Prime Minister Pham Minh Chinh has issued a directive urging stronger measures to lower loan interest rates and tackle unfair competition among banks. The move aims to stabilize credit flows, support economic growth, and safeguard borrower interests.

The directive calls on the State Bank of Vietnam (SBV) to coordinate with other agencies to implement proactive, flexible, and timely monetary policies. These efforts must align with fiscal and macroeconomic measures to accelerate economic growth while ensuring macroeconomic stability and inflation control. The government is targeting an economic growth rate of at least 8% in 2025, with aspirations to achieve double-digit growth from 2026 to 2030.

Stricter credit and rate policies

The Prime Minister emphasized the need for decisive action on interest rate management, credit growth, and rate reductions, particularly as businesses face year-end and Lunar New Year financial pressures. Commercial banks must strictly control deposit and lending rates to ensure accessible capital for the economy while avoiding delays or inefficiencies in credit allocation.

“Credit flows must not be blocked, misdirected, or delayed,” the Prime Minister stressed, adding that mechanisms encouraging inefficiency or corruption in credit distribution must be eliminated.

He also instructed credit institutions to prioritize lending to productive sectors, traditional economic growth drivers, and strategically important industries.

Enforcement against violations

The directive calls for strict legal action against banks engaging in unfair competition or violating interest rate regulations for deposits and loans. The SBV is tasked with tightening inspections and audits of financial institutions, particularly regarding their published interest rates and credit disbursement practices.

Government bodies, including the Ministry of Public Security and the Government Inspectorate, have been assigned to monitor the banking sector closely. They are to investigate and penalize institutions found in violation of banking regulations, ensuring greater transparency and compliance across the industry.

These measures are intended to ease the financial burden on businesses and households, stimulate economic growth, and enhance public confidence in the banking system.

Thu Hang