Politburo member and Prime Minister Pham Minh Chinh has just signed Official Dispatch No. 104/CD-TTg dated July 6, 2025 on enhancing the effectiveness of monetary policy management, fiscal policy and organizing a preliminary review of work in the first 6 months of 2025.
The Prime Minister requested the State Bank of Vietnam to preside over and coordinate with relevant agencies to operate monetary policy proactively, flexibly, promptly, effectively, in accordance with macroeconomic developments and monetary policy goals.
In particular, closely coordinate with fiscal policy and other macro policies, promote growth, control inflation, stabilize the macro economy, and ensure major balances of the economy.
Direct credit institutions to continue to reduce costs, simplify administrative procedures, increase digital transformation... to reduce lending interest rates, support the production and business of businesses and people in the spirit of "harmonious benefits, shared risks".
Directing credit to priority sectors, traditional growth drivers of the economy and new growth drivers (science and technology, innovation, digital economy, green economy, circular economy, etc.).
Strengthen measures to handle bad debts, limit the occurrence of bad debts; strive for credit growth for the whole year to reach about 16% compared to 2024. By 2026, manage credit growth according to market tools and remove quotas.
Management exchange rates in a flexible, harmonious manner, reasonable balance between interest rates and exchange rates; closely monitoring economic developments, financial markets, domestic and international currency, especially the policy adjustment of the FED and central banks.
Improve the quality of analysis, forecasting and timely and effective policy responses; diversify foreign currency supply channels, stabilize the value of the Vietnamese Dong, improve the international balance of payments.
Urgently review, analyze, assess the impact, study international experience, urgently consider removing administrative tools in managing credit growth through allocating credit growth targets to each credit institution.
Transfer credit growth management according to market mechanisms and assess the risks of each credit institution, build a set of criteria for controlling credit safety.
Ensure the promotion of proactive, timely and effective credit capital allocation, contributing to promoting sustainable economic growth associated with macroeconomic stability, safety of the credit institution system, financial security, and national currency; complete in July 2025.
Promote credit programs for young people under 35 years old who buy, rent, or lease social housing, a VND500,000 billion credit program for businesses investing in infrastructure, science, technology, innovation, digital transformation, etc.
The Prime Minister also requested the implementation of measures according to regulations to upgrade the stock market from a frontier market to an emerging market, closely coordinating with relevant ministries and agencies to promptly remove difficulties and obstacles to meet the upgrading criteria.
Review and evaluate the impact of the US countervailing tax policy on Vietnam; develop support policies for businesses and workers in industries and fields affected by the US tariff policy, and report to competent authorities before July 15.
