{"id":53982,"date":"2025-10-02T23:08:34","date_gmt":"2025-10-03T03:08:34","guid":{"rendered":"https:\/\/stockmarketwatch.com\/stock-market-news\/global-economic-crosscurrents-vietnams-soaring-credit-growth-amid-u-s-political-economic-warnings\/53982\/"},"modified":"2025-10-02T23:08:34","modified_gmt":"2025-10-03T03:08:34","slug":"global-economic-crosscurrents-vietnams-soaring-credit-growth-amid-u-s-political-economic-warnings","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-economic-crosscurrents-vietnams-soaring-credit-growth-amid-u-s-political-economic-warnings\/53982\/","title":{"rendered":"Global Economic Crosscurrents: Vietnam&#8217;s Soaring Credit Growth Amid U.S. Political-Economic Warnings"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Vietnam&#39;s credit growth is projected to reach an impressive 19\u201320% this year, significantly exceeding the State Bank of Vietnam&#39;s (SBV) 16% target, signaling robust economic expansion.<\/strong><\/li>\n<li><strong>Despite strong lending, Vietnamese officials are actively working to curb the growth of non-performing loans (NPLs) and are transitioning away from administrative credit quotas to a more market-based regulatory framework by 2026 to enhance banking system resilience.<\/strong><\/li>\n<li><strong>In the United States, Senator Bernie Sanders has issued a stark warning, characterizing President Trump&#39;s second term as representing &quot;the worst crisis America has faced since the Civil War,&quot; citing concerns over deepening wealth inequality, potential cuts to vital social programs, and a shift towards oligarchy.<\/strong><\/li>\n<li><strong>Sanders&#39; critique highlights proposed budget cuts impacting healthcare (Medicaid), housing, and nutrition programs, alongside tax policies that he argues disproportionately benefit the wealthiest Americans.<\/strong><\/li>\n<\/ul>\n<h2>Vietnam&#39;s Economic Momentum and Financial Safeguards<\/h2>\n<p>Vietnam&#39;s economy is demonstrating strong vitality, with official forecasts indicating that credit growth will reach between <strong>19% and 20%<\/strong> this year. This projection surpasses the State Bank of Vietnam&#39;s (SBV) initial target of <strong>16%<\/strong>, reflecting a significant expansion in lending activities across the nation. By the end of August 2025, outstanding loans across the banking system had already increased by <strong>11.8%<\/strong> compared to the end of 2024, and were <strong>19.9%<\/strong> higher year-on-year, driven by a supportive low-interest rate environment, progress in real estate legal issues, and accelerated public investment.<\/p>\n<p>The robust credit expansion is largely attributed to the SBV&#39;s flexible policy approach, which included boosting lending capacity by extending credit limits for banks that had utilized over 80% of their initial quotas. Furthermore, the Prime Minister has directed the SBV to develop a roadmap for phasing out annual credit growth quotas for commercial banks starting in 2026, moving towards a more transparent, market-based regulatory framework. This reform aims to support a more resilient and competitive banking system while aligning credit expansion with inflation control objectives.<\/p>\n<p>However, alongside this rapid growth, Vietnamese officials have also vowed to curb the growth of non-performing loans (NPLs), acknowledging the need to maintain asset quality and financial stability within the banking sector. Concerns remain over asset quality, loan portfolio risk, and potential inflationary pressures, which could limit future monetary easing. The government is actively implementing a banking sector restructuring plan for 2021\u20132025, with a focus on resolving NPLs and tightening lending in high-risk sectors.<\/p>\n<h2>U.S. Political-Economic Warnings from Senator Sanders<\/h2>\n<p>In the United States, Senator Bernie Sanders (I-Vt.) has issued a grave assessment of the nation&#39;s trajectory under President Trump&#39;s second term, stating it represents &quot;the worst crisis America has faced since the Civil War&quot;. Sanders&#39; remarks underscore deep concerns about the country&#39;s economic and social fabric, particularly focusing on escalating wealth and income inequality and the potential for an oligarchic society.<\/p>\n<p>Sanders criticized the Trump administration&#39;s economic policies, arguing they disproportionately favor the wealthy. He pointed to tax breaks for billionaires and large corporations, which he claims are paid for by proposed cuts to essential programs like Medicaid, housing, and nutrition. He highlighted that <strong>60% of Americans are living paycheck to paycheck<\/strong>, struggling with the rising costs of housing, healthcare, and daily necessities.<\/p>\n<p>The Senator&#39;s critique extended to specific budget proposals, which he warned could lead to hundreds of billions in cuts to Medicaid, potentially forcing millions of Americans off their health insurance. He also emphasized the housing crisis and the inadequacy of the federal minimum wage, advocating for a living wage of at least <strong>$17 an hour<\/strong>. Sanders&#39; statements suggest a contentious political and economic environment, with significant policy debates expected to impact various sectors of the U.S. economy and society.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Vietnam&#39;s credit growth is projected to reach an impressive 19\u201320% this year, significantly exceeding the State Bank of [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":50383,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"rank_math_schema_Article":[],"rank_math_focus_keyword":[],"rank_math_description":[],"financial_data_references":[],"stock_symbols_mentioned":[],"footnotes":""},"categories":[5012],"tags":[12013,4335,4821,5031,5410,5861,11701,11726,12011,12012],"class_list":["post-53982","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-breaking-news","tag-bernie-sanders","tag-donald-trump","tag-economic-policy","tag-us-politics","tag-vietnam","tag-financial-stability","tag-sbv","tag-credit-growth","tag-non-performing-loans","tag-state-bank-of-vietnam"],"_links":{"self":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/posts\/53982","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/comments?post=53982"}],"version-history":[{"count":0,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/posts\/53982\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/media\/50383"}],"wp:attachment":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/media?parent=53982"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/categories?post=53982"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/tags?post=53982"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}