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Banking sector looks to keep inflation at around 4 percent

The banking sector has set a goal of flexibly managing and coordinating monetary, macroeconomic, and fiscal policies to control the inflation rate to around 4 percent this year and serve economic recovery and growth.

The goal is defined as part of the State Bank of Vietnam Governor’s Directive No 01/CT-NHNN on key tasks for the sector in 2021.

Per the document, credit growth is projected to increase approximately 12 percent and be further adjusted to suit actual developments. Growth is to be associated with improved credit quality, particularly in production and prioritised sectors, and the tight control of fields with risk.

Continued assistance to clear any credit difficulties facing individuals and businesses impacted by natural disasters and diseases is also an important mission.

The directive highlights the synchronous management measures to be taken to stabilise the forex and gold markets as well as increase foreign exchange reserves once conditions allow.

Other key tasks include restructuring credit institutions, particularly those that are ineffective; tackling bad debts; improving the operations of people’s credit funds; and promoting cashless payments./