As of December 31, 2024, the overall credit growth of the banking sector reached 15.08%, exceeding the set target of 15%. The outstanding loan balance amounted to VND 15.6 million billion, an increase of over VND 2 million billion compared to 2023.

Back to the beginning of 2024, credit experienced a decline during the first two months of the year, followed by robust growth towards the end of June, a subsequent decrease in July, an accelerated recovery from August onward, and a significant increase in the last two months of the year. As of December 16, 2024, total outstanding loans had increased by 12.8% compared to the end of 2023. Within just the last 15 days of the year, credit growth surged to 15.08%, indicating a robust recovery of the economy, with production and trade activities improving as domestic and international demand increases.

In 2024, many highlights emerged in the monetary policy management of the State Bank of Vietnam (SBV), where the authority adeptly addressed the challenges posed by the unpredictable international economic and political landscape, amidst a significant appreciation of the US dollar compounded by domestic difficulties.

Accordingly, the State Bank of Vietnam has reformed its measures for managing credit growth, publicly announcing the credit growth targets at the beginning of the year. Given that inflation remains well-controlled below the target levels, the State Bank has made two adjustments to the credit growth targets for credit institutions on August 28 and November 28, in order to timely provide capital for the economy and support production and business activities.

In 2024, the State Bank of Vietnam maintained its policy interest rates in the context of persistently high global interest rates, with the objective of steering the market, lowering lending costs, and offering financial support to both businesses and the public. According to statistical data, as of the end of 2024, despite an increase of 0.71% in deposit interest rates compared to the end of 2023, lending rates had decreased by 0.6% from the beginning of the year. This reflects the proactive approach of the State Bank of Vietnam, aligning with both domestic and international developments, while simultaneously supporting economic growth in conjunction with inflation control.

According to the Monetary Policy Department, credit growth across various sectors in 2024 shows improvement compared to the same period in 2023, with credit being directed towards manufacturing, business, and priority areas.  Additionally, credit for the construction sector has also experienced a revival, while consumer credit has shown significant signs of recovery in 2024.

According to the State Bank of Vietnam, the monetary policy in the forthcoming period will face significant pressures, including influences from the international context. The credit growth target for 2025 has been set at 16%, with a plan proposed by the State Bank indicating that the total credit outstanding in the economy is expected to exceed VND 18.1 million billion by the end of 2025. This implies that the banking sector will inject nearly VND 2.5 million billion into the economy in 2025.

The State Bank of Vietnam continues to pursue its policy of promoting credit growth in order to stimulate the recovery of the economy. The ultimate goal is to control inflation, ensure support for economic growth, and stabilize the value of the currency and exchange rates.

Kylie Nguyen