PM Pham Minh Chinh speaks at the conference held on March 14 to launch monetary policy-related tasks for this year. (Photo: VNA) TheState Bank of Vietnam (SBV) reported that credit last year grew 13.78% from theend of 2022. Due to the Lunar New Year holiday and the economy’s limitedcapital absorption, credit pumped into the economy as of February 29 this year fell0.72% from the end of 2023.
However,the decline in February slowed down compared to January’s, the central bank noted,adding that with abundant liquidity and much room for credit growth, creditinstitutions have favourable conditions to supply capital for the economy.
In his speech, PM Chinh thankedbusinesses and banks for joining hands with the entire Party, political system,and people to weather difficulties and challenges and obtain achievements inmost of the areas last year, with the macro-economy being kept stable, inflation placed undercontrol, growth boosted, major balances guaranteed, and social securityimproved. The socio-economic situation continued recovering and growing well inthe first two months of 2024.
As numerous difficulties andchallenges are predicted to linger on this year, the Party, State, Government,and the PM have issued many concrete and practical directions, mechanisms, andpolicies to ensure the banking system’s sustainable and safe development.However, the economy is still encountering problems, shortcomings,difficulties, and challenges, he pointed out.
The government leader noted that credit growth inJanuary - February declined compared that in late 2023. Meanwhile, deposits remained considerable, with 14 quadrillion VND (566.9 billion USD) put into bankaccounts during the period. However, enterprises are still facing shortages ofcapital for production and business activities, lending interest rates stay high,and non-performing loans tend to increase. The settlement of poor-performingcommercial banks is still slow while some credit packages have yet to proveeffective.
Stressing the special importance of2024 to the implementation of the five-year plan 2021 - 2025, PM Chinh said general targets include fostering growth, keeping macro-economicstability, controlling inflation, guaranteeing major economic balances, and ensuringsocial security. In particular, this year’s gross domestic product (GDP) growthis targeted at 6 - 6.5%, the consumer price index (CPI) growth 4 - 4.5%, the rateof non-performing loans under 3%, and credit growth 15%.
Urgingstrong determination and efforts to realise the targets, he ordered enhancingcredit access and absorption, credit quality, governance capacity, interestrate transparency and “black credit” fight, along with supervision,examination, and risk prevention.
PM Pham Minh Chinh addresses the conference held in Hanoi on March 14. (Photo: VNA) PMChinh asked the SBV to keep a close watch on the international and domesticsituation to govern the monetary policy in a proactive, flexible, timely, andeffective manner.
The bank needs to ensure theharmony between interest rates and exchange rates, effective credit growth, andsafety for banking activities and credit institutions. In addition, it needs toboost inspection, examination, and supervision of loan supply by creditinstitutions, he went on.
The government leader also asked credit institutions to strongly carry out measures for promoting creditgrowth; channelling capital into production and business activities, priority areas,and growth drivers; and strictly controlling credit for high-risk fields.
He also assigned tasks to relevant ministries and localities, expressing hisbelief that difficulties and challenges will be surmounted and the tasksand targets for 2024 fulfilled with the best possible results./.
VNA
