Mr. Nguyen Duc Lenh, Deputy Director of the State Bank Ho Chi Minh City branch, said that November is one of the months in which credit has the highest growth rate of the year (only after March 2023, credit increased 1.37%).
The reason is due to seasonal nature, the demand for credit capital at the end of the year and the traditional Lunar New Year often increases.
Businesses in Ho Chi Minh City are quite excited when interest rates drop sharply at the end of the year. Photo: Phuong Uyen
3 main factors promoting credit growth in Ho Chi Minh City
Analyzing more clearly the reasons driving credit growth in November to be higher than previous months, the Deputy Director of the State Bank of Ho Chi Minh City branch said that there are 3 main factors.
Firstly, due to seasonal nature, the demand for credit capital at the end of the year and the traditional Lunar New Year often increases. In particular, people’s need for capital for production and distribution of essential consumer goods increased; Increased consumer demand for shopping, tourism and services… all of these factors stimulate production and consumption, thereby stimulating credit growth.
In fact, just counting the loan program to stabilize the market in the 2023 crop season, loan sales reached over 13,000 billion VND, for 24 businesses. In particular, business loans stabilize the market for 13 businesses; Enterprises in the product supply and distribution chain of 11 enterprises.
With low lending interest rates, about 4% – 6%/year, it has directly contributed to helping businesses reduce costs and stabilize selling prices of essential goods, thereby directly supporting consumers. year-end occasion and promote the significance of the program.
Outstanding credit debt in the city in November reached 3.4 million billion VND. Photo: Quoc Hai
Second, the policy mechanism on monetary credit and interest rates of the State Bank continues to be effective. With current low interest rates, it not only contributes to supporting businesses and people but also stimulates demand for loans, if approached from the perspective of supply and demand for credit capital and the market perspective.
In early 2023, 20 banking brands registered a credit package to support businesses and people with an amount of VND 453,070 billion.
However, by the end of October 2023, commercial banks had disbursed VND 545,171.74 billion (exceeding the commitment) to 152,006 customers, especially some commercial banks had disbursed an amount exceeding the registered amount. Initial registration such as Agribank, Vietcombank, Sacombank…
In addition, the State Bank’s adjustment and allocation of credit limits appropriately and scientifically also has a positive impact on credit growth, creating conditions to exploit well the nature of the year-end season, because of the suitability, This solution is right and at the right time.
Third, specific action programs of the banking industry in general and the City’s banking industry in particular to support businesses; Bank – business connection continues to be implemented well, substantively and in depth.
In particular, the bank-business connection program in Ho Chi Minh City has become a common program and task of the People’s Committees of districts.
Specifically, up to now, the Bank-Enterprise Connection Program across the City has been implemented by credit institutions with an amount of VND 610,376 billion for 162,289 customers.
Connecting Banks – Businesses in City. Ho Chi Minh City district authorities also coordinate with bank branches in the area to create conditions for capital supply and demand to meet. Accordingly, up to now connection activities in the district have achieved the amount of 65,204.3 billion VND for 10,283 customers.
