Transactions take place at Vietinbank branch in Dong Nai Province. Banks expect credit growth to improve in the second half of the year, making the annual target of 12-14 per cent achievable. — VNA/VNS Photo Thanh Vu

HA NOI (Biz Hub) — Credit growth in the first half of the year was only 2.3 per cent, however, banks still expect the credit will gradually improve in the second half of the year to achieve the annual target of 12-14 per cent.

The targets are to be met due to many preferential credit packages introduced in the market, said officials.

Tran Ngoc Tam, deputy general director of Nam A Commercial Joint Stock Bank (Nam A Bank), told Dau tu chung khoan (Securities Investment) newspaper that though credit in recent months has improved, it remains less available.

Since the beginning of this year, lending at Nam A Bank reached about VND2 trillion (US$93.89 million), while the bank anticipates lending to reach VND5 trillion ($234.74 million) in 2014.

Further, Tam expects that the bank's credit will double from its current growth by the end of the year through the programmes that connect businesses to overcome difficulties together and unfreeze funds.

The bank, last week, in collaboration with the People's Committee of District 1 in HCM City, provided VND390 billion ($18.3 million) to businesses in the area, with interest rates ranging from 7 to 9 per cent per year.

Compared to the other banks, Sacombank has higher credit growth, due to the advantages of diversified and small lending.

Phan Huy Khang, general director of Sacombank, said the bank's lending now reaches about 7 per cent, against the entire year target of 15 per cent, thanks to the bank's implementation of 13 preferential lending packages, worth roughly $1.2 billion. Also, bank-business linkage programmes were worth roughly $73.5 million for preferential loans to companies in 18 districts, as well as export processing zones and industrial parks in HCM City, Khanh Hoa and Dak Lak, according to Dau tu chung khoan.

At Orient Commercial Joint Stock Bank (OCB), the credit growth target for this year is 10 per cent, though a bank leader says it will strive to achieve growth of about 25 per cent, especially in the last months of the year when capital demands by enterprises increases, and lending improves.

Viet Nam currently includes 62 banks. The country's credit growth last year was 12.5 per cent. — VNS