Trang Chủ
*Before starting the press conference, Standing Deputy Governor Dao Minh Tu. along with other participants, took a minute of silence to commemorate Party General Secretary Nguyen Phu Trong.
Panoramic view of the press conference
Despite difficulties, credit to the economy grew 6% compared to the end of 2023
At the press conference, Standing Deputy Governor Dao Minh Tu informed that, in the first 6 months, Vietnam's economy witnessed a positive recovery, with stable inflation but continued to face many challenges due to the impacts of the global economy and some internal economic problems.
The SBV was proactively monitoring global and domestic economic developments to synchronously implement solutions in order to create favorable conditions for businesses and residents to promptly access bank credit for reviving their production and business activities, increase the economy's capital absorption capacity, thereby contributing to promoting credit growth together with stabilizing macroeconomic conditions, curbing inflation and ensuring the prudent activities of the system of credit institutions (CIs).
Standing Deputy Governor Dao Minh Tu shares information on banking activities in the first half of 2024
Specifically, the conduct of foreign monetary policy contributes to stabilizing macroeconomic conditions and inflation, supporting the CIs’ liquidity, and keeping the exchange market stable.
Regarding the management of interest rates, the SBV continues to maintain the its policy interest rates to help CIs access capital from the SBV at low costs and to support the economy. At the same time, the SBV directed CIs to continue lowering costs in order to reduce lending interest rates. The SBV also requires CIs to publicize on their websites average lending interest rates, spreads between average deposit interest rates and average lending interest rates, as well as information on lending interest rates for credit packages, programs, and products, thereby providing more information customers could refer to when applying for loans.
Exchange rate management was implemented flexibly, in line with domestic and foreign situations, contributing to absorbing external shocks, stabilizing the foreign exchange market and the domestic currency's value, limiting major short-term fluctuations of the exchange rate. Therefore, liquidity in the foreign exchange market was smooth; legal foreign currency demands were fully met.
In addition, the SBV also performed many solutions, policies, and credit programs synchronously and drastically to ensure sufficient capital supply for the economy, increase access to formal credit sources, and protect the legal rights and interests of people and businesses when borrowing capital, thus contributing to economic growth.
As of June 28, credit for the economy increased by 6% compared to the end of 2023, focusing on economic growth drivers and meeting new trends such as green credit. Credit institutions actively implemented credit programs such as a loan program of VND 120,000 billion for social housing, workers' housing, apartment renovation and reconstruction projects; a credit program for the forestry and fisheries sector; social policy credits; national target programs, etc.
Regarding the management of gold business activities, thanks to the Government's attention and direction, the SBV's synchronous solutions, and the coordination of relevant ministries and departments, the price gap between the domestic SJC gold bars and the world gold bars decreased significantly. The selling price of SJC gold bars on the domestic market dropped sharply, with the international-domestic price gap of over VND 5 million/tael. The initial basic goal of controlling the price difference between SJC gold bars and world gold bars within a suitable range was achieved.
In the first half of 2024, the stability and safety of the system of CIs continued to be maintained, and the legal rights of depositors were guaranteed. Due to the negative impacts of the COVID-19 pandemic, the economy in general and production and business activities in particular face many difficulties, affecting the debt repayment of the companies. Bad debts concentrated to increase; on-balance sheet bad debts reached nearly 5%; potential bad debts, on-balance sheet debts, and debts already sold to Vietnam Assets Management Company (VAMC) were at about 6.9%. The SBV said that it will focus on handling and taking measures to improve credit quality and keep bad debt at a safe level.
In addition, the SBV continued to supplement, revise the legal framework, mechanisms, and policies for non-cash payment activities, promote digital banking activities, apply new technology, and ensure security and safety in payment activities. The banking industry also promotes communication and financial education to improve the public's knowledge and skills in using internet banking services. Thanks to that, non-cash payment activities and digital transformation in the banking sector continued to achieve positive results.
Regarding the legal framework, Deputy Governor Dao Minh Tu said that the legal basis for monetary and banking activities continued to be improved in line with actual situations as well as with international trends, standards, and practices, ensuring the safe operation of the banking system. On January 18, 2024, the Law on Credit Institutions No. 32/2024/QH15, effective from July 1, 2024 was passed by the 15th National Assembly. The SBV has been drafting amendments and supplements to the documents guiding the implementation of the 2024 Law on Credit Institutions to submit to relevant authorities. This ensures these guiding documents are consistent with the provisions of the Law on Credit Institutions 2024.
Orientation for monetary policy management in the coming time
Based on the results achieved in the first half of the year, along with forecasts on the global and domestic economy in the time to come, Deputy Governor Dao Minh Tu said that in the remaining months, the SBV will continue to manage interest rates appropriately in accordance with macroeconomic balances, inflation, and monetary policy goals. Four main groups of tasks need to be implemented, namely:
First, managing interest rates appropriately in accordance with macroeconomic balances, inflation goals, and monetary policy; continuing to direct CIs to reduce costs to lower lending interest rates; Managing the exchange rate flexibly to stabilize the foreign exchange market, contributing to macroeconomic stability and inflation control.
Second, ensure credit growth with its proper amount and structure, meeting the capital needs of the economy to contribute to curbing inflation and supporting economic growth; Continuing to review and improve the legal framework to create favorable conditions for accessing bank loans; Continuing to promote specialized credit programs and policies; removing difficulties for businesses and people while strictly controlling credit for potentially risky fields…
Third, drastic and effectively implementing the Scheme on "Restructuring the system of CIs associated with the settlement of bad debts in the 2021-2025 period" to contribute to the development of a system of healthy, high-quality, efficient, open, and transparent CIs in accordance with the law, which can approach and meet international standards and practices; Stepping up the settlement of bad debts, improving credit quality, and minimizing newly arising bad debts.
Fourth, effectively implementing the Banking Industry Digital Transformation Plan until 2025, with orientations to 2030; Scheme to develop non-cash payments in Vietnam for the 2021-2025 period; Strategy for developing information technology in the banking industry until 2025, with orientations to 2030; Continuing to research and enhance the legal framework for payment activities, creating a legal basis for developing new payment models and services; Continue to coordinate with the Ministry of Public Security to implement Project 06; enhancing the security and safety of the banking system.
Also, at the press conference, Deputy Governor Dao Minh Tu and representatives of several Departments and Agencies of the SBV answered questions from the press related to monetary policy and banking operations in the coming time .
Department of Research and International Cooperation (translation)
