Experts agree that while Vietnam's credit growth target of 16% for 2025 is achievable, it must be accompanied by a focus on credit quality and risk management to prevent an increase in bad debts. The State Bank of Vietnam (SBV) has outlined this target, which analysts believe is reasonable given the expected economic recovery driven by rising domestic and foreign demand. Key factors supporting this growth include a robust public investment disbursement rate and a recovering real estate market, both of which are anticipated to stimulate credit demand. However, experts caution that unchecked credit growth could lead to higher bad debt ratios, adversely impacting long-term economic stability. They stress the importance of directing credit towards priority sectors to ensure sustainable GDP growth. The SBV aims to create a flexible credit management framework while controlling inflation and maintaining the safety of the banking system, ensuring that growth does not come at the expense of quality.
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