Vietnam fine-tunes credit policy to fuel productive growth

Vietnam fine-tunes credit policy to fuel productive growth

The State Bank of Vietnam is sharpening its credit strategy by easing capital flows to priority sectors while tightening oversight of riskier lending, as outstanding credit approaches nearly $800 billion.

On July 2, the State Bank of Vietnam (SBV) held a press conference to announce banking sector performance in the first six months of the year.

Speaking at the event, Deputy Governor Pham Thanh Ha said that as of June 26, total outstanding credit across the banking system exceeded $798.8 billion, up 7.41 per cent from the end of 2025 and 18.1 per cent on-year.

"SBV has continued to implement a number of key credit programmes. The preferential credit programme for the agriculture, forestry and fisheries sectors has been expanded from $600 million to $7.4 billion. By the end of May, cumulative disbursements had reached approximately $8.76 billion, benefiting more than 79,900 borrowers," he said.

SBV's Deputy Governor Pham Thanh Ha speech at the press conference. Photo: SBV

Regarding the programme supporting the production, processing and consumption of high-quality, low-emission rice in the Mekong Delta, Ha said cumulative disbursements had reached approximately $168 million.

"The social housing lending programme currently involves nine commercial banks, with a total credit package of $5.8 billion. Lending rates have been reduced to 7 per cent per annum for project developers and 6.5 per cent per annum for homebuyers. By the end of May, cumulative disbursements had reached approximately $497.6 million, while outstanding loans exceeded $407 million," Ha said. "For the programme supporting home purchases by people under the age of 35, cumulative disbursements reached approximately $15.3 million, with outstanding loans of around $14.1 million. However, the limited supply of social housing continues to constrain the pace of loan disbursement."

Looking ahead, the SBV said it will continue to conduct monetary policy flexibly to ensure safe and effective credit growth, simplify lending procedures, and accelerate digital transformation in lending.

"The SBV will also direct credit institutions to improve operational quality, strictly comply with legal regulations, aggressively resolve non-performing loans, and minimise the emergence of new bad debts. These measures are expected to strengthen the stability of the banking system and support sustainable economic growth," Ha said.

Highlighting recent adjustments to credit management, Ha noted that, in line with the Party and government's policies to boost social housing development, meet legitimate housing demand, and develop industrial infrastructure to support manufacturing and engage foreign direct investment, the SBV informed credit institutions on May 29 that additional lending for social housing projects, industrial parks and export processing zones above end-2025 levels would be excluded from calculations when monitoring real estate credit growth.

Nguyen Xuan Bac, deputy director general of the SBV’s Department of Credit for Economic Sectors, stressed that the SBV had implemented comprehensive measures to ensure that credit was supplied in a timely manner while remaining consistent with the economy's capacity.

Providing an update on the distribution of credit, Bac said industry and construction accounted for 23.8 per cent of total outstanding credit, including 12.1 per cent for manufacturing and processing and 7.62 per cent for construction. Trade and services represented more than 70 per cent, while agriculture, forestry and fisheries accounted for 6.15 per cent.

"Credit continues to be directed towards production, business activities and priority sectors, while lending to higher-risk sectors remains subject to close monitoring," said Bac.

Against this policy backdrop, Military Commercial Joint Stock Bank (MB) said that it would continue prioritising lending to manufacturing, exporters, trading businesses and household businesses.

"MB focuses on these sectors because they are the key drivers of real economic growth, stimulating cash flows, creating employment and generating broad spillover effects in line with sustainable development objectives," said Pham Nhu Anh, CEO of MB.

"Manufacturing and exports reinforce Vietnam's national competitiveness. They are the primary engines for attracting FDI, generating foreign exchange earnings and integrating Vietnam more deeply into global supply chains. At MB, we are putting this vision into practice by establishing a dedicated FDI Business Division and expanding representative offices in international markets. Strategically, MB aims to develop the FDI into its fourth core customer pillar, alongside large corporates, small and medium-sized enterprises, and retail customers," he added.

Anh also described trade and household businesses as important drivers of domestic consumption, noting that these segments and their extensive network of small merchants generate the largest number of jobs while supporting domestic purchasing power.

"By combining flexible financial solutions with MB's comprehensive digital transformation platform, capital can circulate more efficiently, optimise cash conversion cycles and create stronger momentum for national commerce," stated Anh.

"Supporting these strategic customer segments not only aligns MB's lending activities with the government's macroeconomic objectives but also ensures that capital is allocated transparently to the real economy. It also represents a strategic step towards fulfilling the bank's environmental, social, and governance commitments by closely linking credit growth with Vietnam's economic development agenda."

VIR