State Bank of Vietnam reports Prime Minister’s instruction for proactive flexible monetary policy as rates stay stable and credit grows

The State Bank of Vietnam published a report on the Vietnamese Government’s regular May 2025 meeting chaired by Prime Minister Pham Minh Chinh, which reviewed recent macro-financial conditions and set June priorities. The readout points to stable and slightly declining interest rates, solid credit growth and the continued use of targeted credit packages, alongside instructions to run monetary policy proactively and flexibly in coordination with a focused, reasonably expansionary fiscal stance. Reported indicators for the first five months of 2025 included average consumer price inflation of 3.21%, budget revenue of about VND 1.14 quadrillion (57.9% of the annual estimate, up 24.5%), and goods trade of USD 355.8 billion (up 15.7%) with a USD 4.67 billion surplus. Registered foreign direct investment reached about USD 18.4 billion (up more than 50%) and disbursed foreign direct investment exceeded USD 8.9 billion (up 7.9%). Credit programmes highlighted in the meeting covered agriculture, forestry and fisheries, a scheme for young people buying homes, and a VND 500 trillion package for strategic and digital infrastructure, while non-cash payments were reported to have risen strongly. For June and the period ahead, the Prime Minister set 10 workstreams including accelerating public investment and major infrastructure delivery, cutting 10% of regular spending to fund large projects, allocating more than VND 20 trillion to ensure at least 3% of the budget for science and technology, issuing implementing decrees for recently effective laws and resolutions, and resolving 2,212 long-stalled projects to release resources.