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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.
