(Illustrative photo)

The global situation is forecast to see complex developments, increasing political, economic, and social instability, and more challenges than opportunities because of fluctuations of petroleum and food prices and interrupted supply chains. Domestically, natural disasters such as droughts and saline intrusion and climate change impacts have been more severe.

Promoting credit growth and supplying capital to the economy

Providing capital to the economy is an important factor in economic growth. The State Bank of Vietnam has introduced new mechanisms for credit management. Since the beginning of the year, it has assigned 15% of the credit limit to all credit institutions.  

The SBV has directed credit to production, business, priority areas, and growth drivers - investment, consumption, and export - according to the Government's policies, and has strictly controlled investment in potentially risky areas. The banking sector has facilitated the expansion of consumer credit.

SBV Deputy Governor Dao Minh Tu said: “This year the State Bank of Vietnam has reformed the mechanism for directing credit activities and allocation to create favorable conditions for commercial banks to provide capital to businesses and individuals. We are maintaining the policies of rescheduling and deferring debts and loan interest for businesses in difficulty. We will consider extending this policy until an appropriate time.”

In early February, the SBV asked credit institutions to simplify loan procedures and step up digital transformation to help their customers access credit.

Unlocking resources, promoting advantages

In the first 2 months of 2024, export turnover of agriculture, forestry, and fishery products totaled 10 billion USD, 150% more than in the same period last year.

Deputy Minister of Agriculture and Rural Development Phung Duc Tien (photo: VOV)

Increases in quantity and price of many agricultural products will help Vietnam reach the export target of 55 billion USD set for this year.

To maintain growth momentum and the value of exported agricultural products, the Ministry of Agriculture and Rural Development has enhanced trade promotion and market expansion efforts, said Deputy Minister of Agriculture and Rural Development Phung Duc Tien.

“Vietnam will expand export markets for poultry and seafood. The Ministry of Agriculture and Rural Development will coordinate with the Dutch De Heus Group to export chicken meat to the Halal market for the Muslim community of 2.2 billion people. The Ministry has directed the Directorate of Fisheries to focus on developing this market. Besides market opening and trade promotion, it’s necessary to explore new, niche markets so agricultural products can reach many market segments and earn more revenue,” said Mr. Tien.

Continuing last year’s strong recovery, the tourism sector has stepped up promotion to reach major markets, especially Vietnam’s strategic partners. According to Ha Van Sieu, Deputy Director of the Tourism Department of the Ministry of Culture, Sports, and Tourism, regional, national, and provincial planning with clear directions have ensured investors’ confidence and addressed the problem of regional connectivity.

“To strongly promote growth momentum for this year, we’ll concentrate on human resources and improving service quality, infrastructure, and digital transformation. Stronger promotional programs are needed to enable Vietnamese tourism to reach major markets, especially China, Japan, South Korea, the US, and India,” said Mr. Sieu.

Amidst chaotic changes in the world and their impact on Vietnam's economy, ministries and branches have promoted their strengths to help Vietnam achieve its development goals.