At the headquarter of the State Bank of Vietnam (SBV), on March 05th, 2018, Deputy Governor Nguyen Thi Hong had a working session with The Parliamentary Network on the World Bank & International Monetary Fund (the Parliamentary Network) during the delegation's mission under the “Parliamentarians in the Field” Programme in Vietnam from March 05-08, 2018.
Attending the meeting, Deputy Governor Nguyen Thi Hong led SBV delegation including leaders of International Cooperation Department, Monetary Policy Department, Monetary Forecasting and Statistics Department, Banking Supervision Agency, Banking Strategy Institute. The Parliamentary Network delegation is led by Mrs. Olfa Soukri Cherif, Vice Chair of the Parliamentary Network, together with approximately 30 senior representatives from member countries.
Speaking at the meeting, Mrs. Olfa Soukri Cherif, Vice Chair of the Parliamentary Network informed SBV Deputy Governor basic information regarding the “Parliamentarians in the Field” Programme and the delegation’s missions in Vietnam. “During the Parliamentary Field Visit to Vietnam, the Delegation will have time to meet with the leaders of the National Assembly of Vietnam, to work with relevant Government ministries, the World Bank and the IMF offices in Vietnam; Especially, the Delegation will visit the WB's project site; and meet the private sector" said the Vice Chair of the Parliamentary Network.
Mrs. Olfa Soukri Cherif, Vice Chair of the Parliamentary Network speaks the working session
On behalf of the SBV Board of Management, Deputy Governor Nguyen Thi Hong welcomed Mrs. Olfa Soukri Cherif and the Parliamentary Network delegations on WB and IMF to visit and work in Vietnam. At the meeting, Deputy Governor Nguyen Thi Hong shared some information regarding the achievements of the Vietnam’s banking sector in recent years as a direct contribution to controlling inflation, supporting high growth rate of 6.81%, creating great balance for fiscal policy and other macro policies, greatly improving the business environment of Vietnam.
SBV Deputy Governor Nguyen Thi Hong chaired the working session
Deputy Governor Nguyen Thi Hong stressed the success of the SBV's management thanks for close coordination with other ministries through the drastic direction of the Government to conduct monetary policy in harmony with fiscal policy and other macro policies. Many reputable international organizations have evaluated very positively regarding the performance of the banking system in Vietnam, for example: The World Bank raised its "Access to Credit" index up to three levels and ranked fourth in ASEAN; Moody's raised the outlook for Vietnam's banking system from "stable" to "positive"; and Bloomberg commented that VND is one of the most stable currencies in Asia...
On the other hand, SBV Deputy Governor also mentioned to some difficulties and challenges that Vietnam has been facing, such as effects from potential global imbalances, including the trend of global integration, trade liberalization, tightening global financial conditions, inflation, the slowdown of some economies and the potential risk of investors withdrawing from the region…
Regarding the tasks of 2018, on the basis of the guidelines of the National Assembly, the direction of the Government and the assessments on macroeconomic, in 2018, the SBV will continue to operate actively and flexibly monetary policy in close coordination with fiscal and other macroeconomic policies to ensure macroeconomic stability and control inflation, support economic growth at a reasonable level.
Delegates of the Parliamentary Network discussed during the working session
At the meeting, many questions have been raised by senior representatives of the Parliamentary Network for SBV Deputy Governor Nguyen Thi Hong to discuss (i) the main functions and tasks of the SBV to ensure macroeconomic stability and the management of the banking system; (ii) some outstanding results in the above-mentioned areas and lessons learned for other countries; (iii) difficulties, challenges and orientations, solutions in the coming time; and (iv) evaluating the results of cooperation with the WB and the IMF in recent years, some major orientations in the future, thereby helping the Parliamentary Network learn about Vietnam's development strategy; enhancing the understanding between representatives of The Parliamentary Network about WB and IMF activities in Vietnam; and sharing experiences between parliamentarians / parliamentarians at home and abroad about their development plans and solutions.
Deputy Governor Nguyen Thi Hong shared that Viet Nam appreciated the WB had formulated a mechanism to support the graduation transition appropriate after Vietnam officially graduated from IDA in July 2017, and delaying 'quick repayment' helps Vietnam graduated smoothly and sustained the socio-economic obtained achievements. At the same time, the WB has been very active in assisting Vietnam in the process of finding additional resources, mechanisms, financial products, new capital, especially private funds, without Government guarantees.
In particular, for the development of the banking sector, the SBV Board of Management highly appreciated WB and IMF support in regularly providing training, technical assistance, policy consultancy, strengthening the capability of central bank staff in many areas, especially monetary policy, statistical forecasting, banking inspection and supervision…
Overview of the working session
Deputy Governor Nguyen Thi Hong hoped that the Parliamentary Network will share with the SBV the experiences of its member countries and other countries in the world with similar conditions to Vietnam in order to support the continued economic stability, development of a healthy and efficient banking system. The Parliamentary Network has a strong voice in supporting the Vietnam in the international community, especially when Vietnam has just graduated from IDA, helping Vietnam: (i) to postpone the full repayment of IDA 18 in order to reduce the burden on the budget, to facilitate the graduation process of Vietnam; (ii) create conditions for Vietnam to access and mobilize the necessary resources, especially for private / non-government guaranteed funding to implement economic reforms, banking sector reforms, to sustain macroeconomic stability and the achievements of economic development. Deputy Governor Nguyen Thi Hong also expressed her hope that the Parliamentary Network will assist Vietnam in nominating its members to join the Network to enhance knowledge, share knowledge and experience in the fields of mutual interest.
VA