Vietnam’s credit growth in the first half of this year surged only 3.52 percent compared to last December, the State Bank of Vietnam reported on July 8.

The central bank added that the high increase of foreign currency credit contributed remarkably to the result.

Statistics by the SBV in the reviewed period show that the credit system is witnessing positive signs as it is turning towards priority sectors.

By the end of June, credit for exports had risen 10 percent year-on-year, while those for support industries, high technology application businesses and smalls and medium-sized enterprises stayed at 5.8, 13 and 2 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 of the economy, state budget insolvency and the ineligibility of several enterprises to access loans.

In the context of the low credit growth, SBV’s credit policy has been applied flexibly. The bank has allowed a number of credit institutions to give foreign currency loans to the Government’s priority fields.-VNA