State Bank of Vietnam signals stronger measures to expand private-sector access to bank credit as outstanding loans near VND 7 quadrillion

In remarks at a Banking Times workshop on how bank funding can support the private economy, the State Bank of Vietnam (SBV) set out how current monetary and banking-sector measures are being used to support credit to private firms and small and medium-sized enterprises (SMEs), and indicated it is researching “stronger” solutions to further improve private-sector access to bank finance. SBV reported that, as of end-2024, credit outstanding to private enterprises at credit institutions was close to VND 7 quadrillion, up about 14.7% year on year and representing around 44% of total system credit. SME lending was reported at VND 2.74 quadrillion across 100 credit institutions, up 10.7% from end-2023 and equal to 17.6% of total credit, with 208,992 SMEs having outstanding loans. The update also highlighted the SBV’s policy mix and supervisory direction to banks, including flexible exchange-rate management, coordinated monetary-policy operations to limit exchange-rate pressures, interest-rate management to support lower-cost funding, and instructions to reduce costs and accelerate digital transformation, alongside credit-support measures such as debt rescheduling, extensions and interest-rate reductions during and after COVID-19 and following natural disasters. SBV indicated it will continue convening workshops and dialogues to support stronger credit access for private firms, while Banking Times will consolidate recommendations from experts and businesses and report them to SBV leadership.