It is necessary for Da Nang’s banking sector to disburse credit capital for priority areas.

The request was made by Da Nang People's Committee Vice Chairman Ho Ky Minh during the Wednesday meeting, held by the Da Nang branch of the State Bank of Viet Nam, to review the performance of the banking sector in 2023 and identify new tasks for 2024.

Da Nang People's Committee Vice Chairman Ho Ky Minh speaking at the event

Vice Chairman Minh highly lauded the great efforts made by the Da Nang branch of the State Bank of Viet Nam in helping businesses remove difficulties and supporting them to access bank credit capital, as well as actively coordinating with local government departments and agencies to implement the city's policies.

He requested the city's banking sector to ensure that credit institutions operate according to their functions, tasks, scope, and licensed fields, and continue to facilitate local businesses to easily access bank loans at reasonable interest rates, in 2024.

Special attention should be paid to strengthening coordination with agencies and units to effectively implement the credit programme of VND120,000 billion for social housing loans and VND15,000 billion for loans for forestry and fishery products in the locality, he added.

Mr. Minh remarked heed will be on facilitating small and medium-sized enterprises to access loans for production development, promoting non-cash payments, boosting digital transformation in banking operations, and ensuring information technology security.

As of late December 2023, the total mobilised capital of credit institutions citywide had reached VND192,954 billion, up 12.07% compared to the end of 2022.

Deposits in Vietnamese dong reached VND184,303 billion, accounting for 95.52% of total capital, up 10.32%, whilst foreign currency deposits hit US$8,651 billion, accounting for 4.48% of total capital, up 69.2%.

The total bank deposits by Vietnamese economic organisations reached VND75,939 billion, an increase of 20.02% and residential deposits reached VND117,015 billion, an increase of 7.45% compared to the end of 2022.

By December 31, 2023, the total outstanding debt of economic sectors in the city witnessed an increase of 5.08% compared to the end of 2022 to stand at VND219,796 billion. Meanwhile, the medium and long-term outstanding debt reached VND119,550 billion, accounting for 54.39% of the total outstanding debt, up 0.21%. The short-term outstanding debt generated VND 100,246 billion, making up 45.61% of total outstanding debt, a rise of 11.55% compared to late 2022.

Currently, short-term loan interest rates are popular at 6.5 -7%/year, and the maximum short-term loan interest rate in Vietnamese dong for priority areas is 4%/year. Medium and long-term loan interest rates are at 8.5% - 10%/year.

Mobilisation interest rates for demand deposits and less than 1 month are at 0.1 - 0.5%/year; from 1 month to less than 6 months at 3 - 4%/year, from 6 months to 12 months at 4 - 5%/year, and over 12 months at 5 - 6%/year.

​ Reporting by M.QUE - Translating by M.DUNG