Total lending for non-production sectors decreased by 1.1% as of August 31 while credit for production industry increased considerably during this period.

Lending concentrated in production sector

The figures revealed that lending was concentrated in prioritised industries, which is in accordance with the Government’s policy to encourage credit for production industries.

The State Bank of Vietnam (SBV) has announced statistics on credit growth and lending for production and non-production sectors.

As of September 25, credit growth in the banking system reached 2.56% compared to December 31, 2011. Credit in VND was up 4.49% and down by 5.2% in USD.

As of August 31, lending for exports increased by 10.76% compared to end 2011, lending for agriculture and rural development increased by 3.82%, and for supporting industry by 7.15%.

Meanwhile, lending for non-production sectors including household consumption, securities and real estate were down 1.1% during the period and accounted for 14.21% of the total outstanding loans, equivalent to VND400 trillion (USD19.17 million).

Lending for household consumption as of August 31 decreased by 3.43% compared to end 2011. Lending for real estate increased slightly, by 0.44% and securities rose by 2.22% during the period.

Previously, the SBV estimated the country’s credit growth at from 6%-8% for this year.