Prime Minister Urges Banking Sector to Channel Capital into Priority Areas, Cut Costs, and Leverage Technology to Lower Interest Rates

The Prime Minister acknowledged that over the past five years, the banking sector has made timely and groundbreaking institutional advancements in monetary policies and banking operations. Monetary policy has been proactively and flexibly managed, ensuring timely, rational, and effective coordination with fiscal policies and other macroeconomic strategies. The sector has also undergone significant restructuring, successfully completing the mandatory transfer of four underperforming commercial banks and is actively finalizing the resolution plan for one more. Banks have consistently led in digital transformation, innovation, and the development of banking services. The State Bank of Vietnam has been a pioneer in streamlining its organizational structure, completing its restructuring plan ahead of schedule. Various competitive movements have been substantive and impactful.

On this occasion, the Prime Minister commended state-owned commercial banks and joint-stock commercial banks for their unwavering support to the nation and its people during challenging times. He also congratulated and praised the 64,690 outstanding collectives and individuals in the banking sector’s competitive movements. These exemplary role models have been instrumental in fostering a widespread and powerful momentum for patriotic emulation, enhancing its effectiveness and sustainability across the sector and the broader national context.

According to the Prime Minister, we are witnessing unprecedented global transformations, including the rapid advancement of science and technology, alongside growing challenges related to climate change, energy security, and both traditional and non-traditional security threats.

In the current context, the Prime Minister emphasized the priority of maintaining macroeconomic stability, controlling inflation, ensuring economic balances, and promoting rapid and sustainable growth. The focus is on stabilizing the economy to foster development and ensuring that development leads to stability, ultimately benefiting the people by improving their well-being and happiness.

To achieve the centennial goals by 2030 and 2045, a GDP growth target of 8% has been set for 2025, with double-digit growth expected in subsequent years. In this context, beyond fulfilling their mandated functions and responsibilities, the banking sector must continue to drive competitive movements, both within the sector and in collaboration with other industries. This emulation aims to successfully accomplish the political tasks assigned to the sector and its affiliated units.

Aligning with the banking sector’s defined directions and tasks for patriotic emulation, the Prime Minister outlined several key orientations: “Creating – Accompanying – Sharing – Flexibility – For the People – Effectiveness, contributing to the stability and development of the country, ensuring the people benefit from the achievements.”

Accordingly, it is essential to continue disseminating, propagating, and effectively implementing the Party’s guidelines, state policies, and laws, as well as President Ho Chi Minh’s patriotic emulation ideology and reward systems. Competitive movements must be closely linked to the implementation of the sector’s critical and urgent political tasks, with a focus on building and enhancing the quality and capacity of a banking workforce characterized by integrity, diligence, frugality, and impartiality.

Efforts should concentrate on digital transformation, the application of science and technology, and innovation. Standardizing operations to achieve increasingly high-quality service, aligning with global standards, is crucial. The sector must continue to lead and actively contribute to national target programs and social welfare initiatives, ensuring no one is left behind.

The Prime Minister called on the banking sector to compete in maintaining discipline, innovating, integrating internationally, diversifying capital sources, strengthening public trust, and working towards the nation’s shared development. This includes harmonizing interests, sharing risks, and ensuring benefits for the state, the people, and the economy.

Additionally, the Prime Minister urged the banking sector to maintain unity and solidarity, emphasizing the principles of “one goal, one team,” “unity for strength, cooperation for benefits, and communication for trust.” Strengthening oversight and inspections to prevent errors, directing capital to priority areas, reducing costs, and leveraging technology to lower interest rates are essential steps to support the people, businesses, and the economy. Ensuring harmonious, rational, and effective coordination between monetary and fiscal policies, with mutual support, is also critical.