On October 27, 2023, in Hanoi, the State Bank of Vietnam (SBV) organized a Conference under the chair of Governor Nguyen Thi Hong and First Deputy Governor Dao Minh Tu to discuss the implementation of Document No.990/CD-TTg dated October 21, 2023 of the Prime Minister, and the acceleration of the implementation of the interest rate support program in accordance with Decree No.31/2022/ND-CP of the Government.
Governor Nguyen Thi Hong speaks at the Conference
In her opening speech, Governor Nguyen Thi Hong briefed about the macro-economic situations as well as the monetary policy management and the banking performance over the past months.
According to the SBV Governor, the money and forex markets have been basically stable; the exchange rates have been managed appropriately. However, although the problems of the real estate and the corporate bond markets have been addressed with strong measures, they have not yet been completely eliminated. Therefore, the banking operations have been inevitably facing a number of difficulties.
First Deputy Governor Dao Minh Tu chairs the Conference
At the Conference, the Directors General of the Monetary Policy Department and the Department of Credit for Economic Sectors delivered reports on the credit growth and the implementation progress of the credit programs and policies.
With the strong implementation and great efforts of the SBV and the entire banking industry, the credit outstanding for the economy has increased by 6.78% as compared to that of the end of 2022. The credit for businesses has reached nearly VND 6,500 trillion, accounting for over 50% of the loan outstanding of the entire economy.
The Director General of the Department of Credit for Economic Sectors delivers the report at the Conference
In addition, leaders of several commercial banks, Directors of the SBV municipal and provincial branches, as well as the representative from Vietnam Banks’ Association also made their interventions at the Conference, exchanged their views and discussed about the implementation progress; reasons for the slow credit growth as compared to that of the same previous periods; the difficulties and obstacles in the implementation, and proposed possible solutions to increase the credit accessibility for businesses and accelerate the interest rate support program in accordance with Decree 31.
Toward the end of the Conference, Governor Nguyen Thi Hong reaffirmed that, with the SBV’s efforts and the active support of the credit institutions, the credit supply to the economy has achieved positive results. However, the credit growth rate of the entire banking system has been relatively low; the supply and the absorption of credit have been facing many difficulties.
Participants at the Conference
In that situation, the SBV Governor requested the leaders of the SBV entities and the credit institutions to improve their sense of responsibility and direct their units to effectively implement the Prime Minister's Document No. 990/CD-TTg, focusing on implementing the following key tasks:
General tasks: Continue to strongly and effectively implement the assigned tasks as stated in Resolution No. 01/NQ-CP of the Government, Directive No.01/CT-NHNN, Notification Note No.247/TB-NHNN dated August 10, 2023 of the SBV Governor on the implementation of the tasks in the remaining months of 2023, and other guiding documents of the Government, the Prime Minister, and the SBV Governor.
A number of specific key tasks include:
For the central SBV Departments: the Monetary Policy Department shall be the focal unit and shall closely monitor the domestic and the international developments to manage the monetary policy in a proactive, flexible, timely and effective manner, with the priorities given to the promotion of the economic growth in association with the maintenance of the macro-economic stability, the inflation control, and the assurance of the macro balances, as well as a safe and sound banking system; focusing on a smooth, synchronous and effective coordination of the monetary policy tools to continue removing the difficulties and fully meeting the capital demands of the economy.
The Department of Credit for Economic Sectors shall closely monitor the implementation of the assigned tasks of the banking sector as stated in the Socio-Economic Recovery and Development Program, the specific credit programs and policies as directed by the Government and the Prime Minister (the credit program worth VND 120,000 billion on lending to projects on social housing, worker housing, renovation of old apartment buildings; the credit package worth VND 15 trillion to support the businesses in the forestry and the fisheries sectors, etc.), in order to promptly advise the SBV leadership and recommend measures to address any arising difficulties and obstacles; instruct and facilitate the Bank for Social Policies to implement the preferential credit programs for the poor and other policy beneficiaries.
The Department of Credit for Economic Sectors and the Monetary Policy Department are also requested to urgently review and evaluate the implementation of Circular No. 02/2023/TT-NHNN, Circular No. 03/2023/TT-NHNN, Circular No. 06/2023/TT-NHNN and other relevant Circulars and Documents to promptly advise the SBV leadership and propose possible amendments and supplementations, in order to remove any arising obstacles faced by the people and businesses, as well as to ensure the stability of the money market and the safety of the system of credit institutions; study and propose solutions to improve the policies to promote credit for feasible projects and businesses serving growth drivers of the economy.
The SBV entities are required to further promote the administrative procedure reforms, review and cut down inappropriate administrative procedures
The Banking Supervision Agency is required to strengthen the inspection and supervision over the credit granting activities and insurance agency activities of the credit institutions; promptly identify and strictly handle with violations (if any).
For the SBV municipal and provincial branches: Continue to strictly and effectively implement the assigned tasks as stated in the SBV's documents on enhancing the credit accessibility for the economy.
For the credit institutions: Reduce the operational costs; enhance the digital transformation and the application of information technology; simplify the internal processes, procedures and implement other solutions to reduce the lending interest rates; cut down unnecessary fees and charges, and create favorable conditions for customers to access and absorb capital; announce publicly their fees related to the credit operations, payments and other monetary services; actively implement appropriate credit packages to support the people and businesses to overcome the difficulties, promote the production and business, focusing on priority areas and growth drivers of the economy; strictly implement the legal requirements and the SBV’s guidance on insurance business and agency activities; carry out the information and communication on the products, services, support policies for customers and the solutions to manage the monetary policy and the banking operations to improve the people’s understanding and the public support, etc.
Governor Nguyen Thi Hong further reaffirmed that the banking industry always stands ready to meet the capital needs for production and business of the people and enterprises. In addition, the SBV would continue to promote the implementation of the solutions to increase the capital absorption of the people and businesses; meet the capital demand of the economy, thereby promoting the economic growth and development.
Le Hang