Vietnam banks push consumer credit to reach credit growth targets

Banks in Vietnam are offering hefty discounts on consumer loans and credit cards to reach credit growth targets, VN Express is reporting.

Key points

• As of December 13, credit increased by 9.87% compared to the end of 2022 (target is 14 percent);
• To try and hit their limits banks are offering short-term interest rates of 0 percent;
• Banks are saying that the issue is that demand is low.

Note that bad debt among Vietnam’s banking institutions was at 12.5 percent at the end of June up from 10.7 percent at the end of 2022.