On May 19, 2020, at the headquarters of the Government, the Government’s Steering Committee for Administrative Reform organized an online conference to announce the Public Administration Reform (PAR) Index in 2019 for the central Government ministries and agencies, and the People’s Committees of the provinces and centrally-controlled cities, as well as the Satisfaction Index of Public Administration Services (SIPAS) in 2019. Accordingly, the State Bank of Vietnam (SBV) received the highest score of 95.4/100 for PAR Index 2019 and continued to achieve the first rank. This was the fifth consecutive year that the SBV has ranked the first out of the central Government ministries and agencies in the PAR Index.
From awareness to actions of the banking sector for the past ten years
Over eight assessments of the implementation of the overall administrative reforms reflected by the PAR Index of the Government’s Steering Committee for Administrative Reform between 2011 and 2020, the SBV has made it to the top 3 for two times, and has ranked the first for the last five consecutive years. These are the proud achievements of the banking industry over the recent years. In addition, according to the reports of the World Bank, Vietnam's Access to Credit Index has been constantly improved and maintained a high rank as compared to other countries. It can be asserted that the SBV always pays high attention to the administrative reforms and has been implementing the current reform effectively.
Deputy Governor Dao Minh Tu speaks at the Conference
Having recognized at an early stage the requirement of the administrative reform in the banking sector, especially in the context of international integration, the SBV has decisively selected administrative reform programs for each period of five years. Besides, the SBV annually selects the latest models of reforms regarding the banking operations in the world, which align with the practical situations in Vietnam, and sets out specific roadmaps for application for each year and regularly supplement the new tasks of reforming with higher, more ambitious objectives.
Administrative reform creates safe, stable and effective environment for business and banking operations
With regard to the institutional reform, the SBV has finalized the legal frameworks to address non-performing loans (NPL), promote the management of the gold market, the credit operations and the lending activities of the credit institutions, etc.. The SBV has also improved the framework for the management of the monetary policy and the exchange rates, ensuring the objectives of controlling the inflation and stabilizing the value of the domestic currency, thereby contributing to maintaining the macro-economic stability and promoting sustainable growth.
The administrative procedures and business conditions in the banking industry have been cut and simplified significantly since the introduction of Project 30 (2009), with over 80% of the administrative procedures having been cut or simplified, meeting the requirements of convenience, transparency, cost saving. The credit institutions have also cut down and improved their administrative procedures in the direction of applying digital technology and online services, thereby facilitating the access to services of the enterprises and the people in every monetary, credit and payment transaction.
The consistent, continuous and persistent reforms of the SBV and the system of credit institutions over many years have created a stable, safe, effective and efficient environment, contributing to improving the national competitiveness and creating a momentum for the high and steady economic growth during the past 10 years.
Orientations for PAR in the coming time
The SBV’s perspective of the administrative reforms in the next 10 years will focus on the continuous and effective implementation of the administrative reforms in order to create a stable, safe and encouraging environment for business operations in general, and for the banking industry in particular, promoting fair competition, ensuring discipline and the rule of laws, with due respect of the market principles in order to promote investments into production, economic development and international integration.
First, the SBV will continue to promote the comprehensive implementation of the 6 PAR areas, focusing on the three pillars of institutional reform and improvements in the banking operations; promote the application of advanced technology, modernize the operating methodology; improve the quality of the human resources.
Second, the SBV will focus on approaching and quickly apply modern technologies in coordination with innovation and digital transformation, bringing about the most convenient and safe products for the businesses and the people in the fields of currency and credit and payment.
Third, the SBV will continue the reforms in the whole banking sector with a view to increasing transparency and publicity of the financial activities and the public finance management, including monetary, credit and payment areas.
Finally, the SBV will further improve the competitiveness of the economy in general and the system of credit institutions in particular through effective and successful implementation of the Project on restructuring the banking system, as well as the current PAR programs.
Le Hang