A farm household in Bac Giang borrowed money from banks to invest in a poultry breading farm. Expanding investments to drive economic growth is a priority in achieving the credit growth target. (Photo: VNA)

After sluggish months earlier this year, credit growth has recently surged, reaching 7.75% as of September 7, Tu said on Saturday, citing statistics. He added that the target of a 15% credit growth rate for the full year is within reach.

He emphasised that the focus of credit growth should be on promoting investments to help accelerate economic growth.

Efforts have also been made to gradually lower interest rates.

Lending rates of new loans this year averaged 6.23%, 0.86% lower than the end of 2023 while deposit rates averaged 3.84%, up 0.23%. The slight increases in deposit rates were only seen at several small commercial banks, he said.

The exchange rates remained stable with the Vietnamese dong losing around 1.5% against the US dollar, much lower than other countries. Tu said that the central bank will continue to maintain stable and reasonable foreign exchange rate policies to attract foreign investments.

Tu stressed that another crucial factor is increasing the capital absorption capacity of enterprises, which will require a combination of macroeconomic policies to create favourable conditions for businesses.

He said that the lending capacity of the banking system can meet the capital demand of the economy.

Procedures would be further simplified together with accelerating the application of technology to create favourable conditions for both borrowers and lenders, Tu said, adding that commercial banks are urged to focus the credits in prioritised sectors as directed by the Government.

To accelerate the disbursement of the 140 trillion VND (5.5 billion USD) credit package for social housing development, the State Bank of Vietnam have lower lending rates for homebuyers from 2% to 3% lower than the average of four big commercial banks. The lending term for preferential rates will also be prolonged from 5 to 10 years.

Besides, the disbursement of the credit package for seafood export exceeded 30 trillion VND to reach 36 trillion VND. The Government planned to increase the package to around 50-60 trillion VND.

With drastic policies, credit growth is expected to contribute to achieving the economic growth target of 6.5-7% this year, Tu said./.