PM Dung: credit growth must be in line with set targets

Speaking at a January 9 conference in Hanoi to devise the 2013 tasks for the SBV, Dung asked the SBV Governor to help the government keep a check on inflation.

The challenge of reducing inflation while maintaining economic growth in 2013 is a difficult one, because if growth goes below 5 percent, the unemployment rate is likely to increase. To fulfill this task, the SBV will need to manage monetary policy in a more flexible and effective manner to reduce the inflation rate of 2012.

This challenge shows the political determination of the Party, National Assembly and Government, Dung said.

The PM underlined the need to ensure liquidity and the operations of credit organizations for the national economy, and to pour more capital into priority areas such as agriculture, rural development, exports, support industries and small and medium sized enterprises (SMEs).

Ensuring that credit growth is in line with the set targets is a task not only for the State Bank of Vietnam, but also for commercial banks, as the interests of commercial banks are also those of businesses. Therefore, the banking sector must help businesses iron out inefficiencies.

It is imperative to deal with bad debts in conjunction with the restructuring of banks to help them operate more effectively, as well as to manage the gold market and exchange and interest rates to help stabilize the macroeconomy, he said.

Dung also asked the SBV to intensify its inspection and supervision of banking institutions, revamp their operations where required and to create a transparent and fair legal foundation for credit organizations.