On December 31, 2025, Prime Minister Pham Minh Chinh addressed the year-end conference of the banking sector in Hanoi, emphasizing the critical role of banking in driving Vietnam’s economic growth. His remarks underscored the need for institutional reform, administrative simplification, and effective policy implementation to achieve the ambitious goal of double-digit economic growth.
A Call for Institutional Reform
In his speech, Prime Minister Chinh urged the banking sector to pursue stronger breakthroughs in institutional reform. He highlighted the importance of a proactive, flexible, and effective approach to monetary and banking policies, which should work in harmony with fiscal and macroeconomic strategies. The Prime Minister stressed that maintaining macroeconomic stability and controlling inflation are paramount, laying a solid foundation for sustainable growth.
Recognizing Achievements
The Prime Minister commended the banking sector for its determination and significant achievements over the past year and throughout the 2021-2025 period. He acknowledged the sector’s contributions to Vietnam’s socio-economic development, including the establishment of a more enabling institutional framework and pioneering financial infrastructure. These accomplishments have not only benefited the economy but also enhanced public welfare.
Supportive Monetary Policies
During the conference, it was reported that the State Bank of Vietnam (SBV) has maintained key policy interest rates to bolster economic performance and ensure low-cost funding for credit institutions. Commercial banks were encouraged to reduce operating costs and accelerate digital transformation, which would ultimately lower lending rates for households and businesses. This proactive approach is crucial in a complex global environment marked by uncertainties in US monetary policy and fluctuations in the US dollar.
Managing Economic Challenges
The SBV’s flexible management of the exchange rate has been instrumental in stabilizing the market amid global challenges. By employing monetary policy tools and foreign exchange interventions, the SBV has effectively controlled inflation and safeguarded macroeconomic stability. Additionally, measures to manage the domestic gold market have been implemented to address sharp global price volatility.
Credit Policy and Economic Growth
The Prime Minister emphasized the importance of aligning credit policy with macroeconomic conditions to support growth while containing inflation. The banking sector has seen a notable increase in outstanding loans, which rose by 17.87% from the end of 2024, surpassing VND 18.4 quadrillion by December 24, 2025. This growth has primarily been directed toward production, business, and priority sectors, demonstrating the sector’s commitment to fostering economic development.
Future Directions for the Banking Sector
Looking ahead, Prime Minister Chinh called for the banking sector to accelerate institutional reform and modernize administrative processes to meet the evolving needs of the country. He highlighted the necessity of managing banking activities effectively as Vietnam positions itself as an international financial center. Core priorities for the sector in 2026 include maintaining fiscal discipline, controlling budget deficits, and managing public debt.
Supporting Growth and Investment
The Prime Minister also urged the banking sector to enhance support for growth and investment through the implementation of policy credit programs and preferential credit packages. These initiatives are particularly vital for social housing and major national infrastructure projects. Ensuring the safety of the monetary, credit, and banking systems is essential for macroeconomic stability and improving the investment environment.
Embracing Digital Transformation
In an era of rapid technological advancement, the Prime Minister directed the banking sector to lead in digital transformation and innovation. This includes investing in robust backup data systems and multi-layer security solutions to protect customer information and assets. The need for restructuring weak credit institutions, controlling credit quality, and intensifying anti-money laundering efforts was also emphasized to maintain discipline and security in the banking market.
Conclusion: A Vision for the Future
Prime Minister Pham Minh Chinh expressed confidence that the banking sector would continue to be a pioneer in Vietnam’s economy, playing a vital role in achieving double-digit growth and realizing the nation’s long-term strategic development goals. As the country moves forward, the banking sector’s commitment to reform, innovation, and stability will be crucial in shaping a prosperous future for Vietnam.
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