Want to be in the loop?
subscribe to
our notification
Business News
CENTRAL BANK TO ADJUST MONETARY POLICIES TO WEATHER PANDEMIC
The State Bank of Việt Nam (SBV) announced it could adjust monetary policies, including credit growth and incentives, in the remaining months of the year to cope with the COVID-19 pandemic.
Under a recent directive, SBV Governor Lê Minh Hưng said the COVID-19 outbreak would continue to be unpredictable, which could push the global economy into a deeper recession and have a heavy impact on the Vietnamese economy due to its deep economic integration.
Under the difficulties, Hưng requested the banking industry follow domestic and foreign economic developments to forecast and propose effective solutions in order to ensure market liquidity, control inflation and further cut interest rates.
Banks need to target lending for production and business, especially sectors and fields prioritised by the Government, such as agriculture businesses, firms producing goods for export, small- and medium-sized enterprises, start-ups, enterprises operating in auxiliary industries and hi-tech enterprises, while continuing to strictly control credit for potentially risky sectors such as real estate, securities, as well as Build-Operate-Transfer (BOT) and Build-Transfer (BT) projects in transport.
He also asked the SBV’s Credit Department to consider adjusting 2020 credit growth targets for banks that have met the SBV’s requirements.
The SBV allocated the credit growth limit for all credit institutions at 10.1 per cent, lower than the 13 per cent set earlier in the year due to the impact of the COVID-19 pandemic. However, some commercial banks have also asked the central banks to expand their credit growth.
According to experts, though banks’ income from services has improved in recent years, 70-90 per cent of banks’ profits still come from credit activities, so it is understandable that banks expected the SBV to extend the credit threshold.
Experts agreed with the banks’ proposal to extend credit growth. Banking expert Nguyễn Trí Hiếu said he supported the proposal as it would help maintain economic growth, especially in times when many economies, including Việt Nam, were at risk of slowing down.
Under the directive, the Governor required bank authorities to coordinate with relevant ministries and agencies in implementing procedures to use State capital to increase charter capital for State-owned Agribank.
The authorities would also consider procedures to increase charter capital for other State-owned banks, including VietinBank and Vietcombank, through the payment of dividends in shares.
Hưng said the central bank would closely monitor developments of the foreign currency market to proactively manage the exchange rate flexibly and appropriately.
The SBV would intervene in the exchange rate when necessary to stabilise the foreign exchange market, contributing to the country’s macroeconomic stability, Hưng noted.
It would also closely follow the fluctuations of global and domestic gold prices, not to have it affect macroeconomic stability.
Source: VNS
Related News
VIETNAM EYES 8% GDP GROWTH IN 2025
The State Bank of Vietnam (SBV) has been tasked with closely monitoring global and regional economic developments and adjusting monetary policies to align with shifts in major economies. The directive emphasizes reducing lending rates, managing deposit rates at commercial banks, and ensuring credit flows remain uninterrupted in early 2025.
GOVERNMENT MEMBER FOR 2021-2026 TERM
The 2021-2026 government term was recently consolidated after the 8th session of the 15th National Assembly. It consists of 27 members, including the Prime Minister, five Deputy Prime Ministers, and 21 ministers and heads of ministerial-level agencies.
EXCLUSIVE OFFER FOR HKBAV MEMBERS
Minimum order: 1 box (10 gift boxes per box; 6 gift bags per box)Free shipping on orders over 2 million VND (nationwide delivery across Vietnam)Volume discounts available for large orders
TOTAL FDI REGISTERED IN VIETNAM HITS 31.4 BILLION USD IN JANUARY-NOVEMBER
As of November 30, 2024, the total newly registered capital, adjusted capital, and capital contributions or share purchases by foreign investors in Vietnam reached nearly 31.4 billion USD, up 1% increase compared to the same period last year.
QUANG TRI TARGETS 6,000 MW WIND POWER CAPACITY BOOST
The central province of Quang Tri is seeking the Government’s approval to expand its wind power capacity by an additional 1,500-2,000 MW for onshore projects and 2,600-4,000 MW for offshore projects, according to the Vietnam News Agency.
CONFERENCE EXAMINES PROSPECTS FOR DIFFERENT INVESTMENT CHANNELS IN 2025
Experts shed light on the factors shaping different investment channels in 2025, from real estate to stocks and cryptocurrency, at the second panel discussion at VIR's conference "Investing 2025: Decoding Variables - Embracing Opportunities" on December 12.