On January 5, 2024, at the Government’s monthly press conference of December 2023, First Deputy Governor Dao Minh Tu of the State Bank of Vietnam (SBV) asserted that the SBV has always been proactive, and has conducted new mechanisms in the credit management. In order to create favorable conditions for the credit institutions to supply credit for the economic growth demands, right from the beginning of 2024, the SBV had assigned the total credit growth target of 15% to the credit institutions and requested them to enhance the control of the credit growth in 2024.
First Deputy Governor Dao Minh Tu at the Government’s monthly press conference of December 2023
According to the statistics, as of the end of 2023, the credit growth rate had reached 13.71% as compared to that of the end of 2022. As a result, in 2023, the credit institution system had provided VND 1,500 trillion to the economy.
In 2024, the SBV had set the credit growth target of 15%, with possible adjustments in accordance with the practical developments. Adding the current loan outstanding of about VND 13,560 trillion, it means that nearly VND 2,000 trillion will be additionally supplied to the economy in 2024 if the credit growth reaches 15% as targeted.
The SBV Deputy Governor further shared that if the macro-economic conditions are stable, the inflation is controlled well, the capital flows are ensured to the right subjects, as well as the safety of the credit system is maintained, at the mid-year or toward the end of the year, the SBV could possibly expand the credit growth and assign higher credit growth targets to the commercial banks. The SBV Deputy Governor mentioned several factors for considering the credit expansion, such as the macro-economic situation, the interest rates, the credit management mechanism, as well as the credit institutions’ performance in their lending operations, etc.
SBV Deputy Governor Dao Minh Tu shared that on December 31, 2023, the SBV had sent Document No. 10167/NHNN-CSTT to the credit institution informing them about the credit growth plan for 2024. Accordingly, following closely the Resolutions of the National Assembly and the guidance of the Government and the Prime Minister, the SBV had set the credit growth target of 15% for 2024, with flexible adjustments in accordance with the practical developments. In order to create favorable conditions for the credit institutions to supply credit for the economic growth demands, the SBV had assigned the total credit growth target of 15% to the credit institutions and requested them to enhance their control of the credit growth in 2024.
The SBV Deputy Governor added that if any bank reaches its credit target and still has the ability to provide more credit to the economy, while the credit quality, the safety of the system, and the macro-economic conditions are ensured, the SBV could possibly assign a higher credit target to that bank.
In addition, the SBV Deputy Governor also emphasized his hope that with the Government’s clear mechanisms and directions, the favorable conditions for the interest rates, the increasing demands for borrowing, the eased lending conditions, as well as the effective credit operation mechanisms at the credit institutions, the economy in the year 2024 would brighten up a lot more than in 2023.
Le Hang