The Government to direct to continue striving to reduce lending interest rates in Vietnam

The Government to direct to continue striving to reduce lending interest rates in Vietnam (Internet image)

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

On October 4, 2023, the Government issued Resolution 164/NQ-CP at the regular Government meeting in September 2023 and the Government's online conference with localities.

The Government to direct to continue striving to reduce lending interest rates in Vietnam

Specifically, the Government has directed the State Bank of Vietnam to preside over and coordinate with agencies and localities to perform the following tasks:

- Closely follow market developments to continue to operate monetary policy proactively, flexibly, promptly, effectively, and coordinate synchronously, closely, and in harmony with fiscal policy and other policies; not create strong fluctuations or sudden changes that affect market psychology, businesses, investors, or people; manage exchange rates in accordance with the situation; contribute to controlling inflation; stabilize the macroeconomy, money, and foreign exchange markets.

- Continue to direct and guide credit institutions to review and simplify lending processes and procedures to increase access to credit for businesses and promote the disbursement of credit packages of 40 trillion VND for interest rate support, 120 trillion VND for social housing loans, and 15 trillion VND for the forestry and fisheries sectors; direct credit to production and business sectors, priority sectors, and growth drivers; and continue to strive to reduce lending interest rates.

- Continue to monitor the implementation of Circular 02/2023/TT-NHNN, Circular 03/2023/TT-NHNN, Circular 06/2023/TT-NHNN, and other issued Circulars to promptly guide and effectively solve problems that arise in real-life access to capital for people and businesses.

- Closely monitor the bad debt situation, have solutions to limit the increase in bad debt, improve credit quality, and ensure the safety of the credit institution system; Urgently report to competent authorities on plans to handle weak banks according to the Government's direction at Point d, Clause 4, Section I of Resolution 144/NQ-CP 2023.

To ensure the supply of goods for the Lunar New Year of the Dragon in 2024 in Vietnam

According to Resolution 164/NQ-CP, the Ministry of Industry and Trade will be the lead agency and coordinate with agencies and localities to implement the following contents:

- Drastically and effectively implement solutions to ensure electricity and petroleum supply as assigned by the Prime Minister in Official Telegram 782/CD-TTg in 2023.

Urgently complete the Plan to ensure electricity supply in the last months of 2023 and 2024, absolutely avoiding electricity shortages; Direct the drastic and synchronous implementation of investment preparation projects under the 500 kV circuit 3-line project from Quang Trach (Quang Binh) to Pho Noi (Hung Yen); complete and soon submit to competent authorities for consideration and promulgation of policy mechanisms to encourage the development of self-produced and self-consumed rooftop solar power and direct power purchase agreement (DPPA).

Proactively and promptly manage to ensure gasoline and oil supply, avoiding shortages in all situations; continue to inspect and supervise to promptly detect and strictly handle violations in the petroleum business.

- Effectively implement signed Free Trade Agreements (FTAs); promote negotiations and signing of FTAs with Brazil, the South American Common Market, etc. to expand new and potential export markets. Coordinate with relevant agencies and localities to support the promotion of effective and sustainable import and export of goods through border gates bordering China, especially agricultural product groups.

- Urgently research and report to the Government and Prime Minister on key tasks and solutions to effectively develop and exploit the domestic market; assess market demand to have appropriate production and goods regulation solutions; ensure the supply of goods for the Lunar New Year of Giap Thin in 2024; improve market management efficiency; fight against smuggling, trade fraud, and counterfeit goods.

More details can be found in Resolution 164/NQ-CP dated October 4, 2023.

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