Vietnam’s credit growth must align with risk controls to curb bad debt

Achievable target: People go past the SBV building in Hanoi. The expected credit growth of the entire banking system in 2025 has been set at 16%. — Reuters

HANOI: Despite saying the credit growth target set for 2025 is reasonable, experts note that the growth must go hand in hand with credit quality and risk control to avoid bad debt increase.

The State Bank of Vietnam (SBV) recently sent a document to commercial banks to publicly and transparently announce the principles for assigning credit growth in 2025.