Bank credit policy creates momentum for the private economic sector to develop sustainably.
Speaking at the workshop on Banking Capital Contributing to Promoting the Private Economy, Deputy Governor of the State Bank of Vietnam Dao Minh Tu affirmed that the private economy plays a very important role in the economy. The private economy not only helps expand production, trade and services but also makes an important contribution to improving labor productivity, promoting innovation and increasing national competitiveness. Up to now, with nearly one million enterprises and about 5 million individual business households; the private economic sector currently contributes nearly 50% of GDP, more than 30% of the state budget, creating more than 40 million jobs, accounting for about 85% of the total labor force in the economy, contributing nearly 60% of total social investment capital. However, most of them are micro, small and medium-sized enterprises (accounting for 98%), low competitiveness, limited operational efficiency, many entrepreneurs do not have high management skills, and their business thinking lacks long-term strategic vision; Large enterprises account for only about 2% and focus on a number of key industries such as steel production, automobiles, high technology, etc.
 |
| Deputy Governor of the State Bank of Vietnam Dao Minh Tu affirmed that the banking sector has actively and synchronously implemented solutions to promote credit growth to meet capital needs for production and business of people, businesses in general and private enterprises in particular. |
Identifying private economic development as a long-term strategy and policy of the country, in recent times, the Deputy Governor said that the banking sector has actively and synchronously implemented solutions to promote credit growth to meet the capital needs for production and business of people, enterprises in general and private enterprises in particular. Specifically, the State Bank of Vietnam has flexibly managed exchange rates, in accordance with market conditions, contributing to absorbing external shocks; synchronously coordinated monetary policy tools in each period (regulating VND liquidity, interest rates, etc.) to limit exchange rate pressure; As a result, the foreign exchange market has remained stable, market sentiment has been stabilized, foreign currency liquidity has been smooth, the economy's foreign currency needs have been fully met; exchange rates have moved flexibly in both directions of increase/decrease, in accordance with market conditions. At the same time, the State Bank has proactively and flexibly managed interest rates, creating conditions for credit institutions to access low-cost capital sources from the State Bank of Vietnam; directing credit institutions to continue to reduce costs and strongly transform digitally to reduce lending interest rates; publicizing average lending interest rates, the difference between deposit and lending interest rates, and lending interest rates of credit programs and products on the credit institution's website for businesses and people to access. As a result, lending interest rates have decreased sharply (average lending interest rates in 2024 decreased by 1.24%, and in 2025 continued to show a downward trend compared to the end of 2024), contributing to supporting the operations of businesses and people.
 |
| At the workshop, experts suggested solutions to increase access to capital for private sector enterprises. |
For SMEs, the State Bank has identified them as priority lending subjects with preferential interest rates when lending short-term in VND lower than normal production and business sectors (currently 4%/year). “Regarding solutions in recent times, it is necessary to mention that the banking sector has had policies to reduce interest rates, in which small and medium enterprises are stipulated as one of the five subjects enjoying low interest rates if they meet the conditions for accessing loans. Obviously, this is a huge advantage in terms of interest rates. Loan terms, repayment terms, and access procedures also have better conditions... All of these things show equality in policies and mechanisms between state-owned enterprises and private enterprises, only the access conditions are different,” the Deputy Governor affirmed.
In recent times, the State Bank has required credit institutions to strictly implement the State Bank's instructions on monetary and credit activities and regulations on credit granting in order to improve business efficiency, ensure system safety and stabilize the monetary market. Safe, effective and healthy credit growth, limit the increase and occurrence of bad debts, ensure the safety of credit institutions' operations; direct credit to production sectors, priority sectors, sectors that are the driving force for economic growth according to the policies of the Government and the Prime Minister; strictly control credit in sectors with potential risks.
To contribute to solving difficulties for customers, including private enterprises, the State Bank of Vietnam has issued Circular 06/2024/TT-NHNN amending and supplementing Circular 02/2023/TT-NHNN in the direction of extending the period for debt restructuring, submitting to the Prime Minister for promulgation Decision 1510/QD-TTg dated December 4, 2024 regulating the classification of assets, risk provisioning levels, risk provisioning methods and the use of provisions to handle risks for debts of customers facing difficulties due to the impact and damage of storm No. 3, floods; floods, landslides after storm No. 3; Issue Circular 53/2024/TT-NHNN dated December 4, 2024 regulating the restructuring of debt repayment terms by credit institutions and foreign bank branches for customers facing difficulties due to the impact and damage of storm No. 3, floods, landslides after storm No. 3.
