On the morning of June 21, the State Bank of Vietnam (SBV) held a press conference to inform about the results of monetary policy management and banking activities in the first 6 months of 2023.

According to the State Bank of Vietnam, as of June 15, 2023, the total outstanding loans to the economy reached about VND 12.32 million billion, an increase of 3.36% compared to the end of 2022, an increase of 8.94% compared to the same period last year.

At the press conference, Standing Deputy Governor of the State Bank Dao Minh Tu said that the State Bank of Vietnam has focused on implementing solutions to manage monetary policy and banking operations with certainty, flexibility, initiative, timeliness and efficiency, contributing to controlling inflation, stabilizing the macro-economy and supporting growth.

Accordingly, from March 2023 to June 2023, the SBV adjusted the interest rates four times in a row with a reduction of 0.5-2.0% p.a. At the same time, the State Bank continues to encourage credit institutions (CIs) to reduce costs to stabilize lending interest rates to support businesses to recover and develop production and business.

With the measures on management and direction of the State Bank, to date, the interest rate level has been basically stable, the deposit and lending interest rates have tended to decrease gradually. The average deposit interest rate of commercial banks is about 5.8% p.a. (decreased by 0.7% compared to the end of 2022); average lending interest rate in VND is around 8.9% p.a. (decreased by 1.0% p.a. compared to the end of 2022).

In credit management, based on economic growth target of about 6.5% in 2023 and inflation of about 4.5% set by the National Assembly and the Government, the SBV orients the credit growth in 2023 to about 14 -15%, with adjustments in line with actual developments and situations; credit management to meet the demand for capital for the economy in order to contribute to controlling inflation and supporting economic growth.

Also according to Deputy Governor Dao Minh Tu, as of June 15, 2023, the total outstanding loans to the whole economy reached about VND 12.32 million billion, an increase of 3.36% compared to the end of 2022 and an increase of 8.94% compared to the same period last year. In particular, the credit structure continues to focus capital for production and business, priority fields according to the policy of the Government, contributing positively to GDP growth of the country. Credit for potentially risky sectors is controlled.

Kylie Nguyen