Prime Minister Pham Minh Chinh opens the Government Standing Committee's working session with commercial banks. (Photo: Duong Giang/VNA)
Chairing the Government Standing Committee's meeting to work with commercial banks to accelerate, break through, promote growth and control inflation, held on the morning of February 11, Prime Minister Pham Minh Chinh requested the banking sector to carry out 8 tasks and solutions to develop the country together.
Striving to achieve 16% credit growth in 2025
According to the State Bank of Vietnam, in 2024, the banking sector strictly implemented the instructions and operations; made efforts to overcome difficulties, closely followed the developments of the situation, proactively operated monetary policy tools and solutions and achieved the set goals, contributing to the whole country completing and surpassing 15/15 socio-economic development targets.
In 2024, the banking system's lending interest rate will decrease by 1.24% compared to the end of 2023. The foreign exchange market and exchange rate are stable.
The liquidity of the credit institution system is abundant, meeting the capital needs of the economy. Credit growth reached 15.08% and achieved the set target, adding 2.2 million billion VND to the economy.
Credit programs and policies have been implemented vigorously; solutions to remove difficulties for customers, especially after storm No. 3, have been strongly implemented in the spirit of companionship between the banking sector and people and businesses.
Prime Minister Pham Minh Chinh opens the Government Standing Committee's working session with commercial banks. (Photo: Duong Giang/VNA)
The implementation of the Project on restructuring the system of credit institutions associated with handling bad debts continues to be vigorously implemented; the compulsory transfer of 4 weak banks is completed. Bad debts are focused on handling and controlled to be lower than the set target of 3%.
In 2025, the State Bank will continue to operate monetary policy proactively, flexibly, promptly, effectively, in synchronous, harmonious, and close coordination with fiscal policy and other macroeconomic policies to contribute to supporting economic growth, stabilizing the macro economy, controlling inflation; striving to achieve the expected system-wide credit growth of 16%.
At the same time, proactively review to amend and supplement to perfect legal documents related to banking activities; continue to implement solutions to remove difficulties for people and businesses after storm No. 3; focus on credit in the following sectors and fields: agriculture, rural areas; electricity, energy; real estate; infrastructure projects, especially large-scale infrastructure; promote the implementation of the Bank-Enterprise Connection Program; resolutely implement tasks and solutions in the Project on Restructuring the System of Credit Institutions.
At the conference, bank leaders pledged to contribute to the country's socio-economic development; promote green credit; and provide credit for major national programs, especially infrastructure projects.
Among them, Mr. Nguyen Thanh Tung, Chairman of the Board of Directors of the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank), said that recently Vietcombank has participated in many large projects, in the fields of production and business of seaport infrastructure projects.
In 2025 and the coming time, Vietcombank will continue to prioritize these projects, especially green and sustainable development projects; as well as programs and projects of corporations, state-owned enterprises, individuals, customers, and business households to create jobs and contribute to socio-economic development. Vietcombank will maintain the lowest lending interest rate in the market, improve credit granting processes, and shorten customer service time.
Leaders of commercial banks also proposed solutions for the banking system to develop more smoothly, participate more effectively in renewing traditional growth drivers, promoting new growth drivers; and best serve the needs of people and businesses as requested by the Prime Minister.
Among them, supporting banks to control bad debt, increase credit limits, stabilize interest rates, and flexibly manage exchange rates.
Mr. Pham Toan Vuong, General Director of Agribank, proposed to amend some regulations to remove difficulties and obstacles so that Agribank can soon carry out equitization; have appropriate mechanisms and regulations on handling bad debts and collateral of bad debts, support credit institutions with legal basis to thoroughly handle bad debts; promote banks to participate in effectively implementing the program of 1 million hectares of high-quality and low-emission rice cultivation in the Mekong Delta; and the project to develop 1 million social housing apartments.
Prime Minister Pham Minh Chinh with leaders of commercial banks. (Photo: Duong Giang/VNA)
Ms. Nguyen Thi Phuong Thao - Founder, Permanent Vice President of HDBank said that after meeting with President Donald Trump, HDBank and its partners are currently coordinating to implement contracts worth 48 billion USD with large US corporations, creating nearly 500 thousand jobs, and are negotiating to increase the transaction value to 64 billion USD; recommending the Government and the State Bank to promote capital market development, reduce pressure on bank credit, support long-term growth; stabilize interest rates, support credit for priority programs; and flexibly manage exchange rates to promote exports.
Representatives of VIB International Bank proposed that the Government, ministries and branches issue a list of green credit projects for banks to participate in; amend regulations, allowing banks to seize and handle collateral assets, reduce risks for banks, and increase credit for the economy.
After the leaders of ministries and branches spoke to answer the proposals and recommendations of the banks, concluding the conference, Prime Minister Pham Minh Chinh acknowledged the enthusiastic, responsible and quality opinions of the delegates; requested the Government Office and relevant ministries and branches to synthesize, issue announcements and propose solutions with the motto of "clear people, clear work, clear responsibilities, clear time, clear products," "do not say no, do not say difficult, do not say yes but do not do," "have done, have implemented must have specific products."
