Credit growth surges 17.87 per cent to over $697 billion as of December 24

Credit growth surges 17.87 per cent to over $697 billion as of December 24

A view of the event. VNS Photo

Credit has grown positively this year, rising 17.87 per cent compared with last year to more than VNĐ18.4 quadrillion (US$697 billion), Phạm Thanh Hà, deputy governor of the State Bank of Vietnam (SBV), said at an event on Monday.

At the press conference to review the performance of the banking sector in 2025 and implement the work for 2026, Hà said: “The credit structure this year has continued to focus on production and business sectors, especially priority sectors and growth drivers in accordance with the Government's policies.”

Hà Thu Giang, director of the SBV’s Credit Department, told the event that agriculture, forestry and fisheries have accounted for 6.15 per cent of the total credit, manufacturing accounted for 12.39 per cent, construction accounted for 7.47 per cent, and wholesale and retail trade accounted for 22.24 per cent.

“Most recently, following the Government's directive, the SBV has issued Circular No. 10825/NHNN-TD guiding the implementation of a credit programme for investment in electricity, transportation and strategic technology infrastructure. Accordingly, commercial banks have prepared capital sources worth VNĐ500 trillion with preferential interest rates at least 1–1.5 per cent lower than the average lending interest rate to lend the enterprises,” Giang said.

Hà attributed the positive results to comprehensive credit management solutions in line with macroeconomic developments to contribute to supporting economic growth and controlling inflation during the year. Specifically, from the beginning of the year, the SBV projected credit growth for the banking system at approximately 16 per cent this year.

Simultaneously, the SBV also innovated its credit growth management policy, in which it publicly and transparently announced the principles for assigning credit growth targets to enable credit institutions to proactively implement their lending. The solutions have helped increase access to bank credit and promote credit, thereby contributing to supporting and promoting economic growth.

“Regarding interest rate management, the SBV has kept policy interest rates unchanged in 2025 to facilitate credit institutions' access to capital from the SBV at low cost, contributing to supporting the economy,” Hà said.

Besides, he said that the SBV has regularly directed credit institutions to continue reducing operating costs, strengthening the application of information technology, digital transformation and other solutions to strive for lower lending interest rates. Therefore, the overall lending interest rate level has continued to remain stable in the year.

Regarding the SBV’s exchange rate management, Hà said that the foreign exchange market this year has mainly been affected by complex and unpredictable developments in the international market, which has caused the domestic foreign exchange supply and demand balance to face temporary pressure at times.

“In this context, the SBV has managed the exchange rate flexibly, in line with market conditions, helping to absorb external shocks. The SBV has coordinated other monetary policy tools related to interest rates, liquidity and US dollar sales to stabilise the foreign exchange market, thereby contributing to macroeconomic stability and inflation control,” he said.

Next year, Hà said as the global geopolitical situation is forecast to continue to be complex and unpredictable, the banking sector will actively and flexibly manage monetary policy, coordinating closely with fiscal policy and other macroeconomic policies to maintain macroeconomic stability, control inflation, support economic growth and ensure major economic balances.

“Interest rates and foreign exchange rates will be managed in accordance with the developments in the macroeconomic situation, inflation and monetary policy objectives,” Hà said.

Implementing credit management solutions in accordance with the developments in the macroeconomic situation and the capital absorption capacity of the economy will contribute to promoting economic growth, controlling inflation and ensuring the safety of the banking system's operations.

The SBV will direct credit institutions to increase credit safely and effectively, channeling credit towards production and business sectors, priority sectors and economic growth drivers.

Solutions to promote digital transformation, improve specialised databases, reform administration and online public services, cashless payments and ensure security and safety in banking operations will also be promoted.

The SBV will also direct credit institutions to continue improving the quality of operations based on strict compliance with legal regulations, ensuring safe and effective operation, resolutely handling bad debts and minimising them. 

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