Vietnam’s Prime Minister has ordered the central bank to strengthen its early warning system to detect financial risks and violations faster.

Prime Minister Lê Minh Hưng has instructed the State Bank of Vietnam (SBV) to improve inspection, supervision and risk-monitoring measures to safeguard the banking system, according to Viet Nam News. 

Under Resolution 262/NQ-CP, which sets out tasks for ministries and agencies for the rest of 2026, the SBV must require credit institutions to strengthen corporate governance, financial resilience, risk management and internal controls.

Banks must also strictly observe prudential limits and tighten oversight of transactions involving shareholders and related parties.

The Prime Minister called on the SBV to continue restructuring credit institutions and tackling bad debts. It should strengthen supervision and accelerate the implementation of recovery plans for underperforming banks under special control, including efforts to resolve collateral linked to Saigon Joint Stock Commercial Bank.

Hưng also urged the SBV to pursue flexible and effective monetary policy in coordination with fiscal and other macroeconomic measures. The aim is to keep inflation under control, preserve macroeconomic stability, maintain key economic balances and protect the banking system while supporting the Government’s goal of double-digit economic growth.

The central bank was also told to manage the exchange rate in line with market conditions and closely monitor foreign-currency supply and demand. This will allow timely intervention when necessary to stabilise the foreign-exchange market and support price stability.

Credit growth should likewise be managed flexibly, with banks encouraged to direct funding towards production, business activities and exports, as well as high-tech industries, innovation and supporting sectors.

Priority should also be given to social and rental housing, essential infrastructure and other sectors identified as key growth drivers.

The measures form part of broader efforts to strengthen Vietnam’s financial system while ensuring credit supports productive economic activity.