Calls for lower lending rates, amid still-high funding costs, have placed the banking sector in an acutely difficult position. However, with solid profitability, together with notable gains in digitalisation and productivity, the time has now come for banks to decisively translate this room for manoeuvre into lower funding costs for the broader economy.

The latest data from the State Bank of Viet Nam showed that deposits by individual customers at credit institutions officially surpassed 11 quadrillion VND by the end of June.

The journey to “green” the banking sector is entering an important transitional phase, as requirements for sustainable development, emission reduction, and ESG practices increasingly become standards in financial and banking operations.

Deputy Prime Minister Ho Duc Phoc on August 1 emphasised the importance of effectively managing monetary policy, maintaining macroeconomic stability, curbing inflation, stabilising the exchange rate, and promoting economic growth.

Prime Minister Pham Minh Chinh on April 25 asked ministries and sectors to optimise all tools to remove difficulties facing the financial, corporate bond and real estate markets, thus pumping in more resources and promoting major growth in consumption, exports and investment.

Prime Minister Pham Minh Chinh held a working session with the State Bank of Vietnam (SBV), the Ministry of Finance and the Ministry of Justice on April 22 to review and step up the issuance of two important circulars related to the finance-banking sector.