The Prime Minister expressed his gratitude for the contributions of commercial banks in national construction and development, especially in ensuring social security, preventing COVID-19, overcoming the consequences of natural disasters, responding to the movement to eliminate temporary and dilapidated houses nationwide in 2025, and implementing a number of credit packages related to agriculture and social housing.
The Prime Minister assessed that in 2024, the banking sector, including commercial banks, made important contributions to maintaining macroeconomic stability, controlling inflation, promoting growth, ensuring major balances and controlling the country's deficit, government debt, public debt, and foreign debt within limits; sharing with people and businesses, reducing their own profits to reduce lending interest rates; participating in the compulsory transfer of a number of banks; controlling bad debt better than in previous years; participating in BOT projects, major projects of the Government and businesses.
Implement 8 solutions to develop the country together
Expressing his wishes for some issues that banks need to improve, as well as lessons learned in the development process, especially related to the banking system, the Prime Minister said that 2025 is an important year.
Among them, it is necessary to continue to stabilize the macro economy, control inflation, ensure major balances, and especially achieve a growth rate of 8% or more. Therefore, the banking system must take the lead in implementing these tasks.
Prime Minister Pham Minh Chinh with representatives of commercial banks. (Photo: Duong Giang/VNA)
The Prime Minister requested the banking sector to carry out 8 tasks and solutions to develop together with the whole country, including reducing costs, reorganizing operations to be more effective, and especially sacrificing part of profits to reduce lending interest rates, support the economy, people, businesses, and create livelihoods for the people.
Banks must focus on credit, contributing to renewing growth drivers such as investment, consumption, export and promoting new growth drivers; having consumer credit packages, credit for key industries to solve many jobs, shift the economic structure; incentives for priority industries, fields, and subjects; credit for BOT projects, public-private partnerships; credit to remove difficulties for real estate projects.
The State Bank and commercial banks must be pioneers in digital transformation, application of science and technology, innovation; build databases, implement Project 06; implement Resolution 57 of the Politburo on breakthroughs in science and technology development, innovation, digital transformation; pilot the implementation and management of virtual banks; promote the reduction of administrative procedures, inconvenience, harassment, negative manifestations, fight corruption, waste in banking activities, reduce bad debts, create favorable conditions for people and businesses.
The banking system must implement smart governance, build smart banks, improve the capacity and fighting spirit of bankers for the common goal of building the country, contributing to sharing difficulties with people and businesses, while strengthening cooperation, sharing and learning international experiences; participating more actively and effectively in implementing 3 strategic breakthroughs in institutions, infrastructure, and human resources, contributing to the development of laws, focusing on mobilizing resources to develop strategic infrastructure, and training human resources for the country in the new era of development.
The State Bank and commercial banks will study and continue to have preferential credit packages for both supply and demand to develop social housing, housing for young people, and housing for the disadvantaged; actively contribute to eliminating temporary and dilapidated houses nationwide; closely and effectively coordinate with state management agencies and agencies in the political system in the spirit of common development, a healthy development of the banking system, solidarity, unity, and good performance of the political tasks of the agencies and the tasks of the banking system.
Emphasizing that banks must operate profitably, but in addition to profit, they must bring common benefits to the country, because “when the water rises, the duckweed floats,” the Prime Minister requested to remove difficulties and obstacles for backlogged and prolonged projects that cause waste of private enterprises and support small and medium-sized enterprises because these enterprises account for a very large proportion and create many jobs.
Representatives of commercial banks attending the conference. (Photo: Duong Giang/VNA)
Noting that banks operate in accordance with the law, contributing to the prevention and fight against corruption, negativity and harassment, Prime Minister Pham Minh Chinh emphasized that the recent violations related to bonds are partly the responsibility of banks. This requires reviewing and correcting business ethics, eliminating bad elements from the banking system, and not pushing customers into difficult situations or taking advantage of customers. The banking inspection agency also needs to operate more effectively.
The Prime Minister requested to continue to operate monetary policy proactively, flexibly, promptly and effectively, as a fulcrum for people, businesses and the country's development; assigned Deputy Prime Minister Ho Duc Phoc to directly direct, the Governor of the State Bank to urgently develop documents, submit to the National Assembly in the upcoming May session to legalize Resolution No. 42/2017/QH14 of the National Assembly on piloting bad debt settlement of credit institutions; at the same time amend regulations related to increasing capital for state-owned commercial banks to ensure healthy competition with joint-stock commercial banks.
Instructing research agencies to coordinate with banks on debt extension, debt forgiveness, and debt restructuring appropriately, the Prime Minister pointed out that banking activities must be very flexible, based on specific situations. If the situation is special, there must be special responses, promoting culture, business ethics, mutual trust, national sentiment, and compatriotism in difficult times to overcome together in the spirit of harmonious interests, shared risks, and sometimes sacrifices, contributing to gratitude to previous generations, those who fought and sacrificed for the country and the people./.
(Vietnam+)
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