PM wants more flexible loan approval

"We should not lower our lending assessment criteria, but we need to be more flexible," Chinh advised bank leaders during a Thursday morning meeting.

Banks have been approving far less loans this year compared to 2022.

Credit growth by the end of November was 9.15%, a 3-percentage-point drop from the same period last year.

The PM said that banks and businesses are all part of an economic ecosystem that both parties must contribute their part to towards national growth.

This means that banks have to accept less profits amid economic difficulties and share the burden with companies and citizens, he added.

"Banks need to make great sacrifices to help increase credit growth," Chinh emphasized.

The State Bank of Vietnam (SBV) has rolled out several policies to support businesses this year.

In the first 10 months, around VND158.69 trillion ($6.53 billion) worth of loans were restructured to reduce payment burdens on companies.

The government lender has also been deploying a VND120 trillion credit package for social housing.

The SBV has also been making adjustments to credit growth caps at individual banks in order to "ensure balance."

The country’s credit growth cap stands at 14.5% so far this year.

Last month, PM Chinh ordered the SBV to ensure an adequate supply of credit to the economy by eliminating obstacles to loan access.