New year's monetary policy outlined

Credit growth will be maintained at around 18-20%. Exchange rate stability and restructuring will continue to be prioritised.

The State Bank boasted over the successful implementation of policies this year that were aimed at controlling inflation and ensuring macroeconomic stability, including the country’s banking system. Addressing the event, Deputy Prime Minister Vu Van Ninh said he appreciated the work of the state bank in recent years.

Interest rates have rapidly decreased, credit growth increased and this has supported production, which in turn has ensured better economic growth. Exchange rates have remained stable and the restructuring of the banking sector has also obtained positive results. The ratio of bad debts fell to 2.72%, which exceeding the target.

The State Bank of Vietnam is also keen to ensure a more flexible approach to policies in the new year.

"We’ll continue to focus on major objectives such as control inflation and stabilising the macro-economy. Interest and exchange rates will be flexibly managed to ensure the value of VND. Credit in 2016 will also be expanded, with priority given to manufacturing, agriculture and exports. In 2016, our credit growth is expected to reach 18-20%", said Nguyen Thi Hong, Deputy Governor, State Bank of Vietnam.

A new exchange rate mechanism is set to be carried out in 2016.

The exchange rate in recent years was influenced strongly by external factors. In 2016, the State Bank of Vietnam will offer a new method to operate exchange rates, to ensure adaptation and maintain the value of the VND.

In 2016, the State Bank of Vietnam will apply safety measures in accordance with international standards, hoping to improve the health of Vietnam's monetary system.