As of March 28, the credit of the whole economy increased by 2.06% compared to the end of 2022, an increase of 11.17% compared to the same period in 2022. Credit structure continues to focus capital for production and business sectors, especially priority areas and growth drivers according to the Government's policy.

Regarding interest rate management, in the first two months of 2023, the State Bank of Vietnam kept the operating interest rates unchanged in order to stabilize market interest rates in the context that world interest rates continued to rise and remained at a high level, domestic inflation pressure increased.

On March 15, the SBV decided to reduce several operating interest rates. In February 2023, the State Bank of Vietnam worked with commercial banks, encouraged commercial banks to reduce costs, continue to reduce deposit interest rates in order to reduce lending interest rates to support production and businesses.

Accordingly, commercial banks have reduced deposit interest rates from 0.2-0.5% p.a. for terms of 6 to 12 months from March 6, 2023. On that basis, commercial banks have conditions to reduce lending interest rates to help customers reduce financial costs.

In exchange rate management, the State Bank shall continue to manage the exchange rate flexibly, in line with the situation of domestic and foreign markets; ensure smooth market liquidity, legal foreign currency needs are fully met.

Regarding credit management, according to the State Bank of Vietnam, on the basis of the economic growth target of about 6.5% in 2023 and inflation of about 4.5% set by the National Assembly and the Government, the State Bank orients credit growth. about 14-15% in 2023, with adjustments in line with developments and actual situations, contributing to stabilizing the macro-economy and supporting economic growth.

In February 2023, the SBV allocated credit growth targets to credit institutions and continued to direct credit institutions to direct credit into production and business sectors, priority areas and economic growth drivers. In order to create favorable conditions for businesses and people to access bank credit, the State Bank has directed the whole industry to continue promoting the implementation of the program to connect banks - businesses in localities.

Kylie Nguyen