The 6th bilateral conference between the State Bank of Vietnam (SBV) and the Bank of Lao People's Democratic Republic (BOL) was opened under the chairmanship of the Governors of the SBV and the BOL in Luang Prabang, Laos on February 15, 2017.
The meeting was attended by the SBV Deputy Governor Dao Minh Tu, representatives from SBV entities including International Cooperation Department, Banking Agency of Inspection and Supervision, Governor Office, Foreign Exchange Department, Personnel Department, Monetary Policy Department, Issue and Vault Department, Communication Department, Consulate General of Vietnam in Luang Prabang, Laos; representative of BOL Management Board, Directors of BOL entities…
Delivering the opening speech, the BOL Governor Somphao Phaysith warmly welcomed the SBV Delegation’s working visit to Laos led by Governor Le Minh Hung, expressing his belief that the bilateral conference between the two central banks will be successful and gain much expected achievements.
The SBV Governor Le Minh Hung expressed his honor to co-chair the bilateral conference between the two central banks for the first time since he was appointed to be SBV Governor. Governor Le Minh Hung asserted that the annual bilateral conference has become a good tradition of cooperation between the two central banks as well as the two countries, and himself was honored to continue to consolidate the relationship. Governor Le Minh Hung believed the conference would continue to increase the acknowledgment to each other and boost the cooperative relation, taking cooperation substances and activities between the two sides to come into reality.
The overview of the bilateral conference.
At the conference, the two Governors discussed on macro movements, the implementation of monetary policies, and banking inspection and supervision of each country.
The SBV Governor Le Minh Hung congratulated the Government and the people of Laos on their outstanding performance in social-economic development in the context of the regional and international economy still facing several challenges. Especially, Governor Le Minh Hung highly appreciated the Plan of Green Economy Development conducted by Laos Government to ensure the sustainable growth. He said that Green and sustainable growth is also one of the main objectives pursued by the Government of Vietnam. The Government of Vietnam has issued and implemented the Strategy of Green Growth in the period of 2014 – 2020 with the particular actions over entire sectors.
The overview of the bilateral conference.
Governor Le Minh Hung briefed the results on economic development, macro operation and banking-sector management of Vietnam over the past time. Accordingly, in 2016, the economic growth of Vietnam reached 6.21%, while the inflation was curbed at 4.74%, effectively meeting the target of inflation control below 5% set out by the National Assemble.
In the banking industry, the SBV and the banking sector have obtained numerous highlighted achievements recognized by the Government as vital contributions to the progress of stabilizing macro-economy, controlling inflation, supporting growth, removing difficulties, and supporting positively for people and enterprises. The implementation of the Plan of the Credit Institution Restructure and NPLs Tackling has achieved positive results and would continue being the key task in the upcoming time accompanying by carrying out the practical and breakthrough solutions applied to the weak credit institutions.
Affirming that the domestic and international economy still have to cope with many challenges, Governor Le Minh Hung stated that, the National Assemble and the Governor of Vietnam has determined to conduct such important targets to develop the economy as to restructure the economy in conjunction with reforming the growth-model; to improve productivity, quality, efficiency and competition; to encourage start–ups and enterprise development, to enhance sustainable growth; to strengthen economic autonomy.
In order to successfully achieve objectives, Governor Le Minh Hung asserted that the SBV would continue the proactive, flexible towards market-oriented monetary policies in a prudent manner, keep cooperating tightly and efficiently with the fiscal policies to ensure macro stability, inflation control thereby supporting economic growth target, stabilizing Vietnam Dong’s value, foreign currency market, and increasing foreign exchange reserve; to manage reasonable credit growth, focus the credit flow in priority fields and sectors in accompany by enhancing credit quality and structure; To remove difficulties and accomplish the legal framework and regulations to support efficiently the progress of NPLs solving and credit institution restructuring; To concentrate on implementing drastically the Scheme of Credit Institution Restructuring and NPLs Solving in the period of 2016 – 2020; To improve effectively the tasks of inspection and supervision on banking system and strengthen the early-warning capacity to the systematically potential risks; To push ahead the communication task to build-up and consolidate the public trust to the banking system.
Assessing on the two sides cooperation, the two Governors acknowledged that the relation between the two central banks and banking systems has increasingly developed and achieved a wide range of particular results including the Program of culture and sport exchange in 2016 in Laos. The two Governors affirmed this activity should be continued to implement practically and effectively.
Discussing on the ongoing cooperation orientation, the two Governors asserted that the two central banks would continue accelerating the Cooperation Agreement on cross-border payment, banking supervision and inspection, and anti-monetary laundry. From 2017, the SBV committed to annually offer 10 master scholarships and 5 PhD scholarships for the BOL.
At the meeting, the SBV Governor Le Minh Hung and Deputy Governor Dao Minh Tu answered several questions from the BOL on legal framework of foreign exchange management, the central rate operation, the measures for the currency counterfeiting prevention…; Concurrently, the Governor Le Minh Hung assigned Deputy Governor Dao Minh Tu to be responsible for organizing the Program of technical assistance, and culture and sport exchange with the presence of SBV Governor Le Minh Hung and BOL Governor Somphao Phaysith that will be held in Vietnam in 2017.
Making the closing speech, the two Governors spoke highly the concise and efficient conference, concurrently expressed their belief that the substances discussed in the conference will greatly contribute to successful implementation of the two-side tasks thereby enhancing the special relation between the SBV and the BOL. The two Governors suggested the relevant agencies of the two central banks to continue the tradition to cooperate more closely to carry out the cooperative contents.
On this occasion, the BOL Governor Somphao Phaysith and SBV Governor Le Minh Hung signed the Memorandum of mutual cooperation between the two central banks.
The Ceremony of signing the Memorandum of mutual cooperation between the BOL and the SBV.
* In the same day, after the bilateral conference, the two Governors chaired a meeting with the commercial banks of Vietnam having presence in Laos (including Vietcombank, Vietinbank, BIDV, Agribank, MB, Sacombank).
At the meeting, representatives of commercial banks of Vietnam briefed the operation results over the past time and made several recommendation and proposal to the two Governors.
The BOL Governor Somphao Phaysith highly appreciated the activities of commercial banks of Vietnam in Laos over the past time, thereby contributing to the cause of developing society-economy of Laos. Concurrently, Governor Somphao Phaysith made responses for the proposals on the basis of facilitating the commercial banks of Vietnam to work effectively in Laos. Especially, as for the proposal of opening the branch of Vietcombank in Laos, Governor Somphao Phaysith approved and committed to create the favorable condition for VCB to present and operate in Laos, thereby promoting the trade and investment relationship between the two countries.
The SBV Governor Le Minh Hung affirmed, the commercial banks of Vietnam committed for long-term investment, complying with laws for the sustainable development of the two countries as well as the two banking systems. He highly appreciated the efforts of each bank and the valuable support from Government and Bank of Laos for the commercial banks of Vietnam to obtain such positive results.
On behalf of the SBV Management Board, the Governor Le Minh Hung expressed his gratitude and hoped that the Government of Laos and the BOL continue facilitating commercial banks of Vietnam in Laos and consolidating the potential investment cooperation of the two sides.
* Within the framework of the working visit, Governor Le Minh Hung and SBV Delegation had a meeting with the Luangprabang branch of Lao Viet Joint Venture Bank.
Thoa Le