Credit growth of the entire banking system in the last 10 days of September rose 1.14 per cent, pushing the total increase in the first nine months of this year to 12.16 per cent, the latest report from the State Bank of Viet Nam (SBV) showed.

Loans to the agricultural and rural areas increased by 17.6 per cent year-on-year, the industrial sector was up 17.75 per cent, construction was up 19 per cent, and trade and services was up 18.1 per cent.

Outstanding loans to small- and medium-sized enterprises by the end of August accounted for 21 per cent of the total outstanding loans, up 7.5 per cent compared with the period till December 31 last year.

The high credit growth has helped boost GDP in the first nine months to 6.41 per cent, much higher than the 5.99 per cent increase in the first nine months of 2016.

SBV also reported that in the first nine months of 2017, over 300 meetings and dialogues between banks and enterprises were organised to assist enterprises in getting access to bank loans. Accordingly, banks committed to lend to firms nearly VND570 trillion (US$25.11 billion), of which more than VND550 trillion was disbursed for corporate customers.

In addition, banks also provided other forms of support, such as reducing lending rates for firms’ old loans totalling nearly VND20 trillion.

To support the economic growth, the Government has also requested SBV to continue the monetary policy in the direction of lowering lending rates, at the same time raising outstanding credit to 21-22 per cent in 2017, based on credit quality and macro stability.

Together with the extension approval, SBV also instructed commercial banks to conduct scrutiny to ensure bank capital went to effective sectors, avoiding non-performing loans.

SBV noted that it is ready to supply capital to the economy; however, the terms of lending will remain strict, in accordance with legal regulations and procedures. — VNS