The reason is due to the stable exchange rates and low interest rates (lower than 3 percent of loans in VND a year), so businesses took advantage of the foreign currency loans to reduce costs.
Similarly, the country’s foreign currency loans also were up 11.5 percent in the first ten months of 2017 compared to the end of 2016.
According to the National Financial Supervisory Commission, the main reason is also due to the import demand being higher than to last year.
According to circular of the State Bank, the foreign currency loans will be invalid by the end of 2017. So, the businesses will not be able to borrow foreign currency loans from the beginning of 2018 if they do not continue to be extended.