Economy sees positive signs

Credit growth in the first three months of 2021 rose 2.93% quarter-on-quarter, much higher than last year’s figure of less than 1%. First-quarter credit growth is normally the lowest for the year, so insiders have high hopes for the yearly figure.

This bank posted negative credit growth last year in the first quarter due to the impact of COVID-19. Its financial picture is much brighter this year, though, thanks to its proper response to the current challenges.

Despite the positive signs, the State Bank of Vietnam remained cautious when assigning credit growth targets to each bank for 2021. For example, the target for Vietinbank this year is just 7.5% - lower than in 2020.

Encouraging credit growth contributed positively to Vietnam’s economic growth in Quarter 1. In order to keep up the good performance, the State Bank of Vietnam has been implementing aggressive measures to regulate capital flows given the circumstances.

According to insiders, given the increasing proportion of the lending to GDP, which now stands at some 140%, keeping credit growth at 12% this year is perfectly feasible.

Rising credit growth is a sign of economic recovery, as it reveals enterprises’ demand for capital to fund business expansion./.