Headquarters of the State Bank of Vietnam (Source: SBV)
On November 28, the State Bank of Vietnam (SBV) announced an upward adjustment to the 2024 credit growth target for credit institutions (CIs), following a specific, transparent, and fair approach. The additional credit limit is a proactive move by the SBV, and CIs do not need to request it.
According to the SBV, this adjustment is made possible by well-controlled inflation, which remains below the target set by the National Assembly and the Government. It also aligns with the Government and Prime Minister’s directives on flexible, effective, and timely credit institution management to meet the capital needs of the economy and support production and business development.
The SBV requires CIs to strictly adhere to the directives of the Government, its leaders, and the SBV. They should vigorously implement credit-related solutions to improve business efficiency, ensure system safety, and maintain monetary market stability. Credit growth should be safe and effective, directed towards production and business, priority areas, and the economy’s growth drivers as per the Government and Prime Minister’s policies. Close control should be maintained over areas with potential risks. CIs should continue to facilitate businesses’ and individuals’ access to credit and strive to maintain stability in deposit interest rates and further reduce lending interest rates by cutting costs, simplifying administrative procedures, and enhancing information technology applications and digital transformation.
Moving forward, the SBV will closely monitor domestic and international market developments and stand ready to provide liquidity support to enable CIs to extend credit to the economy. It will also promptly implement appropriate monetary policy solutions.
Earlier, at the beginning of 2024, the SBV assigned a 15% credit growth target to CIs through Directive No. 01/CT-NHNN dated January 15, 2024. On August 28, 2024, the SBV proactively notified CIs of an adjustment to their 2024 credit growth target. As of November 22, 2024, the credit growth of the whole system increased by 11.12% compared to the end of 2023.
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The recent adjustment has been made in a context of well-controlled inflation, falling below the target set by the National Assembly and the Government. This move is in line with the directives of the Government and the Prime Minister to manage the monetary policy proactively, effectively, and promptly to meet the capital needs of the economy and support production and business development.
