Vietnam’s credit growth exceeds 7% in H1

Total outstanding credit across Vietnam’s banking system had reached VND16,730 trillion ($656 billion) in the year to June 18, up 7.14% from end-2024, according to the State Bank of Vietnam (SBV).

The growth rate was significantly higher than the figure of 3.87% recorded during the same period last year, said Nguyen Phi Lan, director of the SBV forecasting, statistics –monetary and financial stabilization department, at a seminar in Hanoi on Friday.

Among the "Big 4" state-controlled banks (Vietcombank, Agribank, VietinBank and BIDV), VietinBank recorded the highest credit growth.

As of June 10, its outstanding credit exceeded VND1,900 trillion ($72.8 billion), up 9.1% from the beginning of the year. Meanwhile, at South Korean-backed Shinhan Bank Vietnam, credit growth by mid-June exceeded 6.5%.

To fulfill the government's GDP growth target of at least 8% for 2025, the SBV has set a credit growth target of approximately 16% for the year.

However, at a recent parliament session, SBV Governor Nguyen Thi Hong stated that Vietnam’s credit-to-GDP ratio had reached 134% by the end of 2024. She warned that continued heavy reliance on bank credit could pose systemic risks and have negative implications for the economy.

The Governor emphasized that the credit growth target will be managed and adjusted in line with real economic conditions. Monetary policy will be steered flexibly and prudently to help control inflation, stabilize financial markets, and ensure the safety of the banking system.

To achieve high and sustainable growth, ministries, especially the Ministry of Finance, must carefully plan funding sources for major and strategic investment projects, schedule disbursements and prepare capital reserves to avoid last-minute funding pressures or disruptions, she said.

According to the SBV, total bank deposits by the end of Q1 had approximated VND15,000 trillion ($588 billion), with deposits from individual customers continuing to grow strongly.

Of the total, nearly VND7,500 trillion came from the household sector, an increase of over 5.73% compared to the beginning of the year. This means that in just the first three months of 2025, Vietnamese individuals deposited more than VND404.8 trillion ($15.8 billion) into banks.

Currently, 12-month deposit interest rates at private joint-stock commercial banks hover around 5% per year. State-owned banks continue to offer slightly lower rates, around 4.7% per year, reflecting a modest decline compared to earlier this year.

In 2024, Vietnam's credit growth reached 15.08%, with total credit balance of VND15,616 trillion ($605.3 billion) by the end of the year.