In addition, private enterprises are also beneficiaries of many preferential credit policies on interest rates, terms, collateral and risk handling mechanisms specific to economic sectors/sectors such as: credit policies for agriculture and rural areas; Loan policies for supporting industry development; Loan programs for forestry and fishery sectors; Loan programs linked to the implementation of the Project of 01 million hectares of high-quality and low-emission rice in the Mekong Delta; Social housing loan programs; Preferential credit programs of the State at the Vietnam Bank for Social Policies... With the policy of enhancing dialogue, the banking industry has focused on implementing the program of connecting banks and enterprises, directly dialogue, to remove difficulties and obstacles, support enterprises, including private enterprises, to access bank capital conveniently, recover and develop production and business. This is a regular activity that the banking industry has always focused on in recent times.
With the efforts and participation of the State Bank and the active support of commercial banks, the Deputy Governor said that credit provision activities for private enterprises have achieved many positive results.
| By the end of 2024, outstanding credit balance for private enterprises at credit institutions will reach about VND 6.91 million billion, up 14.72% compared to 2023, accounting for about 44% of outstanding credit balance in the economy. Of which, 100 credit institutions will have outstanding credit balance for SMEs with a total outstanding balance of VND 2.74 million billion, up 10.7% compared to the end of 2023, accounting for 17.6% of outstanding credit balance in the economy, with 208,992 SMEs still having outstanding debt. This shows that bank credit capital has promptly met the capital needs for production and business purposes of private enterprises, while contributing to promoting economic development and increasing revenue for the State Budget. |
Banking industry strives to support credit capital, creating conditions for private enterprises to grow
Although the private economic sector has developed strongly, according to the Deputy Governor, enterprises still face many difficulties. The reason is that most enterprises are small and medium-sized, with limited financial potential and competitiveness. This is also one of the reasons why private enterprises still face many difficulties in accessing capital.
In 2025, the forecast shows that the world economic situation will continue to be complicated, with geopolitical conflicts, increasing trade tensions and high borrowing costs in many countries. The above difficulties will have a major impact on an open economy like ours, including the private economic sector.
To improve access to capital for private enterprises, support the private economic sector to make a breakthrough, contributing to the rapid and sustainable development of the country in the new era, the Deputy Governor continued to operate a proactive and flexible monetary policy to stabilize the macro economy, control inflation, stabilize exchange rates and stabilize lending interest rates, contributing to creating a stable business environment for people and businesses... At the same time, the State Bank will monitor and inspect commercial banks that increase deposit and loan interest rates, not implementing the direction of the Prime Minister and the State Bank; Research, review and perfect the banking credit policy mechanism, creating conditions to remove difficulties for private enterprises to access capital; encourage credit institutions to diversify credit and banking products to suit the needs of enterprises; Effectively implement credit activities, credit programs of the Government and the Prime Minister for priority subjects, policy credit; Closely coordinate with relevant ministries and branches to promptly handle difficulties and problems in lending to priority subjects and policy subjects nationwide.
In the coming time, with the development of technology and creative economy, in addition to the existing support, the Deputy Governor said that the State Bank has been researching to have stronger solutions for capital in the private economy. Regarding the proposed loan package mechanism for science, technology and innovation, the Deputy Governor said that this is an important issue that needs attention. Banks are aware that science, technology and innovation are important competitive factors for enterprises, but relying on banks alone cannot meet the capital demand. Therefore, private enterprises need support from many other resources such as the budget and investment funds... to invest specifically in this field. "We have Resolution 57-NQ/TW on breakthroughs in science, technology, innovation and national digital transformation to illuminate and lead the way, so the State Bank and the banking sector need to consider this as a direction, to be determined to do and implement to create the most favorable conditions for private enterprises to develop", Deputy Governor of the State Bank Dao Minh Tu emphasized, at the same time repeating the saying "If you want to go fast, go alone, if you want to go far, go together", emphasizing the connection between enterprises, the connection between small enterprises - large enterprises, domestic enterprises and international enterprises.
Comment (0)