According to the State Bank of Vietnam (SBV), the US and other major economies may experience a slight recession in 2024, leading to a decline in aggregate demand. This will, in turn, have a negative impact on a highly open economy like Vietnam. Some of the risks facing Vietnam remain high, and bad debt pressure on the system will increase. Such factors present major obstacles to the economy’s ability to absorb capital, leading to continued stagnation in credit demand. The SBV has assigned a 2024 credit growth target of 15 per cent for the entire system.