Vietnam's central bank deputy chief hints at a shift in economic strategy for future development.

The Vietnamese government is poised to adopt a more expansive approach to stimulate economic growth, leaving less scope for monetary policy adjustments, according to Deputy Central Bank Governor Pham Thanh Ha in comments reported by state media on Monday.

The Vietnamese government prioritizes long-term economic sustainability over rapid short-term growth, according to Deputy Governor Ha's statement yesterday.

Vietnam's economic ambitions are ambitious: it seeks a GDP growth rate of no less than 10%, coupled with an inflation target of exactly 4.5% this year. However recent developments have thrown a wrench into these plans, as May saw a sharp spike in inflation and a record trade deficit, exacerbated by the ongoing Iran war's ripple effects on Southeast Asia.

The central bank has maintained a steadfast commitment to macroeconomic stability, with a focus on curbing inflation rates effectively.

Ha emphasized the need for a targeted expansionary fiscal policy approach, citing limited space for monetary policy adjustments as a key factor in driving future economic development.

As of April 21, the total lending by banks has surged by 3.83% since the previous year-end, according to Ha.

Economic expansion in Vietnam typically depends on increased lending, with a goal set for 15% credit growth this year.