Credit up nearly three percent in first quarter

Deposit and lending interest rates have been relatively stable

According to the General Statistics Office, by March 20, 2017 total means of payments increased by 2.88 percent compared to the end of 2016. Capital raised by commercial banks increased by 2.43 percent, higher than that of 2.26 percent during the same period last year.

The ability of enterprises to absorb capital has been relatively good and interest income for banks has improved.

Deposit interest rates have been relatively stable at 0.8-1 percent per annum for demand and one-month term; 4.5-5.4 percent per annum for one-month to six-month terms; 5.4-6.5 percent per annum for six-month to 12-month terms; and 6.4-7.2 percent per annum for terms of more than 12 months. Lending rates for priority sectors starting at around 6-7 percent per annum are available, while short-term lending rates are 6.8-9 percent per annum for common manufacturing sectors and 9.3-11 percent per annum for mid- and long-term loans. For customers with transparent financial performance, short-term lending rates stand at 4-5 percent per annum.

Commercial banks have also promoted the bank-enterprise connection program and offered specialized credit packages. For example, banks and their branches in Hanoi have provided loans of more than VND295 trillion for enterprises adhering to program commitments.

Commercial banks have offered preferential loans with attractive interest rates. For example, the Saigon-Hanoi Commercial Joint Stock Bank’s (SHB) VND3 trillion credit package offers interest rates starting at 6.4 percent a year until June 30, 2017 for large corporations. In addition, outstanding customers will enjoy a further drop of 0.2-0.3 percent compared to normal levels in the credit package. The SHB has also provided many credit packages with interest rates starting at 4.99 percent a year for enterprises buying Honda, Mercedes-Benz and Ford cars, and starting at 6.5 percent a year for Vinamilk’s dairy distributors.

The Orient Commercial Joint Stock Bank (OCB) offers lending starting at 5.9 percent annually for customers buying cars, while the Vietnam Public Joint Stock Commercial Bank’s (PVcomBank) VND1.5 trillion credit package with interest rates starting at 7.5 percent a year is available for micro enterprises.