Bank credit and Vietnam’s economic growth

Abstract

The study investigated the impact of bank credit on Vietnam’s economic growth. By applying a  ultivariate regression model, consider the impact of bank credit on GDP through using ratio of bank credit claims on private sectors to GDP as an independent variable and control variables including lending rate, consumer price index, export-import turnover, and government budget. The study uses secondary data over a time series from the first quarter of 2005 to the first quarter of 2022. The results indicate that bank credit has a significantly positive effect on economic growth in Vietnam. In other words, bank credit has a very important position in meeting the investment and production development needs of the Vietnamese economy during the research period.