Mr. Nguyen Duc Lenh, Deputy Director of the State Bank of Vietnam Ho Chi Minh City Branch, assessed that credit is taking a positive and stable growth trend, with credit growth in the following month higher than the previous month.

This is an important result in the context that the capital absorption capacity in the economy is still low and this trend will be an important ground for credit to continue to maintain growth in the upcoming months, when economic activities generally improves in the last months of the year.

Mr. Nguyen Duc Lenh also believes that stable orders from businesses and the early implementation of solutions for the real estate market, etc. are factors that have a positive impact so that Ho Chi Minh City's credit growth can achieve targets by the end of 2024.

According to the State Bank of Ho Chi Minh City Branch, credit in Ho Chi Minh City as of the end of May 2024 reached VND 3.61 million billion, an increase of 0.61% over the previous month and an increase of 9.83% over the same period.

This is the fourth consecutive month that credit in the city continues to maintain a continuous positive growth rate, although not high (credit in April increased by 0.35%).

According to Mr. Nguyen Duc Lenh, credit activities have reflected policy effects and are associated with activities to support businesses.

Credit activities have also made an important contribution to implementing the monetary policy tasks of the State Bank of Vietnam and the city's socio-economic development programs.

In particular, the loan program to stabilize the market from the beginning of the year until now has disbursed VND 5,375 billion to 32 businesses with low interest rates, creating conditions for businesses to reduce product costs and reduce selling prices or keeping selling prices low for essential items, contributing to stabilizing the market, supporting the effective implementation of social security policies, and well implementing the city's monetary policy targets.

In addition, the agricultural and rural development program has lent more than VND 351,300 billion to about 1.63 million customers who are farming households, production and business enterprises, and enterprises in agricultural and rural areas, an increase of 4% compared to the end of the year and an increase of 24% over the same period in 2023.

Similarly, the forestry and fishery credit package and credit policies according to Decree 116/2018/ND-CP and the positive growth of this sector in production and export has had a positive impact on credit activities in the first 5 months of 2024.

The credit program for industrial parks and export processing zones continues to gain higher growth than the general credit growth rate and to date, outstanding loans to this area have reached nearly VND 221,700 billion, an increase of 3.5% compared to last year and an increase of 8.9% over the same period in 2023.

Kylie Nguyen