Annual Bilateral Meeting between State Bank of Vietnam and National Bank of Cambodia

Also attending the meeting on the Vietnamese side, there was SBV Deputy Governor Nguyen Kim Anh along with leaders of the Monetary Policy Department, the Payment Department, the International Cooperation Department, the Communication Department, the Organization and Personnel Department, the Foreign Exchange Management Department, the SBV Office and the Banking Supervision Agency. On the NBC’s side, there was Deputy Governor Neav Chanthana, Deputy Governor Sum Sannisith and leaders of the Cash General, the Secretariat General, the Directorate General of Central Banking, the Directorate General of Banking Supervision, and the Inspection General.

In her opening remarks, SBV Governor Nguyen Thi Hong warmly welcomed Governor Chea Chanto, Deputy Governors Neay Chanthana and Sum Sannisith, and all NBC officials to attend the 2020 Annual Bilateral Meeting between the SBV and the NBC. She also expressed her pleasure with the fact that the SBV and the NBC have been assisting and supporting each other on many aspects and at many international and regional forums.

From Phnom Penh, Cambodia, NBC Governor Chea Chanto congratulated Madam Nguyen Thi Hong on her appointment as the first female Governor of the State Bank of Vietnam. Governor Chea Chanto expressed his confidence that under the leadership of Governor Nguyen Thi Hong, the traditionally friendly and cooperative relationship between the two central banks would be further maintained and strengthened on the basis of the existing close ties between the two countries.

At the Meeting, leaders of the functional units of the two central banks discussed about topics related to the macroeconomic developments/monetary policy management, digital transformation, non-cash payments and recent developments in the banking sector. The presentations from both sides showed a fairly comprehensive picture of the macroeconomic situation, the policy operations, and the latest developments in the banking sectors in Vietnam and Cambodia.

Overview of the meeting from Phnom Penh

After the presentations from both sides, Governor Nguyen Thi Hong added further that in 2020, the COVID-19 pandemic has brought unprecedented challenges to the world and the regional economy, as well as to the banking sectors of both Vietnam and Cambodia. Right after the wake of COVID-19 in Vietnam, the disease prevention and control had involved the whole political system as well as all industries, economic sectors and citizens in a robust and whole-hearted manner.The SBV had immediately launched support packages such as debt restructuring and large-scale preferential credit programs, assisting those businesses accessing bank loans to reduce the burden of debts in the stage of production stagnation and reduced revenues, thereby reducing the risks of default and mass bankruptcy. It has been recognized by several domestic and international banking experts and organizations that the policies implemented by the SBV were "appropriate" and "effective", ensuring the timeliness, flexibility and efficiency in policy operations.

In Cambodia’s case, Governor Chea Chanto also informed that with the flexible policy management of the Royal Government of Cambodia and the NBC, despite having been heavily affected by the pandemic, Cambodia's economy has still proven its resilience in 2020. On this occasion, NBC Governor Chea Chanto also expressed high evaluation for the Vietnamese commercial banks operating in Cambodia for their contributions to the development of the Cambodian economy, especially in the context of the COVID-19 pandemic.

SBV Governor Nguyen Thi Hong speaks at the Meeting

With regard to the bilateral banking cooperation, SBV Governor Nguyen Thi Hong spoke highly of the support and facilitation of Governor Chea Chanto, the Executive Board of Directors and the relevant entities of the NBC extended to the Vietnamese commercial banks present in Cambodia in the recent years. Their support has helped those banks to perform successfully while complying fully with the Cambodian laws, making a positive contribution to the economic development and especially to the tightening of the friendship and comprehensive cooperation between Vietnam and Cambodia.

Particularly, on behalf of the SBV and the Liaison Team of the former Vietnamese banking specialists assisting the National Bank of Cambodia (Liaison Team K), Governor Nguyen Thi Hong thanked the Royal Government of Cambodia as well as the NBC and Governor Chea Chanto personally for their support to the awarding of the Royal Order of Sahametrei and the Certificates of Appreciation to the former Vietnamese banking specialists who were assigned to Cambodia to assist the reconstruction of the banking sector during the time between 1979-1989. This was a great spiritual encouragement for those who, despite many difficulties, put their hearts and minds on laying the foundation for the development of the banking sector in Cambodia, which was also the foundation for the amicable relationship and cooperation between the NBC and the SBV.

SBV participants at the Meeting from Hanoi

NBC participants at the Meeting from Phnom Penh

In their concluding remarks, the two Governors shared the same view that the two sides had had a brief but fruitful Meeting. The two Governors agreed that the substances discussed at the Meeting would be a useful contribution to the implementation of the professional tasks of both parties, and to the further tightening of the special friendship between the SBV and the NBC. The two Governors emphasized that the annual bilateral meeting has become a fine tradition of cooperation between the two central banks as well as the banking sectors of the two countries, and requested that the relevant units of the two central banks continue this tradition, coordinate closely with each other to bring about substantive and effective cooperation results, and make the bilateral cooperative activities become more practical and effectively.

VA