Credit expanded by 8.16% in the first half of this year, up from 7.86% in the year-earlier period, the State Bank of Vietnam (SBV) said in a statement yesterday.
The SBV said this growth rate was poised to match the target of 18-20% for the whole year. Banks ensured the quality of credit growth and monitored lending to risky sectors while bank loans for enterprises were provided in line with the central bank’s policy against the hoarding of U.S. dollars.
Bank loans mainly went to the manufacturing sector and the five priority sectors of agriculture and rural development, production of export goods, small- and medium-sized enterprises (SMEs), supporting industries and high-tech enterprises.
Lending to the real estate and other high-risk sectors was put under control but this did not affect loans for social housing projects.
The SBV said it adopted a flexible approach towards the average daily interbank exchange rate between the dong and the dollar, making the foreign exchange market stable in the year to date.
The dong-dollar exchange rate fell on the interbank market and hovered around VND22,300 per dollar, below the ceiling. Liquidity in the banking system was ample and foreign currency demand of qualified customers was met.
The central bank said it bought a large volume of foreign currencies in the period to increase the nation’s foreign reserves but did not elaborate.
From now until the year-end, the central bank will focus on managing money supply stabilizing the dong-dollar exchange rate, increasing foreign reserves and controlling inflation.
The SBV will order credit institutions to balance capital mobilization and lending, keep deposit rates stable, reduce operation costs and improve business efficiency to lower lending rates.
Loan growth will be monitored to ensure safety while lending will be channeled into the five priority sectors and startups.
The central bank said it will keep a close eye on lending to high-risk sectors and take measures to support businesses with good projects to borrow.