State Bank of Vietnam (SBV) Deputy Governor Doan Thai Son has said at a government meeting, that core inflation rising above 3 percent should be seen as a warning sign, the Government Electronic Newspaper has reported → view source.
According to the publication he said rising rents, dining costs, and state-managed prices, combined with higher global energy and raw material costs, are adding to inflationary pressure.
He also stressed the need for pre-emptive action, noting that waiting until inflation crosses critical thresholds makes control much more costly.
Other key points made by the Deputy Governor include:
1. Credit and interest rates
By end-August, credit growth was over 11 percent year-to-date, tracking toward more than 20 percent for 2025—well above the usual 14–15 percent.
This creates risk of higher deposit and lending rates as banks seek more funding, while excess money supply feeds longer-term inflation risks.
Lending rates are still relatively low, but the trend is fragile.
2. Exchange rate pressure
Vietnam’s exchange rate remains under strain, with the dong down 3.45 percent against the dollar since December 2024 despite SBV intervention.
The gap between high US rates and low VND rates, declining foreign loan inflows, and debt repayments all add to pressure.
SBV is using liquidity tools, interest rate management, and USD sales to stabilise, but stresses remain.
3. Gold market
Gold prices spiked, with expectations of a record US$3,500 per ounce fuelling demand.
Supply has been tight since SBV suspended SJC sales while transitioning to a new management mechanism, amplifying the surge.
SBV has completed inspections of major gold traders and banks, and is preparing to implement a new regulatory framework, promising stronger oversight and enforcement.
See also: How Low Can the Vietnamese Dong Go? Why it’s Sliding & What Might Happen Next