Leaders of commercial banks have proposed solutions to enhance banking system development, photo Le Toan

On February 11, Prime Minister Pham Minh Chinh chaired a meeting between the government and commercial banks to accelerate growth and control inflation.

Speaking at the meeting, Nguyen Thi Hong, Governor of the State Bank of Vietnam (SBV), emphasised that the banking sector was fully aware that 2025 is a pivotal year for acceleration, with an economic growth target of at least 8 per cent.

For 2025, the central bank has set a credit growth target of approximately 16 per cent, with potential adjustments depending on actual conditions. “The SBV will closely monitor developments. If inflation remains under control at low levels, we will adjust this target upwards, and vice versa. Credit policies will also focus on key economic growth drivers, including consumer credit and lending to small and medium-sized enterprises,” the governor said.

At the conference, banking leaders expressed their commitment to contributing to the country’s socioeconomic development, encouraging green credit, and providing financing for major national programmes, especially infrastructure projects.

Nguyen Thanh Tung, chairman of Vietcombank, said that the bank would maintain the lowest lending rates in the market, improve credit approval processes, and shorten service times for customers.

“In 2025 and beyond, Vietcombank will continue prioritising these projects, particularly those focused on green and sustainable development, as well as projects involving state-owned corporations, enterprises, individuals, and business households to generate employment and drive socioeconomic growth.”

According to Tung, to foster stronger growth and lay a solid foundation for Vietnam to enter a new era of expansion, the government will entrust state-owned corporations and enterprises with the implementation of large-scale projects.

“These clients have essentially reached the maximum lending limits for related entities. Therefore, to facilitate operations in the future, it is necessary to review and amend regulations concerning the approval process for exceeding the lending limit at financial institutions,” added Tung.

Through eight proposals submitted to the prime minister, Phan Duc Tu, chairman of BIDV, emphasised the need to develop contingency plans to address trade protectionism.

“Under the current lending regulations of commercial banks, investments in startups, digital technology enterprises, and high-tech experimental firms face significant risks. If a risk-sharing mechanism is implemented, banks could be more willing to invest,” said Tu.

BIDV representatives suggested that the government direct ministries to study establishment of investment funds and policies to support startups and digital tech enterprises.

“This should include financing mechanisms, profit-sharing structures, and appropriate risk management. If permitted, banks could contribute capital to these funds instead of solely engaging in traditional commercial lending,” Tu said.

During the conference, leaders of commercial banks also proposed solutions to enhance the banking system’s development, enabling it to participate more effectively in revitalising traditional growth drivers.

TPBank chairman Do Minh Phu demonstrated a strong commitment to supporting Vietnam’s economy by pioneering capital financing for build-operate-transfer (BOT) projects. In addition to infrastructure projects, TPBank is expanding its lending portfolio to include social housing and green credit initiatives, following the directives of the PM.

“With the goal of contributing to the country’s 3,000km expressway target this year, the bank has been involved in several projects, including the Cam Lam-Vinh Hao motorway. Recently, TPBank signed a $96 million credit agreement for the BOT Huu Nghi-Chi Lang expressway and is committed to disbursing the funds this week,” said Phu.

However, Phu pointed out that one of the biggest barriers to financing BOT projects was credit constraints. Currently, funding for these projects falls within the general credit cap, making it difficult for TPBank and others to expand their support.

“TPBank proposes that the SBV consider exempting BOT project loans from credit limit restrictions, creating better conditions for financial institutions to invest in infrastructure,” added Phu.