenge towards a society of happiness
• Asean Weekly:The Biweekly Update 23 August 2013
Asean Stock Watch     23 August  2013
• Asean Stock Watch-August 23, 2013 

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent
• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore • Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline • Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More






1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

| Terms of Use | Site Map | Privacy Policy  | DISCLAIMER |

Version 5.0
Copyright © 2006-2019 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand