Vietnam credit expands over 10% in 10 months
Credit in Vietnam as of October 31 had grew 10.08% compared to the end of 2023, and 16.65% year-on-year, according to State Bank of Vietnam (SBV) Governor Nguyen Thi Hong.

Governor of the State Bank of Vietnam Nguyen Thi Hong. Photo courtesy of the National Assembly.
In October alone, the figure expanded by 1.08% from the previous month, with more than VND146.5 trillion ($5.8 billion) added to the economy.
In a report presented at the ongoing session of the National Assembly, the country's highest legislative body, Hong highlighted that in 2023, the SBV cut policy rates four times, reducing them by 0.5-2 percentage points per year. These adjustments helped lower lending rates, making capital more accessible to businesses and individuals.
In the first 10 months of 2024, the central bank maintained its policy rates to keep borrowing costs low for credit institutions, thus supporting the economy. The SBV also directed credit institutions to reduce operating costs in order to lower loan interest rates and publicize average lending rates, the difference between deposit and lending rates, as well as information on loan programs and credit products on their websites.
According to Hong, the SBV set a target of 15% credit growth for 2024 so the current growth rate is in line with this goal, helping to meet capital demand while supporting macroeconomic stability and inflation control.
However, she noted that demand for credit remains low, citing the lingering effects of the Covid-19 pandemic. Many businesses are still facing financial challenges, with some having to reduce or stop production due to a lack of orders or even shut down. Meanwhile, residents are tightening their spending, resulting in lower overall credit demand.
To stimulate credit growth, the SBV has taken a proactive approach by adjusting credit growth limits for banks, without requiring them to submit requests, she said, adding that at the end of August 2024, the central bank granted additional credit growth quotas to banks that had reached 80% of their year targets.
The SBV has also urged banks to direct their lending toward priority sectors and economic growth drivers, in order to minimize the risk of rising bad debts and ensure the safety of the banking system.
Despite the positive credit growth, the governor pointed out several challenges. As of October 20, the average lending rate had dropped by 0.76 percentage points compared to the end of 2023.
However, it is difficult to further reduce interest rates, as lending rates have already seen significant declines in recent months. Moreover, growing credit demand is likely to put upward pressure on interest rates in the coming months.
Another challenge is the pressure on the exchange rate from global markets. The interest rate reduction could add pressure on the Vietnamese dong, affecting both the exchange rate and the foreign exchange market, Hong stated.
She added that the SBV also raised concerns about liquidity risks in the banking system, particularly the mismatch between short-term deposit mobilization and medium- to long-term lending. These risks are heightened by ongoing difficulties in raising capital through corporate bonds and the securities market.
Vietnam’s credit growth hit 14.18% in 2022 and 13.78% last year.
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