Vietnamese central bank governor Nguyen Van Giau has recommended that the government slash its credit growth target to under 20 percent from the current 23 percent, an online news portal reported on Friday.
Inflation accelerated to a near two-year high of 12.2 percent in January and economists say the government will be unable to bring it down to its target of 7 percent this year without decisive action.
Many have said that, with little control over rising global food and fuel prices, the authorities need to cut credit growth.
Giau made the recommendation at a cabinet meeting on Thursday devoted to inflation, the website VnEconomy.vn reported.
On Friday, The State Bank of Vietnam posted a notice on its website (www.sbv.gov.vn) requesting banks to report by 4:30 p.m. (0930 GMT)their plans for credit growth this year, as well as their plans to raise registered capital.
Last year, credit growth exceeded 27 percent, above the official target of 25 percent, while the credit-fuelled economy grew 6.8 percent.
Finance Minister Vu Van Ninh said at the same meeting fiscal policies would be "monitored extremely tightly" and spending would be cut another 10 percent while there would be no increase in investment in infrastructure.
Ninh and Giau said the measures were designed "to send a message that monetary and fiscal policies would be monitored more tightly to contain inflationary pressures", VnEconomy reported.