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Economic growth

Vietnam's Central Bank to Maintain Proactive Monetary Policy Amid Global Risks

Strategic Insights

— 1 min read

Amid multiple global economic risks, Vietnam's State Bank of Vietnam (SBV) will continue to implement a proactive, flexible, and effective monetary policy to prioritize economic growth, maintain macroeconomic stability, and control inflation. SBV Deputy Governor Pham Thanh Ha emphasized the need to balance the country's economic growth with inflation control, as global financial and monetary risks pose significant challenges to Vietnam's domestic monetary policy.

Key Takeaways:

  • The SBV aims to prioritize economic growth while maintaining macroeconomic stability and controlling inflation, with a target inflation rate of around 4.5% in 2025.
  • The SBV has instructed credit institutions to reduce operational costs, advance digital transformation, and adopt IT solutions to lower lending rates.
  • Credit growth will be guided by macroeconomic conditions, inflation trends, and capital absorption capacity, with a focus on promoting safe and effective lending toward production, business, priority sectors, and growth-driving industries.
  • The SBV is also implementing its 2021-2025 plan to restructure credit institutions, resolve non-performing loans (NPLs), and execute decrees on cashless payments and banking innovation via the sandbox mechanism.
  • As of June 2025, total credit had reached over 17.2 quadrillion VND (658.43 billion USD), up 9.9% from end-2024 and 19.32% year-on-year, signaling a strong recovery in manufacturing, agriculture, and supporting sectors.
  • The SBV aims to maintain a flexible exchange rate management policy and use monetary tools to ensure foreign exchange stability, a foundation for macroeconomic balance and inflation control.
  • The SBV will continue to implement the 2021-2025 plan to restructure credit institutions and resolve NPLs, and is also stepping up measures to prevent new bad debts.

Statistics:

  • Total credit reached over 17.2 quadrillion VND (658.43 billion USD) as of June 2025, up 9.9% from end-2024 and 19.32% year-on-year.
  • Credit growth in the first half of 2025 was 2.5 times higher than the same period in 2024.
  • The 2025 inflation target is around 4.5%, higher than 2024.
  • Loans under the social housing, worker housing, and old apartment renovation credit program had reached 4.09 trillion VND as of the end of May.

Sources:

  • Vietnam News Agency
  • HT Digital Content Services
  • State Bank of Vietnam
  • Resolution 33/NQ-CP

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