Within the framework of the 16th session of the Vietnam-Rusia Inter-Bank Cooperation Working Group held in the Russian Federation on 30-31 August, 2018, Deputy Governor Nguyen Thi Hong and the delegation of the State Bank of Vietnam (SBV) had working sessions with the Governor of the Central Bank of the Russian Federation, the Chairman and the Board of Directors of the International Bank for Economic Co-operation (IBEC), and the Vice Presidents of the International Investment Bank (IIB) which are headquartered in Moscow, Russia.
Working session with the Governor of the Central Bank of the Russian Federation
At the meeting with Governor Elvira Nabiullina of the Central Bank of the Russian Federation, SBV Deputy Governor Nguyen Thi Hong shared the main results of the 16th Meeting of the Vietnam-Rusia Inter-Bank Cooperation Working Group, which emphasized the two countries' unanimous determination to implement measures to promote cooperation between the two sides in the banking sector in general and the banking payments in particular. The main measures include the banks’ enhanced efforts of information and communication to the businesses and customers of both countries on the benefits of payments in the local currencies in particular and payments via banks in general; actively exchange information and establish business relationships, and continue to deploy banking products and services for the local currency payments. Regarding the two central banks, the SBV and the Central Bank of the Russian Federation will continue to carry out the tasks related to the trading of VND/RUB on the Moscow Exchange (MOEX), in order to provide liquidity support for local currency payment operations.
Overview of the meeting
The Governor of the Central Bank of the Russian Federation appreciated the results of the Working Group and commended the Working Group for having held for the first time a Dialogue with the representatives of the banks and enterprises of the two countries. Governor Elvira Nabiullina said that this will help all stakeholders to understand the advantages, difficulties and obstacles in the bilateral payments between Vietnam and Russia and to come up with appropriate solutions.
Regarding the results of the macroeconomic and monetary policy management, SBV Deputy Governor Nguyen Thi Hong congratulated the Central Bank of the Russian Federation, under the leadership of Governor Elvira Nabiullina, for having achieved significant results in managing the monetary policy and stabilizing the macro economy, curbing inflation and contributing to the positive results of economic development of the Russian Federation, especially in the context that the economy is still facing many disadvantages.
The Central Bank of the Russian Federation's Governor was impressed by the results of the economic growth, the macroeconomic stability, the inflation control and the banking sector reform of Vietnam in general and the SBV in particular; Governor Elvira Nabiullina emphasized that with the speed and growth potentials of Vietnam's economy and the strong international integration of the country, the banking cooperation between Vietnam and Russia has many opportunities to develop. Both sides shared the same view that in order to sustainably develop the economy, the central bank should perform two main tasks: to ensure inflation control, and to facilitate healthy development of the banking-financial system.
At the end of the meeting, the two sides agreed to continue the implementation of the agreed contents at the 16th Meeting of the Working Group, in order to further strengthen the cooperation between the two central banks as well as the banking systems of the two countries.
Working sessions with the leaders of the IIB and the IBEC
At the meetings with the IIB and the IBEC leaders, of which Vietnam is a member, SBV Deputy Governor Nguyen Thi Hong commended the performance results of the two banks, especially the strong reform efforts of both the IIB and the IBEC. In particular, the Deputy Governor congratulated the IIB for having successfully accomplished the IIB’s Development Strategy for the period 2013-2017, which made a comprehensive reform in the IIB’s operations in order to transform the IIB into an international development bank in line with the international standards and practices, and to better implement the role of economic development support toward the member countries. With the Protocol on the amendments of the IIB’s Establishment Agreement and Charter officially coming into force from August 18th, 2018, in the coming time, the IIB will enter into a new stage of development with important reforms in the management, the operations and the decision-making mechanism; as a responsible member country, Vietnam will continue to actively participate in this process.
SBV Deputy Governor meets delegations from the IIB and the IBEC
Regarding the reform and development strategy of the IBEC in the next phase, Deputy Governor Nguyen Thi Hong said that the SBV always closely monitors and supports the reform orientations in order for the IBEC to become a modern international financial institution and to play an important role in supporting the economic cooperation among the member countries, through the effective implementation of its funding and banking payment functions.
The IIB and the IBEC leaders expressed their deep gratitudes to the Government of Vietnam, represented by the State Bank of Vietnam (SBV), who are always active shareholders and have an important voice in the policy making and decision making processes of the two banks. On the cooperation between Vietnam and the IIB/IBEC, the parties reviewed and jointly assessed the situation of negotiation and implementation of projects funded by the two banks in Vietnam. Currently, as international banks supporting the economic development of the member countries, both of the IIB and the IBEC are providing two-step loans for some Vietnamese credit institutions to support the development of small and medium enterprises (SMEs). The IIB and the IBEC are also negotiating with Vietnam to provide some commercial fundings to Vietnamese credit institutions to boost the trade between Vietnam and the member countries of the two banks.
At the end of the meetings, the IIB and IBEC leaders expressed their hopes that Vietnam would support the reforms and development initiatives of the two banks in the coming time, and pledged to continue to carry out effectively the role of supporting the economic development of Vietnam, as well as other member countries of the two banks.
VA