On November 22, 2024, at the headquarters of the State Bank of Vietnam (SBV), Governor Nguyen Thi Hong had a meeting with the Article IV Mission of the International Monetary Fund (IMF).
SBV Governor Nguyen Thi Hong speaks at the meeting
Also attending the meeting, there was Mr. Paulo Medas, Head of the IMF’s Article IV Mission; Mr. Jochen Schmittmann, IMF’s Resident Representative for Vietnam, the Lao P.D.R. and Cambodia, other members of the IMF’s Article IV Mission, and officers from the IMF’s Resident Representative Office in Hanoi, as well as leaders of a number of entities under the SBV.
Exchanging about the economic situations in Vietnam, Mr. Paulo Medas, Head of the IMF’s Article IV Mission, acknowledged the impressive achievements in Vietnam’s development over the past time.
Mr. Paulo Medas, Head of the IMF’s Article IV Mission for Vietnam
Mr. Paulo Medas highly complimented the achievements made by Vietnam so far in 2024, as one of the countries with the highest growth rates in the world with the traditional growth drivers being the strong exports and a favorable situation in attracting foreign direct investment. The Head of the IMF’s Article IV Mission also praised the effectiveness of the SBV's monetary policy management, which has contributed to maintaining the inflation control within the target level. These are also the foundations for Vietnam's positive growth compared to the rest of the world in the coming time.
At the meeting, the SBV Governor acknowledged and highly appreciated the assessments, forecasts and policy advice of the IMF regarding the economic situation in Vietnam in 2024, as well as the outlook for 2025, and recommendations for Vietnam in the coming time.
Sharing about the SBV’s management, Governor Nguyen Thi Hong expressed her agreement with the Article IV Mission’s assessment on the limited space for the monetary policy currently.
According to Governor Nguyen Thi Hong, the SBV has always followed closely the money and the foreign exchange market developments, taken a cautious approach about the potential inflation risks, ensured the liquidity, and maintained the operational safety of the banking system.
Participants at the meeting
The SBV Governor also informed that the Goverment of Vietnam in general and the SBV in particular are fully aware of the mid-term and long-term challenges, such as the aging population and the climate change impacts. The Government Ministries and agencies have been coordinating to come up with synchronized solutions, and to mobilize more resources from the big financial institutions for the needed transitions. For the banking sector, the number of credit institutions participating in the fields of green credit, renewable energy, clean energy, is increasing. Especially, the assessment of environmental risks before granting credit has been on a rise.
Regarding the orientations in the coming time, the Head of the IMF’s Article IV Mission recommended that Vietnam should continue to follow the international developments, control the inflation, modernize its monetary policy, and create favorable conditions for investors, etc.
Mr. Paulo Medas also affirmed that the IMF would continue to support the Government of Vietnam and the SBV in the process of planning and implementing the macroeconomic policies in the coming time, and would further support the SBV and other Vietnamese authorities through the capacity building activities and the policy consultations in order to help Vietnam realize its sustainable developments goals.
HY