Outstanding loans to the trade and services sector last year rose by 19 per cent against the end of 2016 to nearly VND3.7 quadrillion (US$176.21 billion), the State Bank of Vietnam reported.

The number accounted for nearly 60 per cent of the total outstanding loans of the entire banking system.

Retail and wholesale as well as vehicle repairing had the highest loans last year -- VND1.2 quadrillion. The segments surged 21 per cent against the end of 2016 and made up 31 per cent of the trade and services sector’s total loans.

Loans to the logistics and warehouse services rose 16 per cent to nearly VND200 trillion in 2017.

Last year, credit growth reached 18.17 per cent, mainly flowing into production and business.

The central bank has so far announced a credit growth target of 17 per cent for 2018, however, it will closely monitor the market to make suitable adjustments from time to time.

SBV stated that lending this year would continuously focus on the Government’s prioritised sectors, such as agriculture, exports, spare-parts industries, small- and medium-sized enterprises and hi-tech firms, while limiting the capital to risky industries such as real estate, and securities. — VNS