Policymakers in Vietnam are becoming increasingly complacent of the risks posed by the rapid build-up in debt, as reflected by the government’s recent announcement that it was targeting credit growth of 17% this year. Such an outcome would be almost double the rate of nominal GDP growth, and is unsustainable over the long-term. Unless the government is prepared to get to grips and tighten policy, another sharp rise in non-performing loans looks inevitable.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services