On August 8, 2018, the prime minister signed the Decision No. 986/ QD-TTg approving the Strategy for the development of Vietnam’s banking industry up to 2025 and the orientations towards 2030. deputy Governor of the State Bank of Vietnam (SBV) Nguyen Kim Anh said the strategy clearly stated the government’s view to consider the monetary, banking and operation system of credit institutions (CIs) as the lifeline of the economy, continuing to play the key role in the overall domestic financial system.
At the Conference to deploy the action programme of the banking sector to carry out the Strategy, Pham Thanh Ha, director of the Monetary Policy Department, said that his department would build the monetary policy framework towards the highest priority of controlling inflation, stabilising the value of currency, contributing to maintaining macroeconomic stability, increasing the independence of the SBV in monetary policy.
“In operating, ensuring the coordination of policies between the SBV and the Ministry of Finance, the Ministry of Planning and Investment and the Ministry of Industry and Trade to create consistency and synchronisation among monetary, fiscal and other macro policies, it is necessary to regulate interest rates in line with macroeconomic developments, inflation and monetary market; to operate monetary policy by gradually shifting from operating in volume to price; to use tools indirectly, gradually dismantling interest rate administrative measures when conditions permit,” continued Ha.
In addition, considering the open market operations as a key tool to regulate liquidity of credit institutions supports the achievement of the monetary policy objectives in each period. In particular, the rate of foreign currency deposits to total means of payment is expected to be below 7.5 percent by 2020 and to reach five percent by 2030.
From the point of view of the Banking Supervision Inspection Agency, the representative of this agency said that the unit continued to innovate inspection work in the direction of fast and strong transfer from compliance inspection to inspection on the basis of risk, closely linked with risk-based supervision, step by step applying it uniformly throughout the system of credit institutions and foreign bank branches. At the same time, they strengthened the direction and focused in inspection activities as a “nuclear”.
Continuing to innovate the monitoring work towards improving the effectiveness of micro- and macro-security monitoring activities based on the implementation of new risk monitoring tools and methods associated with technology application information.
Along with that is to improve the early warning ability of SBV for potential systematic risks and prevent the risk of legal violations of credit institutions and foreign bank branches. In particular, that is the research and application of monitoring models of financial groups whose parent companies are credit institutions.
Pham Tien Dung, director of the Payment Department, said that the unit continued to improve the legal framework, mechanisms and policies for cashless payment, limiting payment in cash in accordance with international practice and meet the requirements of using payment services of people.
At the same time, effectively deploying two projects approved by the government, that is the cashless payment development project in Vietnam in the period of 2016-2020 and the project of promoting bank payment for public services’ fee.
“To build, improve and upgrade the national payment infrastructure as a foundation to connect to banks and create a basis to deploy new payment products and services. Promote card payment through point-of-sale (POS) devices; apply modern technologies and payment methods such as quick response code (QR code), encrypt card information (Tokenisation), mobile payment and non-contact payment (Contactless) “, Dung said.
This unit also continues to carry out payment models in rural and remote areas associated with the development and implementation of the National Strategy on comprehensive finance in Vietnam, promoting electricity payment in the government area. At the same time, to study and build a scheme for a Regulatory sandbox for financial technology activities (FinTech) in the banking sector and submit it to the prime minister.
For the development strategy until 2025 and the orientation to 2030, Nghiem Xuan Thanh, Chair of the Board of directors of Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) said, the Bank continued to keep abreast of the vision and orientation set out at Vietcombank’s restructuring plan approved by SBV in 2020 to become the No. 1 bank in Vietnam, one of the 100 largest banks in Asia, one of the 300 largest financial banking groups in the world and managed according to the best international rules.
“Accordingly, Vietcombank will carry out eight strategic objectives, including: firstly, No.1 bank on retail and second on wholesale; secondly, the bank is at the forefront of scale and economic investment efficiency in the domestic and international market; thirdly, the bank has the highest proportion of non-interest income in domestic credit institutions; fourthly, the bank has the largest scale of profit and annual profitability increases; fifthly, the bank ranks first in terms of customer satisfaction; sixthly, the bank ranks first in terms of quality of human resources; seventhly, the best risk management bank and finally, the bank ranks first in digital bank conversion, ” Thanh said.
According to the representative of Military Joint Stock Commercial Bank (MB), following SBV’s industry strategy, MB determined its vision to be “the most convenient bank. “We have implemented synchronously and drastically four strategic moves, it is digital banking, customer relationship enhancement, superior risk management and member companies’ performance strengthening, whereby we identify key strategic projects, build each detailed activity, accompanied by measures of evaluation and implementation organisation “.
Deputy Governor Kim Anh emphasized that with the banking sector, the views, goals, tasks and solutions mentioned in the Strategy would be the guideline for all activities, including State management activities of SBV and business operations of credit institutions, ensure comprehensive development, expect to open a new period of the industry.
According to Kim Anh, the orientation of credit institutions towards development is that: domestic credit institutions play a key role; transparent, competitive, safe and sustainable operation; diversified structure of ownership, scale and type based on technology foundation, advanced banking management, in accordance with operating standards in accordance with international practices, towards achieving the level of development of Group Four countries leading the Asean region by 2025.
“Being dynamic and creative to adapt to the process of liberalisation and globalisation, meeting the demand for financial and banking services of the economy, moving towards comprehensive finance by 2030, ensuring all citizens and businesses have the opportunity to access fully and conveniently financial and banking services of high quality, contributing positively to the sustainable development”, the deputy Governor concluded.
