HCMC – Vietnam is on course to achieve its 15% credit growth target for this year, Nguyen Thi Hong, governor of the State Bank of Vietnam (SBV), told a government meeting on October 7.
By September 30, the banking system had recorded a 9% rise in loans since the end of 2023 and a 16% year-on-year increase. Hong noted that lending would accelerate in the final months of the year as seen in previous years, making the target attainable.
Recent data from the SBV showed credit growth gaining momentum, climbing from 6.63% in late August to 8.53% by the end of September, translating to an additional VND260 trillion flowing into the economy. Much of this credit has been channeled into the production, business, and priority sectors.
Hong also addressed global inflation trends, observing that central banks worldwide are easing monetary policies as inflation subsides. The U.S. Federal Reserve recently reduced interest rates by 50 basis points.
Despite the U.S. dollar’s strengthening throughout the year, exchange rate pressure has eased, which could potentially support Vietnam’s export growth, Hong said.
On the domestic front, both supply and demand growth drivers have shown improvement, although consumer demand remains weak. Retail sales, excluding inflation, rose by 5.3%, compared to an 8% increase last year.
Inflation remains under control, with the SBV expecting to meet its 2024 target. Additionally, the average lending interest rate has dropped by 50 basis points, while the Vietnamese dong has depreciated by 1.66%, a level considered manageable for maintaining stability in financial and foreign exchange markets.
