Le Minh Hung's August 13 Directives: Steady Interest Rates, Cheaper Lending, and Tight Gold Market Oversight to Drive Vietnam's Growth

On August 13, 2026, Prime Minister Le Minh Hung chaired a working session with the State Bank of Vietnam (SBV) and the country's credit institutions, laying out a comprehensive policy roadmap. The central challenge: keep inflation under control while unlocking enough credit to fuel double-digit economic growth. Here is what the PM ordered.

Steady Policy Rates, Cheaper Liquidity

The PM instructed the SBV to keep policy interest rates steady and to supply additional liquidity to the market so that banks can access cheaper funding . At the same time, all credit institutions were told to cut their operational costs, stabilize deposit rates, and deliver substantive reductions in lending rates . The message was direct: the banking sector must share the burden with businesses and the public.

Targeted Credit for 12 Priority Sectors

Rather than a blanket credit push, the PM ordered that capital flows be directed to specific priority sectors: production, exports, high technology, supporting industries, agriculture, innovation, social housing and rental housing, essential infrastructure, important national key projects, and other growth drivers . The directive emphasizes that credit must be managed flexibly—reaching the right sector, at the right time, for the right purpose, at reasonable costs .

Exchange Rate Flexibility and Gold Market Tightening

On the foreign exchange front, the SBV was told to manage the exchange rate flexibly in line with market developments, coordinate monetary policy tools, and intervene as needed to stabilize the foreign exchange market . Separately, the PM ordered continued tight oversight of the gold market, a recurring concern in Vietnam's monetary management .

Legal Reforms to Come: Three Draft Laws

The working session also set a legislative timeline. The SBV must work with National Assembly agencies to finalize and submit draft amendments to the Law on the State Bank of Vietnam, the Anti-Money Laundering Law, and the Law on Credit Organizations for approval at the August 2026 sitting . The PM stressed that all guiding documents must be issued immediately after the laws take effect to avoid legal gaps .

Banking System Modernization Mandate

By August 2026, the SBV must complete a scheme to modernize the banking system, handle weak credit institutions, and improve corporate access to capital—especially for small and medium-sized enterprises (SMEs) . The directive also calls for innovating inspection and supervision methods, strengthening early-warning and remote supervision capabilities, and strictly handling violations to ensure system safety .

The Overarching Objective: Balance Inflation Control with Double-Digit Growth

The PM's overarching instruction is clear: monetary policy must ensure inflation control, macroeconomic stability, maintenance of major economic balances, system safety, and support for double-digit economic growth . According to reports, the PM specifically assessed the 'balance point' between inflation control and growth, calling for timely and calibrated policy responses .

What This Means for Businesses and Borrowers

For Vietnamese businesses and households, these directives signal that cheaper credit is a government priority—but only for certain sectors. Companies in manufacturing, exports, high-tech, agriculture, social housing, and infrastructure development are most likely to benefit from the mandated lending rate reductions. SMEs, in particular, may see new credit programs with rates at least one percentage point below average, following a separate SBV directive earlier in August .