PM urges banks to boost credit in wake of typhoon

The PM and representatives of the banks proposed monetary policies by providing fair and accurate assessments of the government's macroeconomic management, including issues related to liquidity, interest rates, exchange rates, credit room, credit growth, and lending rates.

"Vietnam has maintained macroeconomic stability, controlled inflation, and ensured economic balances. However, the recent typhoon caused significant damage, which, coupled with widespread flooding, led to heavy loss of life and property. Furthermore, storms and floods have disrupted production in some areas, significantly impacting the macroeconomy," said the PM.

The PM urged banks to propose new policies that align with current conditions, particularly those supporting businesses and citizens affected by the recent storms and floods.

“I call for solutions to improve credit growth with reasonable interest rates, emphasising a balanced approach to share the benefits and risks between the government, the people, and businesses. This should be done with a spirit of solidarity and national unity, ensuring that policies reflect the values of mutual support and compassion,” added Chinh.

According to data released by the State Bank of Vietnam at the meeting, as of September 17, the system's total credit growth had reached 7.38 per cent compared to the end of 2023.

Private commercial joint-stock banks saw an 8.6 per cent increase, accounting for 45 per cent of the market share, the highest growth in the system. The credit structure aligns with the orientation of economic restructuring, continuing to focus on production and business, especially in priority sectors.

"Regarding interest rates, MB Bank has implemented several rounds of loan interest rate reductions to help alleviate difficulties and support the recovery efforts. The bank’s lending rate for is at just 6.94 per cent, compared to 7.88 per cent in 2023,” said Luu Trung Thai, chairman of the board of directors of MB Bank.

"In Q4, MB Bank will continue to roll out preferential credit for customers with good credit ratings and viable business plans to promote economic growth," he added.

Kim Byoungho, chairman of the board of directors at HDBank, asked the PM to continue addressing legal and procedural difficulties so that businesses can resume production in the wake of the typhoon.

“This would reduce the risk of bad debt for banks and promote the restructuring of commercial banks, linked to the handling of bad debt, and creating favourable conditions for banks to complete restructuring and contribute to the stability of the commercial banking system.”

"The State Bank of Vietnam should consider assigning additional targets to capable credit institutions, and HDBank proposes reimplementing consumer credit programmes to support workers in industrial zones and export processing zones, similar to the $833.33 million package in 2023," said Kim.

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