Trang Chủ
On behalf of the Deposit Insurance of Vietnam (DIV), Mr. Le Hung Cuong, Deputy General Director, attended the press conference.
Highlights in monetary policy management and banking activities
According to the SBV, despite facing numerous difficulties and challenges due to the unstable recovery of the global economy, Vietnam’s economy growth remained positive, and inflation was controlled in line with set targets.
The SBV’s conduct of monetary policy contributed to stabilizing macroeconomic conditions, curbing inflation, supporting liquidity for CIs, and maintaining stability in the monetary and foreign exchange markets.
Regarding interest rates, the SBV continued to keep its policy interest rates unchanged amidst high international interest rates, facilitating CIs’ access to low-cost funding from the SBV, thereby enabling them to support the economy. Additionally, CIs were directed to reduce operating costs to lower lending rates and were required to report and publicly disclose average lending rates and interest rate spreads on their websites.
The SBV also managed the exchange rate flexibly and appropriately to absorb external shocks while coordinating various monetary policy tools. As a result, the foreign exchange market remained stable with sufficient liquidity to meet foreign exchange demands; the exchange rate fluctuated flexibly, aligning with market conditions.
To facilitate CIs’ provision of credit capital to the economy, on December 31, 2023, the SBV allocated all annual credit growth targets for 2024 to CIs and publicly announced principles for the allocation so that CIs could proactively execute their credit provision plans. In 2024, following the directions of the Government and the Prime Minister regarding flexible, effective, and timely credit growth management, the SBV proactively adjusted credit growth targets for CIs twice – on August 28, 2024, and November 28, 2024 – based on specific principles, ensuring transparency while keeping inflation well under control. This ensured timely capital supply for the economy, and supported production and business activities. Besides, the SBV continued to follow the National Assembly and Government’s instructions to consider the gradually removal of credit growth targets assigned to CIs.
Furthermore, the SBV required CIs to strictly comply with instructions and regulations on monetary and credit activities, ensure systemic safety, monetary market stability, and safe and sound credit growth, reduce non-performing loans (NPLs), etc. Credit growth was directed towards production, priority sectors, and economic growth drivers according to the guidance of the Government and the Prime Minister, while maintaining strict control over high-risk sectors. Efforts were also made to stabilize deposit interest rates and further bring down lending rates through cost reduction, administrative procedure simplification, information technology application and digital transformation. With the SBV’s comprehensive solutions, as of December 31, 2024, total credit for the economy increased by approximately 15.08% compared to the end of 2023, with a focus on production, business, and priority sectors.
In addition, the SBV continued directing CIs to implement various lending programs, including the VND 145 trillion lending program (initially worth VND 120 trillion) for social housing, worker housing, and old apartment renovation projects and credit programs for forestry and fisheries etc. Notably, the baking sector also promptly took measures to support those clients affected by Typhoon No.3.
Regarding the management of gold trading activities, under the Government’s close guidance, thanks to coordinated efforts of the SBV and relevant ministries, the initial objective of handling and controlling the price gap between SJC gold bars and international gold within a reasonable range was met.
The stability and safety of the CI system were maintained while ensuring the legitimate rights of depositors. NPLs were handled and controlled amidst challenging economic conditions affecting businesses’ debt repayment capacity.
The legal framework, mechanisms, and policies for non-cash payment and digital banking activities continued to be supplemented and refined to create synchronization and favorable conditions for the development of non-cash payment, digital banking operations, the new technology adoption, and to ensure security and safety in payment activities. Besides, the banking sector promoted communication and financial education to enhance public knowledge and skills of using online banking services. As a result, non-cash payment activities and banking digital transformation showed positive outcomes. During the first 11 months of 2024, against the same period in 2023, non-cash payment transactions rose by 56.86% in volume and 33.73% in value; online transactions went up by 50.67% in volume and 33% in value; mobile transactions grew by 54.51% in volume and 34.34% in value; QR Code transactions surged by 106.68% in volume and 84.77% in value; transactions via the Interbank electronic payment system up by 6.82% in volume and 33.09% in value, while those via the Financial switching and electronic clearing system increased by 30.73% in volume and 15.92% in value.
The legal basis for currency and banking operations continued to be improved, ensuring the banking system operated safely and met practical requirements in line with international trends and standards. The SBV has been drafting amendments and supplements to guiding documents for the implementation of the 2024 Law on CIs to submit to relevant authorities.
Directions for monetary policy management and banking activities in 2025
Standing Deputy Governor Dao Minh Tu affirmed that in the coming time, the SBV would closely monitor market dynamics as well as domestic and international economic conditions to flexibly use monetary policy tools and measures to control inflation, contribute to macroeconomic stability, stabilize the monetary and foreign exchange markets, and control credit growth rates according to set orientations, specifically:
Managing interest rates in line with market movements, macroeconomic conditions, inflation, and monetary policy objectives. Closely monitoring market trends to flexibly manage the exchange rate, coordinating monetary policy tools to curb inflation and stabilize the macroeconomic conditions.
Implementing appropriate credit management in line with macroeconomic conditions, inflation, and capital needs of the economy; assigning credit growth targets for 2025 to CIs right at the beginning of the year and publicly disclosing principles for the assignment so CIs can proactively implement credit growth plans. On December 30, 2024, the SBV sent an official document to CIs, publicly and transparently disclosing principles for assigning 2025 credit growth targets. These targets are based on the CIs rating scores of 2023, determined under Circular No. 52/2018/TT-NHNN (amended and supplemented), multiplied by a coefficient applied for all banks. Accordingly, the SBV forecasts the entire system’s credit growth in 2025 to be around 16%.
Directing CIs to ensure the safe and efficient credit growth, focusing on production and business activities, as well as priority areas aligned with the Government’s policy, while strictly controlling credit in potentially risky sectors. The SBV will also create favorable conditions for people and businesses to access banks’ credit while continuing to implement targeted credit programs for certain industries and sectors in accordance with the directions of the Government and the Prime Minister.
Promptly and effectively implementing the Scheme on “Restructuring the CI system together with resolving NPLs for the 2021-2025 period”, contributing to the development of a sound, efficient, and transparent CI system in accordance with legal regulations and international standards. The SBV will ram up the handling of NPLs, improve credit quality, and minimize new NPLs.
Focusing on the implementation of Decree No. 52/2024/ND-CP on non-cash payment activities; Circulars providing detailed guidance for the implementation of the Law on CIs, Decree No. 52; Continuing to effectively implement the Implementation Plan for the Scheme on non-cash payment development for the period 2021 – 2025 and the Digital transformation plan of the banking sector; Enhancing the security, safety, and confidentiality in payment and banking activities. The SBV will also direct service providers to actively implement safe and secure solutions in online payments, bank card payments to protect the legitimate rights and interests of customers; at the same time, promote communication and financial education to enhance public knowledge and skills of using financial and banking products and services, etc.
(Research and International Cooperation Department – translation)
