HCM CITY — HCM City credit institutions’ total loans outstanding as of the end of last year were worth over VNĐ3.9 quadrillion (US$153.3 billion), a 11.3 per cent increase for the year, according to the central bank.

Nguyễn Đức Lệnh, deputy director of the State Bank of Vietnam’s HCM City office, said credit growth was “solid” last year.

In the last five years, it was lower only than in 2022, when growth was 13.8 per cent, he said.

"The city's total loans outstanding accounts for 25.2 per cent of the country’s total and represents over 2 per cent of the city's economy.

“Bank credit remains a crucial source of capital for the city's socio-economic growth and development.”

Lending to the production, commercial and services sectors continued to dominate, accounting for 65-67 per cent of the total loans outstanding, he said.

He said credit activities in 2024 were closely tied to supporting businesses and drove the city's economic growth through the effective implementation of preferential credit and bank-business connection programmes.

Disbursements through the bank-business connectivity programme were worth VNĐ691 trillion, an increase of 9 per cent from 2023, with 198,166 customers benefitting.

Disbursements under the programme for the forestry and fishery sector amounted to VNĐ3.3 trillion at interest rates 1-2 percentage points lower than average lending rates.

The banking sector also effectively implemented a short-term lending programme in đồng with interest rates capped at 4 per cent for five key sectors: small and medium-sized enterprises, exporters, agriculture and rural development, supporting industries, and high-tech enterprises.

Lệnh said credit activities in 2024 met monetary policy objectives, driving economic growth and creating favourable conditions for key sectors to develop, and meeting enterprises’ demand for funds.

Loans outstanding in foreign currencies were worth $158 trillion, 4.24 per cent up for the year.

Low lending interest rates, high-quality foreign exchange services and efficient payment services helped foster import-export activities.

Deposits grew by 15.3 per cent last year, outpacing credit growth.

"This will remain a favourable factor for credit institutions in the city to promote credit growth while effectively implementing the central bank’s monetary, credit and interest rate policies in 2025," Lệnh added. — VNS