Government agencies and localities are expected to urgently adopt suitable and efficient measures to ensure greater credit access for local businesses and people and address challenges related to the socio-economic recovery process.

Car tire production at Sailun Vietnam in Go Dau District, Tay Ninh Province. Photo: Hong Dat/VNA

The request was made under Prime Minister’s directive No.990 released on October 21, regarding measures to support growth during the remainder of the year.

To address these challenges promptly, Prime Minister Pham Minh Chinh has called on the State Bank of Vietnam (SBV) to lead and collaborate with relevant ministries and agencies in closely monitoring market developments and managing monetary policy.

This entails adopting a dynamic, flexible, and timely approach to ensure effective monetary policy while giving priority to balancing economic growth with macroeconomic stability, controlling inflation, and safeguarding the integrity of the credit institution system, noted the directive.

The management of monetary policy tools, including exchange rates, interest rates, and money supply, should be carried out smoothly, comprehensively, and effectively to address difficulties and meet the economy's capital requirements to promote production, business growth, job creation, and livelihood improvement, it added.

The Prime Minister also stressed the importance of managing credit growth reasonably and effectively, striving to achieve the highest attainable target, improving the quality of credit, directing credit to sectors related to production, businesses, priority areas, and economic growth drivers while exercising prudent credit control in potentially risky sectors.

In this regard, he requested that policies should be devised to encourage credit flow into viable projects and businesses that serve as economic growth catalysts.

Specifically, there should be a thorough and effective implementation of the VND120 trillion (US$4.9 billion) credit program for investors and homebuyers in social housing projects, as well as the renovation of old apartments, in addition to a VND15 trillion ($611 million) credit package for the forestry and fisheries sector.

“The pivotal role of state-owned commercial banks and the proactive and innovative engagement of joint-stock commercial banks are essential for the full disbursement of these financial packages,” said the directive.

Furthermore, continued efforts s should be made to streamline administrative procedures, scrutinize, and decisively reduce unwarranted and burdensome administrative processes that increase costs for individuals and businesses.

Chinh called for the implementation of resolute, robust, and effective measures to facilitate access to credit capital for businesses and individuals, enhance the economy's capability to absorb capital, and strengthen bank-business linkages.

This involves ongoing support and effective collaboration with customers facing difficulties to stimulate the recovery of production and business activities, he noted.

Furthermore, credit institutions should continue to examine and reduce operational costs, simplify lending processes and requirements, and boost the use of information technology and digital transformation to lower interest rates, Chinh noted.

Further taxes and fees cut for consideration

The Ministry of Finance is responsible for leading and collaborating with various ministries, agencies, and local authorities to implement expansionary fiscal policies in a rational, targeted, efficient, synchronized, stringent, and harmonious manner, in alignment with monetary policy.

This approach aims to stimulate investment, especially from non-state sources, and bolster public investment to promote economic growth, maintain macroeconomic stability, manage inflation, and safeguard macro fundamentals.

Chinh urged the ministry to increase state revenue and curb expenses through practical and effective measures, including exemptions, reductions, and extensions of taxes, fees, charges, and land rent to provide support to individuals and businesses.

“Proactive proposals for tax, fee, and charge exemptions, reductions, and extensions in 2024 will be formulated and submitted to the competent authorities for timely consideration and decision-making,” he said.

The People's Committees of provinces and centrally-run cities should collaborate effectively to enhance accessibility to credit capital for both individuals and businesses, providing support to businesses for their growth and economic recovery.

These efforts will be complemented by a continued drive for administrative procedure reform, digital transformation, and the reinforcement of administrative discipline in the performance of public duties, he asserted.