According to the State Bank of Vietnam (SBV), on September 30, the system’s credit increased by 9.4 percent compared to the end of last year. Credit structure continued to have a positive adjustment, in which credit focused on production and business which is priority area. The credit for risky areas is strictly controlled. Foreign currency credit is controlled in line with the limit of dollarisation in the economy.
Notably, specific statistics of each credit segment show that by August, credit for real estate (including business and self-use purposes) increased by 14.58 percent compared to with the end of last year, accounting for 19.14 percent of the total outstanding loans of the economy, equivalent to 1.48 quadrillion dong as of the end of July.
As explained by banks, the credit for real estate sector rose by 14.58 percent compared to the end of last year and accounted for a higher proportion of the total outstanding loans of the economy because SBV included loans for self-use purposes (individual customers who borrow to buy houses and to repair houses). Previously, home-repair loans, home loans for individual customers were a significant part of commercial banks listed on consumer credit (consumer loans).
The representative of a commercial bank explained that the current regulations of the management agency for living loans, including loans for buying private houses, repairing and building houses, will be included in real estate credit. This explains why the loan growth of the real estate segment is high and accounts for a larger proportion of the total outstanding loans.
