Meanwhile, inflationary pressure remains, investment and consumption activities still face many difficulties. These developments will continue to create many challenges and pressures on monetary policy management and the Vietnamese economy in 2024.
Monetary policy orientation creates a good foundation for Vietnam’s economic growth
In his New Year’s statement, Deputy Governor of the State Bank Dao Minh Tu affirmed that monetary policy will be managed flexibly and proactively from the first months of the year. At the same time, closely follow market developments during the year to have appropriate responses.
According to the Deputy Governor, credit growth in 2023 will face many difficulties and challenges due to a number of reasons such as the impact of reduced demand for investment, production and business, and consumption, leading to people’s demand for credit. , businesses decreased accordingly. The real estate market’s ability to absorb credit has declined, while real estate credit balance accounts for over 21% of the total credit balance of the entire economy.
The capital market (stocks, bonds…) is difficult due to some corporations and businesses issuing and using bonds improperly, affecting investor confidence.
Finally, after a period of economic difficulty, customers’ risk level is assessed higher, credit institutions have difficulty making lending decisions.
The Deputy Governor reaffirmed the credit growth target of 15% for 2024 but made adjustments depending on the actual situation.
The State Bank directs credit institutions to direct credit to production and business areas, priority areas and economic growth drivers according to the Government’s policies, and strictly controls credit to Potential risk areas; Create favorable conditions for businesses and people to access bank credit, contributing to limiting “black credit”.
The Banking sector also continues to implement the restructuring project associated with bad debt handling for the period 2021-2025, promoting the handling and recovery of bad debts; Strive to have an on-balance sheet bad debt ratio (excluding weak commercial banks) below 3% by 2024; Focus on effectively implementing plans to handle weak credit institutions, restructuring specially controlled commercial banks under the direction of competent authorities…
6 policy focuses to promote the economy in 2024
In an interview with the press at the beginning of the new year, Minister of Planning and Investment Nguyen Chi Dung also had his own comments on Vietnam’s economic situation and policy orientation for 2024.
According to Minister Nguyen Chi Dung, in 2024, Vietnam’s economic forecast continues to have many difficulties and challenges mixed with advantages and opportunities, but difficulties and challenges are more.
In terms of advantages, the scale and potential of the Vietnamese economy have continuously expanded through nearly 40 years of innovation. This is an important foundation for Vietnam to continue to respond and adapt effectively to new difficulties and challenges, especially unexpected problems that arise.
Also according to the Minister, about 1,900 km of highways, of which in 2023 alone, 475 km of highways, coastal and inter-regional roads have been completed and put into use, opening up new development space for national, regional and local.
At the same time, foreign affairs activities, high-level diplomacy, and economic diplomacy are outstanding highlights, achieving important and historically significant achievements.
Minister Nguyen Chi Dung is concerned that in 2024, potential risks from the world political-economic environment will still exist and continue to have a negative impact on Vietnam’s economic growth recovery prospects.
Strategic competition between major countries is becoming more and more fierce, conflicts in Ukraine and the Gaza Strip are likely to persist, increasing geopolitical and geo-economic fragmentation.
The Asia-Pacific and Indian Ocean regions, including Southeast Asia, continue to be the driving force for global growth but still have many potential uncertainties and unpredictable “hot spots”, threatening the peaceful environment. regional peace and stability.
Minister Nguyen Chi Dung announced six major policy focuses to ensure Vietnam’s economic growth in 2024 reaches the target.
First, prioritize promoting economic growth, maintaining macroeconomic stability, controlling inflation, and ensuring major balances.
Proactively advise, promulgate and implement synchronously, flexibly and effectively solutions and policies on fiscal, monetary, trade… to support businesses, production and business. Public investment capital continues to be an important driving force for growth, supporting output for many industries and fields.
Second, drastically and effectively implement three strategic breakthroughs in institutions, infrastructure and human resources.
Third, effectively and substantively implement economic restructuring associated with innovating growth models, improving labor productivity, quality, and competitiveness; Strengthen the application of science and technology, promote innovation, digital transformation, green transformation, promote the development of new economic models, e-commerce, and border trade.
Fourth, comprehensively develop cultural and social fields, harmoniously linked with economic development; ensure social security and improve the material and spiritual life of the people.
Fifth, strengthen and consolidate national defense and security potential, firmly protect independence, sovereignty, unity and territorial integrity; Ensure political security, order, and social safety, especially key goals, projects, important political, cultural, and social events, not to be passive or surprised in any situation. situation.
Sixth, carry out synchronous, comprehensive and effective foreign affairs and international integration activities.
(PLO) – Analysis by HSBC Vietnam shows that the recovery of the export industry will not only be limited to the electronics industry but also many other industries such as furniture, textiles…
Ngoc Diep
