On December 12, 2022, in Hanoi, First Deputy Governor Dao Minh Tu of the State Bank of Vietnam (SBV) and Mr. Shawn Steil, Ambassador of Canada to Vietnam attended and made speeches at the Preliminary Review Meeting of the 5-year implementation of the “Strengthening the People’s Credit Funds Network” (STEP) Project, which is supported by Global Affairs Canada (GAC) through Développement International Desjardins (DID), with Co-op Bank being the key beneficiary.
First Deputy Governor Dao Minh Tu of the SBV and Mr. Shawn Steil, Ambassador of Canada to Vietnam, at the meeting
Speaking at the meeting, Ambassador Shawn Steil, on behalf of the Government of Canada, expressed the honor to support STEP Project, as well as the SBV and Vietnam’s banking sector over the past years. He also expressed his beliefs that with the leadership of the SBV, together with the support from the Government of Canada, the two sides would enhance the efficiency of the development of financial inclusion in Vietnam.
Mr. Shawn Steil, Ambassador of Canada to Vietnam, speaks at the meeting
Ambassador Shawn Steil further stated that this is an important time for the world and for Vietnam after having overcome the COVID-19 pandemic. Apart from the socio-economic recovery, the development of financial inclusion is really necessary to support vulnerable people, such as the poor, the ethnic minorities. He hoped that STEP Project would continue to obtain practical results in the coming time.
SBV First Deputy Governor Dao Minh Tu speak at the meeting
In his assessment of STEP Project, First Deputy Governor Dao Minh Tu affirmed that it is an important project for Vietnam in general and for the People’s Credit Funds (PCF) network in particular, especially in the process of promoting the national financial inclusion.
Based on the presentations and the comments made at the meeting, the SBV Deputy Governor highly praised the results that Co-op Bank and the project experts have achieved after five years’ implementation, such as the provision of practical products to improve the both the leading and the supporting roles of Co-op Bank among the PCFs; the enhancement of the reporting and information system to improve the governance of the PCFs; the effective development of an e-banking system, which has been implemented in over 500 PCFs, etc. Moreover, the SBV Deputy Governor also expressed his high appreciation for the recommendations from STEP Project on promoting gender equality in Vietnam.
On behalf of the SBV Governor, Deputy Governor Dao Minh Tu complimented the Project experts, the Board of Management of Co-op Bank, together with all representatives of the participating PCFs in the pilot phase. The Deputy Governor also thanked for the good coordination of the relevant Ministries, agencies and authorities, with the strong will and determination to overcome the difficulties caused by the COVID-19 pandemic. The SBV Deputy Governor went on to request Co-op Bank to further enhance the close coordination with the Project experts, the PCFs, and the relevant entities to effectively implement the remaining activities of the Project.
Expressing his high appreciation for the support of the Government of Canada over the past years to the PCF network in Vietnam, the SBV Deputy Governor believed that, with the close coordination and the strong support of the Canadian Embassy in Vietnam and the SBV, the Project would continue to be implemented effectively, and the outcomes of the Project would be enhanced and multiplied over the entire system of nearly 1200 PCFs in Vietnam, thereby re-affirming the effectiveness of this Project.
Participants at the meeting
About the orientations for the development of the PCF network in the future, Deputy Governor Dao Minh Tu said that the PCF network is considered to be an important channel to mobilize and supply capital and financial services for production and business operations, helping to improve the people’s living standards, with special focus on the economic development in rural and remote areas. In the Scheme of Restructuring the System of Credit Institutions in association with NPL resolution for the 2021-2025 period, the orientation of developing the PCF network has been determined to be implemented in line with the objectives, principles applied to the type of credit institutions operating as cooperatives in accordance with the laws and the international practices, focusing on safe and sound, stable and sustainable operations. Therefore, the SBV hoped that the Project would continue to receive further support from the Government of Canada.
Le Hang