The upcoming holidays of Hung Kings Commemoration Day, National Reunification and May Day from April 29 to May 3 are expected to be a good chance for transport enterprises to accelerate operations to better serve people’s increasing travel demand.

Pham Manh Hung, Director of the Hanoi Bus Station Joint Stock Company, said that the five-day holidays coincides with the opening of the tourist season in many provinces and cities, resulting in a sharp increase in travel demand.

As scheduled, the company will arrange an additional 627 vehicles at the capital’s stations of Gia Lam, My Dinh and Giap Bat from April 28 to the end of May 4, especially on some routes that will see a surge in the number of passengers, namely Ha Giang, Quang Ninh, Nam Dinh, Ninh Binh, Thanh Hoa, Thai Binh, Lao Cai, and Son La.

During the peak days, the number of passengers served in the Giap Bat and My Dinh stations will increase by 300% compared to normal days and is estimated at 18,000 passengers per day.

Meanwhile, the Gia Lam bus station is expected to serve 8,000 passengers per day, up 250% compared to the figure on normal days.

To ensure safety for passengers, representatives of Giap Bat, Gia Lam, My Dinh, Nuoc Ngam and Yen Nghia bus stations said that they have coordinated with relevant units to strengthen inspections to ensure that transport firms do not increase ticket prices and stuff passengers.

The railway sector has also built plans to increase the transport capacity on the North - South route and trains to tourist attractions.

Do Van Hoan, Chairman of the Board of Directors of the Hanoi Railway Transportation Company (Haraco), said that the company plans to provide 81,000 tickets from April 27 to May 3.

A representative from the Vietnam Railway Corporation (VNR) said that during the period from April 28 to May 3, the firm will operate 22 more trains on the northern routes from Hanoi to a number of tourist destinations such as Thanh Hoa, Nghe An, Quang Binh, Da Nang, Hai Phong and Lao Cai.

Meanwhile, 32 more trains will be added for the southern routes from HCM City to Da Nang, Quang Ngai, Quy Nhon, Nha Trang, and Phan Thiet.

Amid the high travel demand, the Civil Aviation Authority of Vietnam (CAAV) has asked airlines to consider the increase of flights from Hanoi, Ho Chi Minh City to major tourist destinations during the holidays, while avoiding a surge in ticket fares and applying measures to ensure safety for flights.

Budget carrier Vietjet Air has agreed to increase the number of seats by 20% to 70,000.

Vietnam Airlines Group, including Vietnam Airlines, Pacific Airlines and Vasco, has also agreed to provide nearly 551,000 seats on domestic routes.

Ample room remains for Vietnam-Argentina trade cooperation

National Assembly (NA) Chairman Vuong Dinh Hue’s ongoing official visit to Argentina is expected to open up more opportunities for bilateral trade cooperation in the coming time.

Over the past 50 years since Vietnam and Argentina officially established diplomatic relations in October 1973, the friendship and cooperation between the two countries have been continuously consolidated and developed fruitfully.

Especially, since the establishment of the comprehensive partnership in 2010, the bilateral relationship has made impressive progress, especially in economy and trade.

According to the European-American Market Department under the Ministry of Industry and Trade, Vietnam is the sixth largest trading partner and the fifth largest importer of Argentina in the world. It is also a key Southeast Asian partner in the Latin American nation’s South-South cooperation. Meanwhile, Argentina remains Vietnam's third largest trading partner in Latin America.

Bilateral trade has been constantly increasing, from 316 million USD in 2007 to over 4.8 billion USD in 2022. Of the total, Vietnam’s exports were valued at 851 million USD, up 2.4% year-on-year, while its imports were 4.03 billion USD, up 9.7% year-on-year.

Vietnam has mainly exported phones of all kinds and components, computers, electronic products and components, footwear, and machinery to Argentina, while importing maize, animal feed and raw materials, cotton of all kinds, and soybean from the Latin American country.

Vietnamese Minister of Industry and Trade Nguyen Hong Dien said that the bilateral trade turnover remains modest compared to existing potential.

He showed his hope that the two sides will continue existing efforts to increase trade exchanges, diversify imports and exports, and gradually equilibrate the trade balance.

According to experts, with a population of more than 46 million, Argentina is a large potential market to which Vietnamese businesses can export advantageous products such as footwear, garments and textiles, furniture and handicrafts.

Meanwhile, with a population of nearly 100 million and a gradual purchasing power increase, Vietnam is also a potential market for Argentinean exporters.

