Is the State Bank of Vietnam required to submit the Draft Law on Amendments to Law on Credit Institutions in March 2023?
- What are the difficulties and challenges to Vietnam in the coming time?
- Is the State Bank of Vietnam required to focus on settling weak banks, reducing the loan interest rate, and increasing the access to capital of people and enterprises?
- Is the State Bank of Vietnam required to submit the Draft Law on Amendments to Law on Credit Institutions in March 2023?
What are the difficulties and challenges to Vietnam in the coming time?
At the February 2023 Government‘s Regular Meeting, held on March 3, 2023, Resolution 31/NQ-CP in 2023, the assessments on the socio-economic situation in February and the first 02 months of 2023 are as follows:
In addition to the main sectors and industries of the economy continuing the trend of recovery, stability, and development, Government members, opinions of delegates attending the meeting, and conclusions of the Prime Minister stated that:
- Our country's economy still has limitations and inadequacies and continues to face many difficulties and challenges, macroeconomic stability is not really stable, inflationary pressure is still high, and bad debt risks increase.
- Many industries decline or grow low. Total import and export turnover decreased over the same period.
- Disbursement of public investment capital is still slow and has not met the requirements.
- Production and business activities face many difficulties; the number of newly registered enterprises and returning to operation in 02 months decreased by 11.2%, the number of enterprises withdrawing from the market increased by 14.5% over the same period; Some enterprises continue to reduce working hours, cutting labor.
- The corporate bond and real estate markets are still difficult.
- The shortage of medicines, equipment, and medical supplies at some medical facilities has not been overcome.
- The security and order situation in some areas and in cyberspace still has potentially complicated factors.
- The coordination between some agencies and localities is still not close and effective; and the extrusion and avoidance of responsibilities of a part of cadres and civil servants when performing public duties ...
The Government believes that in the coming time, the forecasted world economic growth will slow down, risks will increase; strategic and geopolitical competition between major countries is complicated and unpredictable; the Russian-Ukrainian conflict continues to drag on...
In the country, production and business face many difficulties; economic growth in the first quarter faces major challenges; liquidity pressure of the real estate market, corporate bonds increased, and risks to the economy increased; while epidemics, natural disasters, and climate change continue to develop abnormally...
Facing with that situation, the Government of Vietnam requests ministers, heads of ministerial-level agencies, heads of government-attached agencies, and presidents of people's committees of provinces and centrally-run cities to continue to thoroughly and synchronously, substantively, effectively, and comprehensively implement tasks and solutions according to the Central Government's conclusions, The Politburo, resolutions of the National Assembly, the Government, the direction of the Prime Minister, especially in Resolution 01/NQ-CP in 2023, the Government's action programs to implement the Resolutions of the Party, the National Assembly, and Directive 03/CT-TTg in 2023.
Consistently implement the objectives of macroeconomic stability, control inflation, promote growth, ensure major balances of the economy; ensure the initiative, decisiveness, accuracy, and closer coordination, synchrony, and rhythm in directing and administering, in accordance with the situation developments, overcoming difficulties and challenges, taking advantage of time and opportunities for socio-economic recovery and development.
Is the State Bank of Vietnam required to focus on settling weak banks, reducing the loan interest rate, and increasing the access to capital of people and enterprises?
The Government of Vietnam promulgates Resolution 31/NQ-CP in 2023 at the Government’s Regular Meeting in February 2023.
In particular, the Government of Vietnam requests ministries, agencies, and localities based on their assigned functions, tasks, and powers to
+ Closely monitor international and regional developments, and the adjustment of policies of countries and partners, especially fiscal, monetary, trade, and investment policies to actively analyze, and forecast for studying strategies and promptly operate and have effective and appropriate policy responses to respond to arising problems.
+ At the same time, focus on performing the tasks of removing difficulties and obstacles for credit, corporate bond market, real estate market, and petroleum management and administration, ensuring stable, healthy, transparent, safe, and effective operation in accordance with the direction of the Prime Minister at Official Telegram 10/CĐ-TTg in 2023;
+ Proactively and promptly report to the Prime Minister for consideration and direction on issues beyond its competence.
The Government assigns the State Bank of Vietnam to
+ Take charge of, and coordinate with agencies and localities in, administering certain, proactive, flexible, and effective monetary policy tools; closely coordinate and synchronize with fiscal and other policies, contributing to maintaining macroeconomic stability, controlling inflation, stabilizing the currency and foreign exchange markets, and promoting growth.
+ Manage credit growth in accordance with a reasonable structure, and promptly meet the demand for credit capital for the economy.
+ Direct credit institutions to apply credit-oriented measures to production and business sectors, priority areas, and growth drivers;
+ Control credit risks for potentially risky areas;
+ Reduce the loan interest rate, increase access to capital of people and enterprises, ensure reasonable, effective interest rates, and be in accordance with inflation control requirements.
- Have appropriate credit solutions, contributing to removing difficulties for the real estate market and other markets.
+ Give exchange rates appropriately, ensuring the safety of the banking system.
+ Focus on effectively handling weak commercial banks, ensuring liquidity and system safety, focusing on handling bad debts and limiting new bad debts; strengthen inspection and supervision.
Is the State Bank of Vietnam required to submit the Draft Law on Amendments to Law on Credit Institutions in March 2023?
This is the content emphasized by the Government of Vietnam in Resolution 31/NQ-CP in 2023.
Accordingly, the Government requests the State Bank of Vietnam to urgently complete the Draft Law on Amendments to Law on Credit Institutions and submit it to the Government in March 2023.
LawNet