Vietnam faces external challenges to growing 10% next year, central bank says

HANOI, Dec 29 (Reuters) - ⁠Tariffs and monetary ⁠policy ‍in other countries will make it harder for Vietnam's central bank to get its policy ‍settings right and hit an economic growth target ​of more than 10% next year, a senior State Bank of ​Vietnam official said at a press conference on Monday.

The government has said Vietnam is on track to reach this year's economic growth target ​of more than 8% and plans to target 10% growth next year.

"Since the beginning of 2025, complicated and ​unpredictable developments of the global markets, such as the Fed's unpredictable monetary policy ‌and the tariff policy of the U.S. government, have been affecting the economy, the foreign ​exchange market and exchange rates," Pham ⁠Chi Quang, head of the SBV's Monetary Policy Department, told the quarterly press conference.

Quang ‌said the focus next year will be on managing monetary policy in a flexible manner, in coordination with fiscal policy, to ‌maintain macroeconomic stability, keep inflation under control and support growth.

SBV Deputy ‌Governor Pham Thanh Ha told the press conference that as of December 24, credit growth was up 19.41% from a year earlier. ‍The country's economic growth is heavily reliant on credit growth.

"The credit growth has actively ⁠contributed to the economic growth, which is expected to be above 8% this year and above 10% for the next year," Ha said.

(Reporting by Khanh Vu; Writing by John Mair; Editing by David Stanway)

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