Vietnam to slow 2011 credit growth to 23 pct: report

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Vietnam plans to slow the country's credit growth next year to 23 percent, a local newspaper said, as the authorities seeks to bring down inflation.

State Bank of Vietnam Governor Nguyen Van Giau announced the target at a meeting with Ho Chi Minh City bank executives, an online report (www.thesaigontimes.vn) from the Sai Gon Times newspaper said, citing bankers who attended the meeting.

The central bank would consider granting credit growth quotas to banks based on their size and operations, the newspaper said.

Loans in the banking system grew an estimated 27.65 percent this year, above the central bank's target of 25 percent, Giau said at a separate meeting last week.

Annual inflation hit 11.75 percent this month, the highest since February 2009. Vietnam wants to keep consumer price rises next year at 7 percent.

Inflationary pressures are expected to continue in the first two months of 2011 at least, as prices often increase before Tet, the Lunar New Year festival, which falls in early February.

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