The Law on the State Bank of Vietnam No. 46/2010/QH12 enacted in 2020 mentions that: "The national monetary policy means decisions on the monetary affairs at the national level made by the competent authorities, including decisions on the goal of maintaining the stability of the national currency value, which is denoted by the inflation rate, and decisions on the use of relevant tools and measures to achieve the set objectives".
Orientations for the monetary policy management and the banking operations in 2025
Implementing Resolution No. 158/2024/QH15 dated 25 November 2024 of the National Assembly on the Socio-Economic Development Plan for 2025, and Resolution No. 01/NQ-CP dated 8 January 2025 on the key tasks and solutions for implementing the socio-economic development plan and the State budget estimates for 2025 (Resolution No. 01), closely following Resolution No. 455-NQ/BCSD dated January 7, 2025 of the Personnel Board of the SBV’s Party Committee on the policies and orientations for the banking sector’s key tasks in 2025, the Governor of the State Bank of Vietnam (SBV) had issued Directive No. 01/CT-NHNN dated 20 January 2025 on the arrangements for the implementation of the banking sector’s key tasks in 2025.
Accordingly, the SBV Governor had requested the SBV entities, the credit institutions and the foreign bank branches (hereinafter collectively referred to as the credit institutions) to strictly implement the solutions on the monetary policy management and the banking operations in 2025, in order to contribute to promoting the economic growth in association with maintaining the socio-economic stability and the inflation control, ensuring the major balances of the economy.
The general objectives and tasks include:
1. Focusing on reviewing, developing and implementing plans to rearrange and restructure the organizational apparatus to ensure a streamlined, effective and efficient structure in accordance with the guidance of the Politburo, the Government and the Prime Minister.
2. Continuing to manage the monetary policy in a firm, proactive, flexible and effective manner, in synchronous and close coordination with the fiscal and other macro-economic policies, contributing to promoting the economic growth in association with maintaining the socio-economic stability and the inflation control, ensuring the major balances of the economy
3. The credit management must be aligned with the macro-economic developments to contribute to promoting the economic growth, controlling the inflation, maintaining the macro-economic stability, and ensuring the safety of the credit institutions' operations; continuing to innovate the credit growth management. The target for the credit growth of the entire banking system in 2025 is around 16%, with proper adjustments made in accordance with the actual developments and conditions.
4. Implementing foreign exchange management solutions in a synchronous manner to contribute to maintaining the stability of the foreign exchange market and supporting the monetary policy management; proposing appropriate solutions to manage the gold trading activities in the new context.
5. Continuing to improve the legal frameworks in the monetary and banking sector in the spirit of innovative thinking in building laws in the direction of both ensuring the state management requirements and unleashing all possible resources.
6. Actively and effectively implementing the Scheme of “Restructuring the system of credit institutions in association with the resolution of non-performing loans (NPLs) for the 2021-2025 period” in order to ensure the accomplishment of the Scheme's objectives; directing the credit institutions to seriously and effectively implement the approved Scheme; submitting to the competent authorities for approval of the restructuring plans and implementing effectively the plans to resolve the poor-performing credit institutions.
7. Seriously implementing the National Action Plan to implement the Vietnamese Government's commitments on anti-money laundering, combating terrorist financing, and the financing of the proliferation of weapons of mass destruction.
8. Focusing on accomplishing the objectives of the Scheme on Cashless Payment Promotion in Vietnam for the 2021-2025 period, and the Digital Transformation Plan of the Banking Sector; continuing to implement the measures to promote non-cash payments, the digital transformation, and ensuring the safety and security in the payment operations.
9. Continuing to implement strong reforms of the administrative procedures, minimizing the administrative procedures and the compliance costs, creating the most favorable conditions for the people and businesses, contributing to improve the business environment and enhancing the credit ratings and the people’s trust.
10. Continuing to implement and supervise effectively the implementation of the Development Strategy of Vietnam Banking Sector to 2025, Vision to 2030; the National Financial Inclusion Strategy to 2025, Vision to 2030; as well as other sectoral Programs/Action Plans and Schemes which have been issued.
11. Implementing synchronously and strongly the solutions on saving and fighting wastefulness in all banking operations.
(Extracted from Directive No. 01/CT-NHNN dated 20 January 2024 of the SBV Governor)