At a meeting with representatives from the Vietnamese Ministry of Industry and Trade, Governor of Entre Rios province Gustavo Bordet emphasised the importance of Vietnam in trade relations of Argentina in general and the three provinces of Cordoba, Entre Rios and Santa Fe in particular.

The governor said that the two sides still have huge potential to further promote cooperation in the fields of trade, investment and agriculture. He agreed with the Vietnamese side’s proposal on providing support for the two countries’ businesses in trade promotion and market research.

In order to promote exports to the Argentinean market, the European and American Market Department proposed enterprises actively seek information about the market and update Argentina's economic, trade and investment policies through government agencies and units such as the Ministry of Industry and Trade, the Vietnamese Embassy in Argentinean, the Argentinean Embassy in Vietnam and trade promotion centres.

Businesses should step up promotion activities, increase the quality of products, develop products in accordance with the market’s demand and taste, and seek ways to reduce transportation and logistics costs.

Minister Dien suggested the Argentinean side create more favourable conditions for Vietnamese exporters to gain access to the Argentinean market, especially for such products as agricultural products, garments and textiles, wood products and handicrafts.

Vietnam and Argentina are exploring opportunities to expand their bilateral trade, towards lifting two-way trade to 10 billion USD by 2025.

Portal helps Vietnamese exporters access foreign markets

Since its inception 15 years ago, the portal www.vietnamexport.com that connects more than 60 Vietnamese trade offices abroad with exporters at home has served as an effective information channel.

Operated and managed by the Vietnam E-Commerce and Digital Economy Agency under the Ministry of Industry and Trade, it provides updates on major foreign markets, popularises Vietnam’s export potential and offers consultations to help domestic firms raise their competitiveness and boost exports.

Last year, the agency coordinated with the trade offices in compiling and publishing nearly 3,000 articles that analyse market developments and give advice against frauds, along with many documents on market integration.

Through the portal, up to 1,500 booths have been set up on ECVN, an export support platform, and various promotion campaigns launched. Besides, thousands of Vietnamese enterprises have been linked to prestigious importers from big markets like China, Japan, Europe, and the US.

It has attracted millions of visitors that are businesses, organisations and individuals specialising in export and import.

The agency said it will continue operating and upgrading the portal in the time ahead in order to improve information quality and better support both exporters and importers.

Vietnam-ASEAN economic cooperation forum underway in Malaysia

The Asia Business Centre and Vietnam-Malaysia Business Association (VMBIZ) co-organised a Vietnam-ASEAN economic cooperation forum and a ceremony awarding strong brands, outstanding leaders, and quality services and products of ASEAN in Malaysia on April 22.

At the event, 15 products and services, 20 businessmen, and more than 80 enterprises were honoured. Vietnamese firms named among strong ASEAN brands included L.Q Joton Joint Stock Company; Nam A Commercial Joint Stock Bank; Viet Tiep Crystal Company Limited; Phuong Dong General Hospital; and EDH Technology Development JSC, to name just a few.

Addressing the forum, Andrew Goh Boon Kim, Vice-Chairman of the Federation of Malaysian Manufacturers (FMM) under the country’s National Chamber of Commerce and Industry (NCCIM), recommended Vietnamese and Malaysian companies capitalise on their strategic advantages to expand their reach and strengthen their position in the ASEAN region.

He pledged efforts to further promote economic collaboration between Malaysia and Vietnam, saying that cooperation between the two countries and in the ASEAN region will bring about common and long-term development.

Hambali Mukhlas, Chairman of the NCCIM International Business Committee, informed participating firms on Malaysia’ Halal certification. He also witnessed the signing of a memorandum of understanding between the VNBIZ and Asia Business Centre on implementing the issuance of Halal certification in the Vietnamese market.

The forum and the award ceremony are held annually on a rotational basis in Southeast Asian countries, presenting an opportunity for Vietnamese and ASEAN businesses to exchange, cooperate, connect, and develop together.

PM works with ministries, agencies on finance-banking activities

Prime Minister Pham Minh Chinh held a working session with the State Bank of Vietnam (SBV), the Ministry of Finance and the Ministry of Justice on April 22 to review and step up the issuance of two important circulars related to the finance-banking sector.

Discussing the draft circular on debt restructuring and rescheduling, and keeping debt groups unchanged, PM Chinh asked the SBV to continue fine-tuning the document in the direction of expanding the coverage of the circular as well as the duration of implementation in an appropriate manner.

At the same time, he required devising tools to monitor and inspect the implementation with a view to raising the responsibility of credit organisations and ensuring timely, flexible, and effective policy response.

