HCM City Banks Experience Slight Decline in Lending Growth in Early 2025

Ho Chi Minh City banks reported a slight decline in overall lending growth in early 2025. Despite this decrease, outstanding credit remains stable, especially in key sectors like trade and production. The central bank aims for a 16% credit growth this year, leveraging low-interest rates and strategic bank-business collaborations to stimulate economic activity.

In early 2025, Ho Chi Minh City banks experienced a slight decline in lending growth, despite efforts to provide preferential loans. Deputy Director of the State Bank of Vietnam’s HCM City office, Nguyen Duc Lenh, reported that outstanding credit was 3.936 trillion VND, marking a reduction of 0.17% from December 2024 but a year-on-year increase of 12.2%. However, lending to key economic sectors showed stability.

Foreign currency lending to import-export businesses saw a month-on-month increase of 1.37%. Mr. Lenh emphasized that lending from HCM City banks continues to focus on production, business, trade, services, and consumption, with these areas representing approximately 75% of total loans, primarily supporting short-term funding needs. February lending rose by 14% from January.

The HCM City office of the central bank noted that solutions targeting economic growth enhance capital absorption and facilitate credit growth. The maintenance of stable, low-interest rates and initiatives that connect banks with businesses are vital for promoting production and consumption, thus fostering credit expansion. The state bank has set a credit growth target of 16% for this year.

The lending landscape in Ho Chi Minh City showcases a complex interplay of stability in key economic sector credits alongside an overall slight decline in bank lending growth. Emphasizing support for production and consumption while maintaining low-interest rates is critical for achieving the targeted credit growth of 16% in 2025. Continuous efforts from the central bank to improve lending dynamics will be essential to stimulate the economy further.

Original Source: en.vietnamplus.vn