Vietnam’s credit growth in the first quarter of this year reached 11.59 percent compared to the corresponding period last year, leading to investment expansion and a boost to the country’s economic growth, the State Bank of Vietnam reported on April 2.

The central bank further said that there is a high possibility that the banking system will be able to fulfil this year’s target of 12-14 percent credit growth.

The credit growth in March stood at 1.35 percent, compared with a decrease of 0.55 percent in January and 0.65 percent in February.

The credit system is witnessing positive signs as it is transitioning towards the Government’s prioritised sectors. By the end of January, credit for exports had risen 1.28 percent year-on-year, while those for support industries and high technology application businesses stayed at 1.73 and 0.41 percent, respectively.

The central bank explained that the credit increase remained slow due to the low loan demand of local businesses in the first months of the year, the weak capital absorption capacity of the economy, state budget insolvency and the ineligibility of several enterprises to access loans.-VNA