Credit flows ensured to penetrate deeper into economy

VND2.2 quadrillion injected into the economy in 2024

The Government had a meeting with leaders from 20 commercial banks on February 11 to accelerate economic growth and control inflation.

Meeting participants discussed how to ensure credit flows penetrate deeper into the economy, what commitments commercial banks can make for businesses and projects, and how monetary policy should be flexibly managed to alleviate difficulties faced by businesses while ensuring reasonable credit growth.

According to Deputy Governor of the State Bank of Vietnam (SBV) Dao Minh Tu, in 2024, the SBV maintained low interest rates, helping reduce lending interest rates by 1.24 percent compared to the end of 2023. Meanwhile, the foreign exchange market and exchange rates were kept stable, and the liquidity of credit institutions remained abundant, meeting the economy’s capital needs and contributing to controlling inflation and maintaining exchange rate stability.

“The SBV directed the banking system to effectively implement various measures, resulting in a credit growth of 15.08 percent compared to the end of 2023, achieving the set target, and injecting an additional VND2.2 quadrillion into the economy, with the total value of loans reaching VND23 quadrillion,” the Deputy Governor said.

Commercial banks will manage monetary policy proactively and flexibly

Sacrificing profit margins to reduce lending rates

SBV Governor Nguyen Thi Hong emphasized that the banking sector is fully aware that 2025 is a year for acceleration and breakthroughs. The goal is to increase economic growth to 8 percent or higher while controlling inflation, demonstrating the highest level of responsibility and determination in implementing appropriate monetary policies. In 2025, the SBV has set a credit growth target of approximately 16 percent, with potential adjustments based on real-world economic conditions.

“The SBV will closely monitor developments. Credit policies will focus on key economic growth drivers, including consumer credit and credit for small- and medium-sized enterprises,” Hong said.

Nguyen Thi Phuong Thao, Vice Chairwoman of HDBank, shared that her bank has established and supported the operation of an AI and Blockchain investment fund to develop “Make-in-Vietnam” technological products. The bank is also ready to provide financing for businesses, giving priority to semiconductor and high-tech sectors.

Do Minh Phu, Chairman of TPBank, stated that in an effort to contribute to the country’s goal of building 3,000km of expressways this year, the bank has participated in several projects, including the Cam Lam - Vinh Hao expressway. TPBank has also signed a VND2.4-trillion credit agreement for the Huu Nghi - Chi Lang BOT expressway project, with the disbursement set to begin in February 2025.

SBV Deputy Governor Dao Minh Tu said that to accelerate breakthroughs in 2025, the SBV will continue to manage monetary and credit policies proactively, flexibly, promptly, and effectively, pertaining to fiscal policy and other macroeconomic policies, contributing to economic growth, macroeconomic stability and inflation control.

“In addition, we will continue to innovate credit growth management methods, proactively and promptly adjusting credit growth limits for financial institutions based on macroeconomic developments and real-world conditions without requiring formal requests from financial institutions in order to drive economic growth,” Tu said./.