HCM City credit grows 6 percent - HCM City credit grows 6 percent - Website Ho Chi Minh City
Ho Chi Minh City achieved a 6.05 percent credit growth worth 1,010 trillion VND (47.4 billion USD) from January to September 2014, according to the local government.
Outstanding loans in Vietnamese dong accounted for 83 percent or 839 trillion VND (39.39 billion USD) of the total number of loans, while foreign currencies made up the remaining 17 percent or 8 billion USD. Short-term loans made up 51 percent of the portfolio.
Loans in priority sectors, including rural and agricultural development, exports, small and medium enterprises, auxiliary industries and high-technology applied enterprises, totalled 136.24 trillion VND (6.4 billion USD), a 7.9-percent increase over that of the end of 2013.
The city's total deposits increased by 4.71 percent in the first nine months to reach 1,226 trillion VND (57.55 billion USD). Of these, deposits in dong made up 84.7 percent.
By end-July, the city's bad debt was estimated to be worth 59 trillion VND (2.76 billion USD), making up 5.93 percent of total outstanding loans, or a 1.24-percent increase over that of last December.
Nguyen Van Binh, the State Bank of Vietnam (SBV) governor, told the National Assembly Standing Committee last week that bad debts nationwide amounted to eight percent of total outstanding loans by the end of late July. Binh said he would bring down the ratio to six percent by year-end.
The country's credit growth from January to September 2014 reached 7 percent while the annual target is set at 12 to 14 percent.