About the draft circular amending and supplementing several provisions of Circular 16/2021/TT-NHNN on the purchase and sale of corporate bonds by credit institutions and foreign bank branches, the PM requested the design of support mechanisms to enhance market confidence and allow credit institutions to immediately repurchase corporate bonds. Additionally, favourable conditions should be created for credit institutions to invest in and lend corporate bonds to increase the supply, liquidity, and develop the market on a safe and effective basis.

Aappropriately in support of the people and businesses, promptly perform tasks assigned in the Government’s Resolution on several solutions to remove difficulties and promote the safe, healthy and sustainable development of the real estate market.

The SBV was also urged to early submit a plan to restructure weak credit institutions, especially the Saigon Joint Stock Commercial Bank (SCB), work closely with the Ministry of Construction to effectively roll out the 120 trillion VND (5.2 billion USD) credit package for social housing and accommodation for workers, as well as soon complete the drafting of the revised Law on Credit Organisations to tackle existing obstacles.

Ho Chi Minh City’s food processing sector seeks sustainable growth

Experts advised the Ho Chi Minh City’s food processing sector to diversify products, adopt automated technology, quality control system and improve workforce quality during a recent seminar on its development orientations till 2030 with a vision to 2050.

Speaking at the event, Asso. Prof Lai Quoc Dat from the Ho Chi Minh City University of Technology said the city needs to identify key and potential industrial product groups in need of more investment. The food processing industry, in particular, needs to further tap favourable conditions such as the city's strategic geographical location as an economic hub.

At present, the entire food processing industry in Ho Chi Minh City has over 2,800 production and trade units, including 2,314 food and 536 beverage processing facilities. Most of them are still small in scale, have limited digital technology and face challenges in developing markets, accessing consumers, and competing with foreign rivals.

Deputy Director of the municipal Department of Industry and Trade Nguyen Thi Kim Ngoc said food processing is a key industry in the city, accounting for 14-15% of its total industrial production value. It also contributes 14-15% of the total added value of the city's industrial sector.

In the first quarter, the industrial production index of the nationwide food processing industry still maintained a positive growth of 3.4% and the inventory index decreased by 10% year-on-year. Processed vegetables and fruits, milk and dairy products made positive contributions to the overall growth of the industry.

In Ho Chi Minh City alone, the index slid by 1.75% annually due to difficulties caused by weak consumption.

Opinions at the event suggested that the sector should promptly set up a shared database system, which will help to build an effective raw material zone, ensure traceability of origin and meet market demand.

In order to promote deeper connectivity and improve product quality, the business community needs the involvement of Ho Chi Minh City, cities and provinces, and relevant ministries to consider mechanisms for the expansion of raw material zone for the sector.

Retailers advised to seize opportunities in digital technology

Retailers must adapt and change, especially in modern technology, to survive and grow as consumers have more modern tools to choose goods on online as apposed to just brick-to-mortar stores.

According to the Ministry of Industry and Trade (MIT), the total size of Vietnamese retail market is currently 140 billion USD and is expected to hike to around 350 billion USD by 2025. With this projected level, it will contribute approximately 59% of the country's total gross domestic product (GDP).

In the first quarter, the revenue from retail goods reached over 1,187 trillion VND (47.8 billion USD), up 11.4% annually, accounting for 78.9% of the total retail of goods and services nationwide.

According to experts, the retail market is developing well thanks to impressive GDP growth over the years, improving commercial infrastructure, and the rapid growth of e-commerce.

Dinh Thi Bao Linh, Deputy Director of the MIT’s Industrial and Commercial Information Centre, noted that the Vietnamese consumers are increasingly interested in digital technology, with the number of Internet users reaching 75% of the population and the online shopping rate up to 60%.

Retailers must keep renovating their offline and online sales channels, provide support services, utilise online tools and offer the most convenient electronic payment methods possible.

Nguyen Van Thanh, Director of the E-commerce Development Centre from the E-commerce and Digital Economy Agency, said to help firms find customers through the e-commerce channel, it is necessary to fine-tune mechanisms and policies that are conducive for e-commerce, such as infrastructure, human resources, encourage the private sector to adopt e-commerce, standardise the market and information.

Besides the State support, businesses themselves must enhance their production capacity, diversify products and target younger generations - the most promising customer group for e-commerce in the future, he said.

