On June 27, 2024, at the headquarters of the State Bank of Vietnam (SBV), Deputy Governor Pham Thanh Ha had a meeting with a delegation of the EU-ASEAN Business Council (EU-ABC).
The discussions at meeting focused on the following topics: (i) the SBV’s policy orientations; (ii) the SBV’s priorities related to the financial stability, the sustainable development of the banking sector, green credit, and the plan for popularizing financial knowledge among the people, and enhancing the public sector’s capacity; (iii) updates on the SBV’s policies for the insurance agency activities of the commercial banks; and (iv) the SBV’s policy orientations and priorities for micro finance activities.
Deputy Governor Pham Thanh Ha speaks at the meeting
Sharing about the SBV’s policy orientations in 2024, Deputy Governor Pham Thanh Ha said that the SBV had continued to manage the monetary policy in a proactive, flexible, timely and effective manner, in close coordination with the fiscal policy and other macro-economic policies, contributing to supporting the economic growth, maintaining the macro-economic stability, controlling the inflation in 2024 at an average level of 4 to 4.5%, maintaining the stability of the money and forex markets and the entire banking sector; ensuring safe and sound banking operations.
In addition, the SBV had been focusing on accelerating the restructuring of the credit institution system in alignment with Decision No. 689/QD-TTg of the Prime Minister and the banking sector’s Action Plan for the implementation of the Scheme of Restructuring the system of credit institutions in association with NPL resolution for the 2021-2025 period, with the aim of accelerating the NPL resolution, improving the credit quality, limiting newly arising NPLs; continuing to improving the legal frameworks for the banking inspection and supervision, ensuring a prudent banking system,… in alignment with the international practices.
About the sustainable development goals in the banking sector and green credit, the SBV had issued Decision No. 1408/QD-NHNN dated July 26, 2023 approving the banking sector’s Action Plan for the implementation of the National Green Growth Strategy for the 2021-2030 period, and the Scheme on the tasks and measures to implement Vietnam’s commitments at the 26th UN Climate Change Conference of the Parties (COP26).
In the micro finance area, the SBV has been in the process of advising the competent authorities to amend and supplement, or promulgate new legal documents applicable to micro finance institutions, projects and programs to ensure compliance with the Government’s orientations, while still ensuring the development of the system of micro finance institutions, projects and programs to ensure safe, effective and sustainable operations; expanding the access to financial products and services among the poor and low income people.
For his part, Mr. Jens Rubbert, Chairman of the EU-ABC, affirmed that the SBV is a crucial entity in the realization of the goals of maintaining Vietnam’s macro-economic stability, contributing to improving the investors’ confidence, and maintaining the attractiveness of the Vietnamese market among foreign investors. The EU-ABC Chairman also acknowledged the SBV’s enormous efforts in promulgating and enforcing the revised Law on Credit Institutions, especially the measures for unlocking the credit flows. The EU-ABC Chairman expressed his hope that the SBV would continue to implement Vietnam’s commitments related to the green economy made at COP26, and support the EU companies to enhance their cooperation with the domestic businesses in the energy sector.
The SBV Deputy Governor and the EU-ABC delegation take a group photo
Toward the end of the meeting, Deputy Governor Pham Thanh Ha expressed his hope that the EU- ABC would continue supporting the SBV in the areas of the mutual interest, including the cooperation in the energy sector, the enhancement of the digital transformation, as well as the mobilization of private investment capital for infrastructure development.
Le Hang