The Government has approved a plan to further modernise the country's banking system, restructure weak credit institutions and improve access to financing for businesses, particularly small and medium-sized enterprises (SMEs).
Deputy Prime Minister Nguyen Van Thang signed a Prime Ministerial Decision on September 18 approving the project, titled “Continuing to Modernise the Banking System, Restructuring Weak Credit Institutions and Strengthening Access to Capital for Businesses, Especially SMEs.”
A key component of the plan is reforming the framework for monetary policy management. The Government calls for greater independence for the State Bank of Vietnam (SBV) in conducting monetary policy, with a gradual shift from quantity-based management to predominantly price-based management and greater use of indirect policy instruments.
The SBV will continue to closely monitor domestic and international economic and financial developments to conduct monetary policy proactively and flexibly, while coordinating closely with fiscal and other macroeconomic policies. The approach aims to control inflation, stabilise the currency’s value, maintain macroeconomic stability and support economic growth.
For foreign-exchange management, the plan calls for continued use of a managed floating exchange-rate regime, with flexible exchange-rate management to absorb external shocks, support macroeconomic stability and control inflation. Measures will also be implemented to strengthen the health and efficiency of the foreign-exchange market.
The monetary policy reforms will go hand in hand with modernising the banking sector’s data infrastructure. During 2026–2030, the SBV will build a centralised and modern banking-sector database capable of connecting and sharing data with national databases.
The project also targets to have at least 300,000 SMEs with outstanding loans at credit institutions or foreign bank branches by 2030. Banks are required to diversify credit products, lending methods and collateral options to better match businesses’ needs, while accelerating technology adoption and digital transformation in lending.
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