HCMC targets 13% credit growth rate in 2015

The State Bank of Vietnam’s Ho Chi Minh City branch has set targets of 13 percent credit growth rate, 12 percent deposit growth rate, under 3 percent bad debt ratio and better-than-last year business results in 2015, said the branch director To Duy Lam at a meeting on Monday.

Mr. Lam said that the banking industry will drastically implement the credit institution restructuring program and tackle bad debts. They will focus on completing bank merger plans.

Stating at the conference, permanent deputy Governor of the State Bank Nguyen Dong Tien instructed credit institutions to fulfill merger plans before June 2015 and keep close eyes on the progress to ensure that merged banks will stably operate in the second half of the same year.

In addition, Mr. Tien said that the banking system’s average bad debt has had been under control.

In fact, many banks have a very low deep debt ratio--about 1 percent.

However, he said, the 3 percent bad debt ratio target would put a heavy pressure on banks. They thus should have financial preparations for risks and ensure effective credit growth.

The target of 13 percent credit growth is suitable but the State Bank’s HCMC branch should pay heed to credit quality, he added.

Last year HCMC banking system achieved positive results. Capital mobilization went up 15 percent against the previous year to reach VND1,344 trillion (US$62.97 billion). Liability increased 12 percent to hit VND1,068 trillion (US$50,036 million). The monetary market was stable and banking service quality was improved.

The Bank - Business Connectivity Program has loaned 1,143 customers including businesses, traders and cooperatives with a total capital of VND40,057 billion (US$1.88 billion).

By Hanh Nhung – Translated by Hai Mien

Other news

Economy

185 leading domestic & in't enterprises join in VN ETE 2018

The Vietnam Exhibition of Electrical Technology and Equipment (Vietnam ETE 2018) and the Exhibition of Products, Technologies for Energy Saving and Green Power (ENERTEC EXPO 2018) yesterday kicked off in HCMC’s Saigon Exhibition Convention Center in district 7.

Self - introduction

VNPT targets to be leading digital service provider in Vietnam

The grand opening ceremony of the VNPT-Information Technology Company (VNPT-IT), a new member of the Vietnam Posts and Telecommunications Group (VNPT), was held yesterday in Hanoi. With thousands of IT engineers and the focus on developing state-of-the-art technological products related to Artificial Intelligence (AI), Bigdata, and Blockchain, the new company is considered the main force to help VNPT fulfill the goal of becoming a leading digital service provider in Vietnam and an important Digital Hub of the neighborhood as well as the world.

Stock market

SAS profits VND 118bln

The Southern Airports Service Joint Stock Company (Sasco) which is listed under code SAS on the Unlisted Public Company Market (UPCoM), announced its second quarter’s financial report with net revenue at VND 634.5billion, an increase of 14 percent compared to last year.