Vietnam’s monetary policy has been going through a year full of challenges and difficulties, stemming from both international financial uncertainties and domestic factors. As the year enters its final months, the goal of high GDP growth places even greater pressure on the monetary regulator. Interest rates under multiple pressures Credit growth of around 16% and interest rate cuts are the key objectives set by the Government and the State Bank of Vietnam (SBV) from the beginning of 2025. These are also important intermediate goals to achieve the ultimate target of 8% GDP growth, laying the groundwork for double-digit growth in the years ahead. However, these two goals are inherently contradictory, making it difficult to achieve both simultaneously. Specifically, reaching the high credit growth target inevitably puts significant pressure on interest rates, hindering efforts to lower them. This requires the SBV to be extremely flexible in coordinating monetary tools while also being decisive and firm in ensuring the entire banking system joins hands with the SBV in implementation. In the first half of 2025, credit grew 8.3% compared to the end of 2024, outpacing the 6.11% growth rate of capital mobilization during the same period. In the first seven months of […]
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