On the February 21, 2025, at the headquarters of the State Bank of Vietnam (SBV), the SBV and the Banking Working Group (BWG) had a meeting to review the implementation results in 2024 and discuss the coordination plan between the two sides for 2025. Deputy Governor Pham Thanh Ha and Mr. Kojima Masao, Managing Director of MUFG Bank, Chairman of the BWG, co-chaired the meeting.
Deputy Governor Pham Thanh Ha speaks at the meeting
Delivering his opening speech, on behalf of the SBV’s Board of Management, Deputy Governor Pham Thanh Ha welcomed Mr. Kojima Masao and the BWG’ Mission for visiting and working with the SBV.
The Deputy Governor reviewed some of the SBV’s policies as well as the positive results of the banking sector in 2024, including: (i) operating the monetary policy in a flexible manner, contributing to controlling the inflation and maintaining the stability of the macroeconomy. Specifically, the GDP in 2024 increased by 7.09%, while the average inflation was kept at 3.63%; (ii) continuing to innovate the measures for the credit growth management: the credit growth of the entire banking system in 2024 was improved compared to the previous year, reaching 15,600 trillion VND and an increase of 15.09% as compared to the end of 2023; (iii) Continuing to implement strongly the Scheme on restructuring the system of credit institutions associated with the handling of bad debts: actively resolving poor-performing credit institutions, especially the SBV had completed the compulsory transfers of 04 poor-performing banks. Bad debts were controlled below the set target of 3%. The commercial banks had improved their governance and management capacity, financial capabilities and profitability; (iv) strengthening the inspection and supervision of the credit institutions to prevent risks, ensure security and discipline in the money market; (v) the legal frameworks for banking operations continued to be improved, meeting practical requirements, creating favorable conditions for the operations of the credit institutions; (vi) non-cash payment was strongly promoted with more than 87% of adults in Vietnam having payment accounts as of the end of 2024, exceeding the target for 2025 of 80%. Non-cash payment transactions and transactions via QR Codes increased sharply. Meanwhile, cash withdrawals via ATMs decreased by 15.56% in the number of transactions and 10.82% in the transaction value. The banking sector also implemented solutions to ensure payment security and safety.
The Deputy Governor also informed about the SBV's management orientation in the coming time, i.e.: the banking sector would focus on implementing Directive No. 01/CT-NHNN with the key tasks of: (i) operating the monetary policy flexibly, supporting the economic growth linked with macroeconomic stability; (ii) improving the legal frameworks for the banking operations; (iii) restructuring the credit institution system, the handling of bad debts; (iv) strengthening the inspection and supervision to prevent violations and money laundering; (v) promoting the digital transformation, non-cash payment, ensuring the security of the financial systems and the electronic payment transactions.
Mr. Kojima Masao, Chairman of the BWG, speaks at the meeting
Speaking at the meeting, on behalf of more than 40 BWG members, Mr. Kojima Masao, Chairman of the BWG, thanked Deputy Governor Pham Thanh Ha and the SBV's Board of Management for their strong support for the policy dialogue channel in the banking sector in Vietnam over the past time. Despite many great pressures and impacts from the global economy, the SBV had achieved its set objectives in operating the monetary policy, maintaining the macroeconomic stability, controlling the inflation, contributing to supporting and promoting the economic performance.
Mr. Masao made high evaluation for the development of the legal documents and the improvement of the legal frameworks in the banking sector. Mr. Masao and the BWG Group expressed their beliefs that under the leadership of the SBV, the banking sector would continue to perform its role as a pillar for the economic growth and the macroeconomic stability.
An overview of the meeting
Also at the meeting, the SBV and the BWG agreed on a number of priority orientations relating to the improvement of the legal documents, the digital transformation,... and proposed a coordination plan for 2025, which includes the organization of the Vietnam Business Forum (VBF) in March.
Toward the end of the meeting, Deputy Governor Pham Thanh Ha thanked and made high evaluation for a successful 2024 term of Mr. Kojimo Masao, Managing Director of MUFG Bank, Chairman of the BWG. The Deputy Governor wished Mr. Kojimo Masao successes in the coming time. The SBV Deputy Governor also hoped that the cooperative relationship between the SBV and the BWG would continue to be developed more strongly, and the BWG would further support Vietnam in the implementation of the priority tasks of the banking sector in the future.
HY