VN commits to comprehensive economic reform

PM Nguyen Xuan Phuc at the ASEAN Banker Summit, Ha Noi, May 11, 2016 - Photo: VGP/Quang Hieu

PM Phuc made the commitment on May 11 in Ha Noi at the ASEAN Banker Summit which was jointly held by the State Bank of Viet Nam and the Asian Banker.

“We highly appreciated the organization of the summit – a prestigious official and foremost forum for bank leaders, experts, and managers to discuss and share experience on newly-emerging challenges in the region and across the globe,” said PM Phuc.

He also hailed the summit theme “Breaking traditions,” as reflecting a long-term vision and determination to embrace innovation towards a dynamic and effective financial and banking community, and overcome challenges for development.

According to the Government leader, Viet Nam has persistently followed the comprehensive reform in all fields and attained significant achievements.

With an average growth rate of around 6.6%, Viet Nam became a medium-income country driven by market economy mechanisms. The country has also applied the modern administrative modal in accordance with international standards and practices. Viet Nam’s banking system was one of foremost sectors in the innovative process and served to assist high growth.

Viet Nam, said the PM, has entered a new development period in which the macro-economy was stabilized and inflation was put under control. The nation is looking to develop sustainably for an economic growth rate of 6.5-7% in the 2016-2020 period.

The International Monetary Bank (IMF), the World Bank (WB), and the Asian Development Bank (ADB) assessed that Viet Nam had already attained encouraging growth rates and become one of the three East Asian economies which enjoyed positive growth. Those financial institutions also forecast that the Vietnamese economy would continue to be stable and among one of the two most dynamic emerging ones in Southeast Asia in 2016.

However, these are initial outcomes, numerous challenges and difficulties still lie ahead, said the Government leader.

He also emphasized that the Vietnamese Government pledges to continue the comprehensive economic reform, persist in inflation control, macro-economic stability, economic restructuring, transformation of the growth modal in favor of higher productivity, competitiveness, international integration, and sustainable growth.

PM Phuc asserted that Viet Nam will promote international integration with a view to opening up a broad free trade space between Viet Nam and 55 partners, including all G7 member states and 15 others of G20.

He also hoped that via the summit, delegates would understand about the hospitable land and country of Viet Nam and figure out business and investment opportunities there.

“Your success means our success” and “Viet Nam stands ready to cooperative for a powerful, stable, prosperous Asian and international community,” he affirmed.

At the summit, SBV Governor Le Minh Hung revealed that the domestic banking sector would spur reform to integrate into regional and international financial systems; apply international standards; ensure a fair competitive environment, and offer favorable ways for foreign players to penetrate Viet Nam.

Mr. Hung also hoped that foreign investors would proactively engage in the domestic banking restructuring process.

The Asian Banker Summit 2016 brought together over 1,000 senior bankers, regulators, corporate managers, broker-dealers, treasurers, consultants and service providers in the financial services industry from more than