The European Chamber of Commerce in Vietnam’s Business Confidence Index for the fourth quarter of 2024 has recorded a jump of 15.5 points over the third quarter of the year. It should be noted, however, that the number of respondents was well below average for the year and given the time of year the results may be skewed.

This is interesting in that credit growth limits were first introduced just over a decade ago to try to keep bank lending and by extension inflation under control, essentially acknowledging that the more money people have to spend the higher inflation will climb. This reality hasn’t changed, however, the connection between inflation and credit growth in Vietnam has, with the former going down this year while the latter has risen.