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Exchange rate, interest rate, credit management must align with 2-digit growth target: PM
Prime Minister Le Minh Hung speaks at the working session with the State Bank of Vietnam on April 29. Photo: VNA
PM Hung commended the banking sector for its proactive, responsive and effective policy management, which has delivered tangible contributions to the country’s overall socio-economic performance.
Analysing the world situation and assigning tasks for the coming time, he stressed that the SBV must adopt a more forward-looking and development-oriented approach, shifting from administrative management to development facilitation. By ensuring a stable and predictable macroeconomic environment, the central bank can help foster confidence among businesses and citizens, thereby supporting production and investment.
At the same time, maintaining macroeconomic stability, controlling inflation and ensuring the safety of the banking system were described as foundational priorities.
The Prime Minister also highlighted the importance of safeguarding banking and payment system security, strengthening risk prevention, enhancing both off-site supervision and on-site inspections, and ensuring cybersecurity and payment safety.
The SBV was instructed to closely follow resolutions and conclusions of the Party, National Assembly and Government, while developing detailed action plans with clear responsibilities, timelines and measurable outcomes. Coordination with relevant ministries to develop policy scenarios for each quarter and the full year was also emphasised, requiring careful calibration of policy tools in terms of timing and intensity.
The Government leader requested the central bank to enhance its capacity for analysis and forecasting, closely monitor domestic and international financial developments, and take prompt and effective responses. Monetary policy management should remain proactive, flexible and closely coordinated with fiscal and other macroeconomic policies.
PM Hung also called for measures to stabilise interest rates, reduce operational costs within credit institutions, promote digital transformation, and ensure adequate system liquidity. He urged coordination with the Ministry of Finance to develop capital markets and the international financial centre, thereby reducing reliance on bank credit.
Credit growth should be managed flexibly, with improved quality and efficiency, and directed toward production, priority sectors and key growth drivers. At the same time, stricter oversight is required for high-risk sectors, including real estate, with appropriate credit allocation mechanisms to encourage social housing and industrial development, he stressed.
The PM reiterated the need to effectively manage the gold market, in line with existing directives, noting that while gold is a legitimate asset, excessive speculation should be discouraged as it does not contribute to value creation in the economy.
Further priorities include completing the restructuring of credit institutions, addressing non-performing loans, improving access to finance, particularly for small- and medium-sized enterprises, and modernising the banking system. The SBV was also tasked with refining the legal framework governing monetary and banking activities, including amendments to key laws and simplifying administrative procedures to reduce compliance costs for businesses and citizens.
The Prime Minister also highlighted the importance of safeguarding banking and payment system security, strengthening risk prevention, enhancing both off-site supervision and on-site inspections, and ensuring cybersecurity and payment safety.
The SBV was instructed to closely follow resolutions and conclusions of the Party, National Assembly and Government, while developing detailed action plans with clear responsibilities, timelines and measurable outcomes. Coordination with relevant ministries to develop policy scenarios for each quarter and the full year was also emphasised, requiring careful calibration of policy tools in terms of timing and intensity.
The Government leader requested the central bank to enhance its capacity for analysis and forecasting, closely monitor domestic and international financial developments, and take prompt and effective responses. Monetary policy management should remain proactive, flexible and closely coordinated with fiscal and other macroeconomic policies.
PM Hung also called for measures to stabilise interest rates, reduce operational costs within credit institutions, promote digital transformation, and ensure adequate system liquidity. He urged coordination with the Ministry of Finance to develop capital markets and the international financial centre, thereby reducing reliance on bank credit.
Credit growth should be managed flexibly, with improved quality and efficiency, and directed toward production, priority sectors and key growth drivers. At the same time, stricter oversight is required for high-risk sectors, including real estate, with appropriate credit allocation mechanisms to encourage social housing and industrial development, he stressed.
The PM reiterated the need to effectively manage the gold market, in line with existing directives, noting that while gold is a legitimate asset, excessive speculation should be discouraged as it does not contribute to value creation in the economy.
Further priorities include completing the restructuring of credit institutions, addressing non-performing loans, improving access to finance, particularly for small- and medium-sized enterprises, and modernising the banking system. The SBV was also tasked with refining the legal framework governing monetary and banking activities, including amendments to key laws and simplifying administrative procedures to reduce compliance costs for businesses and citizens.
In addition, the sector is expected to accelerate digital transformation, expand cashless payments, explore new payment technologies including cross-border systems, and implement regulatory sandboxes.
The Prime Minister underscored the importance of transparent and timely policy communication to strengthen market confidence. He called on the SBV and the banking system to enhance responsibility, innovation and proactiveness in advising the Government, with a view to successfully fulfilling the tasks entrusted by the Party, State and people./.
