Implementing the goal of curbing inflation, the State Bank of Vietnam just decided to adjust 2011’s credit growth plan at the level of 20%, of which credit rating for non-production field was under 16%. At present, many credit bodies are anxious because credit growth in non-production field accounts for 26% of total outstanding loan.

 

Banks do not almost offer loans for real estate field.

Sacombank Binh Duong branch director Pham Thanh Ky said that lending rating in non-production field (real estate, stock exchange, consumption) at the branch accounts for 25% of total outstanding loan. With a roadmap of decreasing 10% of credit rating in the rest months, it is difficult for banks and clients to conduct, owing to signed contracts’ long limit.

Nguyen Dinh Phuc, director of VCB Binh Duong branch said that total outstanding lending loan for non-production field at the branch accounts for nearly 17%.  He explained that Binh Duong is a developing locality, credit rating must be high. If real estate credit decreases, investment will face troubles, causing decline of socio-economic growth.

As of late Feb. 2011, total outstanding lending loan in Binh Duong surged over 27% compared to the same period. Of this, non-production field accounted for 26% of total outstanding loan. Therefore, it is hard to decline 10% of non-production credit rating. Some leaders of local banks said that decrease in outstanding loan growth will affect banks’ profit goal and cause obstacles for small and medium businesses.

Another bank leader affirmed that decrease in non-production credit at under 16% is a difficult deed for commercial banks. To reach the goal of decreasing credit growth at under 16% as resolution stipulated, credit growth in 2011 must be for production while non-production field is at zero number.

Therefore, the provincial People’s Committee chairman Le Thanh Cung stressed that to ensure goal of inflation control, the entire bank sector must focus on measures to re-structure credit rating and adjust business plan. Besides, banks should set out measures of capital mobilization and lending in conformity with real situation.

Reported by T.Huynh – Translated by A.C