To maintain growth momentum, banks should strengthen their internal capabilities, enhance risk management, improve their financial health and diversify channels for mobilising medium- and long-term capital.

Banks often use their charter capital to compensate for a capital shortage, as lending exceeds capital raising.

Deputy Governor of the State Bank of Vietnam (SBV) Dao Minh Tu has urged credit institutions to evaluate the impacts of typhoon Yagi and classify affected customers eligible for support programmes.

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.

Total assets of the Vietnamese credit institution system by the end of June 2024 reached more than 21.07 quadrillion VND, an increase of 4.97% compared to the end of 2023, the State Bank of Vietnam (SBV)’s latest data show.

As of June 30, credit expanded 6% compared to the end of 2023 while total outstanding loans approximated 14.4 quadrillion VND (563.3 billion USD), a positive signal showing this year's credit growth target of 14 - 15% is within reach, experts said. ​

Credit within the banking system to the end of May 2024 increased by only 2.41% against the end of 2023, far from the credit growth target, the Government reported.

Total outstanding loans at credit institutions in Ho Chi Minh City were worth nearly 3.36 quadrillion VND (137.7 billion USD) as of September 30, a 0.72% increase from the previous month, according to the State Bank of Vietnam (SBV).

Outstanding loans to the real estate sector in the first half of 2023 surged by 17.4%, exceeding the 10.7% growth rate of the whole of 2022, according to data from the State Bank of Vietnam (SBV).

It is necessary to create a synchronous and breakthrough legal framework to deal with bad debts in order to achieve more positive results as the work is facing many challenges, according to experts.

Credit institutions forecast the demand for banking services will be buoyant in the remaining months of this year, of which credit growth will reach about 4.4% in the third quarter of 2023 and 12.5% for the whole year, according to a survey of the State Bank of Vietnam (SBV).

Some 485,000 poor and near-poor households gained access to loans from the Vietnam Bank for Social Policies (VBSP), worth about 21.86 trillion VND (932.17 million USD) in total, in the first three months of this year.

The JSC Bank for Foreign Trade of Vietnam (Vietcombank) remained the best-performing credit institution and the largest contributor to the State budget among the listed ones in 2021.

The banking industry sharply reduced outstanding loans for real estate business in the first half of 2021 and will continue such limits in the second half.

Banks will continue to tighten lending in risky sectors including securities, real estate, financial, and tourism business, seeing higher credit risks in the remaining months of this year, a survey carried out by the Monetary Forecasting and Statistics Department has said.

The Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) proposed raising its charter capital to over 50 trillion VND (2.17 billion USD) during its annual shareholders’ meeting on April 23.

The State Bank of Vietnam is drafting amendments to a circular that restructures repayment periods, waives and reduces interest rates and fees and maintains debt classification to support people affected by the COVID-19 pandemic to ensure more receive the support.

Credit grew only 1.96 percent as of May 29 as compared with late 2019, due to the impact of the COVID-19 pandemic, according to Deputy Governor of the State Bank of Vietnam (SBV) Nguyen Thi Hong.

Many commercial banks are proposing the central bank to extend credit growth limits as they have nearly reached the allowed threshold.

Financial firms extended loan dues for more than 223,000 borrowers whose outstanding loans stood at 151 trillion VND (6.49 billion USD) by May 25, according to the State Bank of Vietnam.