The economy's total credits reach over 15.6 quadrillion VND (610.3 billion USD) in 2024 (Photo: VNA)

The banking sector, particularly commercial banks, is expected to play a crucial, pioneering role, and act as a catalyst to unleash potential, seize emerging opportunities, and drive fresh momentum to help Vietnam achieve its set economic growth target of at least 8% this year.

According to data from the State Bank of Vietnam (SBV), in 2024, the economy's total credits reached over 15.6 quadrillion VND (610.3 billion USD), marking an increase of more than 15% compared to the end of 2023. Commercial banks played a significant role in providing credits for the economy, accounting for approximately 92.6% of the total outstanding credits in the entire banking system.

Credit growth in the early months of 2025 has shown more promising signs compared to the same period last year. According to the central bank’s latest report, as of February 3, the total outstanding credits in the banking system reached 15.65 quadrillion VND, marking a 0.19% increase compared to 2024. This growth is higher than the same period in 2024, when the outstanding credits decreased by 0.6%.

Notably, 2025 marks the second year in which the SBV assigned credit targets to banks right at the beginning of the year.

SBV Deputy Governor Dao Minh Tu stated that an average credit growth of over 2% would contribute to a 1% increase in the country's GDP. Therefore, for 2025, the central bank aims for a credit growth target of around 16% to contribute to the economic growth target of 8%.

However, if GDP growth reaches 10%, credit growth needs to reach between 18-20%, meaning the banking sector will need to inject an additional 2.8 to 3.1 quadrillion VND into the economy.

SBV Governor Nguyen Thi Hong emphasised that the entire banking sector is fully committed to making 2025 a year of acceleration and breakthrough, aiming to foster economic growth of 8% or more, control inflation, and take the highest responsibility and determination in implementing suitable management. According to Hong, to achieve an economic boost, credit growth plays an essential role.

The SBV will closely monitor developments, and if inflation is kept at a low level, it will adjust the credit target upwards, and vice versa, she said, adding that credit policy will also focus on key drivers of economic growth, tapping into factors such as consumer credits, and credits for small- and medium-sized enterprises.

Pham Toan Vuong, General Director of the Vietnam Bank for Agriculture and Rural Development (Agribank), stated that with the banking sector's 2025 credit growth target of around 16%, the central bank has assigned Agribank a growth target of nearly 13%, equivalent to an increase of over 200 trillion VND.

If the annual outstanding credits grow by 200 trillion VND, Agribank will need to add 15-17 trillion VND in equity. Therefore, Vuong recommended the National Assembly and the Government consider establishing a special mechanism for state-owned commercial banks, including granting additional charter capital from Agribank's annual profits, with a minimum of 10 trillion VND per year, starting in 2025. This will allow Agribank to meet its political tasks and contribute to the goal of achieving double-digit GDP growth in the 2026-2030 period./.