Minister: Vietnam To Cap Credit Growth At 30 per cent This Year
Vietnam will cap its credit growth at maximal 30 per cent this year, Planning and Investment Minister Vo Hong Phuc told donors at the Mid-Year Consultative Group Meeting for Vietnam on June 8.
Minister Phuc assured donors including Ayumi Konishi, ADB’s country director who raised concerns about possibly inflation return that the government will reconsider key targets such as the economy’s total payments balance and credit growth.
“We [the government] are fully aware of that threat,” Phuc admitted.
Vietnam’s credit growth expanded 15 per cent between January and May, Phuc said.
Banks and financial companies in Vietnam had extended subsidized loans to VND331.906 trillion since early February, the State Bank of Vietnam, the country's central bank, said.
Benedict Bingham, chief representative of IMF recommended that the government tighten monetary policies to raise more funds for the economy and support the dong, the state-run Thanh Nien newspaper said.
Benedict Bingham also predicted that Vietnam’s economy will likely grow only 3.5 per cent this year.
The government has proposed the National Assembly to revise down GDP growth to 5 per cent from the earlier set 6.5 per cent this year. (Young People)
Vietnamese
