The Government of Vietnam Requests Reduction in Lending Rates, Increases Access to Capital for Citizens and Businesses
The Government of Vietnam requires a reduction in lending interest rates and increased access to capital for citizens and businesses
Pursuant to Subsection 4 of Section 1 of Resolution 31/NQ-CP in 2023, the Government of Vietnam has issued certain requirements to the State Bank as follows:
- Operate monetary policy tools confidently, proactively, flexibly, and effectively; coordinate closely and synchronously with fiscal policies and other policies, contributing to maintaining macroeconomic stability, controlling inflation, stabilizing the monetary and foreign exchange markets, and promoting growth.
- Manage credit growth in alignment with a reasonable structure, promptly meeting the credit capital needs of the economy.
- Direct credit institutions to implement measures funneling credit into production and business sectors, priority fields, and growth drivers; control credit risks to potentially risky areas; reduce lending interest rates, increase access to capital for citizens and businesses, ensuring reasonable and effective interest rates in line with inflation control requirements.
Implement appropriate credit solutions to help ease difficulties in the real estate market and other markets. Manage the exchange rate suitably, ensuring the safety of the banking system.
- Focus on effectively handling underperforming commercial banks, ensuring liquidity and system safety, prioritizing the handling of bad debts, and limiting new bad debts; enhance inspection and supervision. Quickly complete the draft Law on Credit Institutions (amended) and submit it to the Government of Vietnam in March 2023.
Notably, the Government of Vietnam requires a reduction in lending interest rates and increased access to capital for citizens and businesses.
The Government of Vietnam requires a reduction in lending interest rates and increased access to capital for citizens and businesses.
The Government of Vietnam abolishes the requirement to present a Household Registration Book, residency information confirmation when conducting administrative procedures?
On March 7, 2023, the Government of Vietnam issued Resolution 31/NQ-CP 2023 during the Government of Vietnam's regular meeting in February 2023.
Based on Subsection 1 of Section 1 of Resolution 31/NQ-CP 2023, it is required for ministries, agencies, and localities to:
Implement regulations abolishing the requirement to submit, present a Household Registration Book, Temporary Residence Book, or residency information confirmation when conducting administrative procedures and providing public services within their management scope in compliance with the 2020 Law on Residence and Decree 104/2022/ND-CP of the Government of Vietnam;
Directly and effectively implement the tasks assigned in Directive No. 05/CT-TTg dated February 23, 2023, of the Prime Minister of the Government of Vietnam; enhance inspection and public service checks to prevent inconveniences and troubles for citizens and businesses.
The Ministry of Planning and Investment and the Ministry of Finance shall advise on prioritizing budgets for ministries and central authorities from central government funds; the People's Committees of provinces and centrally managed cities should actively allocate funds from local budgets, ensuring effective and successful implementation of the Scheme on developing applications of population data, identification, and electronic authentication for national digital transformation in the period 2022-2025, with a vision to 2030.
Moreover, expedite digital transformation in direction, administration, and evaluation of task completion levels.
Connect information systems, national and sectoral databases with the Information Center and the Operations Command of the Government of Vietnam, the Prime Minister of the Government of Vietnam; share socio-economic information and data between ministries, central agencies, and localities; effectively use databases to provide advice, propose, formulate policies, and best serve citizens and businesses.
The Government of Vietnam requires review and resolution of difficulties and obstacles for each specific real estate project. How is this carried out?
Pursuant to Subsection 5 of Section 1 of Resolution 31/NQ-CP 2023, the Government of Vietnam has tasked the Ministry of Industry and Trade with the following responsibilities:
The Ministry of Industry and Trade shall lead, in cooperation with agencies and localities:
- Review, promote development, and restructure industries, focusing on sectors with potential, advantages, high added value, and sustainability. Resolve difficulties in major industrial projects critical to electricity, oil and gas, processing, and manufacturing industries, minerals, etc., to bring them into operation soon, boost production capacity, and actively supply raw materials for sustainable development.
- Continue to organize connections for domestic enterprises to participate in the supply chains of FDI enterprises and large global companies. Strengthen activities connecting and stimulating domestic consumption, especially for industrial products.
Additionally, in Subsection 7 of Section 1 of Resolution 31/NQ-CP 2023, the Government of Vietnam has required the Ministry of Construction:
The Ministry of Construction shall lead, in cooperation with agencies and localities, to review and resolve legal obstacles for each specific real estate project; promptly complete the draft Resolution of the Government of Vietnam on several solutions for removing and promoting the healthy, safe, and sustainable development of the real estate market, and submit it for the Government of Vietnam's consideration and issuance.
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