At the Conference, representatives of the two central banks departments discussed the macroeconomic situation, the implementation of monetary policies, banking supervision and payment operations, Fintech situation of both Vietnam and Laos.
More than a year since the 6th Vietnam - Laos bilateral conference in February 2017, the Vietnamese economy, with a high degree of openness (represented by an international trade of over 190% of GDP of Vietnam in 2017), continue to be influenced by economic developments in the region and the world. In 2017, the global economy continues to recover with a marked improvement in investment, trade and consumer confidence, which in turn has a positive impact on domestic production. In 2018, world economic growth will continue to improve, but there are still many risks and challenges, including the prices of essential commodities such as petrol, steel, fuel ... increase pressures on inflation; Global trade has maintained its momentum but faces many difficulties due to trade tensions between the United States and China and other major partners such as the European Union and Japan.
In addition, the trend of increasing protectionism of large countries, especially changes in US trade policy, has affected the production and export of countries in the region as well as Vietnam. In addition to the existing problems of the economy such as the quality of growth, productivity and competitiveness, the number of businesses suspended business, natural disasters, storms, floods and unfavorable weather patterns also have negative impacts on agricultural production, and by 2018, inflation pressures will increase as the world fuel price increases. In that context, implementing the National Assembly and Government's resolutions on socio-economic development, the SBV has synchronously and flexibly operated monetary policy instruments to stabilize the monetary market, and thus contribute to controlling inflation and supporting economic development.
According to the orientation of the Communist Party of Vietnam since January 2011, the SBV has identified the policy of reforming the growth model and restructure the economy in the direction of: Transforming the growth model from a large scale development to a rational development of breadth and depth, while expanding the scope of medium scale to focus on improving quality, efficiency and sustainability. Specifically, the SBV has been restructuring the credit institutions focusing on restructuring of manufacturing industries, services in accordance with the region; promote corporate restructuring and adjusting the market strategy; rapid increase in domestic value, added value and competitiveness of products, enterprises and the whole economy; development of knowledge economy...
The SBV Governor Le Minh Hung affirmed that the policy of economic restructuring coupled with the transformation of the sustainable growth model has been implemented drastically in recent years. Regarding restructuring, three focus areas are identified including public investment restructuring; restructuring the financial and banking system; and commercial banks and SOE restructuring, with focus on state corporations and corporations.
In addition, on the content related to the development of Fintech, Governor Le Minh Hung also discussed the results of implementation of the Scheme for the development of non-cash payments in Viet Nam in the 2016-2020 approved by the Government. SBV Governor Le Minh Hung also stressed that the SBV is ready to continue cooperation and share experiences with the BOL in this area. Furthermore, SBV Governor Le Minh Hung will assign relevant units of the SBV to cooperate and exchange information with the units of the BOL to plan and implement these activities.
Regarding to cultural and sports exchanges, BOL Governor Somphao Phaysith said that this year the BOL will be the host of the exchange program between the two central banks in Chanpasak province, Laos. In addition, BOL Governor Somphao Phaysith also agreed with SBV's proposal to expand participation in the exchange program to include the Vietnamese commercial banks, which operate in Laos. Thereby, the exchange program will be upgraded to become an exchange between the two banking sector, helping to strengthen cooperation and connectivity between the parties; an opportunity to diversify activities and expand the competition between the two countries.
The BOL Governor Somphao Phaysith highly appreciated the activities of Vietnamese commercial banks in Laos over the past time, thus contributing significantly to the socio-economic process of Laos. At the same time, BOL Governor Somphao Phaysith has accepted to review the recommendations of Vietnamese commercial banks in the spirit of creating favorable conditions for commercial banks to operate effectively in Laos. In particular, the proposal of Vietnamese commercial banks to expand their investment activities in Laos, the BOL Governor Somphao Phaysith will consider these proposals and will create favorable conditions for Vietnamese commercial banks to develop in Laos further promoting cooperation in the banking sector.
The SBV Governor Le Minh Hung affirmed, the commercial banks of Vietnam committed for long-term investment, complying with laws for the sustainable development of the two countries as well as the two banking systems. He highly appreciated the efforts of each bank and the valuable support from Government and Bank of Laos for the commercial banks of Vietnam to obtain such positive results. On behalf of the SBV Management Board, the Governor Le Minh Hung expressed his gratitude and hoped that the Government of Laos and the BOL continue facilitating commercial banks of Vietnam in Laos and consolidating the potential investment cooperation of the two sides.
The two sides pledged to promote and create favorable conditions for commercial banks of the two countries to establish cooperation, trade and investment presence in the two countries, in order to promote the development of the banking system and better serve investment, trade and business activities between businesses and investors of both countries.
SBV Governor Le Minh Hung believes that this year's bilateral conference will continue to be a useful forum for both sides to increase understanding, strengthen cooperation and mutual assistance in professional work and promote exchanges to deepen the special brotherhood between the two central banks as well as the two countries./.
Source: sbv.gov.vn