Banking sector poised to drive next phase of economic growth

Prime Minister Pham Minh Chinh emphasized the motto "Resources originate from thinking, motivation originates from innovation, strength originates from the people and businesses" while proposing that banks serve as a driving force to unlock and capitalize on Vietnam's unique potentials, outstanding opportunities, and competitive advantages.

The PM's statement was made at a meeting between the permanent Government members with commercial banks on February 11.

"The year 2025 is identified as a year of acceleration and breakthrough to reach the finish line for the entire 2021-2025 term. The Government has set a target of achieving a minimum growth rate of 8%, creating a foundation, momentum, strength, and atmosphere for our country to grow at double-digit rates in the following years," noted the Prime Minister.

The Prime Minister called on delegates to thoroughly analyze the difficulties, challenges, advantages, and opportunities. He urged them to propose and contribute solutions with the banking system's participation to renew traditional growth drivers such as investment, export, and consumption, while promoting new ones.

Addressing solutions for managing monetary and credit policies, Mr. Dao Minh Tu, Deputy Governor of the State Bank of Vietnam (SBV), stated that the SBV would continue to manage monetary policy proactively and flexibly.

This would be done by coordinating synchronously, harmoniously, and closely with fiscal policy and other macroeconomic policies to support and promote economic growth, ensure macroeconomic stability, and control inflation.

The Deputy Governor affirmed that the SBV would continue to innovate measures to manage credit growth and implement a roadmap to gradually reduce and eventually eliminate the management of allocating credit growth targets to each unit. Specifically, the SBV will promptly adjust and increase credit growth targets for credit institutions based on actual circumstances without requiring a written request from the credit institutions.

According to the SBV, in 2024, the average lending interest rate decreased by 1.24% compared to the end of 2023. The foreign exchange market and exchange rates remained stable, and the liquidity of the credit institution system was abundant, meeting the economy's capital needs.