Vietnam central bank vows to push growth, limiting credit risks

The trade levies are putting upward pressure on inflation and adding pressure on the currency

The State Bank of Vietnam plans to keep pursuing policies to spur growth while containing inflation, aiming to boost lending to businesses even as it controls credit to riskier sectors, according to a central bank briefing in Hanoi.

Bank loans as at Sep 29 rose 13.37 per cent from the end of 2024, deputy governor Pham Thanh Ha said. Property loans rose around 19 per cent in the first nine months of the year, while credit for technology projects and supporting industries rose around 24 per cent, according to Ha Thu Giang, head of the lending department.

The monetary authority has said that it is ready to help the nation meet its growth goal, which is set at an ambitious 8.3 to 8.5 per cent for 2025, even as the US imposed a 20 per cent tariff on the export-dependent economy. The trade levies are putting upward pressure on inflation and adding pressure on the currency.

The dong has fallen more than 3 per cent this year and is hovering near its August record low, with analysts forecasting further declines as the central bank maintains a loose monetary policy to support the government’s growth goal.

“We will continue to manage monetary policy proactively and flexibly, in close coordination with fiscal and other policies, to prioritise economic growth while maintaining macro stability and controlling inflation,” deputy governor Ha said.

In an example of that cooperation, the central bank is working with commercial lenders and multiple government ministries to implement the government’s 500 trillion dong (S$24.5 billion) credit programme for infrastructure and digital technology investment, the lending department’s Giang said.

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Third-quarter economic data due on Monday will show whether Vietnam’s export-led economy has started to slow after the Trump administration imposed 20 per cent tariffs from early August. The economy grew faster-than-expected in the first half of 2025 as foreign buyers raced to avoid the levies, but is widely expected to slow in the second half.

There are concerns about the impact of Bualoi, a typhoon which hit parts of the country earlier this week, causing floods and flight delays, and killing more than two dozen people. The central bank will consider ensuring cheap credit for stricken areas, according to today’s briefing.

More broadly, the central bank will also increase monitoring to ensure lending goes to feasible businesses and priority sectors that are key drivers of economic growth, said Pham Chi Quang, head of the department for monetary policies.

On Sep 29, the central bank unveiled draft gold market regulations to take effect as the government winds back a government monopoly on the sector.

The authority is working to finalise those regulations, aiming to boost domestic supply and enhance market transparency, said Dao Xuan Tuan, head of the central bank’s foreign exchange department. BLOOMBERG