People ride motorcycles in front of the headquarter of the State Bank of Vietnam in Hanoi, Vietnam, November 19, 2024. Photo: Reuters
Deputy Governor Pham Thanh Ha also said at a press conference that commercial banks' lending interest rates were on a downward trend and called for further cuts.
"The global economic and political situation has so far this year evolved in an unpredictable manner, with market concerns about the U.S. tariff policy, the risks of a global trade war and geopolitical conflicts," Ha said.
Pham Chi Quang, who heads the monetary policy department, said the State Bank of Vietnam would focus on stopping non-performing loans from rising, and said lending to risky sectors would be tightly controlled.
Vietnam is targeting gross domestic product growth of 8.3%-8.5% this year, faster than the 7.09% rate last year.
Credit growth is a key driver of the economy. Last month, prominent academics warned its lawmakers that breakneck credit expansion may fuel asset price bubbles.
The central bank said bank lending has risen 13.37% as of September 29 compared to the end of last year.
