Key facts
- Vietnam will prioritize expansionary fiscal policies to meet its economic growth target.
- The room for monetary policy is narrowing, according to Deputy Central Bank Governor Pham Thanh Ha.
- Vietnam aims for a GDP growth rate of at least 10% and inflation at 4.5% this year.
- Macroeconomic stability and inflation control remain central bank priorities.
- Bank lending had increased by 3.83% as of April 21, with a full-year credit growth target of 15%.
Vietnam plans to rely more heavily on fiscal policy to achieve its economic growth objectives, as the central bank's capacity for monetary stimulus narrows, state media reported Deputy Central Bank Governor Pham Thanh Ha as saying. Ha emphasized that the country will not compromise macroeconomic stability for short-term growth.
Vietnam has set a target of at least 10% GDP growth for the year, with an inflation goal of 4.5%. However, inflation has recently accelerated, and the trade deficit reached a record high in May, partly influenced by the conflict in Iran. The central bank remains committed to maintaining macroeconomic stability and controlling inflation.