Credit growth likely to be 14.1 percent this year: SBV survey

Illustrative photo. (Source: VNA)

Hanoi (VNA) – Credit growth is projected to be 5.3 percent in the first quarter of 2022 and 14.1 percent this year, according to a survey of lenders conducted by the State Bank of Vietnam (SBV) last December.

The COVID-19 pandemic kept under control is boosting demand for capital. As of January 28, the credit grew by approximately 2.74 percent compared to the end of last year and 16.32 percent year-on-year, said SBV Deputy Governor Dao Minh Tu. It is also much higher than the 0.53 percent growth in January 2021.

Outstanding loans reached nearly 286 trillion VND last month.

The central bank is considering to raise the credit growth target to 14 percent in 2022, Tu added, compared to the 12-percent goal of the previous year.

Fueled by the government’s credit package worth 40 trillion VND (over 1.75 billion USD) prioritised for production and business sectors, the credit growth is expected to give extra leverage to post-pandemic economic recovery.

Credit growth rebounded during the final quarter of last year on the back of surging capital demand and firms ramping up production, said CEO of the Orient Commercial Joint Stock Bank (OCB) Nguyen Dinh Tung.

The government is pushing for the launch of more stimulus packages, acceleration of public investment disbursement and removal of challenges facing projects, he said, noting that these factors will further boost credit growth./.