Prime Minister chairs 'Dien Hong conference' to remove difficulties for credit growth
Báo Thanh niên•07/12/2023
On the morning of December 7, Prime Minister Pham Minh Chinh chaired a conference to discuss solutions to remove difficulties in credit growth for production and business, promote growth and stabilize the macro economy.
Attending the conference on removing difficulties for credit growth were Deputy Prime Ministers Le Minh Khai and Tran Hong Ha; ministers and chairmen and general directors of 38 commercial banks, representatives of the Vietnam Banking Association, associations, industries, the Association of Small and Medium Enterprises, the Vietnam Real Estate Association, and the Ho Chi Minh City Real Estate Association.
Prime Minister Pham Minh Chinh chaired the conference on the morning of December 7.
NORTH JAPAN
In his opening speech, Prime Minister Pham Minh Chinh said that in the face of difficulties and challenges in the economy, the Government, ministries, sectors, localities, enterprises, banks and people have made efforts to overcome and promote development. However, there are still shortcomings, limitations, difficulties and challenges, including difficulties and challenges in capital. The Prime Minister emphasized that today's conference has the same spirit as the "Dien Hong" conference to discuss removing difficulties in capital for the economy, opening up capital sources for production and business, thereby promoting growth and stabilizing the macro economy. The head of the Government also stated that banks and enterprises are in an economic ecosystem. The development of banks and enterprises is related to each other and related to the development of the economy. If the economy develops, banks and enterprises will develop and vice versa, if banks and enterprises develop, the country will develop. The Prime Minister also pointed out: real estate businesses are complaining about difficulty in accessing capital. But in recent years, real estate prices have generally increased. If there are difficulties but the selling price is still kept the same, and there are still "one-way" demands, is there a common responsibility? "Policy must be extremely flexible, we do not lower lending standards, but can we be flexible? If there are businesses facing difficulties, but their projects are feasible, can we lend them money?", the Prime Minister emphasized. To find a solution to the credit problem, to overcome difficulties together, to develop together, in the spirit of "harmonious benefits, shared risks", it is necessary to be frank, look straight at the truth, listen and accept each other's opinions; promote solidarity to contribute together and also need sacrifice and tolerance; high determination, great effort, focused actions, finishing each job.
Leaders of ministries, branches, businesses and banks attended the meeting.
NORTH JAPAN
The State Bank's report said that in the past year, there have been 4 consecutive interest rate reductions with a reduction of 0.5 - 2%/year in the context of world interest rates continuing to increase and remain at high levels. At the same time, the State Bank also directed and organized meetings with commercial banks to request credit institutions to reduce costs to reduce lending interest rates to support the recovery and development of production and business. Interest rates have tended to decrease; deposit and new lending interest rates of commercial banks have decreased by more than 2%/year compared to the end of 2022. It is expected that lending interest rates will continue to decrease in the coming time. Regarding credit growth, the target for 2023 is about 14 - 15%. However, credit growth of the whole system is still lower than the target set at the beginning of the year and the level allocated by the State Bank (14.5%). Credit growth is uneven, some credit institutions have quite high growth, but some have low growth, even negative growth. By the end of November, credit to the economy reached about 13 million billion VND, an increase of 9.15% compared to the end of 2022, lower than the same period of previous years. The reason for low credit growth, according to the State Bank, is mainly due to objective factors. Specifically, investment, production, business, and consumption have decreased, leading to a corresponding decrease in credit demand from people and businesses. Some customer groups have needs but have not met the loan conditions, especially small and medium enterprises... Difficulties from the real estate market affect the credit absorption capacity of this group, while real estate credit accounts for about 21% of total credit. In addition, there are also subjective reasons such as lending interest rates at some commercial banks are still quite high. Some banks are not bold enough to grant credit, and are still cautious, fearing that bad debt will increase. The State Bank also affirmed that banks do not have to ask for credit room, and will proactively allocate credit limits in the most reasonable way based on many factors...
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