Vietnam’s central bank is signalling further monetary easing in an effort to bolster growth, but the stability of the đồng remains a decisive factor in determining the direction of policy, Viet Nam News reports.

The Government has raised its economic ambitions, lifting this year’s growth target to between 8.3 and 8.5 %, up from the earlier projection of 8%. In response, Resolution No. 226/NQ-CP, issued on August 5, instructed the State Bank of Vietnam (SBV) to adjust credit growth accordingly and align its policies with the revised goal.

The SBV has been tasked with directing credit institutions to reduce costs and strive for lower lending rates to support businesses and improve household welfare. In late July, the central bank also granted several commercial lenders greater room to expand credit, underlining its determination to stimulate economic activity.

The easing trend continued last week with the introduction of Circular No. 23/2025/TT-NHNN, due to take effect from October 1. Under this measure, banks that agree to acquire weaker institutions will be allowed to cut their reserve requirement ratio by half, giving them additional scope to lend.

Analysts note that the combination of expanded credit limits and reduced lending rates signals a decisive shift towards looser monetary conditions. However, the sustainability of this approach is being tested by growing pressure on the foreign exchange market. Persistent depreciation of the đồng could compel the SBV to reconsider the pace of interest rate cuts in order to prevent macroeconomic instability.

As such, while the authorities are keen to ensure that businesses and consumers continue to have access to affordable credit, rising deposit rates and currency fluctuations pose challenges. The SBV is expected to balance the twin objectives of sustaining growth momentum and maintaining financial stability in the months ahead.