Meeting between Vietnamese Prime Minister and Top Businesses
Discussion on Economic Measures
In a meeting on Thursday, Vietnamese Prime Minister Pham Minh Chinh engaged with the country’s top businesses to address economic challenges amid sluggish bank lending, according to government reports.
Importance of Credit Growth
Vietnam’s economic growth is closely tied to credit expansion, with the central bank aiming for a 15% increase in credit this year. However, by the end of February, total outstanding loans from banks had decreased by 0.72% compared to the previous year.
Global Economic Outlook
During the meeting, Prime Minister Chinh highlighted the anticipated challenges in the global economy for 2024. Executives from leading companies such as Vingroup, FPT, and No Va Land were present. Vietnam, known for its manufacturing sector, saw a GDP growth of 5.05% in 2023, a decline from the previous year’s 8.02%.
Factors Affecting Credit Growth
Deputy central bank governor Dao Minh Tu attributed the weak credit growth to factors like subdued global demand and inflationary pressures. To address this, the central bank, which slashed policy rates four times in the past year, plans to enhance businesses’ access to credit by simplifying legal frameworks and reducing banks’ operational costs.
In summary, the meeting between the Vietnamese Prime Minister and top businesses aimed to tackle economic challenges, focusing on the importance of credit growth and addressing global economic uncertainties. The government plans to implement measures to support businesses and stimulate economic activity in the face of weak bank lending.