Consumption habits contribute to expanding food industry's export markets

Vietnam’s food industry has seen signs of strong growth in the region thanks to the increasing income and consumption tendencies. The market has gradually provided more competitive products, dominating the domestic market and contributing to increasing exports.

People who are under 35 years old in Vietnam now account for about half of its 10-million population. Key products that play a significant role in the structure and value of industrial products in the country include wine, beer, milk and dairy products, vegetable oil, flour, and tobacco.

The number of Vietnamese enterprises operating in the food industry is about 5,083, an increase of 83.8% compared to 2019. This is a positive figure given the country was seriously affected by COVID-19 pandemic.

The food industry also has significant potential to increase international cooperation. The cooperation with big companies like Lotte Mart, E-Mart, Home Plus and CJ creates an opportunity for Vietnamese firms to bring products to shelves of supermarkets and shopping centres in the Republic of Korea, including Coupang and Gmarket, and gradually make inroads into the country's e-commerce market.

Over the past five years, food and beverage consumption in Vietnam increased by 9.68% and 6.66%, respectively. Of which, the fruit and vegetable processing sector accounted for 24.7% of the industry's revenue growth. It is expected to have the fastest growth potential thanks to export activity and domestic consumption. The sector experienced a rocket growth of 205%.

Notably, the food industry is also one of the key industries prioritised for development by the Vietnamese Government to 2025 with a vision to 2035, playing an important role in socioeconomic development.

In the past year, collaboration in the food industry between Vietnam and the RoK has been strengthened through several successful product promotion campaigns in both countries.

Octopus is Vietnam's main export to the East Asian market, with fresh and frozen octopus shipments accounting for 80% of total export value. 

Currently, Vietnam and the RoK have signed four trade agreements, including the ASEAN-the RoK Free Trade Agreement (AKFTA), the Vietnam- RoK Free Trade Agreement (VKFTA), the Regional Comprehensive Economic Partnership (RCEP), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).   These trade accords significantly contribute to promoting Vietnamese goods to the RoK market and vice versa.

The RoK Trade-Investment Promotion Agency (KOTRA) affirmed that after 30 years of cooperation, trade between Vietnam and the RoK has increased 161 times from 1992. Currently, the RoK is Vietnam’s biggest investorm in Vietnam with 79.2 billion USD in more than 9300 projects in various fields.

Notably, the expansion of bilateral trade as well as the increase in Vietnam's exports goes along with the trajectory of the RoK companies' expansion and penetration into the Vietnamese market.

In particular, Vietnam has become a key country and the RoK companies operating in Vietnam play an important role in purchasing raw materials produced in Vietnam for processing and export.

Meanwhile, the two countries' import and export of agricultural, forestry and fishery products show strong growth momentum. The RoK has opened up its agriculture sector based on the FTAs with ASEAN and Vietnam.

As a result, the RoK has become the fourth largest importer of Vietnam's agricultural, forestry and fishery products, after the US, China and Australia.

Positive outlook ahead for fruit and vegetable exports this year

With a number of export orders worth billions of US$ received during the first months of the year, there remains plenty of room for fruit and vegetable exports this year, according to details given by the Ministry of Agriculture and Rural Development (MARD).

Most notably, the Mekong Delta province of Vinh Long on April 19 shipped the first batch of sweet potatoes weighing a total of 28 tonnes to China via official channels.

This comes after on March 17 when Ngoc Minh LS One Member Limited Liability Company in the Mekong Delta city of Can Tho officially exported the first batch of 18.5 tonnes of durian to China.

In January, Banana Brothers Farm Joint Stock Company based in the central highlands province of Dak Lak exported 10 containers of banana worth over VND5 billion to the Chinese market.

Nguyen Quoc Toan, director of the MARD's Department of Agricultural Product Processing and Market Development, recommended that local enterprises take full advantage of China’s reopening in order to give fresh impetus to the fruit and vegetable sector moving forward.

The local sector has therefore been advised to develop in a modern and sustainable manner by strengthening linkages from production to consumption markets as a means of improving the efficiency and raising the value of Vietnamese fruit and vegetables in the international market.

Experts duly urged localities and management agencies to devise concrete strategies and build brands in parallel with developing specialised production areas to promote the export of farm produce to China.

Moreover, local firms are required to regularly update and comply with regulations on quality standards, quarantine, packaging, and traceability set forth by Chinese importers.

With positive signals recorded during the first months of the year and improved product quality, the local industry is anticipated to secure a firm foothold in demanding markets.

Global shrimp demand expected to rebound from Q2

The price of black tiger shrimp in the first months of the year dropped sharply, causing farmers to suffer heavy losses due to the lack of export orders.

