In early 2025, Ho Chi Minh City banks reported a slight 0.17% decline in credit growth despite a 12.2% year-on-year gain. Key sectors remain stable, particularly in foreign currency lending to export businesses. The state bank aims for a 16% growth in total credit this year, leveraging low interest rates and business connections to stimulate the economy.
In 2025, banks in Ho Chi Minh City saw a slight decline in lending growth. According to Nguyen Duc Lenh, deputy director of the State Bank of Vietnam’s HCM City office, the total outstanding credit was 3.936 trillion VND as of February, marking a 0.17% decrease from December 2024, despite a year-on-year increase of 12.2%. Overall, credit flows into critical economic sectors remained stable, with foreign currency lending to import-export businesses rising by 1.37% month-on-month.
HCM City banks have concentrated their lending primarily on production, trade, services, and consumption, which together constitute approximately 75% of total lending and primarily meet short-term funding needs. Lending for February saw a notable growth of 14% compared to the previous month. Supporting economic growth strategies enhance capital absorption and credit expansion, while the central bank’s office indicates stable, low interest rates and programs linking banks with businesses will further stimulate production and consumption.
The State Bank of Vietnam has set a target for a 16% overall credit growth this year, focusing on the vital sectors of the economy that are essential for sustained growth and development in the city. The banking sector’s adaptability and connection with economic activities are key for fostering a more robust financial environment in Ho Chi Minh City.
In summary, while Ho Chi Minh City banks have witnessed a minor dip in credit growth in early 2025, key sectors such as manufacturing and trade continue to thrive. With an aim for 16% credit growth this year and various initiatives planned, there remains potential for recovery and stability in the financial landscape.
Original Source: en.vietnamplus.vn
