Hanoi (VNS/VNA) – Financial difficulties are on the
shoulders of the banking trade because it has to stabilise the macro-economy,
management inflation, and help financial progress and companies, consultants have
On the 2023 Vietnam Banking Discussion board held on Could 10, the consultants mentioned
the banking system nonetheless has to primarily present capital for the entire financial system as
the nation’s capital market remains to be insufficient. Vietnam’s credit-to-GDP ratio
is presently at a really excessive stage. If Vietnam continues to keep up credit score
progress at a excessive stage as in earlier years, it will likely be very dangerous for the
nation’s banking system and the entire financial system.
Nguyen Quoc Hung, Normal Secretary of the Vietnam Banking
Affiliation, mentioned it’s presently tough for the State Financial institution of Vietnam (SBV)
because it has to stabilise the macro-economy and management inflation in addition to
supporting companies and financial progress.
If the present difficulties of the entire financial system are placed on the
banking trade, companies will even face extra difficulties subsequent time when banks
battle, Hung warned.
In accordance with Hung, though Round No 02/2023/TT-NHNN on debt
rescheduling and retention of debt classes to help debtors has been
issued, industrial banks nonetheless should take full duty and make their
personal selections on debt restructuring. Due to this fact, industrial banks could should
burden all difficulties of the entire financial system.
Ha Thi Kim Nga, senior economist of the Worldwide Financial Fund
(IMF)’s Resident Consultant Workplace in Vietnam, additionally mentioned the SBV is
presently having to navigate a really tough stability between controlling
inflation and avoiding a pointy slowdown in progress, and on the identical time dealing
with uncertainties associated to the true property market.
Nga really helpful the SBV ought to depend on coverage rates of interest to
management inflation and keep away from placing strain on the trade charge. On the identical
time, the SBV ought to guarantee the steadiness of the monetary sector when dealing with
the bottlenecks of the bond and actual property markets.
SBV Deputy Governor Pham Thanh Ha mentioned amid an advanced and
unpredictable worldwide atmosphere, a small and extremely open financial system like Vietnam
needed to face many difficulties in harmonising contradictory objectives.
Ha specified that the challenges had been supporting financial restoration
whereas maintaining inflation in verify, decreasing the depreciation of the native
foreign money whereas maintaining rates of interest secure, and making certain the protection of the
banking system whereas offering enough credit score for the financial system.
Within the first months of 2023, credit score progress was very gradual, but when
credit score was loosened, there could be potential dangers, Ha famous.
In accordance with Ha, difficulties within the financial system embody these
going through companies and banks. If banks help companies at an appropriate stage, the
financial system will get higher. Nevertheless, if banks help companies by loosening credit score
granting circumstances, and suspending or rescheduling mortgage cost time, the
difficulties will likely be transferred to the financial institution.
“The companies’ need for rate of interest cuts is professional, and the
banking trade additionally doesn’t need excessive deposit and lending rates of interest.
Nevertheless, we nonetheless should take into consideration the steadiness of the macroeconomy
and the banking system,” Ha mentioned.
On the discussion board, consultants mentioned as the worldwide financial system is going through many
uncertainties whereas the home financial system is riddled with quite a few issues,
collaboration between ministries, businesses and localities is required to work out
widespread options that may improve the connectivity between insurance policies and the
effectiveness of financial coverage particularly./.