On June 19, 2024, the State Bank of Vietnam (SBV) organized a virtual Conference of the banking sector on the measures to promote the credit growth. The Conference was co-chaired by SBV Governor Nguyen Thi Hong and First Deputy Governor Dao Minh Tu.
Governor Nguyen Thi Hong delivers a keynote speech at the Conference
Delivering a keynote speech at the Conference, Governor Nguyen Thi Hong shared that, as of June 14, 2024, the credit had increased by 3.79%. As required by the Prime Minister, the credit growth needs to reach 5-6% by end of the second quarter of 2024, and 15-16% for the whole year. In addition to the credit growth, it is also necessary to control risks, ensure the safety of the banking sector, and focus credit on the drivers for the economic growth, meeting the new trends, such as green credit, and accompanying with the process of realizing Vietnam’s commitment towards net zero by 2050, etc.
The Conference participants from the SBV Headquarters
Regarding the credit growth, according to the SBV Governor, the SBV Board of Management has paid a lot of attention and provided strong directions in various working visits to the local authorities, and through the issuance of several directive documents. Since the beginning of the year, the SBV had issued 8 documents (1 Directive, 1 Decision, 1 Announcement and 5 Official Notes) directing the credit operations in the entire banking sector; organized a lot of Bank-Enterprise Connection Conferences to resolve issues related to the interest rates and the credit.
Moreover, the SBV has conducted consistent solutions and measures aimed at improving the mechanisms and policies, managing the credit operations and the interest rates, accelerating the disbursement of the credit programs. Especially, the SBV had increased the size of the credit package for the forestry and fisheries sectors to VND 30,000 billion, and had proposed to revise the social housing program worth VND 120 trillion to become more preferential.
Despite the enormous efforts of the banking sector through various synchronous measures, the credit growth has been still at a low level. Therefore, the SBV Governor has requested the banking sector to focus on the following points:
First, assessing the reasons for the slow credit growth, analyzing the existing difficulties, identifying all obstacles and constraints that have and have not been resolved, and projecting any arising difficulties and challenges for the credit growth in the coming time.
Second, clarifying whether the current credit growth solutions have been implemented in accordance with the Prime Minister's directions, and whether credit has been focused on the economic growth drivers; what are the potential and feasible drivers to be promoted, and identifying clearly the reasons and solutions; preparing at an early stage for long-term credit demands, such as green credit, credit meeting environmental standards and conditions.
Third, assessing the potential credit growth in the remaining time of the year based on all analyses and projections of difficulties and challenges.
Fourth, ensuring the credit growth must go in parallel with implementing the Prime Minister’s directions of controlling the risks and protecting the safety of the banking sector; making clear and specific recommendations to the Government.
Fifth, continuing to strengthen the communication, especially the policy communication to the people; clarifying the situations and the difficulties in the credit operations so that all people can have an objective assessment of the banking sector’s efforts, as well as the difficulties and obstacles for the credit growth.
Sixth, the Department of Credit for Economic Sectors was requested to take responsibility for summarizing the results of the Conference, reporting to the SBV Board of Management, and proposing possible solutions in the coming time.
Le Hang