Vietnam plans 2012-2015 annual credit growth of 15-17 pct

by lexie Tue Oct 18, 2011 10:29 am

October 18, 2011

Vietnam plans 2012-2015 annual credit growth of 15-17 pct

VietFinanceNews.com - Vietnam will continue with tight monetary policies in 2012-2015 and may cut annual credit growth to between 15 percent and 17 percent in that period from 20 percent this year in a bid to stabilise the economy, the central bank said on Tuesday.

The country's money supply is likely to expand 14 percent to 16 percent a year during the next four years, the State Bank of Vietnam said in a report.

The government has cut the annual target for gross domestic product (GDP) growth in coming years to 6.5 percent from the Communist Party's target of 7.0-7.5 percent to prioritise economic stability, the central bank said.

Vietnamese authorities have said containing inflationary pressures will be the top priority in the next five years as the country faces some of the highest inflation in the region. In September, the consumer price index rose 22.42 percent from a year earlier.

Earlier this month, the central bank said bank loans rose by an estimated 8.16 percent in the first nine months of this year from the end of 2010.

Credit growth slowed to 27.65 percent last year from 37.7 percent in 2009 and 53.8 percent in 2007, according to central bank data. (Reuters)

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