HCMC – Lending to businesses, especially those active in priority fields, has risen since the central bank increased the credit growth limit for 2022.

These businesses operate in agriculture, export, and supporting industries, and are mostly of small and medium size.

Credit in HCMC expanded 1.4% in December alone, equivalent to over VND45 trillion, said Nguyen Duc Lenh, deputy director of the State Bank of Vietnam branch in HCMC.

According to him, outstanding loans in the city grew 14% compared to late 2021, topping VND3,230 trillion. Of the total, outstanding loans in Vietnamese dong accounted for 94%.

“The city’s rapid credit growth pace aligned with the central bank’s monetary policy this year, with a focus on the manufacturing sector and supporting the city’s economic recovery programs,” he said, adding that over two-thirds of outstanding loans were given to the sector.

Meanwhile, credit packages launched by the HCMC government and the State Bank of Vietnam (SBV) have enabled priority industries to access some VND200 trillion with an interest rate of 5.5% annually.

Many members of the HCMC Food and Foodstuff Association (FFA) saw disbursements for the loans they had applied for after the SBV raised credit growth quotas in early December, enabling them to boost output during the new year, said Truong Tien Dung, vice chairman of the FFA.

In a recent meeting, Phan Van Mai, chairman of the HCMC People’s Committee, said credit in HCMC grew 14% this year, higher than the nation’s average growth of 12.87%, reflecting a good absorption in the city’s economy.