There needs to be a housing development credit package for young people aged 35 and under.

Prime Minister Pham Minh Chinh suggested that commercial banks need to research and continue to have preferential credit packages to develop social housing, housing for young people aged 35 and under, and housing for those in difficulty.

On the morning of February 11, Prime Minister Pham Minh Chinh chaired a meeting of the Government Standing Committee to work with commercial banks to accelerate, break through, promote growth and control inflation.

Credit growth target will be eliminated

At the conference, Mr. Dao Minh Tu, Deputy Governor of the State Bank of Vietnam (SBV), said that the SBV will continue to innovate credit growth management measures and implement a roadmap to gradually reduce and eventually eliminate the management of credit growth targets for each credit institution.

At the same time, this agency will proactively and promptly adjust the credit growth target for credit institutions based on macroeconomic developments and actual situations without needing written requests from credit institutions to promote economic growth.

Deputy Governor of the State Bank Dao Minh Tu

The credit quota mechanism has been maintained by the State Bank for the past ten years, as a tool to control loan quality as well as serve other macroeconomic targets such as interest rates, money supply and inflation. However, up to now, this tool is considered to create a request-grant mechanism, in some cases making it impossible for borrowers to access credit if the bank no longer has a "quota".

This year, the credit growth limit (room) for the banking industry is about 16%, an increase of 0.92 percentage points compared to the implementation in 2024. Deputy Governor Dao Minh Tu said that in the immediate future, the credit "room" will be adjusted to increase for banks based on reality, instead of needing a written request from credit institutions. "This is to promote economic growth," Mr. Tu said.

Urgently legalize Resolution No. 42 on piloting bad debt settlement of credit institutions

Speaking at the conference, Prime Minister Pham Minh Chinh emphasized that in 2025, Vietnam must maintain macroeconomic stability, control inflation, promote growth, ensure major balances and control budget deficit, government debt, public debt, and foreign debt within limits, well manage monetary policy, exchange rates, and interest rates, especially the GDP growth target of at least 8% or more.

With a credit growth target of over 16%, the Prime Minister requested the banking industry in general and commercial banks in particular to take the lead in promoting growth, controlling inflation and stabilizing the macro economy.

According to the Prime Minister, banks must operate profitably, but in addition to profit, they must bring common benefits to the country, because "when the water rises, the duckweed floats."

In particular, the Prime Minister noted the need to remove difficulties and obstacles for backlogged and prolonged projects that cause waste for private enterprises and support small and medium-sized enterprises because these enterprises account for a very large proportion and create many jobs.

Representatives of commercial banks attending the conference

Commercial banks need to research and continue to have preferential credit packages for both supply and demand to develop social housing, housing for young people aged 35 and under, housing for the disadvantaged; actively contribute to eliminating temporary and dilapidated houses.

The Prime Minister hopes that banks will operate in accordance with the law, contributing to the prevention and fight against corruption, negativity, and harassment, and made it clear that the recent violations related to bonds are partly the responsibility of the banks.

Next, the Prime Minister requested to continue to operate monetary policy proactively, flexibly, promptly and effectively, as a fulcrum for people, businesses and the country's development.

The head of the Government assigned Deputy Prime Minister Ho Duc Phoc to directly direct and Governor of the State Bank of Vietnam Nguyen Thi Hong to urgently prepare documents to submit to the National Assembly in the upcoming May session to legalize Resolution No. 42 of the National Assembly on piloting the handling of bad debts of credit institutions. At the same time, amend regulations related to increasing capital for state-owned commercial banks to ensure healthy competition with joint-stock commercial banks.

Source: https://phunuvietnam.vn/thu-tuong-can-co-goi-tin-dung-phat-trien-nha-o-cho-nguoi-tre-tu-35-tuoi-tro-xuong-20250211160629853.htm