Speaking to all officials and employees of the banking sector, Prime Minister Pham Minh Chinh affirmed: the banking sector has played a crucial role in contributions to the country’s achievements in 2021. It is one of the most important sectors as well as the lifeblood of the economy.
Prime Minister assigns tasks to the banking sector
On February 8, 2022, H.E. Pham Minh Chinh, Prime Minister and Member of the Politburo, and H.E. Le Minh Khai, Deputy Prime Minister and Secretary of the Central Committee of the Communist Party of Vietnam ,visited and had a working session with the State Bank of Vietnam (SBV).
Ms. Nguyen Thi Hong, SBV Governor and Member of the Central Committee of the Communist Party of Vietnam and representatives from the Office of the Government, other members of the SBV Management Board, leaders of the SBV Departments and entities, and representatives of the commercial banks operating in Hanoi, etc were also present.
The banking industry contributes to the overall achievements of the country
In the meeting, SBV Deputy Governor – Mr. Dao Minh Tu presented a brief report on the performance of the banking industry in 2021 and its plan for 2022. In 2021, the banking industry carried out its tasks in the context of the Covid-19 outbreak which caused significant impacts to all aspects of the socio-economic life and posed many unprecedented challenges for the monetary policy management of the SBV.
However, thanks to the leadership of the Communist Party of Vietnam and the firm guidance of the Government, along with the close coordination of the relevant ministries and agencies together with the solidarity and efforts of all employees in the industry, the banking sector has successfully fulfilled its assigned tasks, making important contributions to the overall achievement of the economy.
The proactive and flexible management of the monetary policy has contributed to successfully curbing the inflation at a low level; utilizing capital sources into supporting the economic growth recovery; maintaining the stability and smooth operation of the money market; significantly lowering the lending interest rates; continuing to increase the State foreign exchange reserves; the exchange rate and the Forex market were remained stable even in the context of strong fluctuations in the international market.
Deputy Governor – Mr. Dao Minh Tu reports on the performance of the banking industry
In particular, the banking industry has implemented many solutions, providing prompt support and solve difficulties for the businesses and people affected by Covid-19 pandemic, especially solutions to restructure the repayment periods, waive and reduce the interest and fees, maintain the debt classifications; encouraging businesses and individuals to borrow to restore and stabilize production and businesses.
Since the beginning of the pandemic, the whole system has restructured the debt payment schedules and maintained the debt classifications for a portfolio with a total of VND 620,000 billion; loan interests and banking service fees reduction amounting to over VND 40,000 billion; actively participating in social security to support the pandemic prevention by donating over VND 3.5 trillion.
In addition, the implementation of restructuring measures set of CIs system following Project 1058 “Restructuring the system of credit institutions and bad debt handling in the 2016-2020 period” has achieved important results; basically achieved the main goals…
Entering 2022, on the basis of closely following Resolution 01 of the Government and the directions of the Prime Minister, the banking industry has proactively and strongly implemented the key tasks right from the beginning of the year. As of January 28, 2022, the credit outstanding increased by about 2.74% as compared to the end of the previous year (up by 16.32% year on year; the growth rate in January 2021 was only 0.53%). This reflects a smoother capital flow and strong positive recovery capabilities of the enterprises after the pandemic.
Also at the meeting, representatives of several commercial banks presented to the Prime Minister their recommendations about several measures and possible solutions to the Government and the SBV for the management and administration of the monetary and banking operations in order to help remove the current difficulties and obstacles faced by the credit institutions, and to promote business and production, contributing to the overall achievements of the country.
Affirm its role as the lifeblood of the economy
Speaking to all officials and employees of the banking sector, Prime Minister Pham Minh Chinh acknowledged, in 2021, the economy faced great difficulties and challenges when the Covid-19 pandemic became an unprecedented global phenomenon which caused vast impacts. Under the leadership of the Party, the supervision of the National Assembly, the direction of the Government, the active participation of the people, with the support of international partners; we have carried out “multiple goals”, Vietnam has achieved many respectable results in many fields. When the pandemic was controlled, Vietnam has changed direction to safely adapt, gradually recovered and developed socio-economically. Vietnam’s gross domestic product grew by 5.22 percent year-on-year. For the entire year of 2021, the economy expanded 2.58 percent with a low inflation, while CPI increased by 1.84%. Also, the country’s import and export turnover hit a record of nearly VND 670 billion.
Prime Minister Pham Minh Chinh said that the country’s achievements in 2021 could not be realized without the contribution from the banking industry – one of the most important sectors and the lifeblood of the economy. The banking industry activities contributed to maintaining the stability of the macro-economy, the money and the Forex markets, ensuring continuous production and business operations, as well as the consumption of enterprises and the people, helping to promote the development of the country.
