A bank employee counts Vietnamese banknotes in Hanoi. Photo by VnExpress/Giang Huy.
Vietnam’s credit growth in the first quarter doubled year-on-year, with demand for loans increasing as the economy recovers from Covid-19 impacts.
First quarter credit growth hit 1.47 percent, double that of the six-year low of 0.68 percent in the same period last year when the first novel coronavirus outbreak hit Vietnam, according to the General Statistics Office (GSO).
The successful containment of Covid-19 and the recovery of manufacturing are factors behind the rising demand for credit, the GSO said.
The credit growth is reflected in individual performances of commercial banks, according to a recent report by brokerage VNDirect.
Lender ACB saw credit growth hitting 3.5 percent, compared to 2.3 percent in the same period last year, while state-owned ones BIDV and VietinBank posted growths of 2.7 percent and 2.6 percent, compared to –1 percent and –1.2 percent, respectively.
Credit growth had started to recover in the last quarter last year after Vietnam was able to contain the second Covid-19 outbreak. Growth was over 6 percent by the end of September and rose to 12 percent by the end of the year.
The State Bank of Vietnam has targeted a credit growth rate of 12-14 percent this year, if the Covid-19 situation in Vietnam is contained by the end of the first quarter. This could, however, fall to 7-8 percent if more outbreaks occur in the remaining months.