Credit growth rose 3 per cent in HCM City in the first quarter of this year. - Photo tinnhanhchungkhoan.vn

Outstanding loans in HCM City totalled around VND1.5 quadrillion (US$65.8 billion) in the first quarter of 2017, a three per cent rise over the end of 2016.

Statistics with the central bank’s southern branch also show that the city’s outstanding loans have risen by 19.15 per cent over the same period last year.

Around 58 per cent are medium- and long-term loans, which rose by 3 per cent over the end of last year.

Deposits grew at one per cent in Q1 to touch VND1.8 quadrillion in the southern city, 87 per cent of which are deposits in Vietnamese dong. Compared to the same quarter last year, deposits have increased by 11.1 per cent.

However, there is a slight change in credit flow, with an increasing proportion being poured into non-production sectors such as real estate and securities sectors.

Statistics show that though the credit flow is still primarily for production and business, its proportion has reduced from 80 to 83 per cent to 75 to 78 per cent.

The central bank’s southern branch has urged credit institutions to pay attention so that credit growth is in line with deposit growth, to ensure that safety requirements are met. Credit institutions must also comply with regulations on interest rates, lending and credit growth targets, it has cautioned.—VNS