The State Bank of Vietnam must take strong and appropriate measures to tighten management of the currency and gold markets, said Prime Minister Pham Minh Chinh.

A gold store in Hanoi. Photo: Thanh Hai/The Hanoi Times

The central bank should monitor the international and domestic markets to make forecasts and flexible adjustments to monetary policy, focusing on foreign exchange and interest rates, the prime minister requested in a directive dated May 2.

The Prime Minister ordered the Central Bank, among other tasks, to reduce interest rates; create favorable conditions for borrowing; initiate stronger communication to raise public awareness of new policies such as those on the exchange rate, credit, interest rates, savings, and others; prepare timely documents to guide the 2024 Law on Credit Institutions; and amend government decrees on credit policy for agricultural and rural development.

Local financial institutions and banks are required to review and sort out viable projects in the real estate, transportation and energy sectors to ensure that their investors' credit demands are met. Lenders are also urged to increase their consumer loans, both online and offline, and to speed up the implementation of monetary programs to support the growth of aquaculture, forestry, high-tech agriculture, affordable housing, and the renovation of old apartment buildings.

Prime Minister Chinh also asked the central bank to conduct regular inspections of local lenders and gold trading companies to ensure that the gold market operates in a transparent and safe manner.

In addition, the Ministry of Finance is tasked to combine several fiscal and macroeconomic measures to boost socio-economic growth, tighten supervision of the stock and bond markets, and make the markets positive channels for enterprises to raise capital.

The goal is to ensure positive credit growth, stable macroeconomic conditions, control inflation, promote socio-economic growth and guarantee the security of the banking and financial sector, the Prime Minister said.

New rule on power trading to be unveiled in May

The Prime Minister expected the Ministry of Industry and Trade to come up with a new policy in May to regulate direct power purchases between producers and large consumers.

The ministry is tasked with executing the National Electricity Development Plan VIII, approved by the government on April 1, and working with provincial and municipal authorities to develop specific projects for local areas. These projects must be submitted for approval by May 10.

In addition, the Prime Minister requested the ministry to expand the list of export markets, strengthen Vietnam's shares in existing overseas markets, and explore new opportunities.

For the domestic market, the ministry is asked to work with local governments to organize promotional programs to boost consumer purchasing power and stimulate the economy.