VIETNAM EYES 8% GDP GROWTH IN 2025

Vietnam is targeting economic growth of at least 8% in 2025, Prime Minister Pham Minh Chinh announced in a directive urging tighter coordination of monetary and fiscal policies.

In Official Dispatch 135, PM Chinh outlined key measures to prioritize economic growth while ensuring macroeconomic stability and controlling inflation, according to the government news site baochinhphu.vn.

The State Bank of Vietnam (SBV) has been tasked with closely monitoring global and regional economic developments and adjusting monetary policies to align with shifts in major economies. The directive emphasizes reducing lending rates, managing deposit rates at commercial banks, and ensuring credit flows remain uninterrupted in early 2025.

Banks are directed to prioritize loans for production, digital transformation, green initiatives, and technological development while restricting lending to high-risk sectors to maintain financial safety and efficiency.

The Government also urged banks to cut costs and embrace technological solutions to create room for further reductions in lending rates.

The directive calls for stricter inspections to enhance financial oversight, address violations of interest rate policies, and prevent unfair competition among credit institutions. Authorities have been tasked with resolving bad debt and mitigating emerging risks in the banking system.

Deputy Prime Minister Ho Duc Phoc has been assigned to oversee the implementation of these measures. Meanwhile, the Ministry of Public Security and the Government Inspectorate will monitor and address violations within the banking sector.

Source: The Saigon Times