Vietnam Central Bank Navigates Global Economic Headwinds, Maintains Financial Stability
Hanoi – Deputy Governor of the State Bank of Vietnam (SBV), Pham Thanh Ha, addressed concerns regarding capital supply, interest rates, and exchange rates at a government press conference on March 4, 2026. His remarks came amid increasing volatility in international markets and a complex global economic outlook.
Navigating a Complex Global Landscape
According to SBV leadership, the global economy is expected to present challenges to monetary policy and banking operations from late 2025 into early 2026. Despite these headwinds, the SBV has been implementing measures to control inflation, stabilize the macroeconomy, and promote sustainable economic growth, following directives from the government and the Prime Minister.
Meeting Economic Needs and Managing Interest Rates
The SBV has utilized various monetary policy instruments to ensure sufficient payment and spending needs are met within the economy, particularly during peak demand periods. Interest rates are fluctuating based on market supply and demand, with a trend towards decreasing rates on latest loans, easing access to capital for businesses, and individuals. Credit growth has remained positive, with outstanding loans reaching VND18.86 billion as of February 26, 2026 – a 1.4% increase from the complete of 2025 and a 20.18% increase year-on-year.
Exchange Rate Stability Amid Geopolitical Tensions
The exchange rate has been managed flexibly, responding to market conditions, and fulfilling legitimate foreign currency demands. As of the end of February 2026, the average interbank exchange rate was approximately 26,044 VND/USD, a 0.94% decrease compared to the end of 2025, despite ample foreign exchange supply. Recent increases in the exchange rate are attributed to heightened tensions in the Middle East, but these fluctuations remain within the regulatory monitoring and management scope. As of noon on March 4, 2026, the interbank exchange rate stood at 26,220 VND/USD.
Proactive Monetary Policy and Future Outlook
Recognizing Vietnam’s economic sensitivity to external fluctuations, Deputy Governor Pham Thanh Ha emphasized the need for monetary policy to support both economic growth and macroeconomic stability. Rising geopolitical tensions and subsequent oil price increases (8-13%) are contributing to inflationary pressures globally, prompting major central banks to reconsider interest rate cuts and even contemplate increases.
The SBV has announced a commitment to proactively and flexibly operating monetary policy, coordinating with fiscal and other macroeconomic policies to achieve inflation control, macroeconomic stability, and sustainable economic growth. Specific measures include managing interest rates in line with market conditions, inflation, and macroeconomic factors, and requiring financial institutions to transparently disclose lending rates.
Prioritizing Safe Credit Growth and Access to Capital
The SBV will manage credit growth rates in alignment with macroeconomic developments and financial market conditions, directing financial institutions to ensure safe and efficient credit allocation to productive sectors, priority areas, and economic growth drivers. Credit to potentially risky sectors will be strictly controlled. The SBV is likewise focused on streamlining loan screening procedures and promoting digital transformation in lending to improve access to capital for individuals and enterprises.
Pham Thanh Ha served as Deputy Governor of the State Bank of Vietnam since 2021, with a five-year term, and previously as the Director of the Monetary Policy Department from 2017 to 2021 [Financial Stability Board]. He met with Mr. Shantanu Chakraborty, Country Director of the Asian Development Bank (ADB) for Vietnam, in November 2023 to discuss continued cooperation on green growth and private sector development [SBV]. He, along with Governor Nguyen Thi Hong, were awarded the First-Class Labor Order for their leadership in monetary policy [xe.today].