HCMC – Around VND800 trillion in state funds is currently staying idle at the State Bank of Vietnam (SBV) but under the prevailing regulations, it cannot be loaned out, reported the local media.
During a National Assembly Q&A session on November 11, Ha Sy Dong, a deputy from Quang Tri Province, questioned how these unused state funds are managed and called for a better mechanism of coordination between fiscal and monetary policies. He noted that over VND1 quadrillion in idle funds has been held by the State Treasury and asked how the SBV, Ministry of Finance, and State Treasury could work together to leverage these funds in support of monetary policy.
SBV Governor Nguyen Thi Hong explained that the central bank provides essential banking services to the Government, which includes holding Government deposits. She noted that, according to the State Budget Law, idle funds can also be deposited at commercial banks. However, about 80% of these funds—around VND800 trillion—have remained with the SBV in recent years.
Hong added that placing idle funds in commercial banks could influence monetary policy and liquidity. She confirmed that the SBV and the Ministry of Finance have developed a coordination mechanism for managing these funds.
While the law prohibits direct lending from these funds, they can indirectly support liquidity management, Hong emphasized. Vietnam’s regulatory bodies will continue monitoring the funds closely and will coordinate with other agencies to ensure safe and efficient capital management.
