Despite strong decline of interest rate, credit growth is still facing major obstacles including bad debts which are causing troubles to enterprises and banks. Bad debts are haunting banking system while VAMC has not been approved yet Series of credit organizations have implemented measures to maintain loan interest rates at 7-10% a year for prioritized sectors together with deduction and exemption of loans. About 87% of former loans have been reduced in term of interest rates to below 13% a year However, many enterprises considered that such capital sources have been very low in comparision with debt balance of the whole economy. Besides, loan policies and mortgage evaluation have lowered loan amount to enterprises. “We would like to propose to the banking system that evaluation should be in accordance with real value of our assets. Our assets may be worthy of tens of billion of VND but the banks only put them at about 4 to 5 billion and thus, the loans available to us are very low,” said Mr. Nguyen Tien Minh – Director of Hat Viet Corporation located in Hoi Nghia Commune of Tan Uyen District. Due to internal problems, State Bank of Vietnam has decided to fix credit line, causing many enterprises inaccessible to loans. And, although banking system has injected flexible capital sources to the economy, credit loans in the first 4 months of the year eyed slow growth. High inventories, slow consuming markets, and increasing bad debts are the major causes of slow credit growth. Reported by Thanh Hong – Translated by Vi Bao