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In recent months, the State Bank of Vietnam (BEV) and credit institutions have increased their efforts, implementing various monetary and banking measures to accelerate credit growth. However, in a global context marked by fluctuations, persistent military conflicts and a still timid economic recovery, individuals and businesses must face many challenges, including the heavy losses caused
| Bank credit at advantageous rates makes it possible to support exporting companies. |
| Photo : VNA/CVN |
Guarantee major economic balances
Prime Minister Pham Minh Chinh signed official dispatch No. 122 addressed to BEV Governor Nguyen Thi Hong on November 27, urging to strengthen solutions to manage credit in 2024. In order to stimulate economic growth and achieve the main objectives of the annual socio-economic development plan, he asked the BEV to closely monitor developments in the international and regional situation, as well as adjustments to financial and monetary policy of the world's major economies, in order to act with responsiveness and efficiency.
The Central Bank will also need to put in place more ambitious and effective measures regarding the management of interest rates, exchange rates and credit growth. It is called upon to support residents and businesses to overcome the consequences of Typhoon Yagi, revive production, and guarantee major economic balances, as well as the security of banking operations and the credit system. As of November 22, the credit of the national banking system grew by 11.12% compared to the end of 2023. The target set is to achieve credit growth of 15% this year.
The head of government also insisted that credit institutions concentrate their efforts on key sectors such as digital transformation, ecological transition, the fight against climate change, the circular and collaborative economy, scientific and technological innovation. . He also encouraged the promotion of loans to support the production and commercial activities of enterprises, particularly at the end of the year and in the run-up to the 2025 Lunar New Year.
Support for import-export businesses
| Banks are expected to strengthen lending to support production and business activities of enterprises during the Lunar New Year 2025. |
| Photo : VNA/CVN |
“Bank credit at advantageous rates has made it possible to support companies in key sectors driving economic growth”, said Nguyên Duc Lênh, deputy director of the BEV branch in Ho Chi Minh City. He specified that exports were one of the five priority sectors benefiting from a preferential short-term credit program, with an interest rate capped at 4% per year. This support promotes the development of production and trade activities, thus contributing to economic dynamism.
In Ho Chi Minh City, according to Nguyên Duc Lênh, the total outstanding loans granted in Dong to exporting companies amounts to more than 105.3 billion (4.2 billion USD), or 6.21% of the total loans to the five priority sectors (small and medium enterprises, export, agriculture and rural areas, subcontracting industries and high-tech companies). Furthermore, the exchange rate and interest rate management tools, associated with a flexible exchange policy, have not only made it possible to stabilize the national currency and contain inflation, but also to ensure the stability of the securities market. changes. This stability, essential for businesses, has particularly benefited those operating in import-export, promoting their growth and development, he added.
Despite these advances, many companies have expressed concerns. While the current low interest rate environment provides important support for accessing affordable financing, some import-export companies report not yet having benefited from preferential loans. They are asking the banking sector for specific guidelines to enable them to obtain credits with rates of between 3 and 4% per year.
According to the Vietnam Banks Association, the slow growth in credit at the start of the year is explained by the difficulties encountered in the manufacturing and services sectors, traditional engines of the economy, as well as by a still incomplete recovery of the real estate credit. To achieve the target of 15% credit growth this year, the banking system will have to redouble its efforts to provide the necessary capital while controlling risks. Growth momentum is expected to come from the production, export and public investment disbursement sectors.
The Linh/CVN
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