A land plot in Thu Thiem area (Photo: SGGP)
At the meeting to review banking activities in 2021 and implement tasks for 2020 held by the State Bank (SBV) in Ho Chi Minh City on January 15, SBV Deputy Governor Dao Minh Tu said that the State Bank is expected to increase credit growth in 2021 by about 12 percent, but due to the increase in credit demand of the economy, especially after the epidemic, and the recovery of the economy, the SBV has extended credit limits for banks to meet the capital needs of the economy.
Credit mainly focuses on manufacturing and priority sectors; thereby, the state bank will strictly control credit in potentially risky fields such as real estate, securities, build-operate-transfer projects, BT traffic projects.
According to the latest update, by the end of November 2021, real estate credit increased by 12 percent compared to the end of 2020, but it was lower than the overall credit growth of the sector. In which, self-set goals accounted for 66 percent, and real estate business accounted for about 34 percent.
Regarding credit in 2022, the Deputy Governor said that the State Bank planned that credit will increase by about 14 percent but the bank will make adjustments following actual developments and situations.
Moreover, the bank will implement solutions to control scale, reasonable credit growth, with a focus on production and business including priorities according to the Government's policy that must support socio-economic recovery and development.
Last but not least, the bank will continue to remove credit difficulties for natural disaster-stricken people and Covid-hit businesses.
The Deputy Governor affirmed that he would tighten control of credit in real estate, securities, and corporate bonds. Particularly, people in need of credit for housing will still be given priority and be borrowed at a reasonable interest rate.