Credit growth across Vietnam's banking system is projected to reach about 16% in 2025, according to the State Bank of Vietnam (SBV).

The banking system's credit growth had risen by 11.12% as of November 22 compared to the end of 2023, hence the 15% growth target for the whole year is reachable, according to the State Bank of Vietnam (SBV).

The State Bank of Vietnam (SBV) on February 20 net injected more than VND5 trillion (nearly US$204 million) into the banking system through the open market operation (OMO) channel to support capital for commercial banks.

Outstanding credit of the banking system is forecast to increase 4.4% in the first quarter and 14.2% in 2024, up 0.4 percentage point from the previous prediction of 13.8%.

Vietnam’s credit growth reached around 13.5% in 2023 although unprecedented developments of the global economy posed formidable challenges to the country’s monetary policy, Deputy Governor of the State Bank of Vietnam (SBV) Dao Minh Tu said on January 3.

The State Bank of Vietnam (SBV) has set a credit growth target of 15% for the domestic banking system in 2024.

The bad debt ratio of the banking system skyrocketed from 2% at the beginning of this year to 3.56%, or more than VND440 trillion, at the end of July 2023, according to the latest data from the State Bank of Vietnam (SBV).

The foreign exchange rate has significantly fluctuated recently but experts forecast the rate in the remaining months of 2023 will not be under great pressure as in 2022.

The four biggest banks in Vietnam have strongly cut interest rates for various deposit terms to the lowest levels of the year.

Banks will have to exercise caution to ensure stable liquidity when trillions of Vietnamese dong in savings deposits reach their maturity dates over the next few months, according to experts.