Want to be in the loop?
subscribe to
our notification
Business News
BANKING SECTOR KICK-STARTS ACTIONS TO SUPPORT BUSINESSES
SBV Governor Le Minh Hung made the statement as part of Decision No 1355/QD-NHNN, dated Tuesday, while issuing a directive to kick-start an action plan to support the domestic business environment and national competitiveness with a vision towards 2020.
The decision said banking services must be improved in terms of availability and transparency, so that enterprises and individuals from every economic sector have equal access to bank loans.
Procedures must be simplified and costs must be cut for transactions between credit institutions and their customers, it said.
To enhance national credit ratings, Hung said the SBV would operate monetary policies flexibly in tight conjunction with fiscal and other macro-economic policies.
This will help control inflation, stabilise the economy and ensure the operational security of credit institutions, besides supporting national foreign reserves and facilitating production and business activities.
The central bank will also closely monitor developments in the gold and foreign exchange markets and intensify co-ordination with the relevant agencies to guarantee financial stability.
For improved availability of banking services, Hung said the banking sector would continue to complete the legal framework for payment activities, upgrade the infrastructure and technology and enhance the efficiency of inter-bank payment networks.
Banking authorities will create regulations for commercial banks to provide derivatives, reducing the risk for enterprises using the banks' products.
They will encourage more co-operation with international financial organisations to help low-income individuals and small and medium-sized enterprises (SMEs) acquire loans more easily.
Local credit institutions must strengthen their financial capacity and renew their management methods to meet Basel II, a set of international banking regulations set forth by the Basel Committee on Banking Supervision.
Banking authorities are expected to promptly design a plan for the continuing re-organisation of credit institutions between now and 2020 to create a future banking system with multiple functions, secure operations and sustained efficiency.
They were also urged to build schemes to develop a system of credit funds and complete a legal framework for the development of micro-finance institutions.
They must work to gradually form a market for debt trading, helping maintain national bad debt ratios at below 3 per cent of the overall outstanding loans.
Hung asked credit institutions to continue to extend loans in prioritised areas, including agriculture and rural development, exports, support industries and SMEs, as well as start-ups and hi-tech businesses.
Programmes connecting banks and businesses and measures supporting struggling firms are to be promoted, he said.
Source: VIR
Related News
2025 PIVOTAL FOR STOCK MARKET UPGRADE EFFORT
The Ministry of Finance (MoF) is expected to soon publish the entire content of the draft circular amending and supplementing four circulars on transactions, registration, depository, and clearing, as well as operations of securities companies and information disclosure. This move, along with feedback and explanations, aims to meet the criteria for upgrading Vietnam’s stock market.
VIETNAM INTENSIFIES E-COMMERCE TAX SCRUTINY
The department plans to offer guidance for and hold direct dialogues with e-commerce taxpayers to ensure compliance. Efforts will also include updating the e-commerce database, conducting risk analysis, and leveraging artificial intelligence (AI) to manage data and issue alerts.
FOOTWEAR EXPORTS SEEN REACHING US$27 BILLION THIS YEAR
This optimistic forecast reflects the industry’s efforts to expand and diversify its markets. Lefaso indicated that Vietnam’s footwear sector will concentrate on traditional markets like the U.S. and the European Union, alongside markets with free trade agreements to maximize opportunities.
FDI INFLOW INTO VIETNAM REACHES NEARLY 15.2 BILLION USD
Vietnam attracted nearly 15.2 billion USD in foreign direct investment (FDI) in the first six months of this year, a year-on-year increase of 13.1 per cent, according to the General Statistics Office.
GDP GROWTH REACHES 6.42 PC IN FIRST HALF
Vietnam's economy grew by 6.42 pc in the first six months of 2024, slightly lower than the figure of 6.58 pc in the same time of 2022 within the 2020-2024 period.
CAPITAL FLOWS STRONGLY INTO INDUSTRIAL REAL ESTATE
Industrial real estate has had easier access to bank credit since July, when the State Bank of Vietnam (SBV) reduced the credit risk coefficient for industrial real estate from 200 per cent to 160 per cent, encouraging commercial banks to lend to more projects in the segment.