Monetary and credit policies supporting the Vietnamese economy in the period of COVID-19 and some recommendations

Abstract

The abrupt pace of the recession increased financial market volatility, and uncertainty about the impact of the COVID-19 pandemic has prompted an unprecedented series of responses in terms of
speed, scope, and scale of central banks all over the world in 2020 and 2021. In that context, following the Government‘s directions, the State Bank of Vietnam has been proactive and drastic direct the system of credit institutions to synchronously and effectively deploy monetary policies, closely coordinate with fiscal policies and other macro policies to ensure inflation control, contribute to stabilize the macro-economy, and at the same time implement a series of solutions to support and remove difficulties for the economy. To evaluate the assessibility of business support mechanisms in general and the support mechanisms through monetary and credit instruments in particular, the research team conducted a survey of 483 businesses across the country. This study will focus on analyzing the content of monetary and credit support policies for the economy and evaluating the effectiveness of the policies, thereby providing important grounds for proposing recommendations in the future to support all economic sectors to overcome difficulties during the pandemic, return to the trajectory of recovery and sustainable development.