Vietnam’s 2025 credit growth may exceed 16% target: central bank

Vietnam’s credit growth could surpass the 2025 target of 16%, subject to controlled inflation and favorable microeconomic conditions, remarked Dao Minh Tu, Deputy Governor of the State Bank of Vietnam (SBV), or the central bank.

The SBV aims for 16% credit growth this year, aligning with the GDP growth target of 8%, Tu said while speaking at the government’s January meeting on Wednesday.

Vietnam’s GDP grew by 7% in 2023, with credit growth of 14.55%. In 2024, GDP expanded by 7.09%, while credit growth stood at 15.08% with more than VND2,100 trillion ($82.77 billion) pumped into the economy. On average, a more than 2% increase in credit growth contributes to a 1% rise in GDP, Tu elaborated.

Based on this correlation, credit growth could reach 18-20% if the economy expands by 10% this year, he noted.

To achieve this goal, it is essential to keep inflation in check and maintain currency stability under favorable macroeconomic conditions, Tu emphasized.

In 2025, the central bank will continue implementing a flexible monetary policy in coordination with fiscal and trade policies, he stated.

Regarding interest rates, the SBV will regulate policy rates in line with overall interest rate trends and macroeconomic objectives. It will also ask commercial banks to lower interest rates by cutting costs and leveraging technology, Tu added.

Additionally, the SBV will intervene in the foreign exchange market when necessary to ensure stable exchange rates and curb foreign currency hoarding, he said.