Vietnam central bank says will prioritise growth, sees big credit expansion
People ride motorcycles in front of the headquarter of the State Bank of Vietnam in Hanoi, Vietnam, November 19, 2024. REUTERS/Khanh Vu
HANOI :Vietnam's central bank expects credit to increase by 19 per cent to 20 per cent this year and will prioritise economic growth while maintaining stability in the face of global uncertainties, senior officials said on Friday.
Deputy Governor Pham Thanh Ha also said at a press conference that commercial banks' lending interest rates were on a downward trend and called for further cuts.
"The global economic and political situation has so far this year evolved in an unpredictable manner, with market concerns about the U.S. tariff policy, the risks of a global trade war and geopolitical conflicts," Ha said.
Pham Chi Quang, who heads the monetary policy department, said the State Bank of Vietnam would focus on stopping non-performing loans from rising, and said lending to risky sectors would be tightly controlled.
Vietnam is targeting gross domestic product growth of 8.3 per cent-8.5 per cent this year, faster than the 7.09 per cent rate last year.
Credit growth is a key driver of the economy. Last month, prominent academics warned its lawmakers that breakneck credit expansion may fuel asset price bubbles.
The central bank said bank lending has risen 13.37 per cent as of September 29 compared to the end of last year.
