Credit growth likely to hit 14 per cent in 2021: SBV Deputy Governor

Wednesday, Dec 29, 2021 18:48

A customer at Vietinbank's Cua Nam transaction office in Ha Noi. — VNA/VNS Photo Tran Viet

Credit growth has reached 12.97 per cent so far and is likely to hit 14 per cent this year as credit expands very strongly towards the end of the year, the head of the State Bank of Viet Nam (SBV) revealed.

This year, the bad debt ratio has to date edged up to 3.79 per cent, but may reach 8.2 per cent if taking into account restructured debts.

Standing Deputy Governor Dao Minh Tu voiced his concerns over an increase in non-performing loans this year, saying it is one of the big challenges for the banking system in 2022 and the following years.

In a press conference on Tuesday, Tu attributed the increase to the worst-ever fourth wave of COVID-19 in Viet Nam, noting that bad debts are unwanted consequences of the COVID-19 outbreak and can rise even if the pandemic continues to cause trouble to businesses.

This year, the SBV has undertaken measures to improve credit quality, direct credit to production and priority sectors and tighten control on that poured into high-risk areas, such as real estate, the stock market, Build-Operate-Transfer (BOT) and Build-Transfer (BT) transport projects. It has also strengthened risk management on consumer credit and provided enterprises and individuals with broader access to bank loans.

In 2022, Tu said the central bank will continue flexibly governing monetary policy tools in tandem with fiscal and other macro-economic policies to support post-pandemic economic growth.

Remittances up 10 per cent

Vietnamese abroad sent home some US$12.5 billion this year, a year-on-year increase of 10 per cent.

These are official numbers that must be used in reports, Tu emphasised.

About 28 per cent of the remittances to Viet Nam were sent through international money transfer companies, 7 per cent via credit institutions and 2 per cent by post.

The official said though Vietnamese living overseas have been also struggling due to the impacts of COVID-19, they remained devoted to the homeland, affirming that remittances are an important source of capital for Viet Nam at this time. — VNS

It is also a key project in Thanh Hoa’s plan to become a quality tourism hub in the region.

Speaking at the event, Vice Chairman of the provincial People’s Committee Mai Xuan Liem said the project is also meant to realise the province’s goal of becoming one of the four new growth pillars of Ha Noi – Hai Phong – Quang Ninh – Thanh Hoa quadruple in line with the Politburo’s Resolution No.58.

A highlight of the complex is an park with indoor and outdoor entertainment spaces, onsen bathing, spa and special wellness services, a 1,000-seat convention hall, a pedestrian street and a commercial housing area in Japanese style. — VNS


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