HCMC – Vietnam's central bank has pledged to intensify efforts to boost economic growth by expanding credit and ensuring financial stability.

The State Bank of Vietnam (SBV) has set a credit growth target of 16% for 2025 and will implement policies to mobilize and allocate capital effectively, Governor Nguyen Thi Hong said at a Government conference in Hanoi today, February 21. "We will base our credit growth adjustments on inflation, which is expected to remain between 4.5% and 5%," Hong said. "If inflation is lower than forecast, we may raise credit growth. If inflation rises, we will reassess policies accordingly." To support credit expansion, the SBV is reviewing legal frameworks to facilitate capital flows. Banks have been directed to implement sector-specific loan programs, including a VND100-trillion fund for the seafood industry and a VND120-trillion housing support package. Vietnam's economy faces risks from global uncertainties and domestic challenges. Trade tensions, particularly shifts in U.S. policy under President Donald Trump, could put pressure on Vietnam’s financial markets, Hong noted. The SBV will adjust monetary policy and exchange rates to manage risks while keeping inflation within the 4.5%-5% target range. Banks have been instructed to cut costs and lower lending rates to provide financial relief to businesses and consumers. Authorities are also working on policy measures to balance trade relations and mitigate exchange rate volatility. The real estate sector, with an outstanding loan balance of VND3.48 quadrillion, is facing liquidity problems, Hong said. The SBV is formulating measures to address these issues and improve credit efficiency. To sustain long-term growth, Hong urged businesses and government agencies to enhance labor productivity and drive innovation. She also called for improved capital mobilization and more efficient use of foreign investment. Additionally, the SBV has proposed evaluating housing demand to ensure targeted financial support for low-income households seeking home ownership or rental options. The bank also supports broader financial reforms to streamline project approvals and reduce bureaucratic obstacles, allowing for more effective capital utilization and economic growth.