On February 21, speaking at a Government conference with localities, Governor of the State Bank of Vietnam (SBV) Nguyen Thi Hong said that the SBV will continue to direct credit institutions to implement credit packages such as the VND100,000 billion aquaculture credit package and the VND120,000 billion housing support package.
Regarding interest rates and exchange rates, this is an extremely difficult and challenging task. And these variables will affect the story of the domestic market and capital inflows of the economy. The State Bank will closely monitor developments, even daily developments, to be proactive in regulating.
Regarding interest rates, the SBV continues to direct credit institutions to reduce costs to continue reducing interest rates to support businesses and people, combined with overall management solutions on exchange rate issues.
Other key tasks such as restructuring the system of credit institutions, the bad debt handling network and other tasks will also continue to be vigorously implemented.
According to Ms. Nguyen Thi Hong, for high growth, the issue of labor productivity as well as promoting innovation is very important.
To maximize the demand of the economy, it is necessary to maximize the export of goods through trade promotion. The Chinese market with 1.4 billion people is very important, along with domestic demand with 100 million people.
Proposing from a banking perspective, the Governor said that in order for credit to grow as set targets and to be able to adjust, all solutions such as supporting small and medium enterprises and guaranteeing loans for small and medium enterprises need to be promoted more effectively.
According to the Governor, the current outstanding real estate credit balance of the system is 3.48 million billion VND, but many projects are facing difficulties. If removed, it will help cash flow return to the bank, will circulate cash flow, and be more effective in credit operations.
"With the exchange rate issue, we see that the core exchange rate is foreign exchange supply and demand. Currently, exchange rates are under pressure, even if the Trump administration has a tax policy or currency manipulation issue.
The Government has directed ministries and branches to have solutions to harmonize trade with major partners, so that we are not on the list of taxable" - Governor of the State Bank Nguyen Thi Hong said.
For home credit, the banking industry is very determined to allocate financial resources of the system. However, with 120,000 billion VND in limited disbursement, the SBV also analyzed and assessed that not everyone who is a low-income person wants to borrow to own a house.
Therefore, the State Bank has also proposed that the Government direct the Ministry of Construction to coordinate with localities to assess the demand for housing ownership, lease or hire-purchase to find appropriate solutions.
On the banking sector side, the unit will focus on providing credit to low-income people who want to buy, own a house and meet the bank's loan eligibility requirements.
