Within the framework of her working mission accompanying Prime Minister Pham Minh Chinh to attend the 54th World Economic Forum's (WEF) Annual Meeting in Davos, Switzerland, on January 17, 2024, Governor Nguyen Thi Hong of the State Bank of Vietnam (SBV) attended a Seminar with the Young Presidents’ Organization (YPO), a Seminar with the financial investors and the members of the Swiss Banking Association, and various bilateral activities on the sidelines of the WEF’s Annual Meeting.
The participants take a group photo
Seminar on “Vietnam –leading sustainable investment in ASEAN" with YPO
Under the chairmanship of the Prime Minister, the SBV Governor, together with other leaders of the Ministries, agencies and local authorities attended the Seminar on “Vietnam –leading sustainable investment in ASEAN" with the YPO. The Seminar was co-organized by the Ministry of Planning and Investment, Vietnam’s Permanent Mission in Geneva, the YPO, and VinaCapital Group.
Speaking at the Seminar, Governor Nguyen Thi Hong shared about the SBV’s monetary policy management, the exchange rates, and the stability of the Vietnamese currency (the VND). Answering the questions from the participating investors, the SBV Governor affirmed that the management of the exchange rates and the interest rates is always among the core tasks of the SBV.
Because of the high openness of the Vietnamese economy, which is prone to the external shocks, the difficult situations of the world economy in 2023 had posed a lot of challenges to the management of the monetary policy and the exchange rates. In that context, the SBV has managed the monetary policy and the exchange rates in a consistent manner in the direction of making the VND attractive, persistently controlling the inflation to increase the confidence in the VND.
Regarding the interest rates, despite the hiking interest rates in 2022-2023 around the world and the tightening of the monetary policies by the central banks, Vietnam had managed to reduce the common interest rates. Thanks to that, the exchange rates had been maintained at a stable level. In 2022, the VND had depreciated by about 3.5%, while in 2023, it depreciated by 2.9%. The VND is one of the currencies with the highest stability in the region.
The year 2024 is forecast to continue to be a difficult year. The SBV would closely monitor the domestic and international market situations to regulate the monetary policy in a flexible and effective manner. The SBV continues to be consistent with the objectives and the operating methodology to contribute to controlling the inflation, maintaining the stability of the macro-economy and the forex market. These are considered to be important factors that create favorable conditions for the business investment environment in Vietnam.
Bilateral activities on the sidelines of WEF 2024 in Davos
Under the chair of Prime Minister Pham Minh Chinh, Governor Nguyen Thi Hong and other leaders of the Ministries and agencies attended a meeting with Mr. Marcus Wallenberg, Chairman of the Board of Directors of Skandinaviska Enskilda Banken (SEB - Switzerland).
An overview of a bilateral meeting
On January 17, 2024, the SBV Governor also attended the Prime Minister’s bilateral meetings with the President of the Swiss Confederation, the Prime Minister of Slovakia, the Secretary General of UNCTAD, etc.
From January 18 to 20, 2024, the SBV Governor accompanied the Prime Minister in his official visit to Hungary. This has an important meaning on the occasion of the 5th anniversary of the establishment of the Comprehensive Partnership between the two countries, and was an opportunity for exchanges, cooperation and development between the two business communities, in order to bring benefits to the people of the two countries.
Le Hang