Vietnam’s 2020 lending growth estimated at 11% and 12% projected for 2021

Despite pandemic, Vietnam estimated 2020 credit growth at 11 percent and targeted 12 percent for 2021, Deputy Governor of State Bank of Vietnam Dao Minh Tu told a press conference in Hanoi.

The growing rate could expand to 13-14 percent. These are optional indicators and will be balanced in accordance with the situation of market and the economy, he added.

As of December 18, the total means of payment increased by 12.8 percent compared to the end-2019 and by 14,6 percent over the same period in 2019.

Lending grew slower than previous years due to weakening lending demand caused by the Covid-19 pandemic.

Regarding interest rate management, since early 2020, the regulator has adjusted interest rates three times while instructing credit institutions to save costs and cut lending rates, especially in priority sectors.