Vietnam targets credit growth of 14 pct in 2019
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The State Bank of Vietnam targets credit growth of 14 percent this year, the same as last year. The focus of new loans would be priority sectors such as manufacturing, agriculture and small and medium enterprises, Nguyen Thi Hong, Deputy Governor of the central bank, said. Credit growth in the Vietnamese banking sector last year was 14 percent, the lowest rate since 2014.
The figure announced by the State Bank of Vietnam (SBV) Monday was well short of the 17 percent targeted for the year.
According to officials from the SBV’s Department of Credit for Economic Sectors, lending grew sharply in the early months of the year before tapering off. It was primarily targeted at priority sectors such as manufacturing and processing.
Credit to the commercial and services sectors saw the highest growth rate, 16 percent. Lending to industry and construction grew by 12.1 percent and to agriculture, by 8.8 percent.
Overall, interest rates remained steady despite rising interest rates in global markets. In Vietnam, interest rates are commonly around 6-9 percent a year for short-term and 9-11 percent a year for medium and long-term.
The non-performing loans ratio was down to 1.89 percent from 1.99 percent in 2017 and 2.46 percent in 2016.
Questions & Answers
Q.Which sectors will the State Bank of Vietnam prioritise for new loans this year?
Which sectors will the State Bank of Vietnam prioritise for new loans this year?
The central bank will focus new loans on priority sectors such as manufacturing, agriculture, and small and medium enterprises.
Q.How did last year's credit growth compare to the target set by the State Bank of Vietnam?
How did last year's credit growth compare to the target set by the State Bank of Vietnam?
Last year's credit growth of 14 percent was well short of the 17 percent target set by the State Bank of Vietnam.
Q.Which specific economic sectors experienced the highest growth rate in lending last year?
Which specific economic sectors experienced the highest growth rate in lending last year?
Lending to the commercial and services sectors saw the highest growth rate, achieving 16 percent.
Q.What were the average interest rates for loans in Vietnam last year?
What were the average interest rates for loans in Vietnam last year?
Interest rates commonly ranged from 6-9 percent annually for short-term loans, and 9-11 percent annually for medium and long-term loans.
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