Two senior academics cautioned lawmakers last week that Vietnam’s rapid credit growth risks destabilising the economy, according to papers seen by Reuters → view source.
Key details:
- Pham The Anh (National Economics University): Said Vietnam’s money supply growth has created the highest credit-to-GDP ratio in the region, fuelling inflation and asset bubbles. He told lawmakers this has driven a “real estate price fever” and “ghost cities,” and later told Reuters the central bank needs more independence to cool asset prices.
- Vu Sy Cuong (Academy of Finance): Warned that the credit surge is also powering a stock market rally, with margin debt at record levels. He stressed that while growth is important, long-term economic stability matters more.
See also: It’s Time to Talk About Vietnam’s Credit Growth Policy…