The State Bank of Vietnam has issued a directive urging credit institutions to accelerate credit growth from the early months of 2024, a pivotal step toward propelling economic growth.

Since the beginning of the year, numerous banks have launched attractive credit packages with low interest rates, some even as low as 0% per year, easing the financial burden for customers seeking additional capital, particularly during the time leading up to Tet (Lunar New Year holiday).

High demand during the Tet shopping season has prompted commercial banks to introduce credit offers worth hundreds of billions VND for consumers, said industry experts and insiders.

Credit growth will be the main focus for the banking industry in 2024, as it is closely related to economic growth, according to analysts.

VOV.VN - The State Bank of Vietnam (SBV) forecast that nearly VND2 quadrillion would be pumped into the national economy in 2024 to support economic recovery if the 15% credit growth target is met.

Deputy Governor of the State Bank of Vietnam (SBV) Dao Minh Tu said at the press conference on January 3 that the central bank will not consider increasing operating rates and might extend debt rescheduling policies to support enterprises this year.

Vietnam’s credit growth reached around 13.5% in 2023 although unprecedented developments of the global economy posed formidable challenges to the country’s monetary policy, Deputy Governor of the State Bank of Vietnam (SBV) Dao Minh Tu said on January 3.

The State Bank of Vietnam (SBV) has set a credit growth target of 15% for the domestic banking system in 2024.

The race to lower deposit interest rates among banks is expected to continue until the end of 2023, according to analysts.

Credit growth since the start of 2023 remains low, Deputy Governor of the State Bank of Vietnam (SBV) Dao Minh Tu said, blaming that fact on both subjective and objective causes.