Vietnam seeks 8.3-8.5% economic expansion for 2025

The Government has requested the State Bank of Vietnam to proactively adjust the credit growth aim for this year in line with a GDP expansion target of 8.3-8.5%.

The new GDP growth target is mentioned in a new resolution that affirms prioritizing growth associated with macroeconomic stability while controlling inflation and ensuring major balances of the economy.

The target is higher than the "at least 8%" set by the National Assembly, the country's legislature, early this year.

Credit management is identified as one of the important levers to support production and business, creating momentum for growth of the entire economy.

The central bank (SBV) is required to be proactive, flexible, and efficient in using monetary policy tools, closely coordinating with fiscal policy and other macroeconomic policies to stabilize the monetary and foreign exchange markets.

"The SBV needs to resolutely and proactively adjust the credit growth target for 2025 publicly and transparently, in line with inflation being controlled according to the target, promoting GDP growth to reach 8.3-8.5%," the resolution reads.

Credit institutions need to continue reducing operating costs, creating room to reduce lending interest rates to support business and people's livelihoods.

They should promote credit for new areas such as digital transformation, science and technology, digital economy, green economy, circular economy, and social housing, according to the resolution.

The Government assigned the Ministry of Finance to manage an efficient, focused and reasonable expansionary fiscal policy; and strengthen revenue management, expand the revenue base, and strive for state budget collection in 2025 to increase by at least 25% compared to the early-year estimate.

Total social investment capital in the last six months of the year is expected to reach about VND2,800 trillion ($106.77 billion), of which bank credit is a key resource.

In reponse to the resolution, the SBV has requested the banking system to implement solutions to stabilize interest rates, in order to promote economic growth in 2025. It stated that it will closely monitor and strengthen supervision of banks in this regard.

Credit institutions need to continue reducing operating costs, increase technology application and digital transformation, and simplify lending procedures, it noted.

Currently, the deposit interest rate level at commercial banks is generally stable, maintained below 6% per year. According to SBV data, the average lending interest rate has reached 6.23% per year, down 0.7 percentage points compared to the end of 2024.

As of July 28, credit in the whole system increased by 9.64% compared to end-2024.

Standard Chartered on July 24 revised its 2025 GDP growth projection for Vietnam to 6.1%, down from 6.7% early this year. The country's economic expansion might slow to 4.9% year-on-year in H2, from 7.5% in H1, the bank said in a release.

One day earlier, the Asian Development Bank (ADB) had also revised down its Vietnam GDP growth projection to 6.3% in 2025 and 6% in 2026, respectively.