Vietnam's central bank, the State Bank of Vietnam, will place greater emphasis on implementing targeted expansionary fiscal policies to ensure high-quality and sustainable economic growth, according to a senior official.

Deputy Governor Pham Thanh Ha, in a recent interview with state media, stated that with monetary policy space currently limited, fiscal policy must become a key pillar for driving the economy forward. He emphasized that Vietnam will not pursue short-term rapid growth at the expense of overall macroeconomic stability.

Ha noted that the central bank has consistently maintained policy continuity to safeguard macroeconomic stability and control inflation. He pointed out that external factors, including recent tensions in the Middle East and conflicts involving Iran, have contributed to increased inflation in May and a widening trade deficit to a record high.

Despite these complex external challenges, Vietnam has set an ambitious economic growth target of at least 10% for this year. The country also aims to keep the annual inflation rate below 4.5%.

Regarding credit, Ha reported that total bank lending as of April 21 had increased by 3.83% compared to the end of last year. While acknowledging that Vietnam's economic growth relies to some extent on credit expansion, he stated that the central bank has set a prudent and scientifically calibrated credit growth target of 15% for the year to guard against macroeconomic risks.