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Monday, June 24, 2024

PM calls for further interest rate cuts

The Saigon Times

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HCMC – Prime Minister Pham Minh Chinh has urged the State Bank of Vietnam (SBV) and commercial banks to continue lowering interest rates and offer more favorable loan conditions.

During a working session between the Government Standing Committee and the Vietnam Association of Small and Medium Enterprises on July 6, PM Chinh discussed solutions to address the woes faced by businesses.

Recognizing the difficulties encountered by businesses, the PM called on the SBV to increase money supply, expand credit limits, reduce interest rates, and ease lending conditions to facilitate capital flow into production and business activities.

A recent survey of 10,000 businesses found that more than 59% identified order shortages as their most significant challenge, while 51% struggled to access capital, he said.

“Banks and businesses should understand each other’s perspectives,” PM Chinh said at the conference and asked for more effective cooperation between the two sectors to overcome difficulties.

Regarding credit packages, the PM urged the banking sector to expedite the implementation of the VND120 trillion credit package for social housing and the VND10 trillion package for timber and forestry businesses.

The SBV was also instructed to study and implement credit packages aimed at stimulating consumer demand. Furthermore, the Ministry of Planning and Investment was assigned to review regulations concerning the transfer of infrastructure investment projects to small and medium-sized enterprises.

To address challenges related to orders, the Ministry of Industry and Trade will enhance trade promotion, leverage existing Free Trade Agreements (FTAs), negotiate new FTAs, expand markets, products, and supply chains, and improve the quality of goods and products.

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