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The Governor of the State Bank of Vietnam discloses the monetary policy in 2021

24/12/2020

The Governor of the State Bank of Vietnam affirmed that the SBV will 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 …

Sharing with representatives of international financial institutions, i.e. International Monetary Fund (IMF) and World Bank (WB), Asian Development Bank (ADB), Japan International Cooperation Agency (JICA), etc. State Bank Governor Nguyen Thi Hong said that the year 2021 is coming with many new missions and new challenges. The Government of Vietnam is steadfast in its dual goal of actively focusing on disease prevention to ensure safety for the lives and health of the people, while implementing programs and plans to recover the economy from the pandemic.

These goals are carried out in parallel with national development programs, promoting reforms of key areas as well as reforming growth models in order to fulfill the socio-economic development targets set out.

The Governor affirmed that the State Bank of Vietnam will 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 will 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.

According to the Governor, 2020 is a year in world history with unprecedented challenges. The Covid-19 pandemic that has been spreading in many countries around the world is a great shock, disrupting global socio-economic activities, causing many difficulties and consequences for businesses and other countries. The pandemic is and will continue to change traditional ways of interaction in culture, society and the economy.

According to the latest World Economic Outlook Report, the IMF has forecast a 4.4% decline of the world economy, the majority of countries and regions will have negative growth in 2020 due to the negative impact of prolonged pandemic. Despite the difficulties of the world and domestic economy and trade, Vietnam's economy in 2020 will still maintain positive growth thanks to good disease control and timely policies to support people and businesses. Recently, Vietnam’s economy is projected to grow by about 2.4% in 2020, at the highest level in the world, with inflation under control below 4% as set target.

 “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.

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 also 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.

 

Kylie Nguyen

© 2019 Vietnam Bank for Agriculture and Rural Development No. 2 Lang Ha street, Ba Dinh district, Hanoi, Vietnam
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