Hanoi (VNA)🥂 – Prime Minister Pham Minh Chinh asked banks to not just focus on profits but also on contributing to national development while chairing a meeting of permanent Cabinet members and commercial banks in Hanoi on February 11.

The PM recognised the banking sector's role in maintaining economic stability, controlling inflation, and supporting growth while managing public debt and deficits in 2024. According to the State Bank of Vietnam (SBV), in 2024, the sector played a significant role in completing all the 15 socio-economic target of the country. Last year, the system saw a 1.24% reduction in lending rates compared to 2023, while maintaining stable foreign exchange and exchange rates. Liquidity in the financial system remained robust, meeting the economy's capital needs. Credit growth reached 15.08%, injecting an additional 2.2 quadrillion VND (86.19 billion USD) into the economy. Banks assisted businesses, especially those impacted by Typhoon Yagi. Moreover, the restructuring of poor-performing banks and the management of bad debts was carried out efficiently, keeping non-performing loans under 3%. This year, the banking sector aims to reach 16% credit growth to support economic growth while controlling inflation. At the meeting, leaders of banks committed to making contributions to national socio-economic development, promoting green credit, and providing credit to the country’s major programmes, especially infrastructure projects. They gave recommendations to boost the sector’s growth and foster its effective engagement in renewing growth engines. Among the proposals were the need for greater control of bad debts, increased credit limits, stable interest rates, and flexible exchange rate management. PM Chinh expressed his appreciation for the input and commitment of the banking sector in helping the country navigate challenges, particularly through the COVID-19 pandemic and natural disaster recovery efforts. The Government leader outlined eight critical measures for banks to focus on in 2025. These include reducing operational costs, improving efficiency, and prioritising public welfare by offering lower lending rates, particularly in sectors that drive employment and economic restructuring. Banks should also focus on developing new growth drivers in investment, consumption, and exports while supporting large-scale infrastructure and public-private partnership projects, he said. Additionally, the banking sector must lead the way in digital transformation, adopting technological innovations, reducing administrative barriers, and promoting a culture of integrity and transparency. PM Chinh also stressed the importance of supporting affordable housing projects, particularly for low-income and young people, and collaborating with the Government to eliminate substandard housing nationwide. He urged banks to uphold high ethical standards in operation, stressing that while profit is essential, the banking sector must also serve the nation’s broader development. He cautioned against practices such as mishandling bonds, which have contributed to recent banking sector issues. The PM suggested banks provide more soft loans to house seekers, while making more contributions to the fight against corruption. He called on them to continue their contributions to national development, ensuring that both the economy and the banking system thrive together for the benefit of all citizens. At the meeting, the PM assigned the SBV Governor to finalise a report to submit to the NA during the legislature’s fifth session to legalise Resolution No. 42/2017/QH14 on the pilot scheme for handling non-performing loans of credit institutions. He also urged amendments to regulations related to increasing capital for state-owned commercial banks to ensure healthy competition with joint-stock commercial banks. He directed relevant authorities to collaborate with banks on considering and implementing measures for debt restructuring, deferrals, and appropriate rescheduling to align with current circumstances./.