Deputy Governor of the State Bank of Vietnam Dao Minh Tu has raised concerns with respect to Vietnam’s private debt to GDP, currently about 135 percent, with a private lending growth target that if reached will see that figure hit 145 percent.
“From a macro perspective, this is a problem that we are worried about but we still have to try, according to the political determination of the Party, Government and all levels,” he said.
This is noteworthy in that it elucidates the conflicts in the Government of Vietnam’s economic growth strategy and the people entrusted to implement it. Notably the State Bank of Vietnam is not independent of the government like more developed economies which sometimes lead to the bank enacting policy that goes against received conventional economic wisdom.
See also: It’s Time to Talk About Vietnam’s Credit Growth Policy…