This year’s economic growth is under threat from rising tariff barriers, which are expected to significantly hinder credit expansion within the banking sector. In light of these challenges, how should the banking industry adjust its credit development strategy to effectively achieve its objectives? Growth challenges As of March 31, total outstanding loans in the banking system had reached VND16.23 quadrillion, a 3.93% increase against the end of 2024, nearly triple the 1.34% growth recorded in the first quarter of last year, according to data from the State Bank of Vietnam (SBV). When compared to March 2024, growth in outstanding loans exceeded 18%, surpassing the 2025 target of 16%. Optimistic projections indicate that credit growth in 2025 could reach 17-18%, driven by the recovery of the real estate market and an anticipated surge in demand for consumer and home loans. Reflecting on the first-quarter performance, the SBV stated that credit activity continued to effectively address the capital needs for economic growth. Lending remained concentrated in key areas such as production and business, trade and services, tourism, and import-export sectors. The prospect of trade slowing due to the new U.S. tariff policy poses a significant risk to this year’s economic growth, with […]