Vietnam’s credit growth hits 5-year low of 13.5% in 2019

Addressing Tuesday conference announcing the results of operating monetary policy and banking activities in 2019, the central bank official said that credit growth has slowed down to 13,5 – 13.7%, close to the target of 14% placed from the beginning of the year.

This is the lowest credit growth rate since 2014, but the economy grew at a decade-high of 7.02%. 

The credit structure has shift its focus towards manufacturing, especially in priority fields of the government.

As of end-2019, credit for agriculture and rural areas increased by about 11%, accounting for about 25% of the total outstanding loans of the economy.

Credit for small-and-medium enterprises increased by about 16% while credit for high-tech enterprises increased by about 15%.

Total means of payment increased by about 13% compared to the end of 2018, system liquidity was guaranteed, ready to meet the payment needs for the economy.

From 2012 to end of December 2019, the banking system handled more than $43 billion bad debts.

Regarding credit target for 2020, Vietnam central bank expects a growth of 13%, similar rate of 2019.

Hong said that in 2020, interest rates and exchange rates are forecast to continue to be affected by the advantages and difficulties of the external and domestic economic environment. The central bank will continue to closely follow the rate for better management.