31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Economy / Banking & Finance
Banking sector to maintain role as veins for economic growth: Party chief
Nguyen Tung 16:03, 2021/05/05
Monetary policy should be maneuvered in a flexible and active manner to ensure sustainable growth and stability of both monetary and foreign-exchange markets, said the Party chief Nguyen Phu Trong.

As a “veins” for the economy, the banking sector should continue to push for a comprehensive reform to better support the country’s process of modernization and industrialization.

 General Secretary of the Communist Party of Vietnam Nguyen Phu Trong at the ceremony. Source: VGP

General Secretary of the Communist Party of Vietnam Nguyen Phu Trong gave the remarks at a ceremony marking 70th anniversary of Vietnam’s banking sector today [May 5].

“Priorities for the sector is to control inflation, stabilize macro-economic conditions and meet credit demand as the country continues pushing for greater socio-economic development,” said Trong, adding these tasks are of significance during the period of economic recession as a result of the Covid-19 pandemic.

The Party chief referred to the resolution of the 13th National Party Congress on the orientation for economic growth, saying the State Bank of Vietnam (SBV) should run monetary policy in a flexible and active manner along with other policies to ensure sustainable growth and stability of both monetary and foreign-exchange markets.

While the banking sector remains a major source of capital supply for the economy, Trong noted SBV’s policies would have major impacts on economic security and public order.

As the local economy is still struggling with Covid-19 impacts, Trong lauded the banks’ efforts in keeping a low-interest rate environment and timely provide capital to help enterprises recover from the current crisis.

Referring to ongoing efforts to restructure credit institutions and settle bad debts in the system, Trong called for banks to catch up with new development trends to reach regional and international levels.

“Perfecting legal framework and efficiency in operation are key to safeguard financial market stability and prevent risks in banks’ operation,” Trong continued.

 SBV's Governor Nguyen Thi Hong

At the event, SBV’s Governor Nguyen Thi Hong said the central bank is committed to further enhancing efficiency of monetary policy management for greater economic resilience against external shocks.

“Along with efforts to deepen international economic integration, macro-economic stability is key to enhance the country’s economic independence,” Hong stated.

Hong said the main objectives of SBV’s plan in restructuring the banking sector is to adopt international practices into banks’ operation for higher transparency and efficiency.

“In a rapidly changing world, a revised legal system for banks would promote the development of new services to better serve enterprises and people, in turn contributing to the process of national digital transformation and digital economic development,” Hong concluded.

TAG: Nguyen Phu Trong Covid-19 pandemic economic growth banking sector SBV State Bank of Vietnam monetary policy
Other news
13:20, 2022/20/23
Vietnam c.bank raises policy rates first time in two years
A higher interest rate cap would have a direct impact on banks, businesses, and people.
15:06, 2022/06/19
Central bank rules out expanding credit growth target
The SBV set the credit growth target at 14% this year, higher than the 2020-21 period, which was 12.17% and 13.61%, respectively.
15:39, 2022/39/15
Vietnam's bond market expands to nearly $100 billion
The growth was driven by both the Government and corporate bond segments.
07:00, 2022/00/11
Authorities urged to address businesses' “inflating” capital
In a broader sense, such a practice would cause negative impacts on the stock market and the confidence of investors.
18:53, 2022/53/07
Central bank considers expanding credit quota for well-run banks
In the past months, the fact that many banks have seen their quota reaching the limits makes it hard for people and businesses to access loans.
16:07, 2022/07/07
Finance ministry offers redemption path for FLC-linked stocks
FLC Group and its affiliates have so far failed to meet the stock market’s regulations and face the threat of forced delisting.