PM urges monetary loosening
PM urges monetary loosening
Prime Minister Nguyen Xuan Phuc, speaking at a monthly Cabinet meeting on March 1, told the State Bank of Vietnam (SBV) to direct local banks to expand credit and reduce lending rates for priority sectors this month to fuel the country’s economic growth, the local media reported.
The Government leader hailed the country’s positive economic development results in the first two months of the year, especially in trade, industrial production and in the attraction of foreign direct investment. However, he also pointed out several shortcomings, such as the slow disbursement of capital for public projects and the trade deficit.
Vietnam is being affected by external factors, including trade tensions between the United States and China, tightening monetary policies by central banks in other countries, China’s slower growth and climate change, PM Phuc said, citing International Monetary Fund Managing Director Christine Lagarde.
He stressed the targets of macroeconomic stability and for controlling inflation, calling upon all ministries, agencies and localities to increase efforts to ensure sustainable economic growth.
Specifically, he requested the Ministry of Finance to seek solutions to improve the operation of the stock market and financial services, assist enterprises in mobilizing capital and share risks with the banking system.
Meanwhile, the Ministry of Planning and Investment will have to make the most of opportunities brought by the organization of the second summit between the United States and North Korea to attract foreign investment, especially from multinational corporations specializing in the hi-tech sector.
Additionally, the Ministry of Industry and Trade was assigned to deal with loss-making projects.
Also, the Commission for the Management of State Capital at Enterprises must completely address inefficient projects that State-owned enterprises handed over to the commission, especially Vietnam Oil and Gas Group and Vietnam National Coal and Mineral Industries Group.
The prime minister also asked the Ministry of Transport to regularly report on the progress of the HCMC-Trung Luong-My Thuan and My Thuan-Can Tho expressway projects.
