On January 14, 2025, in Hanoi, the State Bank of Vietnam (SBV) and the Bank of Korea (BOK) organized a Dialogue within the framework of the Bank of Korea - Knowledge Partnership Program (BOK-KPP) in 2024, with the theme of Solutions to strengthen asset management capacity and diversify investment from the state foreign exchange reserves at the SBV. This was an important event for the SBV to promote the technical cooperation and experience sharing with the BOK, and develop solutions to enhance the efficiency of the state administration of foreign exchange investment in Vietnam.
An overview of the Dialogue
Delivering his opening speech, Mr. Jin Ho Hur, Former Deputy Governor of the BOK, Senior Program Advisor, spoke highly of the SBV’s intention to improve the foreign exchange reserve management capacity in order to develop a strong monetary and financial system, thereby contributing to ensure the macroeconomic stability and enhance the resilience to fluctuations in the international financial markets. This is one of the important objectives for Vietnam to maintain the long-term economic growth momentum.
At the Dialogue, both sides reviewed the reports and discussed in-depth about possible solutions to strengthen the asset management capacity and diversify the state foreign exchange reserve investment. According to the Korean professors, improving the state administration of foreign exchange reserve not only helps ensure the macroeconomic stability but also enhances the resilience to fluctuations in the international financial markets. Therefore, Vietnam needs to consider this a key objective to maintain the long-term economic growth momentum. Therefore, the Korean professors proposed a series of relevant solutions for the SBV’s consideration in the development processes of policies and regulations in the coming time.
Also on this occasion, the BOK’s delegation had a meeting with SBV Deputy Governor Pham Thanh Ha to report on the results of the BOK-KPP in 2024 and the proposed solutions to strengthen the asset management capacity and diversify the foreign exchange reserve investment at the SBV.
Deputy Governor Pham Thanh Ha speaks at the meeting
At the meeting, the SBV Deputy Governor expressed his high appreciation for the effective support of the BOK during the past 9 years’ joint implementation of the BOK-KPP. Deputy Governor Pham Thanh Ha also shared that although the SBV is currently in the process of restructuring its organization to strengthen the working efficiency as directed by the Party and the Government, including changes in the organizational structure of the SBV Reserve Management Department, the recommendations of the Korean side are still very useful for the SBV to consider and apply in the Vietnamese conditions.
Mr. Jin Ho Hur, Senior Advisor of the BOK-KPP
Deputy Governor Ha also expressed his agreement with the proposals of the BOK on further expanding the cooperative activities between the two central banks in the coming time, along with the BOK - KPP,…. He requested the relevant entities under the SBV to continue with the specific exchanges at the technical level to develop an effective cooperation program.
HY