Within the framework of the working mission to attend the 92nd Annual General Meeting (AGM) of the Bank for International Settlements (BIS) and the side events in Basel, Switzerland, Governor Nguyen Thi Hong of the State Bank of Vietnam (SBV) attended and delivered a speech at the Global Economy Meeting (GEM). After that, the SBV Governor also made another speech at the BIS-AGM.
SBV Governor Nguyen Thi Hong attended and delivered a speech at the meeting.
On June 25, 2022, Mr. Jerome Powell, Chairman of the US Federal Reserve, chaired the Global Economy Meeting (GEM) to discuss about the recent macroeconomic and global financial developments, as well as the situations and outlook of the job markets around the world. Speaking at the Meeting, the SBV Governor shared that, toward the end of 2021 and during the first months of 2022, the job market in Vietnam had experienced positive developments. The domestic job market had demonstrated its strong resilience against adverse shocks, thanks to the great efforts of the Government, the SBV, and the Ministries, who had always monitored closely the domestic and international developments, and taken cautious steps when dealing with any adverse development, with effective forecast about the possible major trends, including the global inflation and the increasing pressures on the domestic inflation. Thereby, the Government of Vietnam and the SBV had issued appropriate and comprehensive policy solutions on both the supply and the demand sides. These solutions included a series of policy packages to support workers, enterprises and maintaining the stability of commodity prices, such as supporting house rents for the workers in the industrial parks; supporting enterprises to create jobs, maintain and expand employment, pay wages and benefits to workers who have lost their jobs; exempting and reducing taxes, fees, charges; reducing land leasing fees; extending the deadlines for payment of the corporate income tax, the personal income tax, the excise tax, and the land leasing fees; reducing the environmental protection tax on gasoline and oil products, etc.
According to the SBV Governor, contributing to the general efforts of the Government, the SBV has been, and will be managing the monetary policy in a proactive, flexible manner, together with the monetary instruments and in close coordination with the fiscal policy and other macroeconomic policies in order to control the inflation, maintaining the stability of the macroeconomic, while supporting the recovery process and the economic growth, promptly adapting to the domestic and international market developments. In 2021 and the first months of 2022, while the world interest rates have increased rapidly, the SBV has still remained the key interest rates unchanged, facilitating the credit institutions’ access to low-cost-capital from the SBV, thereby reducing the borrowing interest rates to support the banks’ customers to recover their production and business operations. All of the SBV's management solutions had been communicated in a timely and transparent manner to the public, helping to build trust and contributing to maintaining the market stability.
Thanks to the above-mentioned strong and comprehensive solutions, Vietnam's economy has achieved positive results. The workers’ living standards have been guaranteed; and there has been no sign of a hike in the commodity prices and wages; the domestic demand has been maintained at a high level, etc. However, despite having achieved those positive results, the SBV Governor asserted that the Government and the SBV would not be over-confident in the context of inflation developments, and would continue to monitor closely the domestic and international developments in order to adjust the current solutions and propose new and appropriate solutions based on the actual situations.
After the GEM, on June 26, 2022, SBV Governor Nguyen Thi Hong also attended the 92nd AGM of the BIS, which took place under the chairmanship of Mr. François Villeroy de Galhau, Chairman of the Board of the BIS, Governor of the Bank of France. This was the first time the SBV Governor had attended the AGM after the SBV became a member/shareholder of the BIS.
The 92nd AGM reviewed the BIS’s activities in the fiscal year of 2021 (from April 1, 2021 through to March 31, 2022), discussed and adopted the BIS's financial statements for the fiscal year of 2021, the profit distribution plan and the selection of an independent auditing organization for the fiscal year of 2022. The participants also adopted a decision on the remuneration and the exemption of personal responsibilities of the members of the Board of Directors in the previous fiscal year.
In the coming time, the BIS Innovation Hub has identified six themes of strategic focus that are important to the Hub and the Central Banks’ community, such as: Central bank digital currency (CBDC); Green finance; Application of technology in the management and supervision of the financial system (regtech and suptech); Financial market infrastructure of the next generation; Open finance and Network security.
In the role of a forum for cooperation and a dialogue platform between the central banks and the financial supervisory authorities of the member countries, the BIS frequently organizes various high-level meetings of the Central Bank Governors and leaders of the financial supervisory agencies in order to create opportunities for dialogues and knowledge sharing at its headquarters in Basel, or at its Representative Offices in Asia-Pacific and the Americas.
LK