Unlocking capital currently tied up in projects.

Kinhtedothi - On the afternoon of March 5th, at the regular government press conference, Deputy Governor of the State Bank of Vietnam, Dao Minh Tu, stated that achieving GDP growth of over 8%, and ideally double-digit growth starting this year, is a task that all levels and sectors are actively pursuing.

According to Deputy Governor of the State Bank of Vietnam, Dao Minh Tu, the banking sector has a significant responsibility in facilitating capital support for the economy , especially for businesses expanding their investments. Growth requires expanded investment, and expanding investment depends on two factors: firstly, securing investment capital; and secondly, increasing the capacity and conditions for businesses and investors to absorb capital. Investment capital is increasing and comes from many sources: the state budget, government resources, private investment, investment through the banking system, and foreign capital.

"Regarding the banking sector specifically, to achieve an 8% support target, we are setting this year's growth target at around 16%, meaning at least an additional 2.5 trillion VND in outstanding loans by the end of the year. If economic growth exceeds 8%, then with the current investment capital structure, the ratio between bank capital and other sources of capital for economic development investment must increase by more than 2.5 trillion VND," said Mr. Dao Minh Tu.

The State Bank of Vietnam (SBV) has also determined the capital level and responsibilities. To achieve the year-end capital growth, lending volume during the year must have a faster capital turnover, unlocking currently stalled and difficult-to-access capital sources. Currently, the SBV is coordinating with ministries and agencies to submit to the Government solutions to unlock capital currently tied up in projects.

Regarding interest rates, to expand investment, interest rates must be lowered. Specifically in 2024, compared to the end of 2023, interest rates decreased by an average of about 1.1%. State-owned commercial banks, which play a leading role, even lowered their rates by about 1.6% compared to the beginning of 2024. On average, commercial bank capital decreased by 1.4%.

Specifically, in the first two months of 2025, it can be said that the direction of the Government, the Prime Minister , as well as the banking sector and credit institutions, is to continue reducing interest rates in a stable manner. After that, further reductions will be based on the most active and significant cost-cutting measures by commercial banks to create conditions for lowering lending interest rates.

Recently, taking advantage of the period after the Lunar New Year when the number of people depositing money is high, some banks have increased deposit interest rates for certain terms. However, the goal and perspective at this time is to create favorable conditions to support businesses and borrowers with positive interest rates. Therefore, interest rates must be reduced.

The Prime Minister issued Directive No. 19 on this matter. We believe the Prime Minister's directive is very decisive and timely. The spirit of the Prime Minister's directive is very clear and appropriate given the current need to reduce interest rates. To reduce lending interest rates, it is necessary to reduce working capital interest rates. All of this is in line with the policy of reducing interest rates so that businesses, depositors, and banks can share the burden simultaneously and synchronously, creating conditions for expanding investment, mobilizing capital, lending, and using capital effectively, resulting in GDP growth exceeding 8% this year.

The State Bank of Vietnam (SBV) has promptly directed banks to increase deposit interest rates recently, and the banks have also promptly adjusted them downwards. To date, statistics show that 12 banks have reduced their rates, with some banks offering very significant reductions. On average, deposit interest rates have decreased by up to 0.7% at some banks. Many banks have introduced very suitable credit packages at this time, especially consumer loans and social housing loans for the poor and low-income earners.

In the coming period, the State Bank of Vietnam (SBV) will closely monitor interest rates to ensure that commercial banks have more autonomy while also sharing the burden with businesses by reducing costs and lowering lending interest rates across all maturities. The SBV will proactively manage its tools to create conditions for commercial banks to have liquidity and capital sources, without having to increase their deposit mobilization. This will also be one of the tools the SBV will proactively manage from now until the end of the year.

Source: https://kinhtedothi.vn/ngan-hang-nha-nuoc-khoi-thong-nguon-von-dang-dong-tai-cac-du-an.html