A bank branch in HCM City. Credit growth at banks in the city was consolidated in March after a sluggish start to the year. — Photo courtesy of ABBANK

Total loans outstanding at banks in HCM City as of the end of March were worth over VNĐ3.57 quadrillion (US$142.57 billion), a 1.9 per cent increase from the previous month, and 9.45 per cent up year-on-year, according to the central bank.

Nguyễn Đức Lệnh, deputy director of the State Bank of Vietnam (SBV)’s HCM City office, said the growth was the lowest in the last three years, but consolidated a rising trend after growing by 0.01 per cent in the first two months following negative growth in January.

He attributed the growth to low interest rates and a favourable business and investment environment that has stimulated enterprises and business households.

Lending to the businesses accounted for over 60 per cent of the total, he said.

In addition, the consumer loan package of VNĐ20 trillion at preferential interest rates offered by two consumer finance companies in HCM City (HD Saison and FE Credit) has seen disbursement of VNĐ259 billion to more than 10,500 borrowers, especially workers in industrial parks and export processing zones, contributing to improving people's lives and preventing loansharking, he said.

Assessing the likely credit growth trend, he said the low interest rates would continue to stimulate demand for loans from businesses.

The recovery by the housing market would also have a positive impact on lending and capital flows in the economy, he said.

If the current trends continue in April and subsequent months, the foundations for new economic and credit growth cycles would be laid, he added. — VNS