Vietnamese Prime Minister Lê Minh Hưng on August 13 called on the central bank and commercial banks to keep lending rates stable and reduce borrowing costs, as the government seeks to support its ambition of achieving double-digit economic growth while maintaining macroeconomic stability.
The Prime Minister chaired a meeting in Hanoi with the State Bank of Vietnam and the country’s credit institutions to review monetary policy and banking operations during the first seven months of 2026.
The meeting brought together three figures with direct experience leading Vietnam’s central bank: Prime Minister Lê Minh Hưng, a former Governor of the State Bank of Vietnam; National Assembly Vice Chairwoman Nguyễn Thị Hồng, also a former central bank governor; and current Governor Phạm Đức Ấn, who reported on the banking sector’s performance.
For foreign investors and businesses operating in Vietnam, the most important message from the meeting was the government’s approach to balancing growth with financial stability.
The State Bank was asked to manage interest rates, exchange rates, liquidity and credit more flexibly, while maintaining inflation control and protecting the stability of the banking system. The government said monetary policy must find a balance between supporting growth and preventing inflationary and financial risks.
Banks were specifically asked to reduce their lending rates in a substantive way and cut operating costs where possible. The central bank will continue providing liquidity to the financial system and managing the Vietnamese dong exchange rate flexibly in response to market conditions. Gold market supervision will also remain tight.
Credit growth will also be managed more flexibly. Rather than treating the annual credit-growth target as a rigid ceiling at all times, the central bank is expected to adjust lending conditions according to economic developments. Credit should be directed toward manufacturing, exports, high technology, supporting industries, agriculture, innovation, social housing, infrastructure and other sectors considered important to economic growth.
The government is also concerned about the health of the banking system. Authorities plan to strengthen early-warning and remote supervision, improve internal controls and risk management, and take action against violations involving bank ownership, lending and the use of borrowed funds. The government also wants to continue restructuring weak credit institutions and increase the charter capital of state-owned commercial banks.
Another important issue for foreign businesses and investors is Vietnam’s effort to reduce its heavy reliance on bank credit. The government wants to develop the capital market and corporate bond market so companies can obtain more medium- and long-term funding outside the banking system.
The State Bank is also expected to work with the National Assembly on amendments to laws covering the central bank, anti-money laundering and credit institutions during the August 2026 session. The government wants implementing regulations to be ready when the new laws take effect, avoiding gaps in the legal framework.
For international businesses, the broader signal is that Vietnam wants faster economic growth without sacrificing financial stability. The government sees the banking system as a critical channel for mobilising capital, but is increasingly emphasising credit quality, risk management, digital security and internationally aligned governance.
In short, Vietnam is asking its banks to lend more effectively, make borrowing cheaper and support economic growth, while becoming more disciplined and resilient at the same time.
Translated with the assistance of ChatGPT.
