By April 23, credit growth in Vietnam had reached just 1.6 percent. This is after a target was set for the year of 15 percent. This was also significantly lower than the 2.66 percent that was reached over the same period in 2023.

Whereas in the past credit growth for individual lenders has been set at the start of the year and increased as needed–but ensuring overall credit growth doesn’t go over a set limit–this year all stops have been pulled out. The State Bank has set the limit (although it’s more of a target at this point) at 15 percent overall but said banks are free to lend as they please with no institution-specific caps.

These latest figures would suggest this hasn’t really done much with credit growth still flagging on the back of lower demand for cash. A lot of this is to do with a broader economic downturn, but a lot also stems from credit growth being sacrificed back in 2022 in order to restrict inflation and prevent the dong from devaluing against the greenback.

For more information see: The Vietnamese Dong’s Wild Ride: Unpacked 2024