The State Bank of Vietnam’s top priority is to strengthen macroeconomic stability and ensure the economy’s major balances

Monetary policy management has achieved many positive results

Attendees at the meeting included Comrade Pham Gia Tuc, Member of the Politburo and Permanent Deputy Prime Minister; Comrade Nguyen Van Thang, Member of the Party Central Committee and Deputy Prime Minister; Comrade Nguyen Thi Hong, Member of the Party Central Committee and Vice Chairwoman of the National Assembly; as well as other Central Committee members, leaders of ministries and central agencies, and representatives from several localities.

Representing the banking sector were Comrade Pham Duc An, Member of the Party Central Committee and Governor of the State Bank of Vietnam; Deputy Governors of the State Bank of Vietnam; leaders of departments, bureaus, and units under the State Bank of Vietnam; and the Chairpersons and General Directors of 30 credit institutions.

The meeting assessed the implementation of monetary policy and the operations of credit institutions during the first seven months of the year; conducted a detailed analysis of the achievements, shortcomings, limitations, difficulties, and challenges; and identified key directions, tasks, and solutions for the coming period.

Prime Minister Le Minh Hung delivers remarks at the meeting

Following the Prime Minister’s guidance, the meeting proceeded in a serious, urgent, frank, substantive, and highly responsible manner, guided by the principle of “accurately identifying problems, proposing appropriate solutions, and effectively implementing them.” Delegates focused on discussing and accurately assessing the situation, reaching consensus on specific solutions to address difficulties and challenges in line with the goals of controlling inflation and stabilizing the macroeconomy; specific measures regarding exchange rates, interest rates, and ensuring liquidity and capital for development; continuing to improve the institutional framework and policies; conducting an in-depth assessment of the banking system’s operations, particularly the quality of inspection and supervision work and compliance with discipline and the law in the operations of credit institutions; measures to develop the capital market to mobilize medium- and long-term resources and reduce dependence on credit from the banking system; and proposals and recommendations to the Government, the State Bank of Vietnam, and relevant ministries and sectors.

Vice Chairwoman of the National Assembly Nguyen Thi Hong and Governor Pham Duc An at the working session

In his concluding remarks at the working session, Prime Minister Le Minh Hung emphasized that, in recent times, the global situation has continued to undergo rapid, complex, and unpredictable changes, exerting a significant and swift impact—both direct and indirect—on our economy, including exchange rates, interest rate levels, liquidity, capital mobilization, and credit for the economy.

Governor Pham Duc An speaks at the meeting

In implementing the resolutions and conclusions of the Party, the State, and the Government, the State Bank of Vietnam has led, guided, and managed the banking system, contributing to promoting economic growth in tandem with macroeconomic stability, controlling inflation, and ensuring the major economic balances.

Accordingly, the State Bank of Vietnam has implemented a proactive, flexible, and timely monetary policy, coordinating relatively closely and consistently with fiscal policy and other policies to ensure macroeconomic stability; it has actively reviewed and improved the monetary and banking regulatory framework, promptly identified and resolved bottlenecks and shortcomings in mechanisms and policies to support the development of key markets and economic activities; actively supported businesses and citizens in developing production and business operations and promoted economic growth through various measures and policies; credit growth achieved positive results, targeting production and business operations as well as growth drivers; effectively fulfill its regulatory role, maintain the stability and safety of the credit institution system, resolutely restructure the credit institution system in conjunction with resolving non-performing loans, and actively implement plans to address underperforming credit institutions; taken the lead in digital transformation and administrative reform, contributing to improving the business environment, and actively applying science and technology as well as fostering innovation.

Overall, in recent years, the Vietnamese banking sector has achieved remarkable development in terms of both scale and quality, including financial capacity, governance, and the level of modernization of products and services… On behalf of the Government, the Prime Minister acknowledged and commended the banking sector’s efforts, strong determination, and achievements over the past period, which have made a significant contribution to the nation’s overall accomplishments.

