Aug 31, 2018 / 12:13

Vietnam expects 2018 credit growth target to hover around 17%

Despite the credit growth limit, it is vital to ensure sufficient capital for business and manufacturing with stable interest rates, stated Mai Tien Dung, minister and chairman of the Government Office.

Vietnam's credit growth rate reached 8.18% as of August 15 and is expected to stay around 17% in 2018, Minister Dung was quoted by CafeF.vn as saying at a press meeting on August 30.
 
Illustrative photo.
Illustrative photo.
Despite the credit growth limit, it is vital to ensure sufficient capital for business and manufacturing with stable interest rates, Dung continued. 

Dao Minh Tu, deputy governor of the State Bank of Vietnam (SBV), considered credit growth rate as a macro-economic indicator supporting the government's effort in achieving monetary policy's targets. 

A suitable credit growth target, thus, has significant meaning to the economy, Tu stressed.

Moreover, credit growth is aimed at providing capital for the economy and helping control inflation, for which economic performance has been positive as of the end of August, Tu continued. 

Tu, however, warned that the government should be cautious in controlling the inflation rate in the remaining months of the year, even though the rate is currently under 4%. Depending on the actual demand of the economy, credit growth rate may hover around the 17%. 

As of August 30, credit growth rate reached 8.5%, half of the year's target. Tu considered the 17% growth rate suitable for achieving Vietnam's economic targets and controlling inflation rate. 

Additionally, the SBV has set up plan to meet capital demands of the economy, while commercial banks will ensure liquidity for priority fields, he added.