Objectives and overall tasks in the banking sector in Vietnam in 2024

Objectives and overall tasks in the banking sector in Vietnam in 2024 (Internet image)

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

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

Objectives and overall tasks in the banking sector in Vietnam in 2024

Objectives and overall tasks in the banking sector in Vietnam in 2024 are as follows:

- Actively, flexibly, timely, effectively, and coherently implement monetary policy, in coordination with fiscal policy and other macroeconomic policies, to support economic growth, stabilize macroeconomic conditions, and control inflation at around 4–4.5% in 2024. Ensure stability in the monetary, foreign exchange, and banking systems.

- Harmoniously manage credit in line with macroeconomic developments to support economic growth, control inflation, stabilize macroeconomic conditions, and ensure the safe operation of credit institutions. The overall credit growth of the entire system of credit institutions in 2024 is expected to be around 15%, adjusted appropriately to the actual situation. Research and innovate in credit growth management.

- Effectively implement the plan of "Restructuring the System of Credit Institutions Associated with Handling Non-Performing Loans in the 2021–2025 Period". Contribute to the development of a healthy, quality, efficient, transparent, and accountable system of credit institutions in accordance with the regulations of the law and international standards. Focus on effectively implementing solutions to handle weak credit institutions and restructure controlled commercial banks as directed by authorized authorities.

- Direct credit institutions to enhance debt resolution and recovery, improve credit quality, and prevent and limit the emergence of new non-performing loans.

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

- Effectively carry out the Digital Transformation Plan by 2025 in the banking sector, with a vision towards 2030. Implement the "Development Plan for Non-Cash Payments in Vietnam in the 2021-2025 Period" and the "Information Technology Development Strategy of the Banking Sector by 2025, with a vision towards 2030." Continue to promote non-cash payments and digital banking activities, and ensure security, safety, and confidentiality in banking operations.

- Strengthen market discipline by complying with the government's guidance and directives, the Prime Minister's instructions, the State Bank Governor's instructions, and regulations in banking operations.

- Strongly reform regulations and administrative procedures, improve the investment and business environment, and create favorable conditions for individuals and businesses. Enhance the quality of the workforce by ensuring discipline and administrative regulations.

- Continuously implement and effectively monitor the implementation of the Development Strategy of the Vietnamese Banking Sector by 2025, with a vision towards 2030; the Comprehensive National Financial Strategy by 2025, with a vision towards 2030; and the programs, plans, and projects that have been issued.

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