On December 15, 2023, at the headquarters of the State Bank of Vietnam (SBV), Governor Nguyen Thi Hong chaired the SBV-hosted Year-end Get-together event with the international financial/monetary institutions and foreign credit institutions in Vietnam.
Expressing her warm welcome to all of the participants at the traditional Year-end Get-together event of the banking sector with the foreign partners, SBV Governor Nguyen Thi Hong shared that 2023 had continued to be a difficult year for the global economy. Several large economies had continued to witness sluggish growth rates, and the recovery momentum is forecast not to be regained in the immediate time. In the short and medium periods, the world economy will have to face common challenges, such as persistent and high inflation rates, the monetary policy tightening, the disruptions of the global supply chains, the high ratios of public debts, climate change and geo-political issues, etc.
In that context, Vietnam is considered as a bright spot in the regional economic picture. Under the close guidance and leadership of the Government, and the companionship of the international partners, Vietnam's economy has achieved encouraging results. The GDP growth rate of 2023 is expected to be at over 5% for the whole year, relatively high as compared with other countries around the world and in the region; the inflation has been controlled at below 3.5%, much lower than the target level of 4.5% set by the National Assembly. Governor Nguyen Thi Hong also emphasized that the above positive results had been achieved with the strong support, and companionship, as well as the significant contributions of all of the foreign partners and the international institutions. In 2023, the SBV has managed the monetary and the exchange rate policies in a flexible manner in line with the actual developments, with the aim of supporting the economic growth, contributing to developing the economy, maintaining the macro-economic stability, and ensuring a prudent banking sector.
SBV Governor Nguyen Thi Hong and the participants take a group photo
Besides, in order to overcome the common challenges and difficulties of the global economy, Vietnam is always consistent with its foreign policy of multilateralization, making friends with all countries on the basis of ensuring the common interests of all parties. In the banking sector, the SBV has engaged in the implementation of 16 Free Trade Agreements between Vietnam and foreign partners; responsibly and effectively participated in the international forums on monetary and banking affairs; fully implemented Vietnam’s obligations as members of the international institutions, such as the WB, the IMF, the ADB, the AIIB, the BIS, the IBEC, the IIB, SEACEN, etc. The SBV has also frequently developed and increasingly deepened the bilateral cooperative relationship with the partner countries. The results of the international economic integration in the banking sector have made an important contribution to the overall achievements of the country's integration process.
Governor Nguyen Thi Hong also expressed her special thanks to the WB and the IMF. 2023 marks the 30th anniversary of the reengagement of Vietnam with the WB and the IMF. The SBV Governor acknowledged and appreciated the valuable support of the two institutions extended to Vietnam in general and to the SBV in particular.
An overview of the meeting
The year 2024 is approaching with many opportunities but also many challenges and difficulties for the global economy. Vietnam is a highly open economy, so it will not be able to avoid the impacts of the complex and unpredictable developments in the world economy. The SBV Governor affirmed that the SBV would continue to closely follow the domestic and the international developments to manage the monetary policy in a proactive, flexible and effective manner, in close coordination with the fiscal policy and other macro-economic policies, with a view to supporting the economic growth, continuing to improve the legal frameworks to be aligned with the international standards, promoting green finance, financial inclusion and digital transformation in the banking sector, strengthening the inspection and supervision to ensure the safety of the finance and banking sector.
Mr. Shantanu Chakraborty, ADB Country Director for Vietnam, speaks at the meeting
Mr. Shantanu Chakraborty, ADB Country Director for Vietnam, highly complimented Vietnam's macro-economic management in light of the global economic recession.
Ms. Michele Wee, CEO of the Standard Chartered Bank Vietnam Ltd., speaks at the meeting
Ms. Michele Wee, Chief Executive Officer (CEO) of the Standard Chartered Bank Vietnam Ltd., agreed that 2023 has been a difficult year for the global economy; and in 2024, the world economy would continue to face many challenges. Vietnam's banking industry cannot avoid the general impacts of the global economy. Ms. Wee assessed that, in the past year, the SBV has obtained positive achievements in the monetary management with the inflation controlled, the credit access supported, the value of the national currency maintained, and especially, the confidence among the international institutions strengthened.
The representatives of the international institutions affirmed that they would continue to work side by side with Vietnam and the SBV in the coming years through various dialogues, policy advice, technical assistance and training in order to improve the efficiency of the monetary policy management, ensuring the harmony with other macro policies.
Le Hang