Experts have shown optimism despite the slow credit growth over the pastsix months, which had raised concerns over the banking system's abilityto reach the year's target of 12-14 percent growth.
According tostatistics from the State Bank of Vietnam, the credit growth rate inthe first six months of this year was only 3.52 percent, while thegrowth rate over the same period last year was 4.7 percent.
However,many experts said this did not pose a problem because growth is usuallyslow in the first two quarters. In addition, weak absorptive capacity,budget arrears, cumbersome bureaucratic procedures and the stillrecovering world economy are also to blame.
On the other hand,some key sectors saw a high rate of growth, including exports,supporting industries and the hi-tech sector. Social and agricultureprogrammes also saw positive signs.
"I think this is a highlightfor our economy. For years, we have complained that our economicdevelopment was too shaky. Firms couldn't improve operations on theirown and depended entirely on bank loans. Low credit growth means ouradjustments are on the right path," Nguyen Duc Kien, Deputy Head of theNational Assembly’s Economic Committee was quoted as saying.
Hewent on to say that forcing the economy to sustain high rates of creditgrowth will result in unintended consequences such as bad debt.
TheState Bank will continue to closely monitor credit institutions andforeign exchange rates to issue appropriate adjustments and quickly dealwith any problems. They will also ask the government to revise itscredit policies in rural areas and the agricultural sector.
Meanwhile,experts suggested that the government needs to improve macro-policieswhile they are being carried out. NA deputy Tran Du Lich said, "Theproblem is how to help enterprises. Government needs to give moresupport while enterprises must reform and improve theircompetitiveness."
The economic growth in the first six months was5.18 percent, an improvement compared to the 4.9 percent over the sameperiod last year.-VNA
According tostatistics from the State Bank of Vietnam, the credit growth rate inthe first six months of this year was only 3.52 percent, while thegrowth rate over the same period last year was 4.7 percent.
However,many experts said this did not pose a problem because growth is usuallyslow in the first two quarters. In addition, weak absorptive capacity,budget arrears, cumbersome bureaucratic procedures and the stillrecovering world economy are also to blame.
On the other hand,some key sectors saw a high rate of growth, including exports,supporting industries and the hi-tech sector. Social and agricultureprogrammes also saw positive signs.
"I think this is a highlightfor our economy. For years, we have complained that our economicdevelopment was too shaky. Firms couldn't improve operations on theirown and depended entirely on bank loans. Low credit growth means ouradjustments are on the right path," Nguyen Duc Kien, Deputy Head of theNational Assembly’s Economic Committee was quoted as saying.
Hewent on to say that forcing the economy to sustain high rates of creditgrowth will result in unintended consequences such as bad debt.
TheState Bank will continue to closely monitor credit institutions andforeign exchange rates to issue appropriate adjustments and quickly dealwith any problems. They will also ask the government to revise itscredit policies in rural areas and the agricultural sector.
Meanwhile,experts suggested that the government needs to improve macro-policieswhile they are being carried out. NA deputy Tran Du Lich said, "Theproblem is how to help enterprises. Government needs to give moresupport while enterprises must reform and improve theircompetitiveness."
The economic growth in the first six months was5.18 percent, an improvement compared to the 4.9 percent over the sameperiod last year.-VNA
