Vietnam Sees Total Lending Grow 3.3% as of Now: Source

Total lending of the entire banking sector has climbed to 3.3% from 2011, said Do Thi Nhung, Vice Head of the Monetary Policy Department of the State Bank of Vietnam (SBV), the local newswire reported.

The SBV representative also listed some main reasons for low credit growth of the country in 2012 as follows.

Firstly, weak demand erodes ability to absorb funds of local companies.

Secondly, demand for medium- and long-term loans of domestic firms is large; yet it’s hard to mobilize medium and long-term capital.

Thirdly, piling bad debt discourages banks from lending out.

Fourthly, poor corporate governance leads to firms’ vulnerability to external difficulties and misuse of capital.

Fifthly, there are insufficient policies for the real estate market and social housing segment has not been paid adequate attention, etc.

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