Many seafood enterprises said that there have been no new export orders, so shrimp prices are falling sharply. The price of shrimp has decreased by 30 to 40 per cent compared to the beginning of the year, with the current price at VND85,000 to VND210,000 (US$3.7-$9), causing farmers to lose from VND50 million to VND150 million (US$2,155-$6,465) per tonne of shrimp sold.

According to the Viet Nam Association of Seafood Exporters and Producers (VASEP), last month, shrimp exports only reached $265 million, down 33 per cent over the same period last year.

In the first three months of the year, exports reached USD$600 million, down 37 per cent.

Specifically, shrimp exports to the US, EU and China were down more than 40 per cent and to South Korea and Japan around 20 per cent over the same period last year.

Japan is Viet Nam's largest shrimp export market at 17.6 per cent of total exports. In the first quarter of this year, shrimp exports to this market reached more than $105 million, down 29 per cent over the same period a year ago.

In the first quarter of this year, Viet Nam's shrimp exports to the US reached more than $104 million, down 46 per cent over the same period a year ago. Record inflation, reduced purchasing power, and high inventories from 2022 are all factors that have reduced demand for shrimp imports into the US.

The situation of US shrimp imports from Viet Nam depends a lot on current inventory. If the situation is positive, import demand may recover after the second quarter of this year, according to the VASEP.

Meanwhile, shrimp exports to the EU reached $89 million in the first quarter, down 44 per cent over the same period a year ago. Shrimp exports to the EU are not expected to recover in 2023 due to the impact of the Russia-Ukraine conflict.

VASEP said that the reason for the sudden drop in exports was the sharp drop in international market demand. In EU, purchasing power has been affected by the impact of inflation and uncertainties related to the Russia-Ukraine conflict, while the US is in oversupply. According to data from the National Oceanic and Atmospheric Administration (NOAA), US shrimp imports in December 2022 hit a 10-year low.

In addition, Viet Nam is facing increasing competition from rival suppliers such as Ecuador and India.

Viet Nam's shrimp sector still faces many difficulties and challenges in both input and output related to seed quality, disease control, the ratio of farming areas and product that sometimes does not meet GAP standards. The production cost of shrimp in Viet Nam is still much higher than that of Ecuador and India.

In order to increase competitiveness and increase exports, enterprises need to optimise costs, focus on developing added value, improve product quality, and actively change product structure to meet the needs of each market segment. In addition, businesses also need support from the government in terms of technology transformation and capital.

Experts recommend expanding borrowers of US$5.11 billion credit package

In order to effectively disburse a low-interest housing credit package of VND120 trillion (US$5.11 billion), many experts recommend expanding the list of borrowers.

The package covers social housing development, homes for workers, and renovation of degraded apartments with preferential interest rates around 1.5-2 per cent lower than the average of four State commercial banks.

According to experts, the Government should remove difficulties for many real estate businesses, not just social housing businesses. When both the affordable commercial and social housing segments meet actual needs, it would create a push, helping change the entire system and solving the gloomy situation of the real estate market.

Recently, many policies to remove difficulties for the real estate market have been directed by the Government to create positive changes in the industry. The Government issued Resolution No 33/NQ-CP on a number of solutions to remove difficulties and promote the safe, healthy, and sustainable development of the real estate market. This is one of the efforts expected by many people and businesses.

In addition, the Government also signed Decision 388/QD-TTg to approve a project of developing at least 1 million affordable homes for low-income earners and workers in industrial zones in the 2021-30 period.

The project targeted that around 428,000 apartment units would be completed in the 2021-25 period and another 634,200 in 2025-30.

Up to now, this credit package of VND120 trillion has been mainly for businesses and buyers of low-cost housing, social housing, and worker housing with an interest rate from 1.5 – 2 per cent lower than the average lending interest rate of banks in the market in each period.

However, experts said that, in the context of the limited supply of social housing, it is advisable to expand the beneficiaries of this loan package, such as cheap commercial housing.

Ngo Tri Long, Former Director of the Price Market Research Institute under the Ministry of Finance, said the credit package is a good idea. The level of interest rate support after reducing it will be around 10 per cent. This interest rate may still be difficult for both the estate developers and home buyers related to social housing and worker housing.

From the property investors' side, developing social housing is not profitable. The input costs are high, but the selling price is controlled, which will affect the profit factor in their business. It is also an issue that needs to be considered when banks make policies, Long added.

