HANOI: Vietnam's central bank said on Thursday it will pursue a flexible monetary policy to contain inflation and maintain macro stability in 2021.

This year's inflation is expected to be 3.2%, the bank, formally known as the State Bank of Vietnam, said at a news briefing.

The central bank reported credit growth of 10.14% as of Dec. 21 from the end of last year, slower than in previous years due to the impacts of the coronavirus pandemic, adding that full-year credit growth will likely be 11%.

"The coronavirus pandemic and the recent floods in central Vietnam are threatening to boost non-performing loans in the local banking system," said deputy central bank governor, Dao Minh Tu.

Tu said the ratio of non-performing loans on total lending has risen above 2%.

Vietnam's total money supply rose 12.83% as of Dec. 18 from end-2019, the central bank added.