On March 11, 2019, at the headquarters of the State Bank of Vietnam (SBV), Deputy Governor Nguyen Thi Hong had a meeting with Ms. Ingrid Van Wees, Vice President for Finance and Risk Management of the Asian Development Bank (ADB).
Also attending the meeting, on the SBV’s side, there were representatives from the Monetary Policy Department, the Monetary and Financial Stabilization Department, the Central Banking Department, the Foreign Exchange Management Department, the Monetary Forecasting and Statistics Department and the Banking Supervision Agency. On the ADB’s side, there were Mr.Eric Sidgwick, ADB Country Director for Vietnam, and specialists of ADB Office for Risk Management.
At the meeting, Ms. Ingrid Van Wees, ADB Vice President for Finance and Risk Management, thanked Deputy Governor Nguyen Thi Hong for taking the time to welcome the delegation. The ADB Vice President highly appreciated the SBV, as the representative of Vietnam at the ADB, for performing its role as the focal point, actively coordinating with the relevant agencies in the country to participate in the formulation, research and provision of comments on the ADB’s Strategy 2030, which was approved at the end of 2018.
The ADB Vice President expressed her belief that, in the ADB's Strategy 2030, there will be reviews and adjustments, in which the ADB’s Board of Directors may allow certain flexibility for the ADF graduates and the fast repayment policy for some countries upon graduating from the ADF in order to support those countries to have a most suitable roadmap for their graduation. For the private sector funding, she emphasized that the ADB wishes to expand its operations in the private sector in Vietnam, not only in traditional areas such as infrastructure and financial development…but also expand and increase financing for non-traditional sectors, non-infrastructure projects such as in agriculture, education, etc. She asserted that the ADB will continue to exchange information with the management authorities in Vietnam to develop the Strategy to ensure effectiveness and efficiency.
For her part, Deputy Governor Nguyen Thi Hong updated the ADB Vice President on the results and the SBV’s views on the restructuring of the banking sector, NPL resolution and potentially systematic risks. She added that the SBV’s objectives and orientations in the coming time are to control and improve credit quality in coordination with the enhancement of NPL resolution in line with the market principles; improve the legal framework; promote the role of Vietnam Asset Management Company (VAMC) in resolving bad debts in order to maintain the NPL ratio at a safe level. On behalf of the SBV’s Board of Management, the Deputy Governor also thanked Ms. Ingrid Van Wees for her contributions and expressed her hope that Ms. Ingrid Van Wees would continue to support Vietnam in general and the SBV in particular.
Le Hang