Vietnam’s foreign exchange reserves have reached approximately 79 billion USD so far this year, with a quarter of it bought by the State Bank of Vietnam (SBV), according to SBV Governor Lai Minh Hung.

At a teleconference between the Government and localities held on December 30, it was said that although 20 billion USD was bought into the economy, the inflation was not critically impacted. 

The SBV has worked to keep the rate at a low level, with core inflation rate ranging from 1.4 to under 2 percent, Hung said, stressing it is important to ensure stable macro-economy as well as sound operation of local enterprises.

He affirmed the SBV’s rational foreign exchange policy helps the nation have sufficient resources to cope with external economic shocks. The reserves came from foreign direct and indirect investment, remittances, and currencies held by organisations and residents.

In the past year, the central bank also focused on controlling quality of credit structure. The credit growth is projected to expand 13.5-13.7 percent in 2019, and the banking system supplied some 8.1 quadrillion VND (350.2 billion USD) to the economy.
The credit structure was occupied mainly by those lent to the prioritised sectors of industry (accounting for 20 percent of total outstanding debt), rural development and agriculture (25 percent), and small- and medium-sized enterprises (19 percent).

The central bank enjoyed success in its interest rate policy, Hung said, adding it adjusted interest rates and cut lending rates to meet increasing demand for capital of local firms and organisations.
In 2019, credit institutions set a ceiling rate for five priority sectors of agriculture and rural development, export, small- and medium-sized enterprises, supporting industries and high-tech production at 6 percent so as to back economic growth.

As for 2020, Hung said the Government should direct competent ministries, branches and localities to coordinate with the SBV to reach the inflation rate target and stabilise the foreign exchange market.

The SBV will work with associations, sectors and localities to facilitate capital access for businesses, thus boosting socio-economic development in 2020, he added.