PM orders stable interest rates and lower lending costs to support growth

The directive was issued under Announcement No.428 following a recent working session with the central bank and commercial lenders.

Under the notice, the Government outlined key priorities for the banking sector during the 2026-2030 period, emphasizing that credit growth must go hand in hand with risk control, digital transformation with data security, and international integration with strong governance standards.

Flexible monetary policy and credit allocation

The Government leader  tasked the central bank with quantifying and regularly assessing the "equilibrium point" between inflation control and growth support. The SBV will flexibly adjust monetary tools, including interest rates, exchange rates, money supply, liquidity, and credit, based on specific economic scenarios.

Regarding interest rates, the central bank must ensure adequate market liquidity and require commercial banks to cut operational costs to lower lending rates. Lenders failing to comply with these guidelines will face regulatory measures.

On foreign exchange, the Government chief called for market-based management that closely monitors foreign currency supply and demand while developing hedging mechanisms to support the capital and stock markets.

Regarding credit management, PM Hung noted that credit growth targets should not serve as a rigid cap. Capital must be directed toward priority sectors, including manufacturing, exports, high technology, supporting industries, agriculture, innovation, social housing, and key infrastructure projects.

The SBV was also asked  to coordinate with the Ministry of Finance to flexibly manage State Treasury deposits at the central bank and commercial banks to boost market liquidity.

Resolving weak banks and accelerating public investment

The Government requested the central bank to finalize a plan by August 2026 to modernize the banking system, tackle weak credit institutions, and improve capital access for small and medium-sized enterprises (SMEs).

To deal with  strictly supervised lenders, the SBV collaborate with the Ministry of Justice, the Ministry of Public Security, the Supreme People's Court, and the Supreme People's Procuracy to accelerate the handling of collateral related to Saigon Joint Stock Commercial Bank (SCB). Early-warning and proactive supervision  mechanisms will also be strengthened across the banking system.

Additionally, the Ministry of Finance was tasked with continuing tax and fee concessions throughout 2026, streamlining customs procedures, and speeding up  public investment disbursement to reach 100% of the target. The ministry will also work to advance state-owned enterprise (SOE) restructuring, equitization, and listing to expand supply on the stock market.

State Bank of Vietnam takes measures to stablise gold market

The State Bank of Vietnam (SBV) is working closely with ministries and local authorities to implement comprehensive strategies to address significant price disparities and stabilise the gold market.

State Bank of Vietnam to keep policy rates steady in 2024: UOB

With the pace of economic activities on the mend and inflation rates already easing below the target level, the State Bank of Vietnam (SBV) will maintain its refinancing rate at the current level of 4.5% to support economic recovery, the United Overseas Bank (UOB) said in a report.