Prime Minister Pham Minh Chinh has just signed Official Dispatch No. 18/CD-TTg dated March 5, 2024 on credit growth management in 2024.
2024 is an acceleration year, of special importance in the successful implementation of the 5-year socio-economic development plan 2021 - 2025. The world and regional situation is forecast to continue to have complex and unpredictable developments; the consequences of the COVID-19 pandemic will have a long-term impact. Domestically, the economy has opportunities, advantages and difficulties, challenges intertwined but the difficulties and challenges are greater; inflationary pressure is still high; production and business activities in a number of industries and fields are still difficult; lending interest rates have decreased but not commensurate with the decrease in deposit interest rates; credit growth in the first two months of 2024 decreased compared to the end of 2023.
To continue to improve the effectiveness of monetary policy instruments and resolutely implement solutions on interest rate and credit management to support production and business activities of people and enterprises, promote economic growth, stabilize the macro economy, control inflation, and ensure major balances of the economy, the Prime Minister requested:
1. The State Bank of Vietnam presides over and coordinates with relevant agencies:
a) Urgently and comprehensively review the credit granting results of the credit institution system for the economy, each industry and each field; the credit granting results of each credit institution and commercial bank up to the present time to have measures to manage credit growth and interest rates in 2024 more effectively, feasiblely and promptly, ensuring adequate credit capital supply to serve the economy and the safety of the credit institution system, absolutely not allowing congestion, delay or untimely; in case of any content beyond the authority, promptly report and propose to competent authorities according to regulations; be responsible to the Government and the Prime Minister for the management of monetary policy and credit growth.
b) Closely monitor developments and the world and domestic economic situation to proactively, flexibly, promptly and effectively manage monetary policy; flexibly, harmoniously and reasonably manage interest rates and exchange rates in accordance with the market situation, macroeconomic developments and monetary policy objectives in accordance with the main tasks and solutions in Resolution No. 01/NQ-CP dated January 5, 2024 of the Government to prioritize promoting economic growth, removing difficulties for production and business; effectively increase credit growth, meet foreign currency needs for production and business, associated with macroeconomic stability, control inflation, ensure major balances of the economy, safety of banking operations and the system of credit institutions, ensure the implementation of credit growth targets set for 2024.
c) Immediately implement management solutions to continue reducing lending interest rates in conjunction with increasing access to credit capital to support people and businesses in developing production and business, ensuring adequate supply of credit capital and healthy foreign currency, with focus and key points, serving and meeting the capital needs of the economy and ensuring the safety of the credit institution system.
d) Strengthen, enhance inspection, examination, control and close supervision of credit granting by credit institutions, ensure credit capital flow, including foreign currency credit capital, focusing on priority and important areas, growth drivers of the economy (consumption, export, investment), serving the needs of production and business development of enterprises and people to have conditions to expand production and business safely, healthily and sustainably but lacking capital. Strictly prohibit the granting of credit not in accordance with legal regulations, to the wrong subjects, the granting of credit to the board of directors, executive boards and related persons of credit institutions, enterprises in the ecosystem, backyard enterprises... with preferential interest rates while people and enterprises with legitimate and legal needs have difficulty in accessing credit capital and foreign currency. At the same time, implement tools to control inflation and minimize and limit the increase of bad debt for credit institutions.
2. The State Bank of Vietnam directs and requires credit institutions to:
a) Closely follow the directions of the Government and the State Bank of Vietnam, continue to reduce the lending interest rate level (reduce costs; simplify administrative procedures, increase the application of information technology, digital transformation, etc.); publicly announce the average lending interest rate so that people and businesses can easily access credit and choose banks to borrow capital. Promote the effective implementation of preferential credit packages suitable to the characteristics of each credit institution for important sectors and growth drivers of the economy according to the Government's policy; promote the pioneering and exemplary role of effective credit institutions and state-owned credit institutions; enhance the social responsibility and business ethics of credit institutions in sharing and supporting people and businesses.
b) Continue to direct credit capital to production and business sectors, priority sectors and traditional growth drivers such as consumption, investment, export, digital transformation, climate change response, green transformation, circular economy, science and technology and innovation... of the economy according to the Government's policy; continue to strictly control credit in potentially risky sectors; ensure safe and effective credit activities.
c) Strengthen communication and information work, guide customers and beneficiaries in accessing policies. Focus on clear, complete, transparent and accurate communication about credit and foreign exchange policies, products and services of credit institutions to the public.
4. Assign Deputy Prime Minister Le Minh Khai to monitor, direct, inspect, and urge handling according to authority.
5. The Government Office monitors and urges according to assigned functions, tasks and authorities; reports to the Prime Minister on issues beyond its authority.
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