THE HANOI TIMES — The State Bank of Vietnam (SBV) has raised the credit growth target for banks in 2025 to 10%, with the “Big Four” state-owned banks allowed 11%, as part of efforts to boost economic growth while maintaining macroeconomic stability and inflation control.

The move, announced on July 31, applies to the entire banking system, with additional credit quotas allocated publicly and transparently without requiring banks to file requests.

The SBV directed banks to prioritize lending for production, business, and other key sectors, ensure system safety, and limit risks and bad debts. It also urged institutions to keep deposit rates stable and cut lending rates by reducing costs, adopting technology, simplifying procedures, and restructuring operations.

For the "Big Four", including  Agribank, BIDV, Vietcombank, and VietinBank, the credit growth cap stands at 11%.

Commenting on the adjustment, Dr. Pham Xuan Hoe, Secretary General of the Vietnam Financial Leasing Association, said that even if credit growth hits 20% in 2025, it would still be within manageable limits, as it is just over twice the government’s GDP growth target of 8.5%. He noted that in previous periods, credit expansion had reached triple the pace of GDP growth.

The central bank added it would continue closely monitoring domestic and international markets and stand ready to support liquidity and deploy timely monetary policy measures.