HCM City (VNS/VNA) ♈– Total outstanding loans of credit institutions in Ho Chi Minh City as of the end of last year were worth over 3.9 quadrillion VND (153.3 billion USD), a 11.3% increase for the year, according to the central bank.

Nguyen Duc Lenh, Deputy Director of the State Bank of Vietnam’s HCM City Branch, said credit growth was “solid” last year. In the last five years, it was lower only than in 2022, when growth was 13.8%, he said. The city's total loans outstanding accounts for 25.2% of the country’s total and represents over 2% of the city's economy. “Bank credit remains a crucial source of capital for the city's socio-economic growth and development.” Lending to the production, commercial and services sectors continued to dominate, accounting for 65-67% of the total loans outstanding, he said. He said credit activities in 2024 were closely tied to supporting businesses and drove the city's economic growth through the effective implementation of preferential credit and bank-business connection programmes. Disbursements through the bank-business connectivity programme were worth 691 trillion VND, an increase of 9% from 2023, with 198,166 customers benefitting. Disbursements under the programme for the forestry and fishery sector amounted to 3.3 trillion VND at interest rates 1-2 percentage points lower than average lending rates. The banking sector also effectively implemented a short-term lending programme in VND with interest rates capped at 4% for five key sectors: small and medium-sized enterprises, exporters, agriculture and rural development, supporting industries, and high-tech enterprises. Lenh said credit activities in 2024 met monetary policy objectives, driving economic growth and creating favourable conditions for key sectors to develop, and meeting enterprises’ demand for funds. Loans outstanding in foreign currencies were worth 158 billion USD, 4.24 % up for the year. Low lending interest rates, high-quality foreign exchange services and efficient payment services helped foster import-export activities. Deposits grew by 15.3% last year, outpacing credit growth. This will remain a favourable factor for credit institutions in the city to promote credit growth while effectively implementing the central bank’s monetary, credit and interest rate policies in 2025, Lenh added./.