Officials clarify measures to control credit in risky areas, petrol prices

The State Bank of Việt Nam (SBV) has been consistent in its policy to strictly control credit flows into areas with high risks, such as real estate and securities, and this policy will continue to be implemented in 2022 and beyond, SBV Deputy Governor Đào Minh Tú said at a regular Government press conference last week.

Tú emphasised that SBV has always encouraged credit provision for areas that help facilitate economic development, including low-cost and social housing projects, and houses for workers.

He reported that the SBV and commercial banks, as well as ministries and sectors, are working hard to implement the VNĐ40 trillion credit support package, which provides interest support of 2 per cent to enterprises, business households and cooperatives, as part of the Government’s efforts to speed up post-pandemic socio-economic recovery and development. Under Decree 31/2022/NĐ-CP and Circular 03/2022/TT-NHNN guiding the enforcement of Decree 31, the support is also applicable to low-cost housing projects and housing projects for workers as well as those to upgrade old apartment buildings.

SBV's deputy governor said the real estate sector has continued to see normal growth. As of mid-April, the sector had a total loan balance of VNĐ2.2 quadrillion (US$94.86 billion), up 10.19 per cent over the figure at the end of 2021, representing faster growth compared to the same period last year.

Total lending in the real estate sector accounts for 19.16 of that for the whole economy, he underlined.

Meanwhile, regarding the petrol price hike recently, Deputy Minister of Industry and Trade Đỗ Thắng Hải said that the ministry is working hard to ensure petrol supply sources for daily life and production activities, and coordinating closely with the Ministry of Finance in managing petrol and oil prices

Hải pointed to three major solutions to reign in petrol prices, including effectively and flexibly utilising the fund for the stabilisation of petrol and oil prices, adjusting taxes and fees related to petrol and oil, and designing social welfare policies and measures to support businesses.

He noted that the rise in domestic petrol prices at 27.29-47.89 per cent recently is lower than the increase in other countries.

Deputy Minister of Finance Tạ Anh Tuấn said that after recent adjustments, taxes currently account for 29-31 per cent of petrol prices and 13.3 per cent of diesel oil prices, which are at low levels compared to the world average of about 45-60 per cent, excepting for countries with large oil reserves.

Following the NA's adoption of a resolution on cutting 50-70 per cent in the environmental protection tax rate on gasoline, oil and grease, the Finance Ministry has submitted to the Government a proposal on reducing the import-export tax rate on petrol from 20 per cent to 12 per cent.