Currently, estate businesses have been short of capital. It is valuable to reduce interest rates. The reduction level of 1.5 – 2 per cent will probably be acceptable to businesses because they also have incentives on land rent and tax policies. However, the interest rate reduction of 1.5 – 2 per cent might not be high for home buyers because the poor would still find it difficult to access the loan.

Therefore, the package should consider giving priority to low-cost commercial housing, not just applying it to social housing and worker housing.

At present, low-cost commercial housing is also in great demand but the supply is relatively scarce, while the low-priced housing buyers are also close to the threshold of the policy beneficiaries or slightly better.

Nguyen Van Dinh, Vice Chairman of Viet Nam Real Estate Association, said the market's demand not only focuses on social housing but also affordable and mid-range commercial housing. The ultimate goal that people aim for is just a reasonable house price, not too high compared to their financial ability.

Dinh said in addition to social housing projects, the credit package of VND120 trillion should expand the loan recipients to low-cost commercial housing projects. This not only helps people have access to a more diversified supply, and effectively disbursed credit packages but also encourages many investors to participate in the development of mid-range and affordable commercial housing.

Nguyen Quoc Bao, Chairman of HCM City Real Estate Club, said businesses that develop commercial housing, but are targeting mid-end and affordable segments with reasonable prices to match the ability of buyers, should also be encouraged and enjoy the support package.

For example, there are not many commercial housing projects in the mid-end and affordable segments, but compared to social housing, the supply is still many times larger. It is easy to attract estate developers. Therefore, this segment should not be removed from the beneficiaries of the credit package, especially in the context of the current difficulties.

At the same time, experts and businesses said that the Government needs to quickly complete the legal corridor, mechanisms and policies to support businesses to develop affordable housing and social housing. In fact, to get a bank loan, a project must have a construction permit. Meanwhile, it takes many years for a project to get a construction permit, even up to 4-5 years. This situation would discourage many businesses from participating in low-cost real estate development. 

Banks extend debt, maintains debt group for individuals, businesses

As of April 24, foreign banks and credit organizations have officially initiated a restructuring of loan repayment terms while retaining the current debt group to assist customers.

As of April 24, foreign banks and credit organizations have officially initiated a restructuring of loan repayment terms while retaining the current debt group to assist customers who are experiencing challenges in their production and business operations, as well as those who are finding it difficult to repay their loans for personal consumption.

The State Bank of Vietnam (SBV) has issued Circular No.02/2023, officially regulating credit institutions and foreign bank branches in Vietnam to restructure loan repayment terms while maintaining the existing debt group, providing support to customers who are facing challenges in their production and business operations, as well as those who are struggling to repay their loans for personal consumption purposes. This loan repayment restructuring will be implemented from April 24 to June 30, 2024, the effective date of the circular. The outstanding balance of the loan being restructured must be within the repayment deadline or up to ten days past the deadline, as stipulated in the contract or agreement.

Loans that will have their repayment schedule restructured while maintaining the existing debt group include loans for lending and financial leasing. The SBV has delegated the authority to credit institutions and foreign bank branches to proactively assess the difficulties faced by their customers and decide on restructuring their loans. The timeframe for loan repayment restructuring will be determined by the credit institutions but cannot exceed 12 months from the due date of the outstanding balance being restructured.

The above regulation aims to implement the Government's directives stated in Resolution 50/NQ-CP dated April 8, 2023, and Resolution 59/NQ-CP dated April 23, 2023, which provide solutions to support customers borrowing for personal consumption purposes, as proposed by the SBV.

The Government has tasked the SBV with promptly issuing guidelines for credit institutions to implement the regulation, ensuring compliance, strictness, feasibility, effectiveness, transparency, and legality, while ensuring the safety of credit institution systems. Additionally, it calls for enhanced inspection, supervision, and control to ensure policy compliance in accordance with legal regulations, limit risks, and prevent abuse, profiteering, losses, and violations of the law.

The SBV states that in addition to the policies aimed at alleviating difficulties faced by individuals and businesses, the policy of restructuring loan repayment schedules while maintaining the existing debt group under Circular No.02 will make a direct contribution towards resolving the problems faced by people and businesses by extending the time for borrowing and bank loan repayment. It will create opportunities to continue revolving capital and access new loans for production, business activities, and personal consumption. This will ultimately contribute to the development of production and promote economic growth towards the objectives set out for 2023 and the 2021-2025 period.

Source: VNA/SGT/VNS/VOV/Dtinews/SGGP/VGP/Hanoitimes