Vietnam - Vietnam credit growth at -1.71pct as of April 16: NFSC

From early this year as of April 16, 2012, credit saw a negative growth of up to 1.71 percent, according to National Financial Supervisory Committee (NFSC).

NFSC said that this is really a huge challenge for economic growth and macroeconomic stability.

As calculated by NFSC, to avoid impacts on inflation in the following years, the average credit growth from now till the end of this year should not exceed 1.5 percent per month (in fact, it will be very hard to achieve this credit growth level in the current context).

Thus, with the remaining eight months of this year, credit would grow maximum 12 percent and it would be around 10 percent for the whole year. With such credit growth, the total social investment capital would decrease about 50 trillion dong in comparison with the plan.

From the aforementioned analysis, NFSC concluded: "We can see that monetary policy has virtually no longer room to support economic growth to reach 6 percent target as originally proposed. Thus the combination between monetary and fiscal policies is urgently required in the current situation to support businesses and unfreeze funds for the economy".

VietBiz24

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