Directing at the regular Government meeting in June 2025 held on the afternoon of July 3, Prime Minister Pham Minh Chinh requested the State Bank of Vietnam (SBV) and the Ministry of Finance to closely coordinate, operate monetary policy proactively, flexibly, promptly, effectively, and harmoniously and synchronously with a reasonable, focused and key expansionary fiscal policy.
At the same time, the State Bank of Vietnam ensures reasonable credit growth (about 16%); directs continued cost reduction and reduction of lending interest rates. Urgently consider removing administrative tools on credit limits, replacing them with credit growth management according to market mechanisms; develop a set of criteria for credit safety control, and report to the Prime Minister in July 2025.
It is known that the credit quota allocation mechanism (credit room) has been maintained by the State Bank for more than ten years, as a tool for this agency to control the quality and scale of outstanding loans of banks, as well as serve other macroeconomic targets such as interest rates, money supply and inflation.
After a long period of making important contributions to the operations of the State Bank, the credit room allocation mechanism has revealed many limitations; especially when the capital demand for economic growth is increasing and most banks have completed compliance with Basel II and Basel III standards according to international standards, creating conditions for the banking industry to operate in a more flexible direction.
The issue of “moving towards eliminating credit room” has also been mentioned many times by SBV leaders recently. At the Prime Minister’s conference working with commercial banks earlier this year, Deputy Governor Dao Minh Tu emphasized: “The State Bank will innovate its management measures and have a roadmap to gradually reduce and eventually eliminate the allocation of credit growth targets for each bank.”
At the regular Government meeting in June 2025, the Prime Minister also requested the SBV to maintain stability in the monetary and foreign exchange markets; strengthen management of the gold market; promptly submit amendments to Decree 24 in July 2025; resolutely implement existing preferential credit programs; and implement the Loan Program linking production, processing and consumption of high-quality and low-emission rice products in the Mekong Delta.
According to the announcement of the State Bank of Vietnam, as of June 26, the total outstanding debt of the whole system reached over 16.9 million billion VND, an increase of 8.3% compared to the end of 2024. Compared to the same period in 2024 (end of June 2024), credit increased by 18.87%. This is the highest growth rate since 2023./.
Source: https://baolamdong.vn/thu-tuong-pham-minh-chinh-nhnn-khan-truong-xem-xet-go-bo-cong-cu-room-tin-dung-381083.html
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