Prime Minister Pham Minh Chinh and Deputy Prime Minister Le Minh Khai visit the Hall of History of Vietnam banking sector
Speaking at the meeting, Prime Minister Pham Minh Chinh spoke highly of the achievements made by the whole banking industry in 2021. The banking sector had conducted multiple policies to support the people and enterprises to recover and develop their production and business operations; promulgated several policies on debt rescheduling, banking fee reduction and exemption. About 600,000 customers had benefited from the debt rescheduling, with the loan outstanding of over VND 280,000 billion; nearly two million customers had benefited from the lending interest rate reduction and exemption, with the loan outstanding of nearly VND 4,000 trillion; 1.2 million customers had been provided with new loans with lower interest rates than the pre-pandemic time, with the total loan amount of over VND 7,000 trillion. Additionally, the SBV refinanced several commercial banks in order to allow them to provide loans to Vietnam Airlines Corporation (VNA) according to the direction of the National Assembly and the Government. “At the same time, banking industry is the leading one in supporting the pandemic prevention and control by giving thousands of billion VND, donating medical supplies and foods for those affected by Covid with all their hearts and kindness” emphasized the Prime Minister.
The banking industry also continued to improve the legal frameworks and administrative reform; promoted cashless payment and continued to take a stronger and more proactive lead in the digital transformation; improved the leadership capabilities and the quality of the banking officials and public employees; SBV also coordinated with other ministries and the state agencies to address all emerging issues relating to trade, monetary and investment relationship with other countries; the communications activities continued to be strongly and effectively implemented.
According to the Prime Minister, the above results were obtained thanks to the solidarity spirit, sense of responsibility of all institutions and individuals in the banking system; as well as the effective communication plans which increased public understanding, improving the people’s confidence in the banking products and services.
Banking industry needs suitable solution for difficulties.
In 2022, Prime Minister said that banking industry needs to identify difficulties and challenges to prepare suitable solutions.
In Resolution 01/NQ-CP of the Government about mission and solutions of Socio-economic development plan and national budget estimation in 2022, the government affirmed that the objective management is “unity and discipline, active adaptation, safety and efficiency, development recovery” and promoting GDP growth of 6- 6,5%.
The meeting between Prime Minister Pham Minh Chinh and banking leaders
According to the Prime Minister, every department of banking industry has to try the best to implement the strategic mission following the innovated priority under their functions and duties.
The Prime Minister noted that strong banking industry’s operation leads to the efficient economy.
Mr Prime Minister asked leaders of the banking industry to actively co-ordinate with fiscal and macro-economic policies to control the inflation and stabilize the macro economy; implementing efficiently recovery solutions to support and provide capital for people and enterprises to develop production and business.
The Prime Minister asked financial institutions to cut down the expenses in order to reduce loan interest rates and control the capital flows into risk areas. Banking industry should pay attention to the project on restructuring financial institutions associated with non-performing loans settlement for the 2021-2025 period.
The banking industry needs to continue digital transformation and promote institutional improvement. In foreign activities, the SBV should coordinates with agencies to harmoniously handle trade, monetary and investment relations with other countries. In addition, the SBV should improve the communications activities to delivered information timely for people.
Mr. Pham Minh Chinh assigns agencies to handle banking industry’s recommendation under their power. If it is beyond their competence, they shall report them to higher authorities for consideration and decision.
Ms. Nguyen Thi Hong shared at the meeting that the banking industry, with the government’s care and directions, was motivated to overcome difficulties and handle the challenges which contributed to control the inflation, stabilize the macro economy and currency market; not only responded to Covid-19 pandemic but also developed socio–economic of Vietnam…
SBV Governor Nguyen Thi Hong speaks at the meeting
As a representative of SBV, Ms. Nguyen Thi Hong expressed her gratitude to the Government and received recommends and directions. The banking industry would continue promoting the achieved results, overcome the difficulties and challenges, fulfilling the assigned tasks and contributing to the mission of national construction and development.
The SBV Governor asked every department’s manager to raise their responsibility in completing the mission and monitoring closely domestic and foreign macro changes to give recommendations to SBV for timely decisions which ensured the goals under the government’s directions.
Ms. Nguyen Thi Hong requested banking leaders to ensure the legal obligation and safety operation in order to maintain efficiency. Besides that, Ms. Hong affirmed that financial institutions need to carry out solutions for people and enterprises to overcome the impacts of Covid-19 and contributed to national society and Covid-19 response.
The entire banking industry must try their best to complete the mission to contribute to the banking industry’s achievement and the country’s development.
The Banking Journal
