It accounted for 60 per cent of a preferential credit package worth VNĐ 509.84 trillion that the banks registered this year, and the loans were given to enterprises, business households and cooperatives, it said.

Nguyễn Đức Lệnh, deputy director of the central bank’s HCM City branch, said the banking industry organised a number of conferences to connect businesses with banks.

Customers conduct transaction at a bank's branch in HCM City. Banks disbursed over US$12.2 billion in loans through the city’s bank-enterprise connection programme in the first seven months of this year. — Photo courtesy of Sacombank

Lệnh said loans outstanding at city banks as of July end were worth over VNĐ3.68 quadrillion ($144 billion), marginally down from the preceding month but up by 11.47 per cent year-on-year.

He attributed the decrease to a fall in short-term and foreign currency loans.

He said the socio-economic situation and business activities, especially in sectors that drive economic growth, have continued remain positive, an important factor in promoting credit growth.

Low interest rates, focused credit programmes, preferential credit packages, and debt restructuring during the period have helped businesses.

Loans outstanding to five priority sectors (small and medium-sized (SMEs) enterprises; exports; agriculture and rural areas; supporting industries; and high-tech enterprises) topped VNĐ1.65 quadrillion, up 3.2 per cent from the previous month.

Loans owed by SMEs accounted for 83 per cent in these five sectors, he added.