The State Bank of Vietnam (SBV) has projected a credit growth rate of approximately 16% for 2025. The bank plans to adjust credit growth targets for financial institutions proactively without requiring formal requests.

Transparent credit growth principles

In an official document sent to financial institutions, the SBV outlined clear and transparent principles for allocating credit growth targets for 2025.

This aligns with resolutions from the National Assembly, directives from the government, and the Prime Minister.

The SBV emphasized its ongoing commitment to managing credit policies that support economic growth while controlling inflation, taking into account macroeconomic conditions.

The allocation of credit growth targets will be based on a scoring and ranking system for 2023 performance, as stipulated in Circular No. 52 (2018), which has since been amended and supplemented.

Transitioning away from credit room limits

The SBV intends to continue implementing Resolution No. 62 (2022), which outlines a roadmap to gradually phase out the credit room mechanism.

This approach aims to remove the cap on credit growth allocation for individual financial institutions, allowing for a more flexible and dynamic credit environment.

The projected 16% credit growth for 2025 reflects a system-wide target designed to meet the demands of economic development.

Priorities for safe and effective credit growth

The SBV has instructed financial institutions to ensure safe and efficient credit growth in compliance with regulations.

Credit must focus on production, business, and prioritized sectors while avoiding risky areas.

Institutions are required to improve credit assessment and appraisal capabilities, promptly address violations, and maintain room for further reductions in lending rates.

The bank also emphasized the need for a flexible, timely, and scientific approach to credit management in 2025, ensuring adequate credit supply while safeguarding the system’s stability.

This strategy will prioritize economic growth, macroeconomic stability, and inflation control, with adjustments made proactively to meet the credit needs of the economy without requiring requests from financial institutions.

Hanh Nguyen