REVIEW
of
FINANCE -
Feb. 2018
35
controlled tightly the amount of money supply,
gradually towards reaching the target that
market interest rates was consistent with inflation
happenings, money market and contributed to
the removal of difficulties for production and
business. Throughout 2017, SBV continued to
tightly control the total means of payment and
credit, associating with the improvement of credit
quality when compared to the one of previous
period in order to control inflation according to
the goal which was set out to do. Similar to the
previous years, SBV continued to announce the
credit growth target for each institutions based on
the evaluation of the performance and the ability
of healthy credit expansion. Although the growth
rate of total means of payment and credit was
still given in the annual Management Directive
of monetary policy, actual performance showed
that the indicators often were adjusted in line
with the ability of credit institutions system and
the economy.
Though credit growth rate in 2011-2017 period
was much lower than the one in the previous
period and credit structure had positive changes,
when credit growth rate was gradually improved,
the Vietnamese Government switched the capital
concentration to production-business operation,
especially the Government’s priority areas and in
accordance with the policy against dollarization.
In the estimation of 2017, total means of payment
increased about 16%, near the beginning of 2017
THEMANGEMENT OFMONETARY POLICY
ANDTHE ORIENTATION IN2018
CHU KHANH LAM, PhD. *
Since 2012, the State Bank of Vietnam has selected the objective of curbing and controlling inflation,
macro-economic stability as the thorough and key objective for the management of national monetary
policy. This objective was emphasized in Directive No. 01/CT-NHNN dated 10 Jan.2017 by the State Bank
of Vietnam and implemented consistently in Banking sector throughout 2017. The target that Banking
sector continued to set out in the coming time is to follow closely to the Resolution of the Government’s
socio-economic development, focus on controlling inflation, stabilize macro-economic, remove difficulties
for production and business, support market, contribute to economic growth at a reasonable level.
Keyword: Monetary policy, inflation, macro-economic, The State Bank, production and business.
Received: December 22
nd
, 2017
Revised: January 4
th
, 2018
Accepted for publication: January 5
th
, 2018
The new points of monetary policy management
Different from the stance to give priority to
economic growth in the previous period, from
2012 to 2017, The State Bank of Vietnam (SBV)
always expressed its commitment to maintain low
inflation in short term as well as stable inflation
objective in medium and long term. Being well
aware of the difficulties faced by Vietnam’s
economy, SBV deployed drastically some
measures to remove difficulties for production
and business activities and support the market.
This target was fully consistent with the objective
of controlling inflation and macro-economic
stability because good inflation controlling was
reflected not only by low inflation rate but also by
the restriction of disinflation. Moreover, macro-
economic stability required enterprise system
which was experiencing difficulties to improve
and recover, which were associated with the
renovation of the growth model and restructure
of the economy in order to consolidate the
future stable growth. The important premise for
the implementation of selecting intermediate
objectives, activities as well as using monetary
policy tools of SBV is the selection of the ultimate
objective which is consistent with Vietnam’s
macro-economic background.
About the intermediate objective, SBV
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