In addition to these achievements, the Prime Minister devoted considerable time to a detailed analysis of the difficulties, challenges, existing issues, and limitations related to proactivity, decisiveness, and creativity in policy implementation; ensuring capital for high and sustainable economic growth based on a solid foundation of macroeconomic stability; shortcomings in the institutional framework and policies; the effectiveness and efficiency of inspection and supervision efforts; the quality of operations at credit institutions; administrative procedures and business conditions; risks posed by high-tech crime, online fraud, and financial scams…

The banking sector must operate more safely, more efficiently, and more modernly

Looking ahead, the Prime Minister stated that the Government has determined that the monetary system, the banking sector, and credit institutions are the lifeblood of the economy, playing a crucial role in ensuring macroeconomic stability, controlling inflation, and promoting rapid, sustainable growth. The State Bank of Vietnam’s top priority is to ensure that all mechanisms, policies, and regulatory activities are geared toward strengthening macroeconomic stability, maintaining the economy’s major balances, enhancing resilience, and ensuring that the banking system is safe, sound, transparent, and efficient, operating according to market principles; focusing on facilitating and efficiently allocating capital to the economy; ensuring that citizens and businesses have easy access to credit and banking services; and promoting digital transformation, innovation, and enhancing the governance capabilities and competitiveness of credit institutions.

“As we enter a new phase, the requirements for the banking sector go beyond mere growth in scale; it must become safer, more efficient, and more modern. Scale must go hand in hand with quality; credit growth must go hand in hand with risk management; digital transformation must go hand in hand with data security; and international integration must go hand in hand with governance capabilities that meet international standards,” the Prime Minister emphasized, urging the entire banking sector to vigorously uphold the spirit of “proactive and timely action—flexibility—innovation—safety—efficiency—accountability—and determination,” closely monitor the situation, and radically innovate in thinking and management approaches.

Deputy Governors of the State Bank of Vietnam attended the working session

Regarding tasks and solutions for the coming period, the Prime Minister instructed the State Bank of Vietnam and credit institutions to focus on thoroughly implementing and effectively carrying out the Resolutions of the Party’s 14th National Congress, as well as the Resolutions, conclusions, and directives of the Central Committee, the Politburo, the Secretariat, the National Assembly, and the Government—particularly Central Committee Conclusion No. 18-NQ/TW dated April 2, 2026, the Politburo’s thematic resolutions, and the Prime Minister’s directives.

The Prime Minister emphasized that monetary policy management must ensure the objectives of controlling inflation, maintaining macroeconomic stability, safeguarding the economy’s major balances, ensuring systemic safety, and supporting growth—with the aim of promoting double-digit economic growth based on assessments, forecasts, and accurate data with specific scenarios; “To achieve double-digit, rapid, and sustainable growth over many years, we must further strengthen the foundation of macroeconomic stability and reinforce the confidence of the public and businesses in the State Bank of Vietnam’s management capabilities,” the Prime Minister stated clearly.

Bank representatives attending the meeting

The State Bank of Vietnam needs to quantify and regularly assess the “balance” between the need to control inflation and support growth, thereby updating measures to manage monetary policy tools: interest rates, exchange rates, money supply, liquidity, and credit under specific scenarios; establish warning thresholds; ensure policy responses are timely, swift, and effective; propose specific policies and flexible, proactive, balanced, well-timed, and appropriately calibrated management measures; proactively adjust the intensity, dosage, and timing of the use of policy tools within its authority to maximize effectiveness and strive to achieve the set targets.

The Prime Minister emphasized that this is a key task, reflecting the State Bank of Vietnam’s capacity and resolve in its management during 2026 and the 2026–2030 period; The State Bank of Vietnam must vigorously innovate its mindset and adopt proactive, creative, modern, and decisive management approaches. At the same time, credit institutions must strictly comply with legal regulations and the State Bank of Vietnam’s policy directives.

The Prime Minister clearly stated that the management of interest rate, exchange rate, and credit policies must be proactive, flexible, safe, and effective in accordance with the objectives. He noted that in recent macroeconomic management, the Government has primarily relied on fiscal policy (tax and fee reductions and deferrals), while also aggressively cutting red tape, processing times, and compliance costs for the economy, citizens, and businesses—including banks—without placing pressure on the State Bank of Vietnam and the banking system regarding credit and interest rates. The State Bank of Vietnam and the banking system must act with a high sense of responsibility and even greater determination in mobilizing resources for growth on the foundation of macroeconomic stability; in particular, they must share responsibility with the public and and businesses through specific measures to stabilize interest rates, reduce lending rates, channel credit to the right sectors to support growth, and strictly control risks.

Overview of the meeting

The State Bank of Vietnam maintains key policy interest rates and strengthens liquidity provision to the market, thereby supporting financial institutions in accessing capital at low costs; flexibly managing the exchange rate in line with market developments, coordinating seamlessly with monetary policy tools, and flexibly intervening in the market to stabilize the foreign exchange market. It continues to strictly regulate the gold market. Credit institutions will continue to cut costs, stabilize interest rate levels, and substantially reduce lending rates.

