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Speech by SBV Governor at year-end meeting with representatives of international financial institutions and foreign credit institutions in Vietnam
The State Bank of Vietnam (SBV), on December 10, 2008, held a year-end gathering with representatives of international financial institutions and foreign credit institutions in Vietnam. This meeting aimed at expressing the SBV’s sincere thanks to international financial institutions and foreign credit institutions for contributing to the economic development of Vietnam during the year. The SBV Website has honor to introduce the speech delivered by the Governor on this occasion.
Ladies and Gentlemen,
On behalf of the State Bank of Vietnam, I warmly welcome representatives from international financial institutions and foreign credit institutions in Vietnam to our meeting today! As it has become a practice, on the occasion of ending each calendar year, we organize a meeting to express our sincere thanks to international financial institutions and foreign credit institutions for contributing to the economic development of Vietnam during the year.
The meeting takes place in the context of complicated and unforeseeable movements of the ongoing global financial crisis, one of the worst financial crises in our age. Negative and contagious impacts of the crisis, which was stemmed from the sub-prime crisis in the United States, together with large fluctuations in oil and food prices in 2008 have resulted in global macroeconomic instability, accelerated inflation, and increasingly vulnerable financial institutions and banking systems in many countries all over the world.
Ladies and Gentlemen,
In Vietnam, since the very early months of 2008, our economy has faced with macroeconomic instability, high inflation, and liquidity problem facing several banks. Under the Government’s strong direction and consistent measures with the first priority of controlling inflation, the SBV conducted tight monetary policy and managed to contain the high credit growth of the banking system in a flexible manner. The above mentioned measures have brought about positive effects, namely the gradually decreasing rates of inflation, macroeconomic stabilization, and substantial improvements of bank liquidity conditions. However, these are just initial achievements, and Vietnam’s economy in general and banking sector in particular are still facing with many challenges and problems due to the unceasing movements of the current financial crisis and global economic downturn. The SBV has been watching closely domestic and international developments, and enhancing international cooperation with central banks and supervisory agencies in the region and the world in order to have timely and efficient responses when necessary.
2008 also marks a year where Vietnam has strictly fulfilled its WTO commitments as evidenced by the event of granting licenses for commercial presence of 03 foreign banks under the new form of 100% foreign owned bank in Vietnam. The presence of foreign bank branches, foreign non-bank credit institutions, and especially the three 100% foreign owned banks in 2008 showed the attractiveness of Vietnam market, and at the same time forecasted the increasingly competitive pressure in the financial and banking sector.
The SBV always highly appreciate the role as well as the contribution of foreign credit institutions to the development of Vietnam’s economy and its banking sector. It is our expectation that with rich experience, advanced management capacity, and diversified ranges of products and services, foreign credit institutions will continue to bring into full play their important role and make positive contribution to the stable growth of Vietnam financial market and economy.
Ladies and Gentlemen,
Another Christmas and New Year is around the corner. Let us all look forward to a new year with the hope that the difficulties of 2008 will be left behind and all the best things are waiting for us in 2009. On this occasion, I would like to make the sincere wishes for a Merry Christmas and a Happy New Year to all of you and your families and colleagues.
May I wish you good health, happiness and success.
Thank you very much.
SBV
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