08 general tasks set out by the State Bank of Vietnam for 2024

08 general tasks set out by the State Bank of Vietnam for 2024 (Internet image) 

On January 15, 2024, the State Bank of Vietnam issued Directive 01/CT-NHNN on the organization of implementing the key tasks of the banking sector in 2024.

08 general tasks set out by the State Bank of Vietnam for 2024

(1) Proactively, flexibly, timely, and effectively manage monetary policy in coordination with fiscal policy and other macroeconomic policies to support economic growth, stabilize macroeconomic conditions, control inflation at around 4–4.5% in 2024, stabilize the monetary market, the foreign exchange market, and the banking system.

(2) Balance credit management with macroeconomic developments to support economic growth, control inflation, stabilize macroeconomic conditions, and ensure the safe operation of credit institutions. The total system credit growth in 2024 is expected to be around 15%, adjusted appropriately based on actual conditions. Research and innovate in credit growth management.

(3) Implement the restructuring plan for credit institutions associated with bad debt resolution in the period of 2021–2025, contributing to the development of a healthy, quality, efficient, transparent, and accountable credit institution system in accordance with legal regulations and international standards. Focus on effectively implementing solutions for weak credit institutions and restructuring commercial banks under the guidance of authorized levels.

Direct credit institutions to enhance the handling and recovery of bad debts, improve credit quality, and prevent and limit the occurrence of new bad debts.

(4) Focus on researching, amending, and improving mechanisms, policies, and regulations on the organization, inspection, and supervision of banks; enhance innovation and improve the effectiveness of inspection, examination, and supervision of the banking sector. Concentrate on inspecting, examining, and supervising areas with potential risks to prevent, detect, and strictly handle risks, existing problems, and violations of credit institutions, contributing to ensuring security and discipline in the monetary and banking markets.

(5) Effectively implement the Banking Sector Digital Transformation Plan until 2025, with a vision towards 2030; the Non-Cash Payment Development Plan in Vietnam in the period of 2021–2025; and the Information Technology Development Strategy of the banking sector until 2025, with a vision towards 2030. Continue to promote non-cash payment solutions and digital banking activities, and ensure security, safety, and confidentiality in banking operations.

(6) Strengthen market discipline in compliance with the government's directives, the Prime Minister's directives, the Governor of the State Bank, and regulations in banking operations.

(7) Strongly reform regulations and administrative procedures, improve the investment and business environment, and create favorable conditions for people and businesses. Improve the quality of the workforce and ensure discipline and administrative rules.

(8) Continue to implement and effectively monitor the implementation of the Vietnam Banking Sector Development Strategy until 2025, with a vision towards 2030; the Comprehensive National Financial Strategy until 2025, with a vision towards 2030; and other programs, plans, and projects that have been issued.

More details can be found in Directive 01/CT-NHNN, effective from January 15, 2024.

Ho Quoc Tuan

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