Credit growth projected at 16% in 2025 according to State Bank of Vietnam

According to the document, adhering to the resolution of the National Assembly and the direction of the Government and the Prime Minister, the SBV continues to take credit management measures in line with the macroeconomic developments to support economic growth and control the inflation.

According to the SBV, the allocation of credit growth quota will be based on a scoring and ranking system derived from 2023 performance, as stipulated in Circular No. 52/2018/TT-NHNN (amended and supplemented), multiplied by the coefficient applied to all banks. Accordingly, the SBV projects that the credit growth of the entire system in 2025 will reach 16%. The SBV will continue to implement the roadmap to limit and eventually eliminate the practice of assigning specific credit growth quotas to individual credit institutions as per Resolution No. 62/2022/QH15 dated June 16, 2022 by the National Assembly.

The SBV requests credit institutions to ensure safe and effective credit growth in accordance with regulations and in alignment with the risk management capabilities, liquidity, and capital mobilization ability of each credit institution, ensuring credit quality, correct use of capital, and minimizing the rise and emergence of non-performing loans while ensuring operational safety. The credit growth should be focused on production, business, other prioritized sectors and the growth drivers as directed by the Government.

In the meanwhile, credit in potentially risky areas should be tightly controlled, the capacity to assess and appraise credit improved,  violations of the law in credit operations timely detected and strictly dealt with; operational costs reduced, and application of information technology and digital transformation enhanced, etc. for creating room to further cuts of lending interest rates.

In 2025, the SBV will closely monitor the sector's actual developments to manage the banking system’s credit growth in a proactive, flexible, and effective manner, ensuring that credit institutions can provide sufficient credit to support the economy while still guaranteeing the system’s safety, prioritizing economic growth, maintaining macroeconomic stability, and controlling inflation.

At the same time, the SBV will proactively adjust the credit growth target to ensure that credit institutions can supply sufficient and timely credit resource to the economy without formal requests by the credit institutions.

Department of Research and International Cooperation (translation)