Hanoi (VNA) – Vietnamese banks are entering the final stretch of 2025 with accelerated credit growth, flexible lending quotas, and lower interest rates, the steps that experts say could push the credit expansion beyond the set target of 16%.
The State Bank of Vietnam (SBV) eyed a nationwide credit growth goal of around 16%, the second consecutive year the central bank allocated credit quotas right from the beginning of the year. This signaled a proactive and flexible monetary stance to support the economy amidst lingering challenges.
That policy has already borne fruit, with credit surging in the first half, laying a solid foundation for the final months, the peak period for capital demand.
As of the end of July, outstanding credit rose by 19.3% year-on-year, reflecting a marked improvement in lending activities.
In response to this rapid pace, the SBV proactively expanded credit limits for financial institutions with healthy financial capacity and high capital adequacy ratios. Notably, this quota expansion was implemented automatically and transparently based on internal data analysis of individual banks, without requiring prior applications from the institutions.
This marked a new approach to credit management this year, allowing flexible quota transfer from banks that haven’t fully utilised their limits to those capable of expanding lending, thereby improving capital allocation efficiency for the economy.
According to the SBV, this credit target adjustment also implements the Government and Prime Minister’s directives on flexible, effective, and timely monetary policy management while avoiding credit concentration at year-end.
Along with credit room expansion, the central bank ordered banks to inject capital into such priority sectors as production – business, export, agricultural – rural areas, small and medium-sized enterprises, high technology, and supporting industries. In stark contrast, domains posing high risks like high-end property, unsecured corporate bond investments, and financial speculation continue to face strict controls.
At the same time, the SBV directed commercial banks to maintain stable deposit rate levels and reduce operational costs, creating room for lending rate cuts to help businesses and citizens access capital more easily amid input cost pressures.
Director of the SBV’s Monetary Policy Department Pham Chi Quang said that the central bank will keep close tabs on bad debts, ask credit institutions to make adequate provisions and properly classify debts to ensure system safety.
Major commercial banks, including Vietcombank, BIDV, VietinBank, and Agribank, recorded credit expansion from 7% to 10% over the past seven months, with capital allocated for production, business, and sectors aligned with the SBV’s guidance. Vietcombank has prepared preferential packages for exporters, processing firms, and those operating in the renewable energy sector. Meanwhile, TPBank, MP and Techcombank are carrying out flexible lending programmes for household businesses, young customers, and small and medium-sized enterprises.
Given the current growth, analysts believed that the 16% annual target and beyond is within reach.
The latest report from MB Securities JSC showed that lending activities in the second half of the year will be driven by three main factors, namely accelerated disbursement of public investment, Resolution No.68 on enhancing the role of the private economy, and the possibility of gradually lifting credit growth caps.
Assoc.Prof.Dr. Huu Huan from the University of Economics Ho Chi Minh City said credit demand typically spikes in the second half of the year, especially under favourable conditions of low inflation, stable exchange rates, and capital inflows from the Government’s support packages.
In the same vein, Dr. Nguyen Tri Hieu, banking-finance expert noted that early and flexible quota assignments have reduced the end-year credit rush seen in previous years. However, it is necessary to pay close attention to credit quality risk, especially in troubled segments like real estate. Credit growth must be accompanied by thorough appraisal and borrowers’ repayment capacity.
According to statistics from the central bank, the banking system’s non-performing loan ratio is still below 2%, but consumer credit and real estate debts requiring attention are edging up in certain banks. The central bank affirmed that it will continue asking credit institutions to improve risk management, comply with Basel II/III standards, while pushing debt settlement to maintain political stability./.
