To prioritize funds for production and business

Prioritizing funds for production and business is the correct goal of banking industry in the current period. This is also common goal of the whole political system to revive business and production sector after a long time affected by the COVID-19. This goal is concretized by banking system through expanding credit, concentrating loan capital for prioritized areas, key, efficient and widespread projects, while strictly controlling credit for potentially risky areas.

A positive sign for banks is that credit growth in the first months of this year is being recovered. After reducing lending interest rates for a number of economic organizations and individuals and rescheduling debt repayment terms for companies and customers, who were heavily damaged by the pandemic, while offering preferential policies on interest rates to prioritized sectors, many banks gained credit growth again. However, according to experts in banking sector, the recovery of credit growth still depends much on the recovery of business and production, while the recovery of business and production depends on many factors, such as the ability to control the pandemic in the world and in Vietnam, effectiveness of bailout packages, international cooperation in epidemic prevention and control, including vaccine production and distribution, and economic recovery level of world's countries...

Although credit growth is expected to be improved in the coming time, the forecast of risks caused by the COVID-19 is existing and credit growth is more or less dependent on epidemic prevention control work not only in Vietnam but also in other countries in the world. Meanwhile, the pandemic in many countries have not been controlled yet, even though vaccines for COVID-19 is free to the entire population. In Cambodia and Thailand, the epidemic situation is developing with the number of infection cases per day up to 3 digits. This is not only a risk to countries in our region but also contains many risks to Vietnam, because we share borders both on land and at sea. The epidemic outbreak will affect badly production and business, and certainly credit growth.

However, after a long time being affected by the pandemic, the world is looking for ways to recover the economy. Many countries set out vaccination plans for the whole population, and some countries are about to complete the vaccination on a large scale. This shows that the pandemic will soon be pushed back and economic recovery in countries will take place soon. Prioritizing funds for production and business right now is the right goal of banking industry, both helping credit growth and contributing to economic growth set out by the Government and localities this year.

Reported by Le Quang - Translated by Ngoc Huynh

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