In remarks at a National Assembly questioning session, the State Bank of Vietnam’s Governor Nguyễn Thị Hồng outlined the central bank’s approach to monetary and macroeconomic management in a highly open economy, including an indicative 2025 credit growth target of around 16% to support the government’s growth objectives, with scope for adjustment if inflation remains under control. The Governor highlighted the banking system’s role in funding the economy, noting credit growth of around 14% to 15% in recent years and a credit-to-GDP ratio of 134% at end-2024, while warning that continued heavy reliance on bank credit, including for medium and long-term funding, can create systemic risks. She also pointed to the need to improve capital efficiency, better leverage foreign capital including foreign direct investment, and plan funding for large-scale infrastructure and energy-transition projects so that financing does not add to macroeconomic risks. On a proposed 2% interest-rate support policy for borrowing to finance green, circular and ESG-aligned projects under Politburo Resolution 68 on private sector development, she said the subsidy would be funded from the state budget and that the Ministry of Finance is developing a lending channel via financial funds. If commercial banks are used as lenders, the State Bank of Vietnam will coordinate with the Ministry of Finance on clearer guidance aimed at addressing shortcomings seen in a previous 2% subsidy programme, and it has sent proposals including consideration of support delivered through corporate income tax policy.
State Bank of Vietnam 2025-06-19
State Bank of Vietnam sets a 2025 credit growth target of around 16% and signals coordination on a 2% interest subsidy for green and ESG projects
State Bank of Vietnam Governor Nguyễn Thị Hồng set a 2025 credit growth target of 16% to support economic growth, with adjustments possible if inflation is controlled. She highlighted the banking system's critical role in funding, noting systemic risks from reliance on bank credit and the need for improved capital efficiency and foreign investment. A proposed 2% interest-rate support policy for green projects will be funded by the state budget, with the Ministry of Finance developing a lending channel and coordinating with the central bank for clearer guidance.