On September 12, 2022, Prime Minister Pham Minh Chinh and Deputy Prime Minister Le Minh Khai co-chaired a Conference on maintaining the macro-economic stability, controlling the inflation, promoting the economic growth, and ensuring the macro balances. Speaking at the Conference, representatives from the international institutions like the IMF, the WB, the ADB,… and economists made high evaluation for the management of the State Bank of Vietnam (SBV) in controlling the inflation and maintaining the macro-economic stability.
Prime Minister Pham Minh Chinh speaks at the Conference
In his opening speech at the Conference, the Prime Minister assessed that, over the past time, the world situations had experienced many complicated and unpredictable developments, including many negative factors affecting the global and Vietnam’s economy. In that context, the Prime Minister emphasized that the macro management must not only follow the practical developments on the basis of an economically technical foundation, but also maintain the political and social stability in association with the management in a proactive, flexible and effective manner. Therefore, the Prime Minister requested the participants to concentrate on discussing the global, regional and Vietnam’s situations, the lessons learnt, viewpoints, orientations, tasks and key measures; coming up with appropriate policy recommendations and possible solutions for both short and long terms.
An overview of the Conference
At the Conference, most of participants, including representatives from the IMF, the WB, the ADB,… spoke highly of the SBV’s management in controlling the inflation and maintaining the macro-economic stability. According to Mr. Francois Phainchaud, Chief Representative of the IMF in Vietnam, Vietnam has been recovering at a good pace; the socio-economic recovery and development programs have been implemented strongly and effectively. He also emphasized that Vietnam has maintained a stable exchange rate, allowing the VND to be depreciated at a smaller level than those of many other countries through selling its foreign exchange reserves, while increasing the short–term interest rates, thereby having successfully controlled the inflation. Therefore, increasing the credit ceiling could reduce the effectiveness of the above policies in curbing the inflation. Especially, the SBV have made great efforts, and has been doing very well to maintain the macro stability.
According to the assessments of the domestic economists, over the past time, the management of the monetary policy, the credit policies and the banking operations has contributed greatly to the economic growth during the eight months of 2022.
Also at the Conference, many economists made several significant recommendations about the socio-economic policies of Vietnam in the coming time. Specifically, Mr. Francois Phainchaud suggested that the SBV should continue to resolve NPLs and the potential risks, as well as to strengthen the management of the banking system with prudent policies for a sustainable capital market. Mr. Andrea Coppla, Lead Economist of the WB in Vietnam, agreed that Vietnam should make balances among the policies in order to recover the economy and control the inflation, conduct an appropriate fiscal policy to handle and further promote the effectiveness of public investment.
Dr. Tran Hoang Ngan, member of the National Financial and Monetary Policy Advisory Council, suggested that the institutional framework for the development of the corporate bond market should be urgently improved and finalized, with a view to encouraging companies to issue corporate bonds and securities, aiming for a sustainable market. Dr. Tran Du Lich, member of the Prime Minister’s Advisory Group, emphasized on the need for a balanced development of the stock market, the bond market and the money market so that the burden of medium and long term capital would not be placed on the monetary policy only.
Toward the end of the Conference, the Prime Minister summarized 13 main tasks and measures and requested the relevant Ministries and agencies to strictly implement those tasks based on their functions and mandates. The task and measures include:
Managing the monetary policy in a proactive and flexible manner while still ensuring the safety and effectiveness of the system, in close collaboration with the fiscal policy to control the inflation, maintain the macro-economic stability, promote the economic growth; ensuring the appropriate management of the exchange rate, the credit and the interest rates.
Continuing to implement the expansion of the fiscal policy in a reasonable manner, ensuring the efficiency, supporting the monetary policy; accelerating the disbursement of public investment; developing the stock market and the corporate bond market toward healthiness and sustainability.
Enhancing the inspection and supervision of the commodity prices and the market; continuing to review and improve the legal frameworks, the relevant mechanisms and policies in order to mobilize and use all possible resources effectively for the rapid recovery and sustainable development, etc.
Strengthening the restructuring of the economy in association with reforming the growth model, technological innovation, digital transformation, digital economy, green growth, climate change responses,…
Improving the governance and management as well as the cooperation and the macro-economic policy coordination in order to ensure the consistency, effectiveness and flexibility among the policy instruments,…
Accelerating the administrative reform, developing high-quality human resources; continuing to consistently implement the policy on building an independent and self-reliant economy associated with proactive and extensive international integration…
Enhancing the information and communication to create a high consensus in the public opinion and the business community, thereby contributing to maintaining the macro-economic stability, controlling the inflation, promoting the economic growth and ensuring the macro balances, etc.
Le Hang