“The SBV is very grateful for the robust and strong coordination, support and assistance of the international organizations and governments extended to Vietnam in general and to the SBV in particular”. It was the affirmation of Governor Nguyen Thi Hong of the State Bank of Vietnam (SBV) at the Year-end Meeting between the SBV with the international financial/monetary organizations, the diplomatic missions, the bilateral and multilateral development partners, and the foreign credit institutions (CIs) in Vietnam, as well as foreign experts currently working with the SBV, which was held in Hanoi on December 18th, 2020.
SBV Governor Nguyen Thi Hong extends the warmest regards and best wishes for a Happy Festive Season
The meeting was attended by all Members of the SBV Board of Management, leaders of the Departments, agencies and units under the SBV, together with representatives of many international organizations, foreign embassies, bilateral and multilateral partners and foreign CIs in Vietnam; representatives of the international financial/monetary institutions including the International Monetary Fund (IMF), the World Bank (WB), the Asian Development Bank (ADB), and Japan International Cooperation Agency (JICA), etc.
Addressing the participants at the Year-end Meeting, SBV Governor Nguyen Thi Hong extended her warmest greetings for the coming festive season and best wishes for the New Year 2021 to the distinguished representatives from the international monetary and financial organizations, the diplomatic missions and the foreign CIs in Vietnam. According to the SBV Governor, 2020 was a memorable year in the world history with unprecedented challenges. The COVID-19 outbreaks throughout the world have caused a big shock, disrupting the social and economic activities around the globe, having resulted in various consequences and difficulties for all businesses and all countries.. This pandemic has been and will continue to change the traditional modes of interactions culturally, socially and economically.
In the latest World Economic Outlook Report, the IMF has forecast a 4.4% decline in the world economic growth, with the majority of countries and regions experiencing negative growths in 2020 due to the prolonged effects of the pandemic. However, despite the difficulties of the world and the domestic economy and trade, Vietnam's economy in 2020 has still maintained a positive growth thanks to the successful containment of the outbreaks and the timely support policies. In the recent Outlook, the IMF has forecast that Vietnam's economy would grow by 2.4% in 2020, the highest growth rate in the world, with inflation controlled below 4% as set out in the target.
In that context, SBV Governor Nguyen Thi Hong shared her pleasure in witnessing that Vietnam banking industry has actively joined hands with the Government and the relevant agencies to help the economy to overcome the difficulties caused by the disease outbreaks, as well as during the economic recovery period, making important contributions to maintaining the macroeconomic stability, supporting the economic growth at a reasonable level. The support policies of the banking industry such as interest rate cuts, credit support, debt restructuring, fee waivers in payment transactions, etc. have received high evaluation, helping to share the burdens with the businesses and the whole society, actively contributing to the disease control and the economic recovery, ensuring social security for all.
Along with the support for the disease control and the economic recovery, the restructuring of the banking system and bad debt settlement have also been implemented effectively. The banking system has been continuing with its structural reforms, developing and implementing policies, frameworks and mechanisms to help improve the safety standards in banking operations in line with the international practices, enhancing the management and operation capabilities of the whole system. The great efforts and contributions of the whole banking industry as well as of each individual bank in supporting the businesses and the economic activities under the impacts of the pandemic while still continuing to ensure the safe and healthy banking operations have been highly recognized and praised for by the public, which has supported the Government and the relevant stakeholders to successfully control the disease, maintain the economic activities, enhance the confidence of the market and the investors, and maintain the stability of the financial system.
“The aforementioned achievements would not have been made without the support from all of the foreign partners, international organizations, embassies and diplomatic missions. The Government of Vietnam and the SBV are very grateful for the timely and strong assistance and support of the international organizations and foreign governments to Vietnam in general and to the banking sector in particular”, the SBV Governor emphasized.
2020 was also a year full of international cooperation events hosted by Vietnam as Chair of ASEAN, in which the SBV has hosted a series of events, conferences, forums, and seminars within the framework of ASEAN banking cooperation, as well as between ASEAN and other countries, international organizations, including many high-level meetings, policy dialogues between the SBV with other central banks, monetary authorities and international organizations, on measures and countermeasures at the regional and global level to address the serious consequences of the pandemic. On behalf of the SBV Board of Management, Governor Nguyen Thi Hong expressed her high appreciation for the active cooperation and support that international organizations and foreign governments have extended to Vietnam in general and the SBV in particular, especially in communicating about Vietnam's policies and perspectives to the international community, helping to enhance the investors’ confidence and to maintain the momentum for development.
At the Meeting, Mr. Francois Painchaud, Resident Representative of the International Monetary Fund (IMF) in Vietnam, shared that “COVID-19 has created a global health, economic and social crisis. But with challenges come opportunities, and Vietnam has offered a great example of a country winning the war against COVID-19 while still maintaining the economic stability.” The IMF Resident Representative stressed that the SBV has successfully managed to balance the support for the economy with its targeted policies of maintaining the exchange rate stability and controlling the inflation. The SBV has also managed to balance between supporting the economic recovery and enhancing the banking system resilience.
Mr. Francois Painchaud, IMF Resident Representative in Vietnam, speaks at the Meeting
Mr. Francois Painchaud believed that the relationship between the SBV and the IMF would continue to be strengthened in the coming time, and affirmed that the IMF always stands ready to support the Government of Vietnam and the SBV within its capabilities.
Mr. Tim M Evans, Chairman of the Banking Working Group (BWG), speaks at the meeting
On behalf of the Banking Working Group (BWG), Mr. Tim M Evans, Chairman of the BWG, CEO of HSBC Vietnam, affirmed that the foreign banks are committed to cooperating with and supporting the SBV and the Government of Vietnam in the overall development programs, as well as in the economic development programs by enhancing the banking and financial markets, promoting the digitization, attracting more multinational corporations and international financial investors to Vietnam. In 2021, the BWG wishes to further strengthen this cooperation mechanism with the SBV, and continue to share the best international practices with the SBV, helping to bring the Vietnamese banking sector to a next level.
Members of the SBV Board of Management take a photograph with the foreign partners
According to the SBV Governor, the year 2021 is approaching with many new missions and new challenges. The Government of Vietnam would be consistent in its dual goal of actively controlling the disease to ensure safety for the lives and health of the people, while implementing programs and plans to recover the economic growth after the pandemic. These goals would be carried out in parallel with the national development programs, promoting the reforms of key areas as well as renovating the growth model in order to accomplish the set-out socio-economic development targets. The SBV would continue to operate the monetary policy in a flexible and prudent manner, in effective coordination with the macro policies; strengthening the management, inspection and supervision to maintain the financial and monetary stability, as well as to improve the business environment. In addition, the SBV would continue to coordinate with the relevant stakeholders to implement measures to promote non-cash payments, creating favorable conditions for Fintech operations in order to take advantage of the opportunities to develop a digital economy in Vietnam in general and in the banking industry in particular.
SBV Governor Nguyen Thi Hong believed that the international organizations, foreign governments, diplomatic missions and the foreign credit institutions in Vietnam would continue to accompany and support the Government of Vietnam and the SBV in this upcoming year to obtain new and bigger achievements.