Dan Houtte, Vuong & Partners
Source: State Bank of Vietnam (May 4, 2009)

According to a report by the State Bank of Vietnam, total investment in the economy rose 4.86% from March and 11.16% from the end of 2008, in which investment made in Vietnam dong increased 5.81% and in foreign currencies edged 0.65% from March.

"The 11.16% credit increase was lower than growth rate of the same period in 2008 of 14.73%", the report said. It was, however, higher than the 9.79% rate in 2007.

This has been a leap in April, while in prior months it was only 0.52%, 0.23%, and 1.92% in January, February and March respectively.

Borrowing rates of commercial banks have also been improved in the last month, as many banks applied higher rates for deposits, say 9% per 36-month term, 8.5% per 12-month term, or high-yield CDs. In March, mobilizing rates of banks hovered at 8% per year.

Yet capital mobilizing rate in April hasn't seen a significant increase, which was mere 3.74% higher than March. Meanwhile mobilizing in VND dropped 0.47%.

Good news only came for foreign currencies loans, which were recovered in April after slight decreases in prior two months. Specifically, investment made in foreign currencies of the banking system rose 0.65% from March, although it contracted 2.24% in March and 2.69% in February.

USD interest rates in April continued to fall by 0.5%-1% with borrowing loans and 0.3%-0.7% with lending loans from March to around 1,4%-2.81% with borrowing and 4%-7% with lending respectively.