Credit in Ho Chi Minh City increased by 5.9% in the first 7 months of the year

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In the first 7 months of the year, credit growth of banks in Ho Chi Minh City reached 5.9%, much higher than the same period last year. However, the rate has decreased significantly since the city started implementing social distancing.

(Artwork: Financial Magazine).

According to the General Statistics Office of Ho Chi Minh City, the total credit balance of the whole banking system in the city as of August 1, 2021 reached more than VND 2.68 million, up 0.2% compared to the previous month and up 13.1% over the same period in 2020.

Previously, according to this agency, the outstanding credit balance at the end of 2020 was VND 2.53 million billion. Thus, accumulated in the first 7 months of 2021, credit in Ho Chi Minh City achieved a growth rate of 5.9%; much higher than 3.7% in the same period last year.

Social distancing also slows down the growth rate significantly. At the beginning of June 2021, when Ho Chi Minh City started to implement social distancing, credit outstanding reached more than 2.65 million billion VND, or just increased by more than 1.1% after two months.

In terms of structure, the credit balance of the state banking sector reached 797,850 billion (accounting for 29.8% of total outstanding loans), down 0.7% over the previous month and up 13.2% over the same period; credit balance of joint stock banks reached more than 1.45 million billion dong (accounting for 54.2%), up 0.5% over the previous month and up 14.4% over the same period. Credit balance of foreign banks and joint ventures reached VND 431,490 billion (accounting for 16%), an increase of 1.2% compared to the previous month and an increase of 8.6% over the same period.

By currency, the credit balance in the local currency reached nearly VND 2.49 million (accounting for 92.8%), an increase of 0.2% compared to the previous month and an increase of 12.8% over the same period in 2020; credit balance in foreign currencies reached VND 192,640 billion, down 0.2% compared to the previous month and up 17.3% over the same period.

By loan term, short-term debt balance reached more than 1.22 million billion VND (accounting for 45.5%), down 0.1% compared to the previous month and up 7.3% over the same period in 2020. medium-term and long-term debt reached more than VND 1.46 million billion (accounting for 54.5%), up 0.5% over the previous month and up 18.5% over the same period.

Meanwhile, as of August 1, the total mobilized capital of the whole banking system in the city reached more than VND3 million billion, up 0.7% compared to the previous month and up 14.2% over the same period in 2020.

Specifically, the mobilized capital of the state banking sector reached VND 872,120 billion, accounting for 28.8% of the total mobilized capital, equivalent to the previous month and up 12.1% over the same period; mobilized capital of joint stock commercial banks reached nearly 1.6 million billion dong (accounting for 52.8%), up 1% compared to the previous month and 14.4% over the same period. Mobilized capital from foreign banks and joint ventures reached VND 557,560 billion (accounting for 18.4%), an increase of 0.6% compared to the previous month and an increase of 16.9% over the same period.

By currency, mobilized capital in local currency reached VND 2,676 million billion (accounting for 88.4%), up 0.3% over the previous month and up 16.1% over the same period in 2020; mobilized capital in foreign currency reached 352,600 billion dong (accounting for 11.6%), up 3.5% over the previous month and up 1.6% over the same period.

Source: vietnambiz.vn – Translated by fintel.vn