Banking sector to continue to ensure supply of credit resources for GDP growth target in 2025
At the monthly Government's Press Conference for January organized on February 5, 2025, First Deputy Governor Dao Minh Tu of the State Bank of Vietnam (SBV) confirmed that, in 2025, the banking sector would continue to ensure sufficient credit resources in support of the economic growth. In order to achieve the GDP growth target of 8% in 2025, in addition to the interventions of the banking sector, it is also necessary to have favorable macro policies and synchronous solutions in many other sectors.
According to Deputy Governor Dao Minh Tu, this year, the SBV has set a credit growth target of 16% in support of the 8% economic growth target. “The challenge is how to have enough capital for the economic growth, especially in the context when medium and long-term capital mobilization channels, including stock and bond markets still need to be consolidated. The main responsibility will be placed on the monetary and the credit policies in 2025", Mr. Tu emphasized.
According to SBV’s data, by the end of 2023, the total credit outstanding of the economy was about 13,400 trillion VND, and by the end of 2024 it increased to about 15,500 trillion VND. For 2024 only, the banking system had provided an additional 2,100 trillion VND into the economy. The total lending amount in 2024 was 23,000 trillion VND, while the total collected debts accounted for 21,000 trillion, contributing to the GDP growth rate of 7.09%. In 2024, the credit growth was estimated at 15.08% against that of the end of 2023.
In order to achieve the GDP growth target of 8% in 2025, the SBV Deputy Governor mentioned a number of specific tasks and solutions, including: ensuring the liquidity for the economy and the commercial banks, thereby ensuring the capital flows for the economy. If necessary, the SBV would use the operational tools in providing capital, refinancing through the open market operations.
In terms of interest rates, the SBV would continue to regulate the key interest rates stably in accordance with the general interest rates of the economy and other macroeconomic indicators; direct the commercial banks to continue to reduce their lending interest rates by further cutting down their costs, applying digital technology to save costs, and providing preferential interest rates for businesses and people.
Regarding the credit limit management, in 2025, the credit growth of the entire banking system is set at 16%, but it can be raised further in case the inflation remains under control and the macroeconomic indicators are favorable to achieve the economic growth target. In 2025, the SBV would continue to innovate the means of credit limit management initiated in 2024, enabling the commercial banks to be more proactive in their credit operations. The SBV would control and ensure the overall credit growth of the economy.
In addition, the SBV would continue to operate the foreign exchange market in a proactive and flexible manner, and maintain a stable foreign exchange market. Right at the beginning of the year, although there were some negative developments on the economy and the foreign exchange market, the SBV had made proactive interventions. Since mid-January, the market has generally returned to a positive status.
Beside that, the SBV would continue to direct the commercial banks to apply technology to reduce costs and support the businesses. The policies related to debt rescheduling, postponement of debt service,... would also be used appropriately. Along with that, other preferential credit policies and low interest rates would be robustly implemented in alignment with the directions of the Government and the Prime Minister.
The SBV Deputy Governor also emphasized that, in order to achieve the GDP growth target of 8%, it would also be necessary to have favorable macro policies and synchronous solutions in all of the sectors.
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