The 75-year journey of development of Vietnam’s banking sector has been closely associated with the country’s major economic milestones. Amid ongoing uncertainties in the global economy, 2026 marks the beginning of the implementation of the Resolution of the 14th National Party Congress, with higher growth expectations. Monetary policy management therefore continues to face a significant mission: maintaining macroeconomic stability, controlling inflation, ensuring the safety of the banking system, and effectively directing and allocating capital flows to the economy.

On the occasion of the 75th anniversary of the establishment of Vietnam’s banking sector, Governor of the State Bank of Vietnam Pham Duc An shared key objectives and orientations for monetary policy management and banking operations in the new period, aiming to maintain macroeconomic stability, control inflation, support rapid and sustainable economic growth, and improve growth quality.

Looking back over the past 75 years, the banking sector has gone through many important historical stages. Since the establishment of the National Bank of Vietnam under Legal document No. 15/SL dated May 6, 1951, signed by President Ho Chi Minh, the sector has undertaken critical responsibilities, including currency issuance, state budget management, credit provision, and participating in the financial and monetary front. During the two resistance wars, the banking sector made significant contributions by mobilizing and supplying resources to support the nation’s struggle for independence and reunification.

Following national reunification in 1975, the banking sector focused on restoring the system, unifying the currency, and providing capital for national reconstruction. During the Doi Moi period, the establishment of the two-tier banking system under Decree No. 53-HDBT in 1988, together with the introduction of banking ordinances and laws, laid an important foundation for the development of a modern banking system that has gradually aligned with international standards.

Throughout its development, the banking sector has initiated and implemented numerous monetary, credit, and banking policies and solutions tailored to practical requirements. These efforts have contributed significantly to controlling inflation, maintaining the value of the national currency, increasing foreign exchange reserves, stabilizing the macroeconomy, improving living standards, and supporting economic growth. Capital mobilization and lending activities have become increasingly flexible, meeting the financing needs of individuals and businesses, with particular attention given to the agricultural and rural sectors.

In the current context, the State Bank of Vietnam remains committed to maintaining macroeconomic stability, controlling inflation, and ensuring the safety of the banking system. At the same time, monetary policy continues to be managed proactively and flexibly, in line with domestic and international economic developments. Monetary policy instruments are deployed in a coordinated and timely manner, closely aligned with fiscal and other macroeconomic policies, to ensure the smooth functioning of the money market, maintain appropriate interest rate levels, manage exchange rates flexibly, and guide safe and effective credit growth.

The State Bank of Vietnam also directs credit institutions to channel credit into production and business activities, priority sectors, economic growth drivers, and key viable projects, while maintaining strict control over lending to potentially high-risk sectors. A number of large-scale credit programs continue to be implemented, including financing for agriculture, forestry and fisheries; social housing, worker housing, and apartment renovation and reconstruction projects; as well as investments in power infrastructure, transportation, and strategic technologies. These programs help direct capital flows toward key sectors of the economy.

In 2026, the State Bank of Vietnam will continue to pursue flexible monetary policy management, target average inflation of around 4.5%, and support sustainable economic growth. At the same time, it will strengthen administrative reforms, accelerate digital transformation in lending activities, promote cashless payments, ensure the security and safety of banking operations, and intensify efforts to address non-performing loans.

Building on its 75-year tradition of development, Vietnam’s banking sector continues to reaffirm its role as a pillar of macroeconomic stability and the primary channel for capital allocation within the economy. The sector remains committed to standing alongside individuals, businesses, and the country in the new development phase, contributing to sustainable high growth and helping Vietnam advance toward a prosperous and thriving future.

Kylie Nguyen