Demand for credit may increase sharply since the second quarter, especially in fields of industrial production, exports, trade and tourism, said a senior official of the central bank.

Credit growth will expand significantly from Quarter 2 and exceed the State Bank of Vietnam (SBV)’s target of 12% for the year as a whole if the pandemic is brought under good control and the vaccination campaign proves effective, according to insiders.

Real estate sales will be another key driver of credit growth, as apartment supply and sales are likely to pick up in 2021.

The State Bank of Vietnam (SBV) targets a credit growth rate of 12% in 2021, equivalent to the growth of 12.13% last year, according to SBV Deputy Governor Dao Minh Tu.

Credit growth in Vietnam may reach 13-14% this year, partly driven by progress with the COVID-19 vaccine, according to a 2021 banking outlook report released by the SSI Securities Corporation on January 6.

Da Nang’s gross regional domestic product (GRDP) has been estimated to be down 9.77% this year to about VND100 trillion compared to 2019 due to COVID-19, a press conference held on December 29 to announce the central city’s socio-economic figures for 2020 heard.

The banking industry's credit is projected to have expanded 11% for the year by the end of December, Deputy Governor of the State Bank of Vietnam (SBV) Dao Minh Tu revealed at a press conference on December 24.

The State Bank of Vietnam (SBV) has extended the credit growth limits for the second time this year to some commercial banks, of which the highest level is up to 30%.

Outstanding loans in Vietnam exceeded VND8.79 quadrillion (US$378.74 billion) as of November 17, an increase of 7.26% from the end of 2019, according to the State Bank of Vietnam (SBV).

Commercial banks are trying to boost individual consumer loans, especially to home and car buyers, since credit growth had slowed due to low capital demand from businesses.