Vietnam Shifts to Fiscal Stimulus to Chase 10% Growth as Monetary Room Narrows
Updated
Updated · Reuters · Jun 8
Vietnam Shifts to Fiscal Stimulus to Chase 10% Growth as Monetary Room Narrows
3 articles · Updated · Reuters · Jun 8
Summary
Vietnam will rely more on targeted expansionary fiscal policy to meet its at least 10% GDP growth goal, Deputy Central Bank Governor Pham Thanh Ha said, casting budget support as the main lever for high, sustainable growth.
Narrow monetary-policy room is driving that shift, Ha said, while the central bank keeps prioritizing macroeconomic stability and inflation control rather than sacrificing stability for faster short-term growth.
4.5% inflation is still the official ceiling this year, but price pressures have accelerated and Vietnam's trade deficit widened to a record high in May as the Iran war hit the economy.
3.83% lending growth by April 21 shows credit is still expanding, though Vietnam's 15% full-year credit target underscores how much the country has historically leaned on bank lending to support growth.