The Governor recommended that the Government should have a guiding solution to harmonize trade with major partners and avoid tax risks because the exchange rate is currently under great pressure from US tax policy.
Speaking at the Government Conference with localities to implement the conclusions of the Central Committee, the Resolutions of the National Assembly and the Government on economic growth held this morning (February 21), Governor of the State Bank Nguyen Thi Hong expressed the State Bank's determination to contribute to achieving GDP growth of 8% or more, in parallel with controlling inflation, stabilizing the macro economy, ensuring major balances of the economy...
Closely monitor interest rate and exchange rate fluctuations
Speaking at the conference, Governor Nguyen Thi Hong assessed that the international situation in 2025 shows that the world and domestic economic developments will continue to be unpredictable with a large openness of the economy. Tensions and changes in trade policies will continue to put a lot of pressure on the financial market. Monetary and exchange rate policies of central banks around the world and the State Bank of Vietnam will be under a lot of pressure.
Domestically, although our situation has improved, there are still difficulties and challenges, and businesses and people still face many difficulties.
Prime Minister Pham Minh Chinh pointed out that to successfully achieve strategic goals, there is no other way but for our country to maintain high, sustainable, and continuous growth in the next two decades.
The Governor said that in this context and with the goal of breakthrough growth, the State Bank focuses on closely monitoring the developments of the world and domestic economic situation, proactively proposing solutions and tools at the right time and in the right doses to contribute to controlling inflation, stabilizing the macro economy, stabilizing the money market and banking activities, ensuring the safety of the banking system. This is a very important task, the foundation for sustainable growth of the economy.
In addition, in 2025, the State Bank has set a credit growth target of about 16% and also notified credit institutions at the beginning of the year to be proactive. The State Bank also bases on the inflation target of about 4.5% - 5% to assess, monitor actual developments and cases of controlling inflation at lower or higher levels to be able to make adjustments to credit growth.
The State Bank's leaders have directed relevant units to review the legal corridor so that when solutions to support economic growth are needed, there will be a basis for implementation.
The State Bank will continue to direct credit institutions to implement credit packages such as the 100,000 billion VND aquatic credit package and the 120,000 billion VND housing support package.
According to the Governor, regarding interest rates and exchange rates, this is an extremely difficult and challenging task. These variables will affect the domestic market and capital flows into and out of the economy. The State Bank will closely monitor developments, even daily developments, to be proactive in regulation.
Regarding interest rates, the State Bank continues to direct credit institutions to reduce costs in order to continue reducing interest rates to support businesses and people, combining overall management solutions on exchange rate issues.
The State Bank continues to resolutely implement other key tasks such as promoting the diversification of payment services, promoting digital transformation, restructuring the system of credit institutions, the bad debt handling network and other tasks.
From a macro perspective, the State Bank sees that to achieve high growth, it is necessary to exploit input factors to the maximum, which is capital. Capital must be mobilized both domestically and abroad, because the nature of the Vietnamese economy is that savings are not enough to cover investment needs.
According to the head of the State Bank, currently, we have room to mobilize foreign capital, and ministries and sectors are also implementing, researching, and reviewing. The efficiency of capital use also needs to be enhanced.
"We are very excited that the reform will remove difficulties, reduce intermediary levels, shorten the time for project approval and implementation. This will also improve the efficiency of capital use and more capital will return to the banking sector. We will have the conditions to continue providing credit to businesses and people, making it easier to reduce lending interest rates," the Governor added.
Need to mobilize maximum capital
To operate monetary policy more smoothly, the Governor suggested that in order to achieve high growth, the economy needs to mobilize maximum capital sources, both domestic and foreign, because the Vietnamese economy itself does not save enough to cover investment needs. Currently, Vietnam has room to borrow foreign capital, and ministries and sectors are also researching and reviewing.
In addition to taking advantage of foreign capital, the Governor also proposed improving labor productivity, promoting innovation, and improving capital efficiency. The Government's implementation of solutions to reform mechanisms, reduce the middle class, shorten project approval time, etc. in recent times is also a way to increase capital flow efficiency, thereby returning capital to banks faster, helping the banking sector have more resources to lend to businesses and create conditions to reduce interest rates.
Regarding credit, in order to achieve the set growth target, the Governor recommended implementing support solutions for small and medium enterprises, for example, loan guarantee policies must be implemented more effectively. In addition, there is also a need for solutions to remove difficulties for the real estate market.
“Real estate debt currently stands at VND3.48 trillion, but many projects are facing difficulties. If this is resolved, the cash flow into this sector will be circulated more effectively,” the Governor suggested.
Particularly with the exchange rate currently under great pressure due to US President Donald Trump's tax policy and the risk of continued US investigation into currency manipulation due to Vietnam's large trade surplus with the US, the Governor recommended that the Government should have a directive solution to harmonize trade with major partners and avoid tax risks.
For housing credit, the banking sector is very determined to allocate financial resources of the system, however, with 120,000 billion VND of limited disbursement, the State Bank also analyzed and assessed that not everyone with low income wants to borrow to own a house. Therefore, the State Bank also recommended that the Government direct the Ministry of Construction to coordinate with localities to assess the need to own a house, rent or rent-to-own to have appropriate solutions.
“On the banking side, the State Bank will also focus on providing credit to low-income people who want to buy and own houses and meet the bank's loan conditions,” the Governor emphasized./.
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