Two other banks, OceanBank and CB, which were acquired under mandatory purchase agreements, have already been transferred.

Strong credit growth and stable monetary policies

At a press conference on January 7, Deputy Governor Dao Minh Tu highlighted the SBV’s streamlining efforts under Resolution 18, reducing and merging departments to enhance efficiency.

Key results in 2024 included:

Credit supply: Total lending reached approximately 23 quadrillion VND ($958 billion), with 2.1 quadrillion VND ($87 billion) in additional credit injected into the economy compared to 2023. Outstanding loans now stand at 15.6 quadrillion VND ($650 billion), up from 13.6 quadrillion VND ($566 billion) at the end of 2023.

Interest rates: Average lending rates dropped by 0.59% annually, while deposit rates increased by 0.73%. Major banks reduced average lending rates by nearly 1%.

Macroeconomic stability: Inflation was controlled at 3.63%, and GDP grew by 7.08%, supported by credit investment and reduced borrowing costs.

Liquidity among commercial banks remained robust, with no significant capital shortages in 2024. The SBV maintained stable policy rates and avoided adjustments while encouraging banks to reduce costs and lower lending rates.

Vietnam’s exchange rate experienced fluctuations, with a peak increase of over 7% during the year. However, the annual average increase was only 5.03%, demonstrating greater stability compared to other Asian markets.

Deputy Governor Tu assured businesses and investors that Vietnam’s forex rates remain balanced, supporting both exports and imports.

Biometric authentication for bank accounts, implemented in collaboration with the Ministry of Public Security, has enhanced security.

Digital adoption: Over 84.7 million accounts have been biometrically verified.

Fraud reduction: Reports of financial fraud have decreased by more than 50% since the adoption of biometric technology.

Tuan Nguyen