Experts said a large portion of this influx of cash will likely flow into promising investment avenues like real estate and securities, especially given the current volatility in the gold market.
In 2025, credit growth is forecast to continue its upward trajectory, driven by factors ranging from flexible monetary policies to robust corporate borrowing demand.
VNDirect estimated that the total value of privately placed corporate bonds maturing in 2025 will reach about 203 trillion VND (8 billion USD), reflecting an 8.5% increase from the previous year.
Credit growth across the banking sector reached 15.08% as of the end of 2024, exceeding the year’s target of 15%, according to Standing Deputy Governor of the State Bank of Vietnam (SBV) Dao Minh Tu.
The banking system's credit growth had risen by 11.12% as of November 22 compared to the end of 2023, hence the 15% growth target for the whole year is reachable, according to the State Bank of Vietnam (SBV).
The banking system's credit growth had risen by 11.12% as of November 22 compared to the end of 2023, hence the 15% growth target for the whole year is reachable, according to the State Bank of Vietnam (SBV).
Experts believe that increasing credit growth limits (credit room) not only allows businesses greater access to capital but also helps stabilize the monetary market.
There is a concern about risks that can arise as real estate credit has increased sharply in recent years, particularly by the end of September, higher than the general credit growth of the entire economy.
Deputy Governor of the State Bank of Vietnam (SBV) Pham Quang Dung has recently said that the central bank is studying a plan to gradually abolish the credit growth quota policy following the National Assembly and the Government’s directions.
In a move to restructure the credit institution system and tackle bad debts, the State Bank of Vietnam (SBV) has announced the mandatory transfer of two major banks.
While private joint stock commercial banks have increased capital significantly so far this year, the capital for State-owned commercial banks has remained stagnant.
Asset risks and profitability of Vietnamese banks remained broadly stable, but small banks faced more loan delinquencies and liquidity issues in the first half of 2024, analysts said.
Banks with credit growth of at least 80% of the targets set by the central bank at the beginning of the year are allowed to expand lending based on credit ratings, according to the State Bank of Vietnam (SBV).
Many banks, which used to focus on lending to individual (retail) customers, have had to shift to expanding corporate lending to achieve credit growth in the first half of 2024.
Leading investment fund VinaCapital remains confident in the Vietnamese stock market in the last months of this year despite foreign investors’ heavy net selling.
Flourishing production and business activities in various sectors and a warming real estate market are the driving forces that increased credit growth, thereby contributing to the growth of the country’s gross domestic product (GDP) in the first half of 2024.
