On March 14th, Prime Minister Pham Minh Chinh chaired a conference to implement the monetary policy tasks for 2024, focusing on addressing difficulties for production and business, promoting growth, and ensuring macroeconomic stability.
“Let’s seize this opportunity”
Le Manh Hung, Chairman of PetroVietnam, said that currently, PetroVietnam’s foreign currency debt is about VND 38,000 trillion, equivalent to about 1.5 billion USD. Therefore, exchange rate fluctuations and risks have a significant impact on the production and business activities of the corporation. The State Bank’s management of the exchange rate helps enterprises minimize the impact of exchange rate fluctuations. Therefore, he hopes that there will be solutions to maintain exchange rate stability in the future.
Nguyen Van Than, Chairman of the Small and Medium Enterprises Association of Vietnam, believes that it is decisive to solve the problem of surplus money in banks that cannot be lent, while small and medium-sized enterprises, especially small and medium-sized enterprises, want to borrow but cannot.
Than recommends that, in addition to capital from banks, the Government should consider lending packages to support small and medium-sized enterprises, such as credit guarantee funds and small business support funds.
Meanwhile, Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association, proposed that competent state agencies focus on removing legal obstacles for real estate projects to meet credit access requirements. This is a very effective non-credit solution to promote credit growth.
He also informed that the Government is drafting two resolutions, one of which is very important, allowing the transfer of land use rights that are not residential land or currently have land use rights that are not residential land to implement commercial housing projects. “It’s great if we can solve this issue, we will promote the development of the real estate market,” Chau said.
Representatives from commercial banks, Nguyen Thi Phuong Thao, Standing Vice Chairman of HDBank’s Board of Directors, said that although there are still many challenges ahead, Vietnam is currently facing a great opportunity for growth with long steps for the economy. The heads of major powers worldwide have officially visited Vietnam in the past year, and the economic diplomatic work of the Government has been more successful than ever. The international political and economic situation and the strong internal strength of the country are opportunities for Vietnam.
“Let’s seize this opportunity, promote the ability to attract investment in the economy, especially private investment, overcome fluctuations, find solutions to pump capital into the economy, and this is also a great opportunity for the banking industry,” Thao said.
Ms. Nguyen Thi Phuong Thao, Vice Chairman of HDBank’s Board of Directors: Credit growth should go hand in hand with tax and fee reduction policies, “omitting the hardships of the people”. Photo VGP/Nhat Bac
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Key solution for 2024
In his concluding remarks, the Prime Minister requested ministries and agencies to thoroughly study opinions, proactively develop objectives, tasks, and solutions to effectively implement monetary policy, support real and effective business operations.
According to the Prime Minister, 2024 is a year of acceleration, breakthroughs, and special significance in successfully implementing the 5-year Plan for 2021-2025. Achieving the set objectives requires determination and great efforts in the context of continued difficulties and challenges.
The general objective is to prioritize promoting economic growth, ensuring macroeconomic stability, controlling inflation, ensuring major balances of the economy; at the same time, focus on ensuring social security, improving people’s lives; consolidating and strengthening national defense, security, and maintaining social order and safety; promoting foreign affairs and international integration.
Some specific targets include achieving a GDP growth rate of 6-6.5%; the average consumer price index (CPI) growth rate of 4-4.5%; the non-performing loan ratio in the domestic market (excluding weak commercial banks) below 3%; credit growth rate of 15%.
Prime Minister Pham Minh Chinh assigns a series of tasks and specific requirements to the State Bank, ministries, sectors, localities, credit institutions, and economic organizations – Photo: VGP/Nhat Bac
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Regarding guidance and direction, the Prime Minister summarized it with three phrases: “5 increase”, “5 decrease”, “acceleration and breakthrough.”
“Five increases” include: Increasing access to and absorption of credit, especially for small and medium-sized enterprises, traditional growth drivers, and new growth drivers; increasing the removal of legal and credit quality obstacles; strengthening close and effective coordination between the State, banks, businesses, and the management and operation capacity of the banking sector and financial market; increasing transparency in deposit interest rates, lending rates, and anti-usury measures; strengthening risk monitoring, prevention, anti-corruption, and negative practices.
“Five decreases” include: Reducing lending interest rates; reducing transaction costs and activities; reducing administrative procedures; reducing hassles and complexities; reducing negative phenomena, group interests, “backyards”…
“Acceleration and breakthrough” include: Accelerating and breakthroughs in digitalization; accelerating and breakthroughs in service quality; accelerating and breakthroughs in the quality of human resources; accelerating and breakthroughs in banking infrastructure; accelerating and breakthroughs in providing production and business services, creating employment opportunities and livelihoods for people, contributing to economic growth.
The Prime Minister requires monitoring the situation and practical requirements, timely and effective response to policies. Do not be subjective, negligent, lose vigilance, but also do not be confused or shaken; must be persistent, determined, and resolute in implementing strategic objectives; do not “jerk operation”. Continuously innovate, be proactive, flexible, creative, and quickly “change the situation”, “transform the state”.
The Prime Minister assigns tasks to the State Bank to deploy measures and tasks according to the resolutions and conclusions of the Central Committee, the Politburo; resolutions of the National Assembly, the Government, especially Resolution No. 01, 02/NQ/CP and the Prime Minister’s instructions on monetary, credit, exchange rates, interest rates…, most recently Official Dispatch No. 18/CD-TTg on credit growth management.
Timely build decrees, issue circulars to implement the Law on Credit Institutions (amended).
Closely monitor and proactively manage monetary policy based on the resolutions, conclusions, instructions of the Central Committee, the Politburo, the National Assembly, the Prime Minister, especially Directive No. 05/CT-TTg dated February 23, 2023, on this matter. Manage and control credit granting by credit institutions; strictly prohibit unauthorized credit granting, non-compliant loans. Effectively implement information and communication about monetary, credit, exchange rates, interest rate policies…
For credit institutions, the Prime Minister requests to concretize the Government and Prime Minister’s directions in guiding documents throughout the entire system of each commercial bank.
Vigorously implement credit growth measures, channel credit towards production, business, priority sectors, and growth drivers; closely control credit in sectors with potential risks, ensuring safety, effectiveness, and risk control.
The Prime Minister also noted that experiences from priority credit packages that have been well-implemented and not well-implemented should continue to balance capital sources to provide timely and sufficient funding for priority sectors, including agriculture; review and classify real estate projects to have appropriate credit solutions for each eligible business, each eligible project; have suitable credit for BOT, BT transport, major projects, petroleum, continue to effectively implement policy credit programs…
Continue to implement debt repayment restructuring policies and maintain loan groups as regulated in Circular No. 02/2023/TT-NHNN, ensuring compliance, strict control, safety, prevention, and prevention of abuse for personal gain.
Continue to reduce costs, strive to reduce interest rates for loans; strictly implement the announcement of average lending rates for borrowers to facilitate choosing a bank for borrowing.
For related ministries and sectors, the Prime Minister assigns the Ministry of Finance to continue to manage fiscal policy with close, coordinated, and harmonized policies with monetary policy. Review and improve regulations related to securities, corporate bonds, develop the stock market into an effective long-term capital mobilization channel for enterprises. Focus on implementing effective solutions to improve the operation of the Small and Medium Enterprises Development Fund.
The Ministry of Construction urgently issues guiding documents on the Law on Housing, the Law on Real Estate Business, and guiding circulars; the spirit is to reduce intermediaries, promote decentralization and delegation of authority.
Tightly coordinate with the State Bank, ministries, and localities to effectively implement the Social Housing Construction Program of 1 million social housing units; vigorously and effectively implement Government Resolution No. 33/NQ-CP; remove difficulties, accelerate the disbursement of the 120,000 billion VND credit package.
 Representatives of businesses and credit institutions attending the conference – Photo: VGP/Nhat Bac
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The Ministry of Planning and Investment further enhances the effectiveness of the Small and Medium Enterprises Development Fund.
Continue to promote the diversification of export markets, products, supply chains; consolidate and expand the market share of Vietnamese goods in traditional markets, make breakthroughs to expand new potential markets.
Organize nationwide promotion programs to coordinate with localities to strengthen supply-demand connections, stimulate domestic consumption, promote market development in the country.
The Prime Minister noted that the Ministry of Industry and Trade urgently needs to develop direct power purchasing mechanisms, formulate plans to implement Power Plan VIII with specific projects, the spirit is that “if it is in the plan, do the first plan. If it is not in the plan, consider it carefully and can issue many plans, not just one plan. If the plan is not successful, reconsider and can be supplemented, but it must be in accordance with the law, comply with regulations, and prevent negative phenomena and corruption”.
The Ministry of Public Security urgently needs to take measures to prevent and handle cross-ownership and manipulation in credit institutions, ensuring the safety of the credit institution system and financial security. Speed up the implementation of Project 06, provide online public services, focusing on implementing Directive No. 05/CT-TTg dated February 23, 2023, on this matter.
The Ministry of Natural Resources and Environment urgently issues authorized documents and issues guiding documents for the implementation of the Land Law; propose amendments to the Mineral Law, especially provisions related to procedures concerning ordinary construction material mines. Build and improve the Land Information System, coordinate with the Ministry of Construction to connect with the Housing and Real Estate Market Information System.
Localities should closely cooperate and create favorable conditions for credit institutions, individuals, and businesses. Prioritize resources to serve production, business, support people and businesses in appropriate forms; focus on preventing loan sharking…
For economic organizations and individuals, the Prime Minister suggests implementing legal production and business operations, being flexible and adaptable in all circumstances, continuing to innovate management, improving competitive capacity, accessing credit capital and other legal capital mobilization capacity. Coordinate with the State to improve mechanisms and policies, including close cooperation with credit institutions to effectively use credit capital, improve production and business efficiency.
