A bank transaction office. The State Bank of Viet Nam has set a banking credit growth target of 12 per cent for this year, marginally lower than the rate achieved last year. — VNS Photo

The State Bank of Viet Nam has set a banking credit growth target of 12 per cent for this year, marginally lower than the rate achieved last year.

Speaking to the media about the banking sector’s tasks in 2021 in HCM City last week, central bank deputy governor Dao Minh Tu said: “The credit growth target of 12 per cent is not set in stone. The State Bank of Vietnam will adjust the target when necessary.

“If the COVID-19 pandemic ends, the economy needs to make a quick recovery, and then the State Bank of Vietnam will actively expand credit to support enterprises.”

Supporting businesses’ recovery after COVID-19 has been identified as one of the key tasks of the banking industry in 2021, he said.

The central bank would keep a close watch on the developments in the economy, as well as the domestic and international financial and monetary markets, and monitor monetary policy instruments in a proactive and prudent way to stabilise the currency and foreign exchange markets, he promised.

Pham Thanh Ha, the director of the SBV’s department of monetary policy, said lending would focus on priority areas like production and trading and be carefully controlled in the case of high- risk sectors.

Tu said this year the SBV would seek to complete the legal framework and infrastructure for cashless payment and enhance the use of industry 4.0 technologies for payments.

Despite being heavily affected by the pandemic, monetary policy management and banking operations remained efficient, he claimed.

Nguyen Tuan Anh, director of the bank’s credit department, said the SBV had gathered opinions to amend the Circular 01/2020/TT-NHNN on debt rescheduling and waiver, reduction of interest and fees and maintaining debt classification to bail out borrowers affected by the pandemic.

It is expected to be submitted to the Government for approval this week.

At the time of issuing the circular last March, no one thought the pandemic would last long like this, he said.

Viet Nam managed to control the epidemic well, but many other countries were struggling with it, and so businesses faced difficulties in trading and needed support, he said.

Tu added the circular would be amended to enable continued support for businesses for them to recover quickly. — VNS