Total loans of Vietnam's banking system grew 8.5 percent in the first eight months of 2018, compared to 11.5 percent in the same period last year, according to the country's central bank on Friday.

The growth rate is on the right track to achieve the annual target of 17 percent this year, which can both fuel economic growth and curb inflation at the planned level of below 4 percent, deputy governor of the State Bank of Vietnam Dao Minh Tu was quoted by local daily newspaper VnEconomy as saying on Friday.

Last year, Vietnam's banking system posted a credit growth of 18.17 percent, surpassing the target of 18 percent.