Vietnam’s banking system added nearly VND614 trillion (US$23.8 billion) in new credit during the first quarter of 2025, with total credit outstanding reaching VND16,230 trillion (US$629 billion), according to State Bank of Vietnam (SBV) Governor Nguyen Thi Hong. The quarterly growth rate of 3.93 percent outpaced the same period last year by more than double, The Investor is reporting.
The Investor also notes that:
- Credit growth in Q1 2025 was 3.93 percent, up from 1.42 percent in Q1 2024.
- Credit outstanding as of end-March stood at VND16,230 trillion (US$629 billion).
- A significant increase occurred in the final week of March, adding VND223.3 trillion (US$8.66 billion).
- The 2025 target is 16 percent credit growth, though the SBV may adjust this depending on inflation.
- The SBV has moved toward removing credit growth quotas, allowing some institutions to manage their own growth strategies.
While the SBV has framed the Q1 lending spike as a positive driver of investment, rapid credit expansion in a short period—especially in the final week of March—raises questions about the sustainability and quality of that growth. With Vietnam targeting up to 16 percent credit growth this year, the emphasis now turns to how well the banking sector can balance economic stimulation with credit risk management, particularly in a volatile global environment.
See also: It’s Time to Talk About Vietnam’s Credit Growth Policy…