State Bank of Vietnam urges banks to accelerate credit at Region 12 conference as system-wide growth reaches 2% and lending rates fall 0.4%

The State Bank of Vietnam (SBV) held a conference in its newly formed Region 12 to push bank credit in support of regional economic growth and set out near-term monetary policy operating priorities. SBV officials highlighted that Directive 01/CT-NHNN requires credit institutions to keep deposit rates stable to support lending-rate stability for businesses, with average lending rates down 0.4% versus end-2024 as of 20 March, while system-wide credit growth stood at about 2%. The SBV signalled continued monitoring of market conditions to steer interest-rate settings, alongside requirements for credit institutions to cut costs and increase transaction digitisation to create room for lower lending rates. Exchange-rate management will focus on close monitoring of international factors and domestic market developments to support foreign-exchange market stability. Region 12 consolidates the former provincial SBV branches of Dong Nai, Binh Duong, Binh Phuoc, Tay Ninh and Ba Ria–Vung Tau, and Agribank outlined plans for 2025 credit in the area to rise by 12% (more than VND 19 trillion), lifting its outstanding loans in the Southeast region to VND 178 trillion. Deputy Governor Pham Tien Dung instructed SBV departments to review and address proposals raised by local authorities and businesses and asked credit institutions to improve product offerings that are convenient and safe for users; SBV Region 12 was also tasked with advising both the central bank and provincial authorities on appropriate local policies. The release additionally confirmed the appointment of Ta Thanh Long as Director of SBV Region 12 and the secondment of Nguyen Dinh Thanh to serve as deputy head of the special control board at SCB.