Governor Nguyen Thi Hong said that the current growth of Vietnam's economy is heavily dependent on capital but the efficiency is not high. " Vietnam attracts a lot of foreign investment but has not yet taken advantage of many advantages in terms of capital, technology transfer, management skills and there is no connection between this sector and domestic enterprises ," Ms. Hong assessed.
Therefore, the Governor believes that in the coming time, there needs to be a "renewal" in the strategy of attracting FDI capital towards promoting technology transfer, governance and greater connection with the domestic economy.
Governor of the State Bank of Vietnam Nguyen Thi Hong
The Governor also agreed with the opinion of Finance Minister Nguyen Van Thang that high economic growth needs to rely on both domestic and foreign capital. Ms. Hong said that foreign capital is very diverse such as: FDI capital, FII capital, foreign loans..., avoiding the current situation where domestic capital depends heavily on bank credit.
Specifically, according to the Governor, domestic capital is currently heavily dependent on the banking system, including short-term capital, medium-term capital and long-term capital. Outstanding credit/GDP at the end of 2024 has reached 134%, if it continues to increase, it will pose risks to the banking system and cause consequences for the economy, making it difficult to achieve the goal of both high and sustainable economic growth.
" This is an issue that ministries, especially the Ministry of Finance, need to pay close attention to in the coming time when balancing capital for high economic growth targets ," the Governor suggested.
To achieve the GDP target of over 8% this year, the credit growth target set by the State Bank this year is about 16%. Ms. Hong said this target will be controlled and adjusted to suit reality. Monetary policy will also be operated flexibly and reasonably to contribute to controlling inflation, stabilizing the monetary market, and ensuring the safety of the banking system.
" In the context of a highly open economy, monetary policy management has made great efforts in the past. In the coming time, the State Bank will continue to closely follow developments to implement management tools, at the right time and in the right doses to control inflation, stabilize the macroeconomy, stabilize the foreign exchange market and ensure the safety of the banking system. This is a fundamental point because if the macroeconomy, currency and foreign exchange fluctuate as before, it will be very difficult for businesses to develop, " said the Governor.
Public debt is well controlled
Previously, also expressing about capital sources, delegate Tran Van Tuan ( Bac Giang ) asked: The Ministry of Finance has been advising the Government to implement many large-scale transportation projects. Such as railway projects, highways, seaports, airports, nuclear power plants, while the annual budget revenue scale increases slowly.
So, where does the main source of capital come from, is the public budget debt guaranteed, and will we leave a huge debt burden for our children and grandchildren?
Responding to this content, Minister Nguyen Van Thang said that recently the Government has been very determined and resolute in implementing the development of the transport infrastructure system nationwide. Right from the beginning of the term, when the Prime Minister directed the National Assembly to set a target of 3,000km of expressway, it was very difficult, and the budget was also limited.
However, the Minister affirmed that we are controlling public debt, government debt very well and somewhere around 33% of GDP. That is a very low, very safe number. Currently, all balanced projects, including large projects, have been calculated in detail and specifically. In which, which projects use the state budget, how much, which projects borrow and when borrowing, the efficiency of the project is also calculated in detail and specifically, including the efficiency of socio-economic development and financial efficiency.
When borrowing, also carefully calculate where to borrow, ODA loan or bond issuance. The most important thing is whether the project is operating effectively or not? If it is effective, like doing business, borrowing from the bank, you can still pay off the debt, have infrastructure, continue to contribute to the economy and society.
" The projects in the past time were very large projects and in fact were all carefully evaluated for their socio-economic efficiency ," he stated, saying that delegates were completely assured about national debt and state debt.
Source: https://vtcnews.vn/thong-doc-nguyen-thi-hong-can-thay-doi-chien-luoc-hut-von-fdi-ar949762.html
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