Vietnam to set 2025 credit growth at 16%

The State Bank of Vietnam plans to set the banking system's credit expansion in 2025 at about 16%, higher than the 15% target for 2024.

Latest data from the central bank (SBV) shows that as of December 7, credit had grown 12.5% against the beginning of the year, higher than the 9% recorded in the same period in 2023.

In a document sent to credit institutions announcing the principles of credit expansion allocation in 2025, the SBV says credit growth limits will be defined based on banks' 2023 rating results as prescribed in Circular 52, multiplied by the coefficient commonly applied to banks.

The SBV will proactively adjust the limits over the year to create conditions for credit institutions to provide sufficient and timely capital to the economy without the need for a written request.

It says it will continue easing such limits toward abolishing them definitely in the future.

The SBV requires banks to grow credit safely and effectively in accordance with regulations on the basis of their risk management capacity, liquidity situation, and capital mobilization ability.

Growth must ensure operational safety and credit goes to production and business sectors, priority sectors and growth drivers per the Government's policies. Credit sources need to be strictly controlled in potentially risky areas, the document reads.

Banks are also required to continue reducing costs, increase the application of information technology, and enhance digital transformation to reduce lending interest rates.