Credit in Hanoi unexpectedly increases by only 0.7pct in Q1

10-Apr-2021 Intellasia | VnEconomy | 5:02 AM Print This Post

The Hanoi Statistical Office has just released a report on the socio-economic situation in the first quarter (Q1) of 2021, including bank credit indicators.

According to the Hanoi Statistical Office, credit institutions in the area are continuing to promote the deployment of many measures to support customers facing difficulties due to the impact of Covid-19 epidemic, restructure the repayment period, exempt or reduce loan interests, temporarily maintain the same debt group for the loans in accordance with the State Bank of Vietnam (SBV)’s regulations and consider granting loans for customers to maintain their production and business activities.

Despite trying to boost credit, the data by the end of Q1/2021 showed that the total outstanding loans in the area reached only 2.220 trillion dong, equivalent to an increase of only 0.1 percent compared to the previous month and an increase of 0.7 percent compared to the end of 2020.

Meanwhile, the credit growth rate of the entire economy in the first three months of 2021 was up to 2.04%. Thus, the credit growth in Hanoi is much slower than the overall credit growth of the whole country.

Concerning the credit structure in Hanoi, by term, the short-term outstanding credit was 892 trillion dong, up by 0.2 percent compared to the previous month and up by 1.3 percent compared to the end of 2020; while the medium and long-term outstanding credit was 1.328 trillion dong, equivalent to the previous month and increased by 0.3 percent compared to the end of 2020.

Considering loans under credit programmes, by the end of March, the lending to agriculture and rural areas reached 182 trillion dong, accounting for 9.1 percent of the total outstanding loans; lending to export field was 105 trillion dong, accounting for 5.3%; lending to support small and medium-sized enterprises was 379 trillion dong, accounting for 18.9%; lending to real estate was 419 trillion dong, accounting for 20.9%; lending to high-tech enterprises was eight trillion dong, accounting for 0.4%; social policy loans reached nine trillion dong, accounting for 0.5%; lending under the programme to serve the social and living needs was nearly 388 trillion dong, accounting for 19.3%; and securities loans were seven trillion dong, accounting for 0.4%.

The lending interest rates in dong of credit institutions were popular at 5.5 — eight percent per annum for short terms, and 7.5 — nine percent per annum for medium and long terms. The maximum short-term lending rate in dong for some priority areas (agriculture, rural areas, export, small and medium-sized enterprises, supporting industries, high-tech enterprises) is 4.5 percent per annum.

Regarding the mobilisation of capital, the total mobilised capital of credit institutions reached 3.777 trillion dong, up by 0.1 percent compared to the previous month and increased by 0.7 percent compared to the end of 2020. In particular, the deposits in dong were 3.111 trillion dong, up by 0.8 percent over the end of 2020; deposits in foreign currencies were 409 billion dong, up by 0.1%. Savings deposits reached 1.440 trillion dong, up by 0.5%, while demand deposits reached 2.080 trillion dong, up by 0.8%.

The savings interest rates in dong were 0.1 — 0.2 percent per annum for demand deposits and deposits with terms of less than a month, 3.1 — 3.8 percent per annum for deposits with terms from one month to less than six months, four percent to six percent for deposits with terms from six to less than 12 months, and 5.6 — 6.8 percent per annum for deposits with terms from 12 months or more. The US dollar savings interest rate of credit institution remained zero for deposits of individuals and organisations.

Notably, regarding the quality of credit in Hanoi, by the end of March 2021, the bad debts of credit institutions accounted for 1.9 percent of the total outstanding credit and 2.1 percent of the total outstanding loans, unchanged compared to the end of February.

 

Category: Finance, Vietnam

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