Credit growth rate lowest in 3 years

22-Sep-2018 Intellasia | Infonet | 6:00 AM Print This Post

Summary report on the implementation of Resolution No. 01/NQ-CP and the socio-economic situation in August and the first eight months of 2018 of the Ministry of Planning and Investment said that credit growth reached 8.18 percent in the first eight months of the year.

This is the lowest growth rate of credit outstanding in the past three years, when the credit growth of the same period in 2017 was 10.8 percent; in 2016 was 9.64 percent; and in 2015 was 10.21 percent. This figure is also far from the growth target of 17 percent.

Meanwhile, the State Bank of Vietnam (SBV) said that as of 22nd August 2018, the total facilities of payment increased by 8.3 percent, mobilised capital increased by 8.72 percent, credit for the economy increased by 8.54 percent from the end of 2017.

Credit growth accelerated more than the growth of total facilities of payment from the beginning of July to the present when SBV has actively withdrawn liquidity from the banking system in order to reduce the pressure on exchange rate.

As a result, the gap between the increase in M2 money supply and the increase in credit has fallen from 238 trillion dong as of 20th June 2018 to 124 trillion dong as of 22nd August 2018.

In terms of inflation, the consumer price index (CPI) in August slightly increased by 0.45 percent compared with July, raising the average CPI in the first eight months by 3.52 percent over the same period last year, still in line with the target of below four percent by the government.

According to Bao Viet Securities Company (BVSC), the risk of inflation in the remaining four months of this year is still quite unpredictable, especially when domestic pork price and world oil price remain high.

Thus, the direction of monetary policy management of SBV will continue to be cautious but flexible, depending on the movement of inflation as well as the demand for capital of the economy.

 


Category: Finance, Vietnam

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