Credit growth recovers On the afternoon of August 5, Prime Minister Pham Minh Chinh worked with leaders of the State Bank of Vietnam (SBV) and leaders of a number of ministries and branches on monetary policy management. According to the SBV's report, in the first 7 months of this year, solutions to facilitate businesses and people's access to credit have been implemented synchronously. As a result, production and business have recovered, increased capital absorption capacity, promoted growth associated with macroeconomic stability, controlled inflation, and ensured the safety of the credit institution system. As of July 31, the central exchange rate was at 24,255 VND/USD, up 1.63% compared to the end of 2023, a low and stable average compared to currencies in the region and around the world. Interest rates for new and old loans continued to decrease. By the end of June, the average lending interest rate was 8.3%/year, down 0.96% compared to the end of 2023; the average deposit interest rate was 3.59%/year, down 1.08%/year compared to the end of 2023.

Credit growth of the whole system recovered from the end of March and gradually increased over the months, higher than the growth rate in the same period in 2023, reaching 6% by the end of the second quarter according to the direction of the Government and the Prime Minister. At the end of July, outstanding credit was nearly 14.33 million billion VND, up 14.99% over the same period in 2023 and up 5.66% over the end of last year. Deposits in banks reached about 15 million billion VND . In his concluding remarks, Prime Minister Pham Minh Chinh emphasized that monetary policy plays a very important role, banking activities are the lifeblood of the economy; good monetary policy management will create favorable conditions and foundations for the development of the country in general and economic sectors in particular. According to the Prime Minister, monetary policy management and the operation of the banking system still face difficulties when inflationary pressure is still high and interest rates tend to increase. In addition, credit growth has not met requirements, demand for loans increased at the end of the year, demand for foreign currency increased, risks from geopolitical tensions in the world... Along with that, deposits in banks currently reach over 15 million billion VND, this amount has been put into the economy by the banking system through credit granting, the Prime Minister noted the need to continue to promote credit, direct capital flows into production and business sectors, and continue to use this resource more and more effectively.

The Prime Minister stated that in that context, it is necessary to be extremely calm, confident, and maintain a strong will, "not arrogant when winning, not discouraged when losing". Government leaders require management without jerkiness, synchronous coordination between policies; messages and policies must be clear, decisive, and consistent with reality; and what is said must be done, what is committed must be implemented... The focused solutions are to closely combine monetary policy with other policies to promote growth, control inflation, stabilize the macro-economy, and ensure monetary security. In particular, with monetary policy, it is necessary to operate proactively, flexibly, promptly, and effectively; coordinate synchronously, harmoniously, and closely with other policies. Manage credit growth at about 15%, focusing on traditional growth drivers and new growth drivers. Manage exchange rates flexibly using various tools. Continue to direct and mobilize banks to reduce costs, reduce lending rates for growth drivers and infrastructure projects. At the same time, the Prime Minister requested flexible, harmonious, reasonable and balanced management between interest rates and exchange rates. Credit management must be in line with macroeconomic developments and inflation, meeting capital needs for the economy. Credit growth targets must be withdrawn from unused credit institutions and supplemented for credit institutions with growth potential. At the same time, the Government leader requested strengthening management and control of the gold and foreign currency markets in a fundamental and methodical manner. Accelerating the handling of bad debts, handling weak credit institutions, and restructuring specially controlled commercial banks.

Dantri.com.vn

Source: https://dantri.com.vn/kinh-doanh/nguoi-dan-gui-ngan-hang-15-trieu-ty-dong-can-dua-vao-san-xuat-kinh-doanh-20240806120759695.htm