Central bank to pump VND2 quadrillion into economy in 2024

The State Bank of Vietnam (SBV) forecast that nearly VND2 quadrillion would be pumped into the national economy in 2024 to support economic recovery

Vietnam recorded credit growth rate of 13.71%, with approximately VND1.5 quadrillion pumped into the economy, according to SBV deputy governor Dao Minh Tu.

The SBV has set a target of raising the 2024 credit growth rate to 15%, and if the target is met, approximately VND2 quadrillion will be injected into the economy, Tu said a Government press briefing in Hanoi on January 5.

He said whether or not the set target is achieved depends on macroeconomic stability, capital flows into recipients in need as well as the safety of the entire credit system.

If conditions get better, the central bank will allocate more credit room to commercial banks at the end of the year or mid-year, he revealed.

With regard to the set credit growth target for 2024, Tu explained that the economy in the coming year is showing signs of improvement on the back of the 2023 performance. Besides, experts expect that there will be no difficult impacts from the global economy as there were in 2023 that will help fuel the economy’s investment demand.

Credit growth will also be backed from the record low interest rates at present. According to the deputy governor, the current interest rates are much lower than the pre-pandemic levels, even the lowest in the past 20 years. This is one of the primary factors for credit growth to increase sharply in 2024.