Tasks of joint-stock commercial banks in contributing to the socio-economic development of Vietnam

Tasks of joint-stock commercial banks in contributing to the socio-economic development of Vietnam (Internet image)

Tasks of joint-stock commercial banks in contributing to the socio-economic development of Vietnam

On September 21, 2024, Prime Minister of the Government of Vietnam Pham Minh Chinh chaired a conference meeting with joint-stock commercial banks regarding solutions to contribute to national socio-economic development. According to Notice 445/TB-VPCP dated October 1, 2024, the Prime Minister of the Government of Vietnam praised and highly appreciated the role and contribution of joint-stock commercial banks, affirming that the Communist Party of Vietnam, the State, and the Government of Vietnam have always been interested, accompanied, protected the legal and legitimate rights and interests of the private economic sector, including the joint stock commercial banking system; not criminalizing economic and civil relations, while resolutely handling legal violations, illegal business activities, misconduct, and corruption...

In addition to the achieved results, recently, the banking system, including joint-stock commercial banks, still faces difficulties and limitations: (i) Bad debts and potential debts turning into bad debts tend to increase; (ii) Low capital absorption capacity of enterprises and people; (iii) Slow recovery of the real estate market; (iv) Increasing pressure on bank credit in the context of difficulties faced by mid to long-term capital mobilization channels of the economy, with inefficiencies; (v) Slow global economic growth with complex developments; (vi) Natural disasters and storms causing significant damage, affecting the livelihood, production, and business activities of the people and enterprises...

In the upcoming time, joint-stock commercial banks in Vietnam are to:

- Effectively implement specific tasks for joint-stock commercial banks under the Strategic Development of the Vietnam Banking Sector until 2025, with orientation to 2030. There is a need for aspiration, belief, and confidence in development. Strive for Vietnam to have at least 2 - 3 commercial banks in the top 100 largest banks in the Asia region by the end of 2025.

- Proactively review and cooperate with relevant units to fully and accurately grasp information about borrowers to compile the damages of customers affected by Storm No. 3 (Yagi), in order to promptly implement support measures, alleviate difficulties for people and enterprises, and actively engage in social welfare activities with the spirit of "national solidarity and fraternity."

- Proactively carry out authority and propose solutions to resolve difficulties and obstacles in implementing the 140,000 billion VND social housing lending program.

- Enhance the inspection and supervision of the loan process, the use of borrowed funds, and customer debt repayment; further improve the effectiveness of internal inspection and control related to credit activities.

- Vigorously and effectively implement restructuring plans associated with handling non-performing loans for the period 2021-2025. Including: (i) joint-stock commercial banks with capital scale or capital adequacy ratio not meeting the targets in Scheme 689 must create and implement appropriate capital increase plans; (ii) joint-stock commercial banks that have not listed on the stock market should actively build and execute listing plans on the domestic stock exchange.

- Actively implement digital transformation solutions, continue to develop and perfect payment products and services, ensuring safe and seamless operation to meet the increasing demands of customers.

- Strengthen information and communication work, guide customers and beneficiaries in approaching policies. Focus on clear, complete, transparent, and accurate communication of policies, products, and services of credit institutions to the public.

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