Topic: monetary policy

In his official dispatch dated July 6, Prime Minister Pham Minh Chinh asks credit institutions to continue cutting costs, streamlining administrative procedures, and accelerating digital transformation to lower lending interest rates and support production and business activities of enterprises and individuals.

Monetary policy management successfully supported economic recovery in 2024 but the new year will pose continued challenges from global uncertainties, inflation risks, and limited policy flexibility.

PM Pham Minh Chinh signed a dispatch asking for proactively, flexibly, promptly, and effectively managing the monetary policy.

International organizations have emphasized that caution is needed regarding monetary policy in Vietnam given the ongoing conditions.

The Government leader holding meeting with leaders of the central banks and relevant minitries on monetary policy.

The challenges linger in maintaining exchange rates and addressing the interest rate gap between the VND and USD.

Solutions required to help businesses gain greater access to credit.

The State Bank of Vietnam (SBV) believes that inflationary pressure is tending to increase. The 2022 figure is expected to exceed 4 per cent, posing challenges in control efforts next year. Cutting lending interest rates will also face difficulties, due to deposit rates and the USD/VND exchange rate both tending to increase.

Agriseco believes that about 70 per cent of stocks in the VN30 group are now at attractive prices. With macro-economic stability and growth, now is the time to gradually accumulate long-term investments. However, it also believes that the market still faces many risks, such as pressure from inflation and exchange rates, continuing tightening of monetary policies, and rising interest rates.

A report from Brand Finance puts growth in Vietnam’s national brand value in 2022 at 11 per cent, rising from $388 billion to $431 billion. Vietnam has emerged as an attractive destination for foreign investment thanks to its successful fiscal and monetary policies as well as investment in human capital.