JavaScript is off. Please enable to view full site.

Vietnam PM meets top local businesses amid weak bank lending

Vietnam PM meets top local businesses amid weak bank lending

Thursday, March 14, 2024, 13:23 GMT+7
Vietnam PM meets top local businesses amid weak bank lending
Vietnam’s Prime Minister Pham Minh Chinh speaks during the 54th annual meeting of the World Economic Forum in Davos, Switzerland, January 16, 2024. Photo: Reuters

HANOI -- Vietnamese Prime Minister Pham Minh Chinh on Thursday met with the country's top businesses to discuss measures to shore up economic activity amid weak bank lending, the government said.

Vietnam's economic growth largely moves in tandem with credit growth. The central bank targets a credit growth of 15% for this year.

Banks' total outstanding loans as of end-February fell 0.72% from the end of last year, the government said in a statement.

"The global economy in 2024 is expected to continue to face numerous headwinds," Chinh told the meeting, attended by executives of the country's top companies, including its largest conglomerate Vingroup, tech firm FPT and property developer No Va Land.

The Southeast Asian country, a regional manufacturing hub, reported gross domestic product growth of 5.05% last year, slowing from an expansion of 8.02% in 2022.

Deputy central bank governor Dao Minh Tu said at the meeting that weak global demand and inflationary pressure were among the reasons behind the weak credit growth.

The central bank, which cut its policy rates four times last year, would continue to work on measures to increase businesses' accessibility to credit by further streamlining its legal frameworks and cutting banks' operation costs, Tu said.

Reuters

More

Read more

;

Photos

VIDEOS

‘Taste of Australia’ gala dinner held in Ho Chi Minh City after 2-year hiatus

Taste of Australia Gala Reception has returned to the Park Hyatt Hotel in Ho Chi Minh City's District 1 after a two-year hiatus due to the COVID-19 pandemic

Vietnamese woman gives unconditional love to hundreds of adopted children

Despite her own immense hardship, she has taken in and cared for hundreds of orphans over the past three decades.

Latest news