3rd Meeting of the Working Group on Monetary and Financial Cooperation between SBV and PBC

SBV representatives attending the meeting included executives officials from International Cooperation Department, Foreign Exchange Management Department, Payment Department, Monetary Policy Department, Legal Department, Banking Supervisory Agency and executives from SBV branches in border provinces, such as Lang Son, Quang Ninh, Lao Cai, Ha Giang, Lai Chau and Cao Bang. From the PBC side, participants included executives of International Department, Monetary Policy Department, Financial Stability Bureau and executives from PBC regional branches in Nanning and Kunming.

Overview of 3rd session

Since the 2nd meeting took place in Beijing in June 2016, the two central banks have been cooperating on exchange of information, practical exchange of delegations, and conduct of surveys on payments for commodities exports and imports in Viet Nam - China border provinces with the purpose of reviewing and amending related legal documents to facilitate border trade activities.

During the meeting, SBV and PBC ran a policy dialogue on macroeconomic developments and monetary policy management. Executives from monetary policy departments of both central banks analyzed factors affecting each country’s macroeconomic conditions and monetary policy management, based on which highlighting solutions and results achieved so far, as well as proposing directions in the coming time.

The People's Bank of China delegations led by Assistant Governor Zhang Xiaohui

Also, the two sides, within the framework of the 3rd Meeting, presented their reports on the use of local currencies in payments for imports and exports across the border, thereby raising difficulties, impediments and proposing proper solutions.

Experience sharing in commercial banking system restructuring and non-performing-loan settlement by both sides was also an important content in the discussions between SBV and PBC throughout the Meeting. Based on the policy dialogues mentioned above, SBV and PBC proposed general direction for cooperation in the time to come, emphasizing the enhancement of cooperation in exchange of information, sharing of experiences and training collaboration in the fields of mutual interests, namely payment technology, management of foreign exchange reserves...

SBV Deputy Governor Nguyen Thi Hong co-chaired the session

Addressing for conclusion at the Meeting, SBV Deputy Governor Nguyen Thi Hong affirmed that the Meeting brought in good results and achieved the objectives set out beforehand. The exchange of information on macroeconomic situation, monetary policy management, border payments, banking restructuring and NPL settlement, etc. has helped the two Central Banks draw lessons for their works and propose practical solutions to enhance coordination between them. After the Meeting, SBV and PBC will continue to discuss the remaining issues, actively exchange information, and propose solutions with a view to prevailing over the shortcomings, limitations and strengthening bilateral training cooperation.

VA