Aiming for 16% credit growth and removing credit room allocation

	There is still room for credit growth at the end of the year
	Credit continues to increase at the end of the year, room is loosened to avoid "surplus in some places - shortage in others"
	State Bank sets higher credit growth target for 2025

Prime Minister Pham Minh Chinh speaks at the Conference, Photo: VGP

Credit growth has not surged but shown signs of improvement

According to the report of the SBV at the Government Standing Committee's meeting working with commercial banks to accelerate, break through, promote growth and control inflation on February 11, 2025, in 2024, the SBV will continue to proactively manage interest rates at low levels.

Thereby, to orient the market to reduce lending interest rates, support businesses and people, thereby reducing lending interest rates by 1.24% compared to the end of 2023. The foreign exchange market and exchange rates are stable.

Liquidity of the credit institution system is abundant, meeting the capital needs of the economy, contributing to controlling inflation and stabilizing exchange rates.

The SBV promptly directed the credit institution system to deploy many solutions to effectively promote credit growth, increasing by 15.08% compared to the end of 2023 and achieving the set target, adding VND 2.2 million billion to the economy (loan turnover of VND 23 million billion).

In the first period of 2025, according to the seasonal regularity at the beginning of the year and the Lunar New Year, credit growth of the whole system has not increased rapidly but has shown signs of improvement compared to the same period last year.

By February 3, 2025, outstanding credit of the whole system reached VND 15.65 million billion, up 0.19% compared to 2024, higher than the same period in 2024 (down 0.6%).

Credit continues to be directed to production and business activities, priority sectors.

SBV’s standing Deputy Governor Dao Minh Tu reports at the Conference. Photo: VGP

By the end of 2024, the total assets of the commercial banking group reached VND19,896.7 trillion (accounting for about 87% of the market share of the entire credit institution system), up 14.9% compared to the end of 2023.

Of which, the group of state-owned commercial banks reached VND9,422.07 trillion, accounting for 47.35%.

The group of three commercial banks subject to compulsory transfer reached VND79.72 trillion, accounting for 0.4%.

The group of joint stock commercial banks reached VND10,394.9 trillion, accounting for 52.24%.

Continue to innovate credit growth management methods

At the Conference, SBV’s Deputy Governor Dao Minh Tu said that the SBV has also actively removed difficulties, improved the ability to access and absorb credit capital of businesses and people.

Many effective credit programs have been expanded and increased in scale many times. In particular, there are solutions to support customers affected by natural disasters.

The restructuring of the credit institution system associated with bad debt handling has also been implemented drastically.

The SBV has completed the mandatory transfer of 4 weak banks, while controlling the bad debt ratio at a level lower than the target of 3%.

Commercial banks have continuously improved their management and operational capacity, improved financial efficiency and maintained profitable business operations.

To promote growth, control inflation and stabilize the macro economy in 2025, the SBV’s Deputy Governor said that the SBV will continue to operate monetary policy proactively, flexibly and effectively, while closely coordinating with fiscal policy and other macroeconomic policies.

Notably, the SBV will continue to innovate its credit growth management methods and implement a roadmap to gradually reduce and completely eliminate the mechanism of allocating credit room to each credit institution.

The goal is to maintain credit growth for the entire system at around 16%.

In addition, the SBV will proactively adjust credit room for credit institutions based on the macroeconomic situation and actual developments, instead of waiting for written requests from banks.

Ms. Nguyen Thi Phuong Thao, Standing Vice President of HDBank. Photo: VGP

Agreeing with this orientation, Mr. Do Minh Phu, Chairman of the Board of Directors of TPBank, said that it is necessary to gradually reduce and eventually eliminate the mechanism of allocating credit room

In addition, at the conference, bank leaders gave many opinions to contribute to ensuring the economic growth target.

Mr. Pham Toan Vuong, General Director of Agribank, proposed that the Government soon issue a Decree amending and supplementing decrees related to the conditions for equitization in accordance with the 2024 Land Law.

This is to remove difficulties and obstacles for Agribank to be able to soon carry out equitization in the near future.

The General Director of Agribank also proposed that the Government, the National Assembly and competent authorities introduce appropriate mechanisms and regulations on handling bad debts and collateral of bad debts, supporting the legal basis to handle bad debts.

Ms. Nguyen Thi Phuong Thao, Permanent Vice President of HDBank, proposed that the Government and the SBV promote the development of the capital market, reduce pressure on bank credit, and support long-term growth...