78 percent of credit flows into production, trading in HCMC

Total outstanding loans in HCMC neared VND1,500 trillion (US$66 billion) in 2016 with 78 percent of the funds going to production and trading, reported Mr. To Duy Lam, director of the State Bank of Vietnam (SBV) in HCMC on December 30.

Reporting at a meeting between SBV and the HCMC People’s Committee, Mr. Lam said that capital mobilization by credit institutions in the city was up 16 percent while outstanding loan increased 18 percent, which is the highest growth rate during the same period in previous years.

The monetary market was stable while banking industry continued growing and developing, he said.

Banking services have developed and performance results by banks have been improved. The number of customers using electronic banking service increased up to 54.3 percent over 2015.

Chairman of the city People’s Committee Nguyen Thanh Phong appreciated results obtained by the city banking industry in 2016 as well as its role in socioeconomic development.

The banking system has well met capital demand of businesses and individuals and efficiently carried out credit assistance programs of the Government, SBV and the city such as Banks-Businesses Connectivity Program which has facilitated businesses’ access to low interest loans to develop production and trading, Mr. Phong added.

He proposed the banking sector to maintain safe, sustainable and efficient credit growth, improve measures to tackle bad debts and restructure their activity structure to ensure safety.

By Nhung Nguyen – Translated by Hai Mien

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