SBV holds Year-end Meeting with international financial/monetary organizations and foreign credit institutions

The meeting was attended by members of the SBV Management Board, leaders of SBV departments and entities, representatives of international financial institutions including the World Bank (WB), the International Monetary Fund (IMF), the Asian Development Bank (ADB), Japan International Cooperation Agency (JICA), foreign credit institutions in Vietnam and other foreign experts.

Addressing the Year-end Meeting, Governor of the State Bank of Vietnam Le Minh Hung extended greetings for Christmas and best wishes for the New Year 2018 to the representatives of international financial/monetrary organizations, foreign banks in Vietnam. On behalf of the SBV Management Board, the SBV Governor highly appreciated the valuable support from international financial/monetary organizations like the WB, the IMF, the ADB, bilateral and multilateral donors, and foreign credit institutions for the Government of Vietnam (GoV) in general and the SBV in particular.

Also speaking at the meeting of representatives of foreign organizations, SBV Deputy Governor Dao Minh Tu noted that the achievements in the past years would not be possible without great efforts of all, which includes the great contributions by international financial/monetary organizations and foreign credit institutions. The Deputy Governor affirmed that what has been achieved in 2017 will lay a firm foundation for Vietnam to enter a new stage of development.

The Deputy Governor also said: “2017 is the first year after many years that the GoV have achieved all of the 13 socio-economic development targets. Specifically, the GDP growth has reached 6.7%. In the banking sector, the monetary policy has been conducted in close conjunction with the fiscal and other macro-economic policies pursuing the target of controlling inflation at below 4%. The interest rates are basically stable and tending to decline, which making more favorable conditions for the economy. Credit growth has been reasonable at 18% with a focus on production and business. The exchange rate is stable and managed with flexibility in line with market developments. Liquidity in the banking sector remains strong. Foreign reserve in 2017 hits the record of USD 46 billion.”

SBV Deputy Director Dao Minh Tu speaks at the meeting

However, to stay on track, the SBV acknowledges that a lot of things will need to be done to design a banking sector which is more competitive, inclusive, transparent and sustainable. 2018 will be an important year for the banking sector when teh SBV puts into practice the regulations addressing non-performing loans (NPLs) and the restructuring of banks. The effective enforcement of the new Laws and regulations will create a synchronous, effective and feasible mechanism for fast and definitive handling of NPLs as well as unlock capital sources for the national economic development. 

“In 2018, we pursue to manage the monetary policy in an active and prudent manner to support liquidity for the banking system as well as to ensure stability of the whole financial market” – SBV Deputy Governor Dao Minh Tu emphasized.

Also in the year 2017, Vietnam has been able to maintain good relationships with international financial/monetary institutions and foreign banks. The State Bank of Vietnam has successfully organized various official visits in Vietnam by senior leaders from the IMF, the WB, the ADB and leaders from several countries’ central banks. In addition, frequent policy dialogues with international organizations and partners have provided the SBV with the opportunities to exchange experiences and receive policy recommendations; hence improving macroeconomic management of monetary and banking activities.

Mr. Ousmane Dione – World Bank Country Director for Vietnam speaks at the meeting

At the meeting, Mr. Ousmane Dione - World Bank Country Director for Vietnam congratulated Vietnam on the achievements in the field of socio-economic development. In particular, the WB Country Director congratulated the SBV for, inter alia, the approval of the Law Amending and Supplementing a number of Articles of the Law on Credit Institutions, and Resolution 42 of the Government on the handling of Non-Performing Loans.

Representatives of international financial/monetary organizations and foreign credit institutions highly appreciated Vietnam’s achievements in maintaining macroeconomic stability, especially in managing the monetary policy and the restructuring of the banking system in recent years. At the same time, they expect the State Bank of Vietnam will continue to conduct the monetary policy more actively and flexibly in the coming time in order to respond to the unpredictable changes in the world today, as well as to contribute to the growth of Vietnam in a faster and more sustainable way.

Mr. Nirukt Sapru - Representative of the Banking Working Group (BWG) speaks at the meeting

Mr. Yasuo Fujita - Chief Representative, JICA Vietnam Office speaks at the meeting

The organizations’ representatives also pledged to continue to support and assist Vietnam in efforts to build a sound and sustainable banking and finance system, considering this as one of the foundations to help Vietnam achieve its goal of becoming a modern industrialized country in the future.

SBV holds Year-end Meeting with international financial/monetary organizations and foreign credit institutions

SBV Governor Le Minh Hung stressed that 2018 will be a year of many challenges and difficulties. However, the Governor believed that with the common efforts of all parties, including the contributions and cooperation of international financial/monetary organizations and foreign banks, Vietnam will overcome all difficulties and achieve the goals set by the National Assembly and the Government.

At the same time, the Governor expressed his wish that the SBV's relations with international financial/monetary organizations will become more and more strengthened, and the operations of foreign banks in Vietnam in the New Year 2018 will be further developed.

VA - DK