Implementation of tasks in monetary policy management in Vietnam in 2024

Implementation of tasks in monetary policy management in Vietnam in 2024 (Internet image)

Regarding this matter, LawNet would like to answer as follows:

On May 2, 2024, the Prime Minister signed and promulgated Directive 14/CT-TTg, on the implementation of tasks in monetary policy management in 2024, focusing on overcoming difficulties in production, business, promoting growth, and macroeconomic stability as issued by the Prime Minister of Vietnam.

Implementation of tasks in monetary policy management in Vietnam in 2024

Assign the State Bank of Vietnam the following tasks:

- Thoroughly and resolutely implement fully effective measures and tasks according to Resolutions, Conclusions of the Central authorities, Politburo; Resolutions of the National Assembly, the Government, especially Resolution 01/NQ-CP in 2024, Resolution 02/NQ-CP in 2024, and directives of the Prime Minister, government leaders on monetary policy management, credit, exchange rates, interest rates, gold market..., Official Telegram 1426/CD-TTg in 2023 and Official Telegram 23/CD-TTg in 2024 concerning measures to manage the gold market, Official Telegram 18/CD-TTg in 2024 regarding credit growth management in 2024.

- Monitor the global and domestic situations closely to forecast and proactively manage monetary policy effectively, flexibly, and timely, especially ensuring the harmonious and reasonable management of interest rates and exchange rates.

Effective credit growth management is associated with macroeconomic stability, inflation control, promoting economic growth, ensuring the safety of banking operations, and the credit organization system.

- Strengthen inspection, supervision, control, and close monitoring of credit provision by credit institutions, immediately carry out inspections, examinations on the gold market, operations of gold trading businesses, stores, distribution agents, and gold bullion trading, complete the inspection and examination system, ensuring smooth and effective coordination from the central to local levels.

- Timely review, develop, and improve the guiding documents for the Law on Credit Institutions in 2024 for comprehensive implementation from July 1, 2024, when the Law on Credit Institutions takes effect.

- Strengthen communication on mechanisms and policies regarding the management of monetary policy and banking activities, with a focus on new policies and policies directly affecting people and businesses, such as exchange rate policies, credit policies, interest rates, savings, loans, payments... through diverse and rich forms of communication, ensuring transparency and compliance with international commitments and regulations.

- Take the lead, coordinate with the Ministry of Agriculture and Rural Development and relevant ministries and sectors to evaluate the implementation results, and propose amendments to Decree 55/2015/ND-CP and Decree 116/2018/ND-CP on credit policies for agricultural and rural development that are suitable to reality and meet the requirements of sustainable agricultural and rural development.

- Direct credit institutions to:

+ Actively implement credit growth solutions, directing credit towards production, business, priority sectors, and growth drivers; tightly control credit in sectors with potential risks, ensuring safety, efficiency, and liquidity risk control.

+ Continue to reduce costs, strive to lower lending interest rates to a reasonable level; diligently disclose and ensure transparency of the average lending interest rate for businesses and individuals to facilitate the choice of banks with low interest rates and suitable credit utilization requirements.

+ Allocate time and effort to review and classify real estate projects to promptly provide appropriate credit solutions for each qualified enterprise and project; develop suitable credit solutions for feasible and efficient BOT, BT transportation projects, and the petroleum sector; and continue to effectively implement policy credit programs.

+ Increase lending for living expenses and consumption, promote online and electronic lending methods. Diversify banking credit products and services that align with customer segments, markets, types, and the production and business needs of individuals, businesses, and cooperatives, especially legitimate and legal capital borrowing needs for the livelihood and consumption of individuals.

+ Promote the implementation of credit programs, initiatives, and policies such as the 30 trillion VND credit program for forestry and aquaculture; the credit program contributing to the implementation of the "Sustainable Development of One Million Hectares of High-Quality Specialized Rice and Low Emission Linked to Green Growth in the Mekong Delta by 2030" according to the Prime Minister's Decision 1490/QD-TTg in 2023; the 120 trillion VND housing credit program for social housing, worker housing, and the renovation of old apartment buildings to contribute to the implementation of the "Investment in the Construction of at Least 01 Million Social Housing Units for Low-Income Groups, Industrial Zone Workers in the Period 2021-2030" project.

+ Actively and effectively implement the connection program between banks and businesses through appropriate forms.

+ Continue to implement debt restructuring policies and maintain debt groups according to Circular 02/2023/TT-NHNN, ensuring timely support for businesses and borrowers facing difficulties while preventing misuse, non-compliance with regulations, and misrepresentation of non-performing loans.

+ Enhance the pioneering role and exemplary nature of state credit institutions; strengthen the social responsibility and business ethics of credit institutions in sharing and supporting people and businesses based on the principle of "Balanced benefits, shared risks."

More details can be found in Directive 14/CT-TTg issued on May 2, 2024.

Nguyen Ngoc Que Anh

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