It will continue operating an open market in a flexible and proactive fashion, and stand ready to support liquidity for the credit institution system.

The State Bank of Vietnam will improve credit quality and prioritise capital for spearhead sectors that drive the economic growth in 2024.

KB Security Vietnam Company (KBSV) expected Vietnam’s credit growth at 13-14% in 2024 on the back of a better economic situation as well as the removal of bottlenecks in the realty market and enterprises bonds.

In 2023, unprecedented developments of the global economy posed formidable challenges to the country’s monetary policy. In the meantime, credit growth was well below expectations as enterprises were in a difficult situation though the SBV rolled out an array of support measures.

Earlier, the central bank said the credit growth target in 2023 will be about 14-15%, with flexible adjustments in accordance with actual development so as to stabilise the macro-economy and support economic growth in a rational fashion.

To realise the set goal, the SBV carried out an array of measures to back credit growth, including the issuance and amendment of related mechanisms and policies, while rolling out large-scale credit programmes for affordable housing projects, renovation of old apartment buildings, and seafood and forestry processing.

It adjusted the refinancing interest rate and overnight rate of the interbank e-payment, and ordered credit institutions to reduce deposit interest rates by 1.5-2% a year.

According to SBV Governor Nguyen Thi Hong, the bank has strictly followed the Government and the Prime Minister’s directions, and kept a close watch on the economic situation. The idea is to have a flexible response and roll out uniform measures and monetary policy tools, making contributions to the nation’s economic development.

Despite drastic measures put in place, the bank found it hard to withstand the challenges in credit growth. As of November 30, the total credit of the entire economy had risen 9.15% year-on-year to reach some 13 million of billion VND (532.75 billion USD), which is far from the year-end target.

SBV Deputy Governor Dao Minh Tu blamed the fall to the fact that mobilisation channels of the capital market did not show efficiency.

They did not develop on par with their roles of supplying mid- and long-term capital for the economy. Therefore, there is a need to incrementally increase the economy’s reliance on capital from commercial banks, he explained.

The ratio of credit to GDP was on the rise, posing great risks to the credit insitutions, he said, adding as they have a lot of liquidity while lending rates would be lower, there is ample room for credit growth.

According to Dr. Nguyen Xuan Thanh, lecturer from the Fulbright School of Public Policy and Management, Vietnam’s credit would expand 11% for the whole 2023, while the figure could rise to 14-15% next year to support the GDP growth from 6.5%.

A loose monetary policy should be maintained; however, the central bank could adjust it if the economy faces pressure from exchange rate and inflation, Thanh said.

Total development investment capital hit over 54 trillion VND

BAC GIANG - According to the Department of Statistics, the development investment capital in Bac Giang province in the third quarter was estimated at over 20.8 trillion VND (875 million USD), up 4.76 percent, bringing the total development investment capital in the area in 9 months to over 54 trillion VND, an increase of 7.35 percent over the same period.

Capital mobilization of commercial banks up 14.5 trillion VND

BAC GIANG - According to the Bac Giang provincial branch of State Bank, to date, the total mobilized capital of commercial banks has reached nearly 100 trillion VND (4.2 billion USD) up about 14.5 trillion VND compared to last year.

Bac Giang focuses on capital disbursement for national target programs

BAC GIANG – The Chairman of Bac Giang Provincial People's Committee (PPC) Le Anh Duong cum Head of the Provincial Steering Committee for the Implementation of National Target Programs (NTP) on September 13 chaired a meeting to evaluate the results and execution status of NTP in the province.

Bac Giang accelerates disbursement of public investment capital in last months

BAC GIANG – The Chairman of the Bac Giang provincial People's Committee (PPC) has issued Correspondence 4881/UBND-TH on accelerating the disbursement of the public investment capital plan and the national target program in the last months of 2023.

“Five readies” concept helps Bac Giang welcome large capital flow

BAC GIANG – For recent years, Bac Giang province has given priority to attract big investors who lead and connect with other businesses in a sustainable direction and the concept of "Five readies" in term of premises, human resources, improvement of the investment environment, investor support, effective disease control. 

Source: VNA