Geopolitical tensions in some notable hot spots, anti-COVID-19 measures of global manufacturing hub China, and the US Federal Reserve’s monetary policies could damper Vietnam economic recovery.

The State Bank of Vietnam (SBV) has loosened monetary policies since the start of this year to fuel growth as macroeconomic fundamentals remain favorable. 

The State Bank of Vietnam could increase credit growth limits for credit institutions this year or even launch stronger monetary policies to aid the country’s post-pandemic growth, Governor Le Minh Hung has said.

The State Bank of Viet Nam (SBV) will be consistent in regulating monetary policies according to market developments, with no aim for an unfair competitive edge in international trade.

The oil price keeps dropping dramatically, leading to a decrease in Vietnam’s state budget revenue. Meanwhile, other indicators that measure the health of the national economy all show worrying signs.

Vietnam has decided to loosen monetary policies in 2015 in an aim to hasten national economy recovery. However, the narrowing of the gap between the dong and US dollar interest rates will worsen the dollarization situation in Vietnam.

VietNamNet Bridge – More capital will be pumped into the economy in the rest of this year, as the State Bank of Vietnam said it would seek to loosen both budgetary and monetary policies to outcast the gloomy cloud over the local economy.

Observes have commented that the unsettled big problems would put a heavy burden on the Governor of the State Bank--Nguyen Van Binh on the next year of his term.

The State Bank of Vietnam successfully eased the interest rates in 2012 in order to make it easier for businesses to access bank loans. However, there is always the other side of a coin.

Defined as the credit activities which occur outside banks, shadow banking has become a new big threat.