According to newly released data from the Hanoi Statistics Department, as of the end of May 2024, the total amount of outstanding loans in the city is estimated to reach VND 3.8 million billion, an increase of 1.14% compared to the previous month and an increase of 5.09 % compared to the end of 2023.

Of which amount of short-term outstanding loans is VND 1.6 million billion, an increase of 6.61% compared to the end of last year; Medium and long-term outstanding loans reached VND 2.19 million billion, an increase of 4.01%. In addition, the bad debt ratio at the end of January of credit institutions at 1.9%.

According to the assessment of the Hanoi Statistics Department, credit institutions in the area focus on credit growth, offer many preferential credit programs and packages, and apply flexible interest rate policies.

Also according to the Hanoi Statistics Department, loans under the bank-business connection program account for 15.05% of total outstanding loans; loans to small and medium enterprises account for 18.9%; loans to agricultural and rural programs account for 8.93%; to exports account for 5.14%; loans to support industries account for 5.14%; loans to businesses applying high technology account for 0.36%.

In addition, according to this agency, the average lending interest rate of domestic commercial banks on existing and new outstanding loans is 7.5 - 9.7%/year. The maximum short-term loan interest rate in VND for priority sectors (agriculture, rural areas, exports, small and medium-sized enterprises, supporting industries, high-tech application enterprises) is about 3.6% p.a. on average.

According to the Ho Chi Minh City Statistics Department, the total outstanding loans of credit institutions in the city as of May 31 is estimated at VND 3.61 million billion, an increase of 4.5% compared to the end of 2023. Of which, amount of short-term outstanding loans is estimated at VND 1.71 million billion, accounting for 47.6% of total outstanding loans, an increase of 6.1% compared to the end of last year. Amount of medium-term and long-term outstanding loans is at VND 1.89 million billion, accounting for 52.4% of total outstanding loans, an increase of 3.1% compared to the beginning of the year.

The country's two economic engines maintain positive credit growth, more than twice the growth of the entire economy. According to data released by the State Bank of Vietnam (SBV), as of May 10, credit growth of the whole the economy only reached 1.95%. In the first two months of the year, credit had negative growth.

According to information from the 7th session of the 15th National Assembly, mobilization of the economy as of the end of April decreased by 1% compared to the beginning of the year. Mobilization decreased in the context that deposit interest rates bottomed out at the end of the first quarter of 2024.

Kylie Nguyen