On the morning of the 11th of November, at the National Assembly, the eighth session continued with the first group of questions and answers related to the banking sector.
Deputy Ma Thi Thuy of Tuyen Quang Province’s NA Delegation
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Questioning Governor of the State Bank Nguyen Thi Hong, Deputy Ma Thi Thuy requested that the Governor inform about the banking sector’s supportive policies for borrowers in the agricultural sector affected by the third storm.
In response to Deputy Ma Thi Thuy from Tuyen Quang province regarding the banking sector’s solutions to support businesses and people affected by the third storm, especially those in the agricultural sector, Governor of the State Bank Nguyen Thi Hong shared that after the storm, which severely impacted businesses and people in 26 provinces and cities, the SBV promptly directed its leaders to conduct surveys in Hai Phong and Quang Ninh, the two provinces most affected by the storm. The outstanding loans in these two provinces affected by the storm were estimated at VND 12 trillion.
Governor of the State Bank Nguyen Thi Hong answering the question
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The SBV has instructed credit institutions to focus on identifying affected borrowers and assessing the damage to their debts. The credit balance of affected individual customers was estimated at VND 190 trillion. Based on this assessment, the SBV has directed credit institutions to implement solutions to support businesses and people, such as debt restructuring and debt classification according to current regulations. The SBV has also instructed credit institutions to consider reducing interest rates for storm-affected businesses and people.
In addition, each credit institution is also considering its capital sources to offer credit packages. Governor Nguyen Thi Hong informed that, so far, 35 credit institutions have announced a total credit package of VND 405 trillion for new loans to affected businesses and people, as well as offering preferential interest rates.
Addressing the Governor, Deputy Luu Van Duc mentioned that on April 14, 2024, the Government Office issued Announcement No. 160 on the conclusion of the Prime Minister at the meeting on discussing solutions for managing the gold market in the coming time. The conclusion requested the State Bank and relevant ministries and agencies to urgently and effectively implement tasks and solutions to stabilize and manage the market. Deputy Luu Van Duc asked the Governor about the implementation of this request and its impact on the current and future gold price and market.
 Deputy Luu Van Duc – Dak Lak Province’s NA Delegation
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Responding to Deputy Luu Van Duc from Dak Lak province regarding gold price stabilization and the gold market, Governor Nguyen Thi Hong affirmed that the fluctuations in Vietnam’s gold market are consistent with the global trend. From 2014 to 2019, the Vietnamese gold market was relatively stable, and people’s demand for gold decreased. However, since 2021, the global gold price has increased sharply, leading to a similar trend in the domestic gold price.
Nevertheless, from 2021 to June 2024, the SBV did not intervene. Starting in June 2024, as the global gold price peaked and the gap between domestic and international gold prices widened, the Government and the SBV took decisive actions. Based on current laws, the SBV organized auctions. Given the high gold price peak and market expectations, the SBV considered conducting nine auction sessions (a successful solution in 2013).
To quickly narrow the gap between domestic and international gold prices, as per the Government’s urgent directive, the SBV switched to the method of direct sales of SJC gold through four state-owned commercial banks. As a result, the difference between domestic and international gold prices has narrowed from 15-18 million VND/tael to 3-4 million VND/tael.
Governor Nguyen Thi Hong pointed out that the gold market continues to be complex and unpredictable. As Vietnam does not produce gold, intervention depends entirely on gold imports. Therefore, the SBV will closely monitor market developments and introduce appropriate policies to stabilize the gold market.
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