May 6 marked the 75th anniversary of Vietnam’s banking sector, a journey closely intertwined with the country’s key economic transformations.
Amid heightened global volatility, especially as 2026 marks the start of implementing the fourteenth National Party Congress Resolution with more ambitious growth targets, monetary policy is under increasing pressure to maintain macroeconomic stability, contain inflation, safeguard system resilience, and effectively steer capital flows across the economy.
On the the sector’s 75th anniversary, State Bank of Vietnam (SBV) Governor Pham Duc An outlined the direction for monetary policy and banking operations in the new phase, aimed at sustaining macroeconomic stability, keeping inflation in check, and supporting faster yet more sustainable growth, with a focus on quality.
An reaffirmed that the SBV would continue to conduct monetary policy in a proactive and flexible way, in close coordination with fiscal and other macroeconomic policies, while remaining committed to an average inflation target of around 4.5 per cent in 2026. This, he noted, will help underpin macroeconomic stability and foster sustainable economic growth.
State Bank of Vietnam Governor Pham Duc An
On credit, An noted that following years of strong expansion to meet financing needs for economic growth, total outstanding credit has now reached approximately 145 per cent of GDP.
“Based on the banking system’s deposit mobilisation capacity, the SBV will implement policy measures in line with macroeconomic and monetary market developments, while directing credit institutions to ensure safe and effective credit growth, channelled into production and business activities, priority sectors, key growth drivers as directed by the government and the prime minister, as well as feasible and critical projects,” he said.
More specifically, the SBV will continue to deploy monetary policy tools flexibly, particularly open market operations, to provide timely liquidity support to credit institutions.
“Interest rates will be managed in line with market conditions, macroeconomic developments, inflation, and policy objectives, while credit institutions will be required to strictly comply with transparency requirements on lending rates,” An said.
At the same time, he added that the SBV would closely monitor both international and domestic market developments to manage the exchange rate in a flexible manner, consistent with market conditions and in coordination with other monetary policy tools, thereby contributing to macroeconomic stability, inflation control, and economic growth.
“Over 2026–2030, these measures will be implemented in a synchronised way to enhance the efficiency of the banking system, ensure adequate capital supply to the economy, and maintain system safety and soundness,” he said.
Reflecting on the 75-year journey of the banking sector, Nguyen Duc Lenh, deputy director of the SBV’s Regional Branch 2, expressed pride in the evolution from traditional credit provision to supporting sustainable development.
“We take pride in the SBV’s flexible, scientific, and innovative management of credit policy, ensuring capital availability for businesses and households. Over the past 40 years of economic reforms, Vietnam’s growth has borne the clear imprint of monetary and credit policies, with total outstanding credit consistently exceeding the size of the economy,” Lenh said.
“The country’s economic progress, enterprise development, and the transformation of rural areas through new rural development models, green and clean production, OCOP items, and eco- and craft village tourism, as well as the rise of modern urban centres, are all the result of effective resource allocation, including bank credit. Credit programmes have contributed to national prosperity and will continue to be a proud legacy of Vietnam’s banking sector.”
