August dollar mobilization falls in city

HCMC – Mobilization of foreign currency, mostly the U.S. dollar, dropped by 4% month-on-month to VND167.1 trillion at credit institutions in the HCMC last month, leading dollar mobilization by late August to grow only 5.3% from late last year.

Meanwhile, outstanding loans in the dollar by late August are estimated at VND175.4 trillion, up 1% month-on-month, according to estimates by the HCMC branch of the State Bank of Vietnam.

Dollar credit growth from January till August was a staggering 28.5%, much higher than the rise in mobilization. So, outstanding loans in dollar at HCMC banks exceed the amount of dollars raised.

According to the central bank’s city branch, outstanding dollar loans made by foreign banks are 48.6% higher than the mobilized amount. The lenders have been able to manage this lending and borrowing imbalance as they have got funds from their mother banks or other foreign credit institutions.

Of note is that the non-performing loan ratio at foreign banks is lowest, at 0.62%.

While dollar credit growth in January-August was high, Vietnam dong credit grew only 5.8% from late last year and mobilization growth by late August was 16.3%.

The first eight months of the year saw outstanding loans at credit institutions in HCMC rising 11.3% from late last year, lower than the mobilization growth rate of 13.3%.

By late July, outstanding real estate loans in HCMC had amounted to VND92.86 trillion, 15% of the total while consumer loans had reached VND32 trillion, 5.19% of the total. The remaining outstanding loans, at nearly 80%, were for manufacturing and trading and came with an interest rate of 12.5% to 14%, the central bank’s city branch said.

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August CPI projected at 0.25% in HCMC

Customers buy clothes at Ben Thanh Market in downtown HCMC - Photo: Minh Tam

HCMC – HCMC’s consumer price index (CPI) in August is forecast to continue dropping by 0.25% from the previous month, driven by lower costs of foods and telecom services, according to the city’s statistics office.

The city’s CPI in July fell 0.09% from a month earlier. The index, however, still represents a 4.52% rise compared to last December.

This month the food and foodstuff category have seen strong price decreases, especially pork prices that have been hurt by the blue-ear pig disease. Poultry egg and vegetable prices have also declined by 2.4% and 2.23% respectively while other foods such as seafood and poultry have grown, resulting in a slight decrease of 0.06% for this group of goods.

The post and telecom group, meanwhile, has fallen by 4.71% as telecom service providers have slashed mobile charges by 15% since early this month.

However, other categories have undergone price surges in August, including the equipment and home appliance category with 0.65% and housing, electricity, water and fuel supply with 0.42%. The transport sector has also risen by 0.38% as a result of gasoline price hikes on August 9.

Garment and footwear, medicines and healthcare, entertainment and travel products had also increased in prices by 0.12%, 0.11% and 0.26% respectively. Meanwhile, education has inched up a slight 0.02% thanks to the city’s price stabilization program.