At a Government conference with local authorities, the State Bank of Vietnam set out its 2025 operating priorities for monetary policy and banking supervision, including a credit growth guidance of around 16% and close management of interest rates and the exchange rate amid heightened external and domestic uncertainty. The credit growth orientation was communicated to credit institutions early in the year and is to be assessed against an inflation objective of around 4.5% to 5%, with scope for adjustment depending on inflation outcomes. The central bank is reviewing the legal framework to ensure it can deploy growth-supporting measures when needed, and will continue directing credit institutions to implement targeted programmes including a VND 100 trillion fisheries credit package and a VND 120 trillion housing support package. It also highlighted ongoing work to diversify payment services, advance digital transformation, restructure credit institutions and strengthen non-performing loan resolution, while urging banks to cut costs to reduce lending rates and monitoring exchange rate developments closely. In the conference conclusions, the Prime Minister tasked the State Bank of Vietnam with operating monetary policy proactively and flexibly, coordinating with an appropriately expanded fiscal stance, directing credit to priority and growth-driving sectors, working to lower lending rates, taking strict action against banks that do not comply with State Bank directives, and establishing a credit package to support home purchases by young people under 35 alongside stronger support for social housing credit.
State Bank of Vietnam 2025-02-21
State Bank of Vietnam outlines 2025 monetary priorities with around 16% credit growth guidance and targeted lending packages
The State Bank of Vietnam's 2025 priorities include a 16% credit growth target, managing interest and exchange rates, and controlling inflation at 4.5% to 5%. Key initiatives are a VND 100 trillion fisheries credit package, a VND 120 trillion housing support package, diversifying payment services, and strengthening non-performing loan resolution. The Prime Minister emphasized proactive monetary policy, coordination with fiscal measures, and directed credit to priority sectors, focusing on reducing lending rates and supporting young homebuyers and social housing.