Prime Minister directs to continue lowering interest rates and loosening lending conditions

On the evening of July 6, Prime Minister Pham Minh Chinh chaired a meeting of the Government Standing Committee with the Executive Board of the Vietnam Association of Small and Medium Enterprises (SME) on the operation of the Association, the SME business community, and solutions to remove difficulties for businesses.

The SME Association said that recently, due to the impact of the Covid-19 pandemic and other impacts from the world situation, orders from small and medium enterprises have decreased, output is difficult, and raw material costs are still high... seriously affecting the production and business of SME enterprises.

At the meeting, the Association and SME enterprises proposed that the Government , relevant ministries and branches consider directing and creating conditions for enterprises to access capital better; continue to reduce interest rates, loosen lending conditions; consider establishing funds, using credit leverage to support capital for enterprises; restructure debts for enterprises; have policies on corporate governance training; create conditions for SME enterprises to participate in programs, works and projects of great value... Thereby, contributing to removing difficulties, helping SME enterprises develop.

On behalf of the Government, Prime Minister Pham Minh Chinh acknowledged, commended and highly appreciated the business community, including small and medium-sized enterprises, which account for more than 97% of the total number of enterprises nationwide.

Prime Minister Pham Minh Chinh chaired a working session of the Government Standing Committee with the Executive Board of the Vietnam SME Association (Photo: VGP)

Regarding difficulties in accessing capital and high interest rates, the Prime Minister stated that the banking sector has adjusted operating interest rates four times, made efforts to reduce lending interest rates, increased credit balances, and increased access to credit, but needs to continue to make more efforts, implement stronger solutions, and bring about more practical and timely results.

Listening to the exchanges between banks and businesses at the meeting, the Prime Minister emphasized the need for both sides to listen, share more, respect and be responsible for each other, and work together to resolve difficulties and obstacles on the basis of legal regulations and appropriate circumstances and situations. In particular, it is necessary to put oneself in the position of others; banks must put themselves in the position of small and medium-sized enterprises, and small and medium-sized enterprises must put themselves in the position of banks. Recently, the Prime Minister directed the establishment of agencies and localities to work with banks and businesses to resolve difficulties and obstacles in each field, even each project.

In the context of controlled and gradually decreasing inflation, stable macro-economy, and ensured major balances, with a policy orientation that gives more priority to growth targets, focusing on promoting three growth drivers (investment, export, consumption), the Prime Minister requested the banking sector to continue to resolutely implement the Government's resolutions on removing difficulties for production and business, creating jobs and livelihoods for people, especially implementing a more flexible and loose monetary policy through increasing money supply, ensuring credit demand, appropriate credit growth, reducing interest rates, especially lending rates, and increasing access to credit for production and business.

The State Bank of Vietnam and banks need to continue to study and adjust lending conditions to be more favorable, reduce costs to lower lending rates; at the same time, monitor the implementation of Circular 02 on debt restructuring and Circular 03 on corporate bond repurchase to make timely adjustments if necessary.

Regarding procedures, the Government has assigned the Government Office to coordinate with the Ministry of Home Affairs to continue reviewing to further reform, reduce and simplify administrative procedures.

Regarding the issue of capital for small and medium enterprises, we must find ways to improve this issue. Enterprises must coordinate and cooperate with banks to increase capital.

Regarding legal issues, the Government is directing ministries and branches to continue reviewing, reporting and proposing to the National Assembly any content under the authority of the National Assembly, the Government to do the content under the authority of the Government, and the ministries and branches to do the content under the authority of the ministries and branches.

The Government will review funds, continue to research and implement support solutions for human resource training, improve business management capacity and prioritize mechanisms for small and medium-sized enterprises to develop new areas such as innovation, digital transformation, green transformation, circular economy, and sharing economy.

Regarding preferential credit packages, the Prime Minister requested the banking sector to promote a credit package of VND120,000 billion for the social housing sector and VND10,000 billion for wood and forestry enterprises.

The Prime Minister assigned the State Bank to study and implement credit packages to stimulate consumption. At the same time, the Ministry of Planning and Investment was assigned to review regulations to assign infrastructure investment projects to small and medium-sized enterprises in accordance with the law.

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