At the regular Government press conference in January 2025, when asked about monetary policy management solutions to achieve the GDP growth target of over 8% as set by the Government for 2025, Permanent Deputy Governor of the State Bank of Vietnam (SBV) Dao Minh Tu said that to achieve this growth rate, it is necessary to have synchronous and drastic efforts from the entire economy. Success this year will create the premise for the country to enter the take-off phase. Therefore, the SBV identifies this as a very big task and responsibility.
Deputy Governor of the State Bank of Vietnam Dao Minh Tu emphasized that to achieve GDP growth of 8% or more, there needs to be close coordination of many policies and synchronous solutions in all fields.
Particularly for the banking sector, economic growth cannot be separated from investment, and investment can only be promoted when there is sufficient capital. A growth rate of over 8%, even aiming for 10% in 2025, is a very impressive figure. To achieve this goal, the economy needs a synchronous and drastic effort. Therefore, the SBV identifies monetary policy management as a heavy but important task.
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| Deputy Governor of the State Bank of Vietnam Dao Minh Tu shares solutions for monetary policy management to contribute to achieving the GDP growth target of over 8% - Photo: VGP/Nhat Bac |
There is always a correlation between credit growth and GDP. For example, in 2024, GDP increased by 7.09%, then credit increased by 15.08%. On average, for every 2% credit growth, there is 1% in GDP growth.
In 2025, the State Bank of Vietnam targets credit growth of about 16% to support the GDP growth target of 8%. If GDP increases to 10%, credit growth may need to reach 18-20%. This poses the problem of ensuring capital sources to serve the economy, especially when medium and long-term capital mobilization channels such as stocks and bonds still have challenges to overcome. Therefore, monetary and credit policies in 2025 will be very "heavy".
By the end of 2023, total outstanding credit balance will reach about 13.4 million billion VND and by the end of 2024 it will be 15.5 million billion VND (rounded number), an increase of 2.1 million billion VND in 2024. Total lending turnover for the whole year of 2024 will reach about 23 million billion VND, while debt collection turnover will be 21 million billion VND, contributing to GDP growth of 7.09%.
Looking to 2025, from a viewpoint , the monetary policy management of the State Bank will achieve the goal of controlling inflation and stabilizing the value of money . Along with that , it must actively support economic growth , as well as support ensuring major balances of the economy .
With such viewpoints and goals, as well as previous experiences and lessons , Deputy Governor Dao Minh Tu said that this year 's monetary policy will continue to be operated flexibly , tightly and in accordance with fiscal policy as well as other macroeconomic policies .
Specifically , the State Bank will focus on implementing the following key tasks and solutions :
Ensuring liquidity for the economy , ensuring liquidity for commercial banks to ensure capital sources for the economy on the basis of mobilizing idle capital from businesses and people through reasonable interest rate policies to attract this mobilized capital .
In case investment capital is needed to meet the demand , the State Bank will use its market operations and management tools to provide capital , recapitalize or other appropriate forms of capital .
Regarding interest rates , interest rates will continue to be managed in a stable direction, ensuring that they are consistent with the general interest rates of the economy as well as with the requirements in relation to other macro indicators and in a decreasing direction . The State Bank will direct commercial banks to continue to reduce rates by cutting costs and applying technology to support businesses and people .
In managing the credit limit , the State Bank sets a target of 16 % but it can also be higher if inflation and macroeconomic indicators are well controlled to achieve the highest economic growth target . Regarding the management and operation methods with credit limits , there have been innovations in 2024 and 2025 will continue to be innovated to create convenience and initiative for commercial banks . If lending is active , lending to the right subjects , promoting capital sources as well as ensuring the safety and health of the system , the credit limit can be proactively raised . The State Bank will control in general , ensuring the overall credit growth of the economy .
In addition , the State Bank will continue to neutralize the impacts of the world to ensure the maintenance of a stable foreign exchange market and exchange rate . Right in the first days of this year , despite the negative impacts on the economy and the foreign exchange market , the State Bank has proactively managed and from mid- January until now , the market has returned to a positive state , on the basis of foreign exchange, remittances as well as import and export cash flow . The State Bank will have intervention measures when necessary to ensure positive foreign exchange relations , ensure exchange rates at reasonable levels , and avoid hoarding .
The application of digital technology in the banking industry will continue to be promoted to reduce operating costs, thereby supporting the reduction of lending interest rates and supporting businesses . Debt restructuring and deferral policies will also be used appropriately to support businesses . Along with that , other preferential credit policies , especially preferential credit programs directed by the Government and the Prime Minister , will be actively implemented .
“Those are the main contents and solutions that the State Bank will implement in 2025. However , we believe that this is only one of the channels that plays an important role , but it also needs to be very synchronous with other policies so that we can achieve an economic growth rate of 8 %, even over 8% this year,” said Deputy Governor of the State Bank of Vietnam Dao Minh Tu.Source: https://thoibaonganhang.vn/phoi-hop-chat-che-dong-bo-cac-chinh-sach-de-dat-tang-truong-kinh-te-8-160251.html
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