Vietnam's Prime Minister, Pham Minh Chinh, has urged the country's banks to adapt more flexible lending practices without compromising their high standards. This is part of an endeavor to stimulate economic activity and foster growth in the region. The plea came during a conference held in the nation's capital, Hanoi, where the Prime Minister underpinned the integral relationship between the growth of banks and businesses and the broader economic development.
Flexible Lending: A Boost for Economic Recovery
The call for adaptable lending practices comes at a time when Vietnam's recovery is being hampered by weak external demand. The prime minister's bid to involve banks in the recovery process follows soon after his deputy ordered an uncommon examination of the central bank's operations in the wake of decelerating credit growth. Chinh's appeal to the banking sector is grounded in the belief that a more flexible monetary policy could catalyze the growth of the local economy, which is currently underperforming due to weaker external demand.
Coordinated Monetary and Fiscal Policy
Prime Minister Pham Minh Chinh has tasked government agencies with implementing measures designed to bolster economic growth. These strategies involve the State Bank of Vietnam exercising a proactive and flexible monetary policy in coordination with a reasonable and focal accommodative fiscal policy. This coordinated approach is intended to create an economic environment conducive to growth and recovery.
Emphasizing Growth and Seizing Opportunities
The Prime Minister has emphasized the need to prioritize economic growth and secure the best outcomes for sectors not meeting their targets this year. He has encouraged authorities to capitalize on the opportunities arising from shifts in supply chains, trade, and investment flows in the region and globally. This focus on economic expansion and the seizing of opportunities indicates a strategic approach to driving forward Vietnam's economic agenda.