This study examines the Granger causality between domestic credit and gross domestic product (GDP) as well as investigating this long-term relationship in Vietnam from 2004:Q1 to 2017:Q4 with the use of the autoregressive distributed lag (ARDL) model as the analysis method. Empirical results show that there was a two-way Granger causality relationship between credit and GDP. In addition, credit expansion had a negative impact on economic growth in Vietnam in the long term. Based on this research outcome, the study proposes a number of recommendations focusing on how to overcome the limitations of the bank credit supply channel.