PM orders prioritising capital for production, trade to propel growth

Prime Minister Pham Minh Chinh on July 15 ordered prioritising capital for production and trade to fuel growth in tandem with stabilising macro-economy, controlling inflation and Government and public debts while ensuring major balances of the economy.

Speaking at a teleconference to review the activities of the State Bank of Vietnam (SBV) in the first half and launch its tasks for the remainder of this year, PM Chinh asked the central bank to pursue active, flexible and effective monetary policy while accelerating decentralisation and administrative reform.

Capital should be geared toward priority areas and growth driving forces, while loan interest rates must be cut to facilitate citizens and businesses’ access to credit, he said.

The PM ordered that the forex rates must be managed actively and flexible, with the global and domestic situations taken into consideration. Drastic and effective efforts must be exerted to carry out a scheme on restructuring credit institutions and dealing with bad debts for the 2021-2025 period.

As the size of the domestic corporate bond market remains modest compared to those of other countries and the set target, he ordered the raising of capital through bond issuance to support economic recovery.

The leader called on the business community, together with the SBV and banking sector, to further strive to save costs, renovate corporate governance, step up digital transformation, and propel green growth and circular economy.

Ministries, agencies and localities were also urged to work closely with the bank and credit institutions to tackle difficulties in production and trade, especially via fine-tuning policies and mechanisms and reforming administrative procedures.