Vietnam central bank to prioritise growth for rest of year amid global uncertainties

HANOI: Vietnam’s central bank said on Tuesday it will continue to adopt flexible monetary policies for the rest of the year, with priority given to supporting growth.

Uncertainties in the global economy will remain and will affect the Vietnamese economy, Deputy Governor of the State Bank of Vietnam Pham Thanh Ha said.

“Risks in the global financial and monetary markets have put pressure on monetary policy management, exchange rates, interest rates as well as the target for economic growth of at least 8% this year,” he said.

The central bank said it will continue to urge banks to cut costs and speed up digitalisation to pave the way for cutting their lending rates.

The central bank will also direct banks to boost their lending in a “safe and effective” manner, with the focus on production and business projects, it said.

He added that banks’ total outstanding loans rose 9.9% by the end of June from the end of last year.