Bank credit growth recovers partly in March

Despite being slow, credit growth of the banking system in March recovered compared with the first two months of this year.
Bank credit growth recovers partly in March ảnh 1The credit growth last month rebounded compared to the first two months of this year when it was only 0.06 percent. (Photo vietnambiz.vn)

Hanoi (VNS/VNA)
- Despite being slow, credit growth of the bankingsystem in March recovered compared with the first two months of this year.

The State Bank of Vietnam (SBV) reported credit growth in the first quarter ofthis year reached 1.1 percent, slowing significantly against the 2.28 percentrate in the same period last year, due to adverse impacts of the COVID-19epidemic.

However, the credit growth last month rebounded compared with the first twomonths of this year, when it was only 0.06 percent, the lowest level in thepast six years.

Nguyen Quoc Hung, director of the SBV’s Credit Department, said compared withthe first two months of the year, the economy now has better access to credit.

The credit has begun to recover, Hung said, expecting that a higher growth ratewould be seen this week.

Besides State-owned banks, many private banks have recently offered creditpackages with preferential interest rates to support firms and individuals thathave been affected by the COVID-19 outbreak. The packages will last until thepandemic is over.

According to Hung, the banks’ move shows their liquidity is good and they areready to provide capital for the economy.

Vietnam Prosperity Commercial Joint Stock Bank (VPBank) has also launched thesecond special support package with interest rate decline of 2 percentagepoints, applicable to businesses facing difficulties due to the COVID-19pandemic.

Businesses entitled to these incentives must meet some requirements, such asoperating in tourism, catering, accommodation, and transportation areas; havingexport revenue of goods to markets such as China, the US, and the EU accountingfor at least 50 percent of the business revenue in 2019; or facing difficultiesin repaying debts.

Tien Phong Commercial Joint Stock Bank (TPBank) has recently issued a 12trillion VND preferential interest rate programme for new customers. Theinterest rate reduction of the loan is 1.5 - 2.5 percentage points per yearlower compared to the current interest rates.

Kien Long Commercial Joint Stock Bank (Kienlongbank) has decided to cut lendingrates by 3 percentage points per year for existing individual and corporatecustomers in the agricultural and fishery sectors. The time of the interestrate reduction is from April 1 to the end of June 30 this year, applicable to customersin the Mekong Delta region, especially in Kien Giang, Ben Tre, Ca Mau, TienGiang and Long An, who are heavily affected by drought and saline intrusion.

However, experts said banks must ensure efficiency and control risks of theloans, suggesting that firms wishing to receive preferential loans must provetheir business cash flow, input and output of their products as well as havingcollateral.

Enterprises in industries that still operate in spite of the COVID-19 pandemicsuch as electricity and consumer goods would get loans to sustain theirproduction and business, but those such as textiles, transportation and tourismshould be considered carefully in the current context, they said./.
VNA

See more

Deputy Prime Minister Tran Hong Ha at the 12th meeting of the national steering committee for IUU fishing prevention and control on January 14 (Photo: VNA)

Deputy PM orders enhanced fishery management tools

Deputy Prime Minister Tran Hong Ha has asked the Ministry of Agriculture and Rural Development to complete the comprehensive integration and smooth connectivity to the national fisheries database (VN-Fishbase), vessel monitoring system (VMS), and electronic traceability system (eCDT) in Q1, ensuring seamless data flow from central to local authorities, a move to clamp down on illegal, unreported and unregulated (IUU) fishing.

A view of the Van Phong economic zone in Khanh Hoa province. (Photo: VNA)

Huge room for Khanh Hoa to expand cooperation with Chinese firms: official

With its strategic importance in the central key economic region, well-developed and interconnected infrastructure, coupled with ample potential for tourism development, Khanh Hoa province is an ideal location for Chinese businesses to seek opportunities for cooperation and investment, Vice Minister of Foreign Affairs Pham Thanh Binh has said.

Products showcased at the Investment & Trade Promotion Centre of Ho Chi Minh City. (Photo: nhandan.vn)

Businesses must embrace new trends to boost exports to US: experts

Trade cooperation between Vietnam and the US presents both vast opportunities and significant challenges, as the latter enters a new phase with major adjustments to its economic and foreign policies, which are expected to have a wide-reaching impact on global trade and investment activities.

Vietnamese Ambassador to the UK Do Minh Hung (centre), embassy staff and VBUK members (Photo: VNA)

Vietnamese Business Association in UK sets 2025 agenda

The Vietnamese Business Association in the UK (VBUK) has announced plans to reshape the landscape of Vietnam-UK trade relations, focusing on driving business community forward, fostering its unity and strengthening connections with their Vietnamese partners both at home and abroad.

Durians being prepared for export. (Photo: phunuonline.com.vn)

Vietnam tightens fruit inspections after warning from China

The Plant Protection Department under the Ministry of Agriculture and Rural Development has requested that local authorities and relevant agencies enhance inspections and monitoring of cultivation areas and export packing facilities for fresh fruit, including durians and jackfruit.