Vietnam's banking system poised to achieve 16% credit growth: SBV

The growth targets for credit institutions will be determined based on their 2023 ratings.

Vietnam's banking system is projected to achieve 16% credit growth in 2025, according to the State Bank of Vietnam (SBV). 

The central bank plans to implement measures that align credit management with macroeconomic developments to support economic growth whilst maintaining inflation control.

The credit growth targets for credit institutions (CIs) will be determined based on their 2023 ratings, as outlined in a previous 2018 circular, and will be adjusted using a uniform coefficient applied across all banks.

In line with Resolution No. 62/2022/QH15, dated 16 June 2022, the SBV will continue implementing its roadmap to gradually eliminate the practice of assigning specific credit growth targets to individual credit institutions. The focus is on fostering safe and effective credit growth whilst adhering to legal and regulatory requirements, the central bank said.

The SBV has instructed CIs to ensure their credit growth is in compliance with risk management capabilities, liquidity conditions, and capital mobilisation capacity. 

Institutions must prioritise credit quality, correct use of funds, and minimising the emergence of bad debts, all whilst ensuring operational safety, the central bank said.

Credit allocation should align with government priorities, emphasising sectors that drive production, business, and economic growth. At the same time, CIs are expected to maintain strict oversight of potentially risky areas and improve their credit appraisal and risk assessment capacities. 

Additionally, the SBV encourages CIs to reduce operational costs, adopt information technology, and accelerate digital transformation. These measures aim to create room for reducing lending interest rates to further support borrowers and the broader economy.