CONSUMER CREDIT IS SET FOR A YEAR-END SURGE

With a targeted economic growth rate of 8% or higher this year, combined with demand-stimulus policies, rising purchasing power, and internal shifts among credit institutions and finance companies, consumer credit is expected to brighten in the coming period.

1. Raising the Lending Cap to VND 400 Million

The State Bank of Vietnam (SBV) has issued Circular No. 41/2025/TT-NHNN amending and supplementing several provisions of Circular No. 40/2024/TT-NHNN on the provision of intermediary payment services. One key update is the increase in the monthly e-wallet transaction limit for individual customers—from VND 100 million to VND 300 million for certain payment transactions.

Notably, to better meet capital needs of both consumers and finance companies, while stimulating consumption and contributing to economic growth: the draft circular amending Circular No. 43/2016/TT-NHNN and Circular No. 18/2019/TT-NHNN proposes raising the total consumer lending balance per customer from VND 100 million to VND 400 million.

According to the Vietnam Banks Association and several finance companies and regional SBV units, this adjustment aligns with current spending and consumption needs, based on reviews and comparisons with existing regulations. This lending cap does not apply to consumer loans for automobile purchases where the purchased vehicle is used as collateral for the loan, in accordance with legal provisions.

Beyond adjusting the lending limit, the draft circular also revises organizational structures and the authority of SBV units following the issuance of Decree No. 26/2025/NĐ-CP, which outlines the functions, duties, powers, and organizational framework of the SBV.

However, Dr. Nguyễn Quốc Hùng, Secretary-General of the Vietnam Banks Association, cautions that in terms of capital and interest rates, policymakers must consider the ability to mobilize medium- and long-term funds while balancing capital costs and lending rates to ensure sustainable development. The Government’s stance is to expand consumer credit and facilitate legal access to capital, but interest rates must remain reasonable and transparent.

"Every loan must have a clear and verifiable purpose. Lending without proper oversight of fund usage cannot be accepted," he emphasized, noting that higher direct-disbursement ratios, especially for unsecured loans, may increase risks of fraud or misuse of funds. Finance companies and the Consumer Finance Club must strictly adhere to legal regulations when developing or issuing operational procedures, avoiding situations of “self-interpretation and self-regulation.”

2. Consumer Credit Poised for Acceleration

Recently, the Prime Minister issued an executive directive instructing ministries, agencies, and enterprises to vigorously implement measures to develop the domestic market in 2025, including rolling out credit packages to support production, business activities, and consumption with simplified procedures and favorable lending conditions.

These actions are expected to create a supportive environment for consumer credit as employment and income levels improve and purchasing power strengthens. Expansionary monetary and fiscal policies will continue to strongly underpin consumer-loan demand. FinGroup noted that Vietnam’s consumer finance market still has substantial growth potential, with consumer credit currently accounting for just over 10% of GDP—significantly lower than many other economies such as South Korea (over 40% of GDP) and Hong Kong (over 20%).

According to Dr. Nguyễn Quang Huy, CEO of the Faculty of Finance - Banking at Nguyen Trai University, in a context where purchasing power is recovering slowly = particularly among middle- and low-income groups - consumer credit should be expanded appropriately. This is not only a “short-term demand stimulus” tool but also a medium-term mechanism to maintain the economic circulation chain of wealth - consumption - production - investment.

Consumer credit serves as a vital bridge between people’s aspirations for a better life and the economy’s growth potential. When properly oriented, it not only meets immediate spending needs but also drives controlled domestic demand, creating momentum for manufacturing and retail sectors.

Source: baodautu.vn