Ho Chi Minh City Bank Lending Shows Slight Decline in Early 2025

In early 2025, Ho Chi Minh City’s bank lending experienced a slight decline, with outstanding credit at VND 3.936 trillion—down 0.17% from December 2024. However, lending to key sectors remained stable, with a 1.37% growth in foreign currency lending. The state bank aims for a 16% credit growth rate this year, emphasizing the importance of economic solutions and low interest rates to stimulate growth.

In early 2025, banks in Ho Chi Minh City experienced a slight decline in credit growth despite ongoing efforts to offer preferential loans. As of February, total outstanding credit reached VND 3.936 trillion, reflecting a 0.17% decrease from December 2024, though it marked a year-on-year increase of 12.2%. Importantly, credit flow to crucial economic sectors remained stable, with foreign currency lending to import-export companies increasing by 1.37% month-on-month.

According to Nguyen Duc Lenh, Deputy Director of the State Bank of Vietnam’s HCM City office, lending activity is mainly concentrated in production, business, trade, services, and consumption, which together comprise approximately 75% of total loans and primarily address short-term funding needs. Additionally, lending increased by 14% in February compared to the previous month, indicating positive developments in this area.

The central bank’s HCM City office has noted that strategic economic growth solutions enhance the capacity for capital absorption and facilitate credit growth. Maintaining stable, low interest rates, along with initiatives linking banks and businesses, is aimed at fostering production and consumption, thereby boosting credit expansion. The state bank has set a goal for a 16% credit growth rate for the year 2025.

In conclusion, while Ho Chi Minh City banks are facing a slight decrease in credit growth in early 2025, efforts are being made to maintain a steady flow of credit to key economic sectors. The strategic focus on production and business alongside governmental support measures indicates potential for future growth in bank lending. The state bank’s target of a 16% credit growth rate demonstrates an optimistic outlook for the coming year, contingent on effective economic collaboration and interest rate management.

Original Source: en.vietnamplus.vn