Credit transactions at Dong A Bank in HCM City.The economic recovery next year is forecast to remain slow due to the lack of significant change in lending demand. — VNA/VNS Photo Kim Phuong

HA NOI — Credit growth next year is targeted to reach 13–15 per cent, State Bank of Viet Nam's Credit Department Director Nguyen Tien Dong told Thoi Bao Kinh Doanh (Business Times).

Dong shared that the government will encourage enterprises in the agricultural and rural development sector to increase their production and expand their businesses to help reach the target.

The lending demand in the sector is expected to gain the highest growth of 15 per cent next year, he disclosed.

The economic recovery next year is forecast to remain slow due to the lack of significant change seen in lending demand. Experts advised that apart from the support to be obtained from the agricultural and rural development industry, the commercial banks will also have to boost medium- and long-term lending for the supporting and engineering industries to meet the annual growth target.

Many banks, such as Oceanbank, TP Bank, Techcombank and VP Bank, have thus far introduced preferential lending packages, which target supporting and engineering firms.

The central bank has also oriented commercial banks to boost medium- and long-term lending. It highlighted the immense importance of sustainable investment in the production and business of firms, especially the small- and medium-sized ones.

Tran Hoang Ngan, a member of the National Assembly's Economic Committee, also shared that it is necessary to meet the medium- and long-term loan requirements of firms. This is said to be important for the recovery of the business community.

Firms disclosed that they continue to face difficulties in accessing medium- and long-term loans.

Vinavico Chairman Mai Hong Bang revealed that many banks offered short-term loans to his company. However, his business needs medium- and long-term loans to invest in mining equipment.

SBV's Dong said that the central bank had recently issued Circular 36 to boost medium- and long-term lending. This circular states that medium- and long-term loans must account for some 36–37 per cent of commercial banks' total outstanding loans. — VNS