Illustrative image. (Photo: VNA)Thisstands in contrast to the years before the pandemic, when credit inthe first quarter often declined due to low capital demand.
Thisyear, credit has increased from January. According to the State Bank of Vietnam(SBV), credit as of January 25, 2022 rose by 2.74 percent compared to the endof 2021. Compared with January of the past ten years, the rise was the highestrate. According to experts, the surge was a positive signal, showing theeconomy is recovering strongly and capital demand is increasing rapidly.
TheSBV sets a credit growth target of about 14 percent for 2022, against 13.53 percentof 2021. According to the SBV, along with preferential interest rate creditpackages given to the production and business sectors, credit growth will bemore flexible this year to support economic recovery.
NguyenDinh Tung, OCB director, said the economy had been gradually recovering afterthe fourth wave of COVID-19 was controlled thanks to the high vaccine coveragerate. Therefore, credit had increased again since the last quarter of 2021 whenfirms needed capital to recover production and business activities.
Withthe Government’s plans to introduce stimulus packages and acceleratedisbursement of public investment capital this year, Tung expected credit wouldincrease in 2022, even in the first quarter when credit demand oftendeclined in years before the pandemic.
Acredit trend survey in Q1 2022 conducted recently by the SBV also showed banksexpect credit demand to continue to improve in the first quarter and thewhole of 2022, of which processing-manufacturing, import-export, housingpurchase, electricity production-distribution and construction will be fivesectors having the highest demand for loans in 2022.
Thoughsavings interest rates are increasing, Tung forecast lending interest rateswould continue to decrease in 2022 under the direction of the Governmentand the SBV.
TrinhBang Vu, head of Shinhan Bank Vietnam’s loan division of individual customers,also expected with lending interest rates remaining at a low level, capitalneeds of individual customers to buy houses, cars and consumer goods wouldincrease.
Accordingto SBV Governor Nguyen Thi Hong, the banking industry cut lending interestrates three times totalling 1.8 percentage points in the past two years. Theindustry will strive to continually reduce the rate by 0.5-1 percentage pointsin 2022 and 2023.
Toprepare capital sources to meet lending needs this year, banks have beenadjusting up deposit interest rates to attract idle money.
VPBankin early February raised its rates for many terms by 0.7 percentage points peryear compared to early January 2022. The highest online savings interest rateat VPBank is 6.7 percent per year for deposits from 50 billion VND with termsfrom 36 months.
Techcombankhas also raised the rates of many terms by 0.4-0.5 percentage points per yearfrom February 7, 2022. Accordingly, the highest savings interest rate atTechcombank is 5.8 percent per year, up 0.4 percentage points compared to thebeginning of January 2022. This rate is offered to priority customersdepositing Phát Lộc savings at the counter on 36-month terms or online savingson the same term.
Industryinsiders forecast deposit interest rates would continue to increase in thenear future when the credit demands of customers surge after the pandemic./.
