The State Bank of Vietnam (SBV) on July 10 adjusted the credit growth target for 2023 to 14 per cent to bring it in line with actual business circumstances and developments.

Earlier this year the SBV targeted annual credit growth of 14-15 per cent.

The adjustment was based on proposals from credit institutions as well as their actual operations, financial capacity, and administration, and the ability to ensure liquidity and safety for the system, according to the SBV.

Amid a context of economic growth in the first half of the year being lower than anticipated while capital sources faced many difficulties, the central bank decided to make the adjustment to supply credit to meet demand in the economy but at the same time remains cautious against inflationary risks.

The move was also made in line with the direction of the government and the Prime Minister to tackle difficulties in production and trade, stabilize the macro-economy, and promote growth.

As of June 30, total credit had reached over VND12.4 quadrillion ($520 billion), an increase of 4.73 per cent compared to the end of 2022.