Resolute solutions to increase access to credit capital

Prime Minister Pham Minh Chinh has just signed Official Dispatch No. 990/CD-TTg on continuing to resolutely implement solutions to increase access to credit capital, remove difficulties for production and business activities and fulfill the task of collecting the state budget in 2023.

Telegram sent to the Governor of the State Bank of Vietnam, the Minister of Finance, and Chairmen of People's Committees of provinces and centrally run cities, stating:

Recently, the Government and the Prime Minister have issued many resolutions and documents directing ministries, agencies and localities to resolutely implement appropriate and effective solutions to improve the economy's access to and ability to absorb credit capital, resolve difficulties and obstacles, and promote socio-economic recovery and development.

However, access to credit capital is still difficult, credit growth is low, reaching only 6.29% as of October 11, 2023, much lower than the same period in 2022 (11.12%) and the management orientation for the whole year of 2023 (14-15%); State budget revenue for the first 9 months is estimated to reach 75.5% of the yearly estimate.

In order to promptly remove difficulties and obstacles, unblock and promote resources, improve the economy's ability to access and absorb credit capital, promote growth associated with maintaining macroeconomic stability, and strive to achieve the highest goals and targets of the socio-economic development plan and state budget for 2023, Prime Minister Pham Minh Chinh requested:

The State Bank of Vietnam shall preside over and coordinate with relevant ministries and agencies to continue to thoroughly study, resolutely, effectively and promptly implement the tasks and solutions in Resolution No. 01/NQ-CP dated January 6, 2023 of the Government, resolutions of regular Government meetings, directives of Government leaders and legal regulations, closely following market developments to operate monetary policy proactively, flexibly, promptly and effectively, prioritizing promoting growth associated with macroeconomic stability, controlling inflation, ensuring major balances of the economy, safety of the credit institution system; operating monetary policy tools: exchange rates, interest rates, money supply... in a rhythmic, synchronous and effective manner to continue to remove difficulties, meeting as much as possible the capital needs of the economy to promote production and business, create jobs and livelihoods for people.

Manage credit growth reasonably and effectively, strive to achieve the highest possible target set, improve credit quality, direct credit to production and business sectors, priority sectors, growth drivers of the economy (especially investment, consumption, export), control credit for sectors with potential risks. Have policies to encourage credit to feasible projects and enterprises serving growth drivers.

Carefully review and resolutely and effectively implement the VND120,000 billion credit program for lending to investors and home buyers of social housing projects, worker housing projects, projects to renovate and rebuild old apartments, and the VND15,000 billion credit package for the forestry and fishery sectors; in which the key role of state-owned commercial banks and the active and creative participation of joint-stock commercial banks will be promoted.

Further promote administrative procedure reform, review and resolutely cut down on inappropriate administrative procedures that are costly, troublesome and increase costs for people and businesses.

Resolutely, strongly and effectively implement solutions to facilitate businesses and people to access credit capital, improve the economy's capital absorption capacity, further strengthen the connection between banks and businesses; continue to support and effectively share with customers facing difficulties, and promote the recovery of production and business activities.

Guide and facilitate the Social Policy Bank to effectively implement preferential credit programs for the poor and other policy beneficiaries.

According to the functions and authority, urgently review and evaluate the implementation of Circular No. 02/2023/TT-NHNN, Circular No. 03/2023/TT-NHNN, Circular No. 06/2023/TT-NHNN and related Circulars and regulatory documents to proactively and promptly review, amend, supplement, and issue new regulatory documents, especially mechanisms and policies that expire in 2023, in order to promptly remove difficulties arising in practice regarding access to capital for people and businesses, purchase and sale of corporate bonds by credit institutions, ensuring consistency, efficiency, suitability with the actual situation, stabilizing the monetary market, and ensuring the safety of the credit institution system in accordance with the Government's resolutions, directions of Government leaders, and legal regulations.

Continue to direct credit institutions to review and reduce operating costs, simplify procedures and lending conditions, increase the application of information technology, digital transformation to continue to reduce lending interest rates; deploy appropriate credit packages of commercial banks to support people and businesses to overcome difficulties, boost production and business, focusing on priority areas and growth drivers of the economy; promote the spirit, social responsibility and business ethics of the credit institution system, be more proactive and active in participating in implementing policies, promotional programs, socio-economic development plans, poverty reduction, and ensuring social security.

The Ministry of Finance shall preside over and coordinate with ministries, agencies and localities to implement a reasonable, focused, key and effective expansionary fiscal policy, in close, synchronous and harmonious coordination with monetary policy to promote investment, especially non-state investment, boost public investment to serve growth, stabilize the macro-economy, control inflation and ensure major balances of the economy.

Continue to take active and effective measures to increase revenue and reduce expenditure; solutions on tax exemption, reduction, and extension, fees, charges, and land rent to support people and businesses according to the Resolutions of the National Assembly, the Government, and the direction of the Government leaders.

Proactively propose solutions on tax, fee and charge exemption, reduction and extension in 2024, submit to competent authorities for timely consideration and decision.

Resolutely implement solutions to strive to collect state budget in 2023 exceeding the estimate assigned by the National Assembly.

Direct tax and customs authorities to strengthen revenue management, combat revenue loss, smuggling, trade fraud and tax evasion; focus on handling and recovering tax arrears, ensuring correct, full and timely collection; expand the collection base, especially from e-commerce, food and beverage services, night-time economic activities, etc.; increase the application of information technology and digital transformation, especially in tax collection from tourism, food and beverage and entertainment services; urge timely collection of receivables according to recommendations of inspection and auditing agencies and competent authorities; step up tax inspection and examination, post-clearance inspection; carry out tax refunds quickly, promptly and in accordance with regulations, ensuring the right subjects and tax policies and laws.

The People's Committees of provinces and centrally run cities, based on the Government's resolutions and the Prime Minister's instructions, shall closely coordinate with the State Bank of Vietnam and local credit institutions to effectively implement solutions to improve access to credit capital for people and businesses, support businesses in developing production and business, promote economic recovery and growth; further promote administrative procedure reform, digital transformation, and strengthen administrative discipline in performing public duties.

Closely coordinate with tax and customs authorities to strengthen the management of state budget revenue, ensure correct, full and timely collection, prevent revenue loss, and handle tax arrears; proactively propose solutions and organize direction and drastic implementation, striving to exceed the assigned state budget revenue estimate for 2023.

The Government Office monitors and urges ministries, agencies and localities to implement this telegram.