The conference was attended by high-level leaders, notably including Politburo member and Permanent Deputy Prime Minister Pham Gia Tuc, Deputy Prime Minister Nguyen Van Thang, and Vice Chairwoman of the National Assembly Nguyen Thi Hong.
Prime Minister Lê Minh Hưng
Evaluating the macroeconomic context, the Prime Minister emphasized that the global economic and financial situation continues to evolve rapidly, complexly, and unpredictably. Shockwaves from international markets have exerted both direct and indirect impacts on exchange rates, interest rate levels, liquidity, and the domestic economy's capital-mobilizing capacity. Nevertheless, through flexible management, the banking system has closely adhered to the dual objective of controlling inflation and stabilizing macroeconomic fundamentals.
SBV Governor Pham Duc An
The Prime Minister stressed that the working session must proceed in a practical, straightforward spirit centered around the core motto: "correctly identifying issues, proposing proper solutions, and delivering tangible results," according to The Government Portal.
The orientation for monetary management in the upcoming period marks an evolutionary step in state management mindset. The Prime Minister explicitly stated not to exert pressure on the SBV and the banking system regarding credit targets and interest rates. This shift is designed to protect the autonomy and self-responsibility of financial institutions in risk pricing.
Notably, the 2026 credit growth target was affirmed not to serve as a "rigid ceiling" under all circumstances. The SBV has been tasked with managing credit flexibly and sensitively, ensuring that capital injection into the economy is channeled into the right sectors at the right time to directly bolster double-digit economic growth objectives.
One of the structural challenges discussed extensively by delegates was how to develop the capital market to unblock medium- and long-term resources, thereby reducing excessive reliance on bank credit (which predominantly carries short-term characteristics).
Regarding resources from the banking system, the Prime Minister demanded that credit be preferentially directed toward core growth drivers, including production and business, exports, supporting industries, high technology, agriculture, innovation, national key projects, essential infrastructure, and the social housing segment.
Alongside the mission of promoting growth, systemic risk management remains non-negotiable. The Prime Minister directly instructed the SBV to intensify the resolution of weak credit institutions and accelerate the modernization of banking technology.
The conference also underscored the necessity of deeply assessing the quality of inspection, supervision, and law compliance within the system. The legal framework continues to be reinforced, highlighted by new regulations on anti-money laundering and the refinement of Know Your Customer (KYC) procedures in alignment with Asia/Pacific Group (APG) standards.
The guidance from the head of the Government immediately generated tangible market impacts. Exemplifying this, right after the meeting, Sacombank became one of the pioneer banks to proactively narrow its Net Interest Margin (NIM) down to 0.79%. This sacrifice of profit margins aimed directly at lowering borrowing costs, supporting the business community, and routing cash flows into prioritized sectors, thereby reflecting close alignment with the regulator's directives.
The Prime Minister also provided input on the proposals and recommendations raised during the meeting and issued directives to ministries, agencies, and localities. Specifically, the Ministry of Finance is tasked with effectively and timely executing assigned duties regarding the comprehensive reform of Vietnam's financial market—aligned with the goal of achieving high and sustained growth through 2045 (as approved by the Prime Minister in Decision No. 1413/QĐ-TTg dated July 27, 2026)—and implementing solutions to develop capital markets that supply funding to the economy over the medium and long term. The Ministry must also effectively implement policies for the exemption, reduction, and deferral of taxes, fees, charges, and land rents in 2026, as well as address VAT refunds to support citizens and businesses; accelerate public investment disbursement; develop financial products and ensure the early, safe, transparent, efficient, and internationally competitive operation of the international financial center; and study and advise on increasing the mobilization of international capital—including ODA, bilateral loans, and international bond issuances with appropriate terms and interest rates—to generate additional resources for socio-economic development.
Relevant ministries, agencies, and localities must coordinate closely and synchronously with the State Bank of Vietnam (SBV) within their respective functions and mandates, particularly in refining institutional frameworks; enhancing data connectivity and sharing; and preventing and strictly handling crimes, fraud, and violations in the finance and banking sectors. These efforts aim to unlock resources and ensure the safe, transparent, stable, and sustainable operation of financial and monetary markets.
The conference between the Prime Minister and the State Bank of Vietnam signals a clear management message: harmoniously combining flexible easing, granting room for market self-regulation, with rigorous financial discipline to ensure the sustainable development of the economy's lifeblood.
by VNBA News
