On September 18, Pham Thanh Ha, deputy governor of the Central Bank of Vietnam, said that the central bank’s goal was to control the ceiling of credit growth to 14% by 2022, ruling out the speculation that regulators would relax loan restrictions to boost the economy. He said that at present, the loan growth is more than 10%, higher than the same period of previous years. The credit expansion in 2021 will be 13.6% for the whole year, and 12.2% in 2020.
The authorities are trying to help businesses while curbing inflation. “At present, the capital utilization rate of commercial banks is 100%, which means that all the funds they mobilize are used for lending.” “Therefore, if we increase the ceiling of credit growth by a few percentage points, the liquidity of the banking system will be affected and interest rates will rise.”