At a meeting between Cabinet members and leaders of 13 joint stock commercial banks under his chair on  September 21, Prime Minister Pham Minh Chinh directed the banks to seek measures to promote national socio-economic development.

The Government leader asked participants to give accurate and fair assessments on the monetary policy and macroeconomic management of the Government and the State Bank of Vietnam (SBV), including issues related to liquidity, interest rates, exchange rates, credit room, credit growth, and lending interest rates in the current context, and to propose tasks and solutions on monetary policy in the coming time.

The PM said that Vietnam has so far maintained macro-economic stability, reining in inflation and ensuring major balances. However, Typhoon Yagi has caused serious losses in human lives and property, leading to a stagnation in production and business activities, affecting the macro-economy.

In such a context, the PM hoped that banks will propose new policies to enable the country to adapt to this situation, including those for people and businesses that have been hard hit by the typhoon and its subsequent flooding and landslides, while contributing their ideas on solutions related to credit growth, and reasonable interest rates with the spirit of harmonious benefits, shared risks, and harmonized interests among the State, people, and businesses, and mutual support, ensuring that no one is left behind.

The Government leader asked for the banks' support during this hard time, especially in interest rates, helping the people and businesses overcome current difficulties.

Noting that the recent 10th session of the 13th Party Central Committee affirmed the determination to promote three strategic breakthroughs and speed up administrative reform, and encourage creativity, the PM said that he is ready to listen to opinions of banks to seek measures to boost national development.

According to the SBV, in the first eight months of 2024, it proactively followed domestic and foreign economic developments to harmoniously take solutions to facilitate businesses and people's access to bank credit, removing difficulties, and restoring production and business, contributing to promoting economic growth associated with macroeconomic stability, controlling inflation, and ensuring the safety of the credit institution system. It has applied flexible monetary policies, harmonizing interest rates and exchange rates, and promoting credit growth.

As of September 17, credit growth of the whole system had expanded 7.38% compared to the end of 2023, with the private joint stock commercial banks recording a 8.6% rise, accounting for 45% of market share, the highest increase in the whole system. Meanwhile, the credit structure was in line with the orientation of economic restructuring, and continued to focus on production and business activities and priority areas.

Total assets of 28 joint stock commercial banks as of June 30, 2024, had hit VND9.3 quadrillion  ($377.97 billion), accounting for 45% of the market share, of which 22 banks reported assets of over VND100 trillion (around $4 billion). Total mobilized capital of joint stock commercial banks reached VND8.7 quadrillion (nearly 353.7 billion), up 5.44% and accounting for 46.1% of the market share. After-tax profit of private joint stock commercial banks in the first six months of 2024 was about VND44 trillion (more than $1.78 billion) .

Concluding the meeting, PM Chinh asked the banking system to put forth “six increases”, “six reductions”, and “six breakthroughs”. The “six increases” are those in the capacity of banking credit institutions, including private joint stock banks; in the access to and absorption of credit, especially by small- and medium-sized enterprises, and traditional and new growth drivers; in the efforts to remove legal obstacles and credit quality; in the coordination among the State, banks and enterprises and the governance capacity of banks and the financial market; in the transparency in lending and deposit interests and the combat against illegal credit; and in supervision, inspection and risk prevention as well as anti-corruption.

Meanwhile, the “six reductions” mentioned by the PM include those in lending interest rates to a reasonable level, in transaction and operating costs, in administrative procedures, in inconvenience and harassment, in negativity, group interests, and in bad debt.

At the same time, the “six breakthroughs” are those in digitalization, in service quality, in human resources quality, in banking infrastructure, in services to production and business, creation of jobs and livelihoods for people, and in joining the international market.