SGGP
The difficulties faced by businesses are affecting monetary policy, and the risk of bad debt is emerging in some banks.
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| A bank employee is checking a customer's savings deposit (illustrative photo). Photo: HOANG HUNG |
On June 21, Deputy Governor of the State Bank of Vietnam (SBV) Dao Minh Tu stated that the SBV's current policy management is facing many difficulties in ensuring the achievement of multiple objectives simultaneously. Specifically, in managing credit in 2023, based on the economic growth target of approximately 6.5% and inflation target of approximately 4.5% set by the National Assembly and the Government, the SBV has set a credit growth target of approximately 14%-15% for 2023, with adjustments made to suit actual developments and circumstances.
In addition, credit management aims to meet the capital needs of the economy, contributing to inflation control and supporting economic growth. As of June 15th, outstanding credit in the entire economy reached approximately 12.32 million billion VND, an increase of 3.36% compared to the end of 2022.
However, according to Deputy Governor Dao Minh Tu, what is noteworthy currently is that many businesses are facing difficulties due to a lack of orders, large inventories, disrupted financing, rising prices of raw materials for many goods, and declining domestic and international purchasing power… These difficulties faced by businesses are affecting monetary policy management, and the risk of bad debts in some banks is emerging.
The State Bank of Vietnam will manage interest rates in line with macroeconomic balance, inflation, and monetary policy objectives; and continue to encourage commercial banks to reduce costs and lower lending interest rates to support businesses in recovering and developing production and business activities.
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