Credit growth slows down in the first five months

18-Jun-2019 Intellasia | Tri Thuc Tre | 10:16 AM Print This Post

According to the newly updated data from the State Bank of Vietnam (SBV), credit outstanding for the economy by the end of May increased by 5.74 percent compared to the end of 2018. In particular, credit for most priority areas increased significantly such as credit for export sector rose by 13%, credit for high-tech application enterprises was up by 14.33%; credit for small and medium enterprises increased by 5.04%; credit for agriculture and rural areas up by 5 percent and credit for supporting industries up by 4.11%.

Compared to the growth rate of 6.22 percent in same period of the first five months of 2018, credit growth this year is somewhat slow. According to the analysts of Bao Viet Securities Company, the reason for the slowdown of credit comes from credit tightening, especially in high-risk areas.

However, priority areas such as industrial, manufacturing, export and high-tech enterprises are supported to provide adequate capital. Besides, there are now many financial institutions, other micro-economic organisations and the market system of stocks and bonds. Especially for corporate bonds, many businesses have actively mobilised common and long-term capital of this channel.

Therefore, according to BVSC, credit growth is not too worrying because businesses have many channels to mobilise capital, not depending on a certain capital source.

 


Category: Finance, Vietnam

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