Total outstanding loans this month of Hanoi-based credit institutions are estimated to inch up 0.5 percent to nearly 927 trillion VND (43.52 billion USD), according to the Hanoi Statistics Office.

The July credit growth of the capital was lower than the 2 percent rise last month.

In detail, short-term outstanding loans of credit institutions in the capital are estimated to drop 1.3 percent over the previous month and 8.3 percent from December 2013, while medium and long-term loans are estimated to rise by 4.1 percent over the previous month and 12.1 percent against December 2013.

In July, Hanoi-based credit institutions are also estimated to have mobilised nearly 1,140 trillion VND (53.52 billion USD), up 2.7 percent over the previous month and 8.9 percent from December 2013.

Meanwhile, the Ho Chi Minh City Statistics Office reported that the city's credit is estimated to rise 2.2 percent from the previous month to 979.9 trillion VND (46 billion USD).

Medium and long-term outstanding loans accounted for 46.5 percent, surging 14.5 percent year-on-year, while the short-term outstanding loans accounted for 53.5 percent, rising 5.6 percent year-on-year.

The city's credit institutions are also estimated to mobilise a total 1,205.6 billion VND (56.6 billion USD), up 2.8 percent as compared to June, and up 14.4 percent year-on-year.

According to the latest survey on business trends of credit institutions, released last week by the State Bank of Vietnam (SBV), 90 percent of credit institutions expect deposits and loans of the whole banking system to grow 3.6 percent in Q3 and 14.2 percent in 2014.

Officials have so far shown optimism despite the slow credit growth of 3.52 percent over the past six months, which had raised concerns over the banking system's ability to reach the credit growth target of 12 to 14 percent this year.

SBV Deputy Governor Nguyen Dong Tien said that credit growth will possibly meet the target as it is usually slow in H1 and accelerates in H2.

Besides, Tien said, domestic production and businesses have shown signs of recovery. Some key sectors saw a high rate of growth, including exports, supporting industries and the hi-tech sector. Social and agriculture programmes also reacted positively.

The central bank will continue to closely monitor credit institutions, make appropriate adjustments and quickly deal with any problems, Tien said, adding that it will also ask the Government to revise credit policies in rural areas and the agricultural sector.-VNA