Consumer credit accelerates, supporting consumption recovery and economic growth

According to the State Bank of Vietnam (SBV) Region 2 branch, as of the end of March 2025, the total outstanding consumer credit balance in the area reached VND 1,137 trillion, an increase of 2.3% compared to the end of 2024. In March alone, the increase reached 1.6% compared to the previous month.

Mr. Nguyen Duc Lenh - Deputy Director of the State Bank of Vietnam, Region 2 Branch, said that the growth rate of consumer credit in the first quarter of 2025 was not only higher than the same period in 2024 but also surpassed the trend of previous years (in 2023, it only increased slightly by 0.7%; in the same period in 2024, consumer credit decreased by 0.9%). This improvement reflects the positive developments of the Ho Chi Minh City economy in the context of trade, services, consumption and tourism activities clearly recovering from the beginning of the year.

Accelerated consumer credit creates momentum for consumption to recover and develop production and business - Photo: D. Hai

Credit structure shifts towards real consumption

A notable point is that consumer credit is tending to be more closely linked to essential activities in people's daily lives. In the total outstanding consumer credit, home loans for consumption purposes - which account for the largest proportion of consumer credit - reached VND688 trillion, up 1% compared to the end of last year. Although the growth rate is not as strong as other groups, this is still the main pillar, accounting for 60.5% of the total outstanding consumer credit. The stability and sustained growth of this segment continues to support the housing market and the Government's housing development policies.

Meanwhile, the group of loans for living and consumption - including trade, services and tourism - accounted for 39.5%, up 4.5% compared to the end of 2024. Notably, the group of loans for purchasing household appliances and equipment recorded the highest growth rate, reaching 8.7%, accounting for 15.1% of total outstanding consumer credit. This development shows that the demand for shopping is increasing, creating momentum for production and trade of goods. In the first quarter and April 2025, retail sales of goods and consumer services in Ho Chi Minh City continued to grow strongly. In particular, retail sales of goods increased by 28.7% compared to the same period last year, an impressive figure, reflecting a clear recovery in people's purchasing power.

Consumer credit therefore plays a dual role, both as a driving force and an effective support channel for domestic consumption growth, thereby positively spreading to production, business and trade services activities.

Flexible credit policy, modern products

A representative of the State Bank of Vietnam, Region 2 Branch, said that in addition to favorable macroeconomic factors, the State Bank of Vietnam's flexible monetary, credit and interest rate policies, along with the diverse development of consumer lending products from credit institutions - especially the application of modern financial technology, are also factors promoting sustainable development of consumer credit activities.

Credit institutions are promoting consumer lending via digital platforms, shortening application processing time, and expanding service coverage to mass customers – those who need loans for living, shopping, housing, etc.

According to Mr. Lenh, with the economic recovery and the stable growth trend of domestic consumption and especially the low lending interest rate, consumer credit in Ho Chi Minh City is expected to continue to increase in the coming months. This is not only an important driving force supporting the city's economic growth, but also an effective financial tool contributing to improving the quality of life of people and promoting domestic consumption - an increasingly clear pillar in the socio-economic development strategy.

Source: https://thoibaonganhang.vn/tin-dung-tieu-dung-toc-ho-tro-phuc-hoi-tieu-dung-va-tang-truong-kinh-te-164093.html