On October 18, 2018 in Hanoi, the State Bank of Vietnam (SBV) organized a video conference reviewing the Public Administrative Reform (PAR), and the continued efforts in promoting the implementation of Resolutions No.19 and No.35 of the Government on improving the business environment, enhancing the national competitiveness and supporting business development of the banking sector. SBV Deputy Governor Dao Minh Tu – Head of the Administration of the Central Bank Agency, a member of the Government’s PAR Steering Committee, chaired the conference.
Also attending the Conference were Mr. Do Quy Tien - Deputy Director General of the Public Administration Reform Department of the Ministry of Home Affairs; Mr. Nguyen Dac Hoan – Deputy Head of the Administrative Procedure Control Department of the Government’s Office. On the banking sector side, there were leaders of the SBV departments and units; 63 points of connection from the SBV branches in the cities and provinces; and representatives of the National Payment Corporation of Vietnam (NAPAS) and the credit institutions (CIs).
In order to achieve the goal of developing a facilitating Government of development and action, for the service of the people and businesses, over the past years, the Governor and the SBV Board of Management have directed and drastically implemented PAR tasks with the focus on implementing the PAR Plan, strengthening the administrative disciplines and administration.
SBV Deputy Governor Dao Minh Tu delivers the opening remarks
In his opening remarks at the Conference, SBV Deputy Governor Dao Minh Tu emphasized that: “The most important objective of the SBV's PAR is to contribute positively to improving the business environment in the monetary and banking sector; contribute significantly to improving the business environment in general, supporting and promoting the development of enterprises and the people in accessing capital and banking services.”
According to the Action Plan 1355 of the banking sector on improving the business environment and supporting the business development in 2016-2017, with orientations to 2020, one of the set-out tasks, which can ensure the synchronicity and relativeness between the tasks and solutions of the SBV and those of the CIs, is: the SBV shall step up the administrative reform, cut down on business conditions to support the CIs; while the CI system shall directly support the enterprises by speeding up the simplification of loan procedures, cutting down the interest rates and the service fees.
Thanks to those efforts of the banking sector, Vietnam's Access to Credit Index in the recent years has been positively evaluated, currently ranks 29 over 190 countries and territories. In the PAR Index rankings, out of the 19 ministries and ministry-level agencies, the SBV has successfully ranked first for three consecutive years (2015, 2016, 2017).
"However, the SBV also acknowledges that those results of the banking sector are only preliminary results," said Deputy Governor Dao Minh Tu said. “Although the reduction of business registration procedures has achieved some results, we still have a lot of work to do to remove the information-processing obstacles in the relationship between the banking system and the corporate system. Many enterprises still face difficulties in accessing capital for production and business."
Deputy Governor Dao Minh Tu requested that in the coming time, the commercial banks must improve their financial capabilities and transparency, focusing on increasing the capital and improving the quality of the equity; be proactive in implementing synchronously and drastically the measures to control credit quality, reduce bad debts, and improve asset quality.
The commercial banks need to greatly transform their business model and idversifying their non-credit banking products; enhance their expertise and professionalism in providing e-banking services; prioritize credits for important and key economic fields and sectors, thus contributing to boosting the economic restructuring.
"The commercial banks need to improve and apply a risk management system in line with Basel II principles, standards and application roadmap in Vietnam; complete and implement the management standards in line with the international practices; develop the human capital in banking management and operations with high professional qualifications, a serious conscience of law observance, professional ethics and responsibility," SBV Deputy Governoro Minh Tu affirmed.
VA