SBV Governor Le Minh Hung meets Chief Economist of World Bank Group

Also attending the meeting were leaders of the International Cooperation Department, the Monetary Policy Department, the Foreign Exchange Management Department and the SBV Office; on the WB’s side there were Mr. Ousmane Dione - Country Director of the WB in Vietnam, along with the experts, economists and officers of the WB Office in Vietnam.

In his welcome to Mrs. Pinelopi Koujianou Goldberg for her first working visit to Vietnam as Chief Economist of the WB, Governor Le Minh Hung wished her a successful trip, thereby helping to strengthen the long-term relationship between the WB and the Government of Vietnam, as well as between the WB and the SBV. During her time in Vietnam, Mrs. Pinelopi Koujianou Goldberg and the WB mission had previously met and worked with several Ministries and agencies of Vietnam, and also attended the Vietnam Reform and Development Forum (VRDF) on September 19, 2019 in Hanoi.

The SBV Governor spoke highly of the effective and practical cooperation between Vietnam and the WB in general and between the SBV and the WB in particular. According to the SBV Governor, the WB has always been a very important partner, which has made lots of practical contributions to support the Government of Vietnam (GoV) in improving the policy framework for development. The WB has a lot of lessons learnt from other countries that have been successful as well as those that have not been successful, and these are extremely valuable lessons for Vietnam in its own policy making.

SBV Governor Le Minh Hung speaks at the meeting

Vietnam is in the process of seeking comments to finalise the socio-economic development strategy for the next 10 years. In particular, Vietnam will have to resolve the issues and challenges to ensure a stronger development motivation. “Vietnamese banking system are having positive growth today, thanks to very important contributions and support from the WB. Currently, we are still receiving the support from the WB through various programs. On this trip to Vietnam, we hope that you will have more updated information about Vietnam, through which the WB can provide more advice, assistance and support to Vietnam”, the SBV Governor emphasized.

Discussing at the meeting, Governor Le Minh Hung shared that Vietnam's institutional framework will be one of the priorities that need to be focused in the Socio-Economic Development Strategy in the coming time, in order to promulgate appropriate, transparent mechanisms and policies to support the development. In addition, efforts need to be made to promote the private sector and develop the human resources more strongly. According to the SBV Governor, working with partners such as the WB is one of the top priorities of the Government as well as the Ministries and agencies in the development implementation process.

Expressing her sincere thanks to Governor Le Minh Hung for his time to meet the WB Mission, Mrs. Pinelopi Koujianou Goldberg affirmed that the WB always attaches high importance to the relationship with the SBV and is always ready to provide financial and technical assistance to support the Government of Vietnam and the SBV in making important decisions. The WB Chief Economist also said that countries can participate in global value chains in many different ways. And Vietnam is participating in the global value chain both in the front and the back stages, but currently only at a limited level. According to Mrs. Pinelopi Koujianou Goldberg, Vietnam, like many other developing countries, is facing the risk of the middle income trap. “The WB with its experience will support and assist Vietnam. However, Vietnam must be the one which should best understand the difficulties and challenges it is facing; what the WB can provide is only the international experience and lessons based on which both the WB and Vietnam will be able to come up with the most appropriate and suitable solutions,” said the WB Chief Economist.

Mrs. Pinelopi Koujianou Goldberg – the WB Chief Economist speaks at the meeting

Mrs. Pinelopi Koujianou Goldberg also noted that, in the process of approaching the global value chain in order to increase productivity, Vietnam should give priority to increasing the proportion of the domestic value. Because in order to move to advanced industrial production and services in the global value chain, the level of openness of the economy and the workers’ skills will be decisive factors. In addition, the deep integration in the trade agreements will increase the global value chain growth. Along with the provision of financial resources, the WB will provide technical assistance to strengthen the institutional capacity and improve the policies for Vietnam in the key sectors of the economy. "In particular, the WB will also continue to advise Vietnam in maintaining the macro stability, contributing to promoting growth," said Mrs. Pinelopi Koujianou Goldberg.

Infrastructure is also a challenge for Vietnam in the coming development period. Therefore, according to Governor Le Minh Hung, it is necessary to pay special attention to the utilization of the WB’s funds, which is an important source of capital when it is not easy for Vietnam to have quick access to finance from the international market due to cost issues. In particular, the SBV Governor hoped that the WB would contribute to the development of the infrastructure but still have a balance in the cause of environmental protection in Vietnam.

Governor Le Minh Hung once again thanked the WB for having supported the SBV in the past time, and hoped the WB to mobilize more grants, provide more technical support along with the loans in order to increase the preferential element, reduce the cost of borrowing for the WB’s loans; strengthen the coordination with other resource providers in the World Bank Group (IBRD, MIGA, IFC, ...); continue to introduce new financial products which are suitable to the circumstances, conditions and priorities of Vietnam, such as lending products without government guarantee, lendings to the private sector, small and medium enterprises,...

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