Regarding credit, the State Bank of Vietnam will manage credit growth in line with the 2026 target, but will not treat this as a “rigid ceiling” at all times; management must be proactive and flexible in response to actual developments, ensuring that capital flows to the right sectors, at the right time, to the right recipients, and for the right purposes at a reasonable cost. Credit should be focused on production, exports, high-tech industries, supporting industries, agriculture, innovation, social housing, rental housing, essential infrastructure, major national projects, priority sectors, and growth drivers…

In addition, the Prime Minister directed a comprehensive review, amendment, and supplementation of regulations to improve the monetary and banking institutional framework; and to proactively coordinate with ministries, agencies, localities, business associations, and banks to propose mechanisms and policies in areas such as capital market development, corporate bonds, and priority sectors of the economy.

The State Bank of Vietnam will work closely with the National Assembly’s agencies to incorporate feedback, finalize, and submit for the National Assembly’s approval the draft Law Amending and Supplementing Certain Articles of the Law on the State Bank of Vietnam, the Law on the Prevention and Combating of Money Laundering, and the Law on Credit Institutions at the August 2026 session; ensuring that all guiding documents are issued promptly upon the Law’s entry into force to avoid any legal gaps. Credit institutions should proactively report any difficulties and actively participate in the process of developing and refining the legal framework.

The Prime Minister directed the State Bank of Vietnam to focus on finalizing a plan to continue modernizing the banking system, address underperforming credit institutions, and enhance access to capital for businesses—particularly small and medium-sized enterprises—with the plan to be completed by August 2026. Urgently and vigorously reform inspection and supervision methods; strengthen early and remote monitoring, early warning systems, and specialized inspections; proactively coordinate with relevant agencies to issue warnings, develop proactive plans to rectify issues, and strictly address violations in banking operations to ensure system safety—particularly regarding ownership, credit granting, loan management, and compliance with operational safety regulations. Increase the authorized capital of state-owned commercial banks. Credit institutions must focus on enhancing governance, risk management, and internal controls; strengthening financial capacity; and strictly complying with laws and regulations.

At the same time, promote the development of science and technology, innovation, and digital transformation; ensure the security, safety, confidentiality, and continuous operation of information technology systems and payment operations. The Prime Minister also urged the State Bank of Vietnam and credit institutions to continue making positive and even more responsible contributions to social security efforts; and to modernize their communications work toward greater professionalism and effectiveness, providing accurate information based on scientific evidence.

The Prime Minister also provided feedback on the proposals and recommendations raised during the meeting and issued directives regarding the tasks of ministries, sectors, and localities, including that the Ministry of Finance effectively and timely carry out the assigned tasks related to the comprehensive reform of Vietnam’s financial market in conjunction with achieving high growth targets, continuously through 2045 (as approved by the Prime Minister in Decision No. 1413/QĐ-TTg dated July 27, 2026); implement measures to develop the capital market to supply capital to the economy in the medium and long term; effectively implement policies on tax, fee, and land rent exemptions, reductions, and extensions in 2026, as well as VAT refunds to support citizens and businesses; accelerate the disbursement of public investment; develop financial products and promptly bring the International Financial Center into operation in a safe, transparent, efficient, and internationally competitive manner; conduct research and provide recommendations to increase the mobilization of international capital, including ODA, bilateral loans, and the issuance of international bonds with appropriate maturities and interest rates, thereby creating additional resources for socio-economic development.

Relevant ministries, agencies, and localities, in accordance with their functions and responsibilities, shall closely and comprehensively coordinate with the State Bank of Vietnam, particularly in institutional reform; strengthen connectivity and data sharing, and strictly prevent, combat, and address crimes, fraud, and violations in the financial and banking sectors, thereby helping to unlock resources and ensure that the financial and monetary markets operate safely, transparently, stably, and sustainably.

As the lifeblood of the economy, the tasks and requirements facing the banking sector in 2026 and beyond are extremely demanding yet of the utmost importance. The Prime Minister emphasized that the Government leadership is confident that, with unity, consensus, and strong determination, and through bold innovation in thinking and action, the banking sector will continue to build on its achievements, strive to overcome difficulties and challenges, and strive to excellently fulfill the tasks and responsibilities entrusted to it by the Party, the State, and the people.