Positive credit growth
According to the State Bank of Vietnam , in 2025, the system-wide credit growth target is about 16%. If this growth target is achieved, the banking system will "pump" an additional VND2.5 million billion into the economy, raising the total outstanding credit balance of the entire system to about VND18.1 million billion by the end of this year.
This is completely reasonable when the credit growth of the banking sector has been positive since the first months of the year. At the Conference on promoting credit in the banking sector to contribute to economic growth in region 15 recently held, Permanent Deputy Governor of the State Bank Dao Minh Tu said that up to this point, credit has increased by nearly 1%, while in the same period of 2023 and 2024, credit was negative 0.74%. This shows that this year, thanks to the very strong direction of the Government and the State Bank, commercial banks have stepped in early and have also provided capital to the economy quite positively; and it also means that businesses have accessed effective and safe loan sources to promote production and business development.
In fact, in the context of credit needing a boost, many commercial banks have quickly stepped in with credit programs and preferential interest rate loan policies. Most recently, Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank) launched a VND20,000 billion loan package to serve the needs of production and business, buying, building/repairing houses, and daily consumption with competitive interest rates from only 4%/year.
Accordingly, individual and corporate customers can choose short-term loan packages with preferential interest rates from 4%/year or medium and long-term loans with interest rates from only 6.5%/year . “With a capital scale of up to 20,000 billion VND, along with diverse payment methods, simple procedures, and quick disbursement, we hope to accompany individual and corporate customers - especially businesses in the green economic sector - in expanding their business, developing sustainably and realizing their dream of buying a house without having to worry too much about financial pressure” - Sacombank representative shared.
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| Up to now, credit has increased by nearly 1%. Photo: Toan Thang |
Similarly, in response to the need for capital loans to promote production and business right from the first months of the year of enterprises, while complying with the orientation and policies of the Party, the Government and the State Bank, Loc Phat Commercial Joint Stock Bank (LPBank) implemented the program "Accelerate breakthrough - Loc Phat success" with a limit of 8,000 billion VND, preferential interest rates deeply reduced from only 4.8%/year.
The program is designed by LPBank for existing and new corporate customers when borrowing capital from the bank, with preferential lending interest rates starting from only 4.8%/year for short-term USD loans and from 6.3%/year for short-term VND loans. For medium and long-term loans, the interest rate starts from only 7%/year with a fixed term of up to 12 months. The program applies from now until June 30, 2025 or until the credit package runs out. In addition, to facilitate customers' easy access to capital, LPBank also streamlines the process and optimizes loan procedures.
Directing capital flow effectively
According to economic experts, reducing and maintaining low interest rates in the current period is important, but how to direct capital in the right direction for the growth target is even more urgent. Speaking at the Vietnam Economic Forum 2025 - Session 1 with the theme: Breakthrough solutions to achieve the growth target of over 8% held last weekend, Dr. Tran Du Lich - Economic expert - expressed concern that this year's growth depends largely on credit capital flows. The State Bank plans to increase total outstanding credit by 16%, equivalent to about 2.5 million billion VND. This amount of money injected into the economy will create a great boost for aggregate demand. However, if capital is not put into production and business but flows into securities or real estate, the risk of falling into a state of virtual growth and financial bubbles like in 2016 is very high.
Sharing the same view, Mr. Nguyen Duc Lenh - Deputy Director of the State Bank of Vietnam, Region 2 Branch - said that achieving the credit growth target of 16% this year is not difficult if the economy grows at 8%. However, the core issue is the ability to absorb capital and effectively direct capital flows.
| Deputy Governor Dao Minh Tu affirmed that bank credit will continue to focus on priority areas such as investment, export, production, and business, especially focusing on consumer credit such as buying social housing, contributing to promoting and actively supporting economic growth. |
Source: https://congthuong.vn/lai-suat-giam-nhung-lo-ngai-khong-di-dung-huong-378717.html
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