Governor of the State Bank of Vietnam Nguyen Thi Hong (Photo: An Dang/VNA)

Governor of the State Bank of Vietnam Nguyen Thi Hong said the central bank has kept a close eye on fluctuations to decide each key task.

Last year's rapid rise in international interest rates and high inflation in the domestic market were two reasons Vietnam had to raise interest rates, said Hong, adding that Vietnam was pressured by the devaluation of its currency as countries tightened their monetary policies and the price of the dollar rose.

According to Hong, in the first months of this year, when the exchange rate re-stabilized and inflation slowed down, the central bank adjusted interest rates 3 times. On average interest rates fell 0.9% compared to 2021.

Hong explained, “Priority must be given to the operation of the banking system, the State Bank of Vietnam, and the Government. Solutions and the time needed to adjust policies have been carefully considered by the Bank to stabilize the macro-economy, ensure system security, and create a favorable environment for businesses.”

Minister of Planning and Investment Nguyen Chi Dung said that positive growth in the first months of this year is due to the government’s identification of difficulties faced by the economy since the end of last year. 

“The government will continue to closely monitor the situation at home and abroad and clear bottlenecks to achieve its goals. The government will direct the rapid disbursement of funds national target programs while promulgating more effective policies to help businesses,” said Dung.

Finance Minister Ho Duc Phoc clarified issues related to making estimates and management of the life insurance market.