Within the framework of the official visit of Chairman Vuong Dinh Hue of the National Assembly of Vietnam (NA) to the United Kingdom (UK), Governor Nguyen Thi Hong of the State Bank of Vietnam (SBV) attended and delivered a speech at the Vietnam – UK High-level Forum on Economy and Trade. The Governor also joined the NA Chairman in his dialogues with UK companies and investors.
Vietnam – UK High-level Forum on Economy and Trade
Answering questions from the UK companies about Vietnam’s approach to the management of the monetary policy, the inflation control, as well as the management policies in the banking sector, Governor Nguyen Thi Hong shared that in the current context of high inflation around the world, the SBV has always been consistent in pursuing the targets of controlling the inflation and maintaining the macro-economic stability; accordingly, the SBV has focused on formulating and implementing consistent measures in close coordination with the fiscal policy and other macro-economic policies.
Governor Nguyen Thi Hong speaks at the Forum
About the banking sector, the SBV has reviewed and assessed the process of restructuring the credit institutions and resolving non-performing loans (NPLs) for two 5-year periods before 2020. Recently, the SBV has submitted to the Prime Minister for issuance of the Scheme on restructuring the credit institution system in association with NPL resolution in the period of 2021-2025 with the objectives of promoting safe and effective banking operations, focusing on improving the governance, management and the implementation of Basel II standards, thereby, promoting the efficiency of the banking sector, the NPL resolution and preventing newly arising NPLs.
The average CPI for six months of 2022 increased by 2.44% as compared to that of the same period of 2021; the core inflation increased by 1.25%. According to the SBV’s assessment, in the coming time, there would be potential risks of high inflation pressures, with the current high inflation around the world. Regarding that situation, Governor Nguyen Thi Hong asserted that the SBV would continue to closely monitor the international and domestic economic situations to manage the policy instruments in a proactive, flexible and consistent manner in close coordination with the fiscal policies and other macro-economic policies in order to control the inflation and maintain the macro-economic stability, thereby supporting the economic recovery and development.
Governor Nguyen Thi Hong joins the NA Chairman in a meeting with leaders of Prudential PLC.
On the same day, Governor Nguyen Thi Hong joined the NA Chairman in a meeting with leaders of Prudential PLC. and Standard Chartered PLC. Those are two financial groups that have been operating effectively in Vietnam, strictly complying with Vietnamese laws and greatly contributing to the development of Vietnam’s finance and banking sector.
Governor Nguyen Thi Hong joins the NA Chairman in a meeting with leaders of Standard Chartered PLC.
At the meeting with the leaders of Standard Chartered PLC., the NA Chairman highly appreciated Standard Chartered PLC. for having supported the Government of Vietnam in improving the national credit ratings. The NA Chairman further expressed his hope that Standard Chartered PLC. would continue its support and cooperation with Vietnam to develop a corporate credit rating service, and promote the corporate bond market, as well as to mobilize capital for green growth, and to support the implementation of Vietnam’s commitments at COP26.
Mr. Jose Vinals, Chairman of Standard Chartered PLC., congratulated Vietnam on successfully maintaining its high economic growth, as well as its position of an attractive market for foreign investors. He also shared that Standard Chartered PLC. had committed to provide USD 75 billion for the green finance and sustainable credit around the globe until 2024 as stated in the MOU signed at COP26, of which a USD 8.5 billion is estimated to be provided to Vietnam. Moreover, Standard Chartered PLC. would cooperate with the SBV to organize a conference on sustainable finance, as well as support the establishment of voluntary carbon trading market in Vietnam, with Standard Chartered’s role as a pioneer company in this area.
Governor Nguyen Thi Hong joins the NA Chairman in a meeting with UK companies
On June 30, 2022, Governor Nguyen Thi Hong also joined the NA Chairman’s meeting with the UK companies present in Vietnam. At the meeting, the NA Chairman, the SBV Governor and leaders of the Ministries and agencies from Vietnam had the opportunity to listen to the proposals and answered questions raised by the UK companies regarding the business collaboration and expansion in Vietnam. Toward the end of the meeting, the UK companies, financial institutions committed to continue their business operations for long-term in Vietnam, contributing to promoting the green, sustainable and inclusive development.
Le Hang