The State Bank pointed out three key challenges when...

The State Bank of Vietnam has just released a report on the implementation of the National Assembly's Resolution on questioning activities in the banking sector. The report shows that by April 10, 2025, the lending interest rate level will continue to decrease.

Specifically, the average lending interest rate for new loans at commercial banks is currently at 6.34%/year, down 0.6 percentage points compared to the end of 2024. Notably, credit institutions have proactively published information about interest rates on their official websites for customers to easily look up and refer to.

Regarding exchange rates, as of April 22, 2025, the market trading rate was around 25,896 VND/USD, recording an increase of 1.64% compared to the end of last year.

As of April 15, 2025, the total outstanding credit balance of the whole system reached VND 16.23 million billion, an increase of 3.95% compared to the end of 2024 and an increase of 18.19% compared to the same period in 2024.

Credit flows continue to be directed to production and business sectors, priority industries and sectors that play a role as growth drivers according to the direction of the Government and the Prime Minister .

Regarding the handling of weak credit institutions, the State Bank has submitted to the Government a plan to restructure SCB Bank. On April 18, 2025, this agency sent Submission No. 40/TTr-NHNN to the Prime Minister to explain the opinions of Government members.

State Bank points out three key challenges in implementing monetary policy — Update from State Bank

Next, in accordance with Resolution No. 25/NQ-CP dated April 29, 2025, the State Bank is continuing to complete the plan to submit to competent authorities for consideration and decision.

Regarding the bad debt situation, by February 2025, the on-balance sheet bad debt ratio (excluding 5 banks including MBV, Global Petroleum, VCBNeo, Vikki Bank and SCB) was at 1.88%. The work of handling and controlling bad debt continues to be implemented drastically and strictly.

The State Bank assessed that in the context of the global economy still containing many potential instabilities, inflationary pressure on the Vietnamese economy is very large due to the nature of deep openness, along with fluctuations in global commodity prices under the influence of geopolitics, climate change, increasing trade protectionism and price adjustments of goods under the State's management.

In addition, interest rates are also under pressure as they have fallen quite deeply while credit demand for production and consumption is expected to increase sharply to achieve growth targets in 2025. In addition, competition in capital mobilization is also increasingly fierce due to the attractiveness of alternative investment channels.

Exchange rates and foreign exchange markets continue to face many risks due to US tariff policies, unpredictable management by the US Federal Reserve (Fed) and high domestic demand for foreign currency.

Faced with these challenges, the State Bank affirms its orientation to continue to operate monetary policy proactively, flexibly and synchronously with fiscal policy, in order to prioritize the goal of promoting economic growth in parallel with controlling inflation and maintaining macroeconomic stability.

Credit policy will continue to support production sectors and priority industries, while controlling risky credit and creating favorable conditions for people and businesses to access capital.

In addition, the State Bank will closely monitor international developments to promptly introduce appropriate support measures, helping domestic enterprises effectively respond to the impact of global trade policies.

Source: https://baodaknong.vn/ngan-hang-nha-nuoc-chi-ra-ba-thach-thuc-trong-yeu-khi-thuc-thi-chinh-sach-tien-te-251696.html