Prime Minister directs the continuation of enhanced measures for monetary policy, interest rates, and credit management – Illustrative image
|
The dispatch states: To further improve the effectiveness of monetary policy, interest rate, and credit management, strengthen the state management of the monetary and banking sector, and vigorously promote economic growth, it is necessary to accelerate and make a breakthrough to achieve and exceed all key targets of the 2024 socio-economic development plan. At the same time, strive to achieve the highest goals, targets, and tasks of the 2025 socio-economic development plan and the 2021-2025 five-year plan in accordance with the directions, resolutions, and conclusions of the Party, National Assembly, and Government, with the spirit of “The Party has directed, the Government has united, the National Assembly has agreed, the People have supported, and the Country is expecting, so we only discuss doing, not retreating.” The Prime Minister requests the following:
The State Bank of Vietnam (SBV), in coordination with relevant agencies:
Closely monitor international and regional developments, including policy changes in finance and monetary policies by major economies, to assess, analyze, and respond promptly and effectively; proactively, flexibly, timely, and effectively manage monetary policy, in close coordination and harmony with reasonable expansionary fiscal policy, focusing on key areas and in line with the directions, resolutions, and conclusions of the Party, National Assembly, and Government, as well as the directives of the Prime Minister in Dispatch No. 122/CĐ-TTg dated November 27, 2024, on enhancing credit management measures for 2024, and the guidance of the Government leaders, ensuring priority is given to promoting growth while maintaining macroeconomic stability, controlling inflation, ensuring major balances, accelerating, and achieving an economic growth rate of 8% or higher in 2025, and aiming for double-digit growth in the 2026-2030 period.
Focus on more vigorously and effectively implementing tasks and solutions for managing interest rates, exchange rates, credit growth, and reducing lending interest rates, especially closely controlling deposit interest rates of commercial banks… to meet the capital needs of the economy during the end of 2024, the Lunar New Year of the Tiger, and the beginning of 2025, resolving difficulties for people and businesses, supporting production and business development, creating jobs and livelihoods for people in the spirit of harmonious interests, shared risks, mutual affection, and ensuring that credit capital is injected into the economy in a practical and effective manner, absolutely not causing bottlenecks, delays, or misallocation, creating a mechanism of favoritism and negativity in the credit allocation of the credit institution system.
Continue to effectively and vigorously implement measures within their authority to reduce the lending interest rate of the credit institution system, support people and businesses to have conditions to develop production and business, create revenue and profits, and repay bank loans. Strictly handle, within the scope of authority and provisions of law, credit institutions that compete unhealthy interest rates, not in accordance with regulations (including both deposit and lending interest rates).
Direct credit institutions to focus on lending to production and business areas, priority areas, and traditional economic growth drivers such as investment, consumption, and export, as well as new growth drivers such as digital transformation, green transformation, climate change response, circular economy, sharing economy, science, technology, and innovation…; closely control credit in risky areas, ensuring safe and effective credit activities; reduce costs, strengthen information technology applications, digital transformation… to create room for reducing lending interest rates.
Strengthen inspection, examination, control, and strict supervision of the activities of credit institutions, especially in the announcement of deposit interest rates, lending interest rates, and credit activities of credit institutions; promptly handle violations in accordance with the law.
Focus on implementing appropriate and effective solutions to handle bad debts of the credit institution system, prevent the occurrence of bad debts, and ensure the safe operation of the credit institution system.
The Prime Minister also assigned the Ministry of Public Security, the Government Inspectorate, and relevant agencies, according to their functions, tasks, and powers, to continue to closely monitor and closely follow the activities of the credit institution system, strengthen inspection and examination, and strictly handle violations of the law on banking, announcement of deposit and lending interest rates…
The Prime Minister assigned Deputy Prime Minister Hồ Đức Phớc to directly direct the State Bank of Vietnam and relevant agencies to implement the tasks assigned in this Dispatch.
“Standard Chartered: Robust USD and Vietnam’s Economic Growth Trajectory Towards 6.7% in 2025”
In its latest economic update on Vietnam, released on December 12, 2024, Standard Chartered Bank forecasts a strong USD in 2025, with a weakening bias in the early part of the year. The bank predicts a 6.7% GDP growth for Vietnam in 2025, with a 7.5% year-on-year expansion in the first half and a 6.1% growth in the latter half.
Vice Governor of the State Bank of Vietnam Dao Minh Tu: 15% Credit Growth Target is Attainable
At the regular Government press conference for November 2024, held on the afternoon of December 7th, a representative from the State Bank of Vietnam (SBV) addressed queries regarding the feasibility of achieving a 15% credit growth target for the year 2024.
The Rising Interest Rates on Deposits: A Year-End Phenomenon
In early December, commercial banks continued to raise deposit interest rates to meet the surge in capital demand during the year-end period.
“Unleashing Economic Growth: A 12.5% Surge in Credit Across the Nation as of December 13th.”
The information was released by the State Bank of Vietnam (SBV) at a conference on December 14, 2024, reviewing the monetary policy control and banking activities in 2024 and outlining tasks for 2025.
The Rising Dollar: A Story of Strength and Resilience
Last week (December 9-13, 2024), the US dollar continued its upward trajectory in the international market following the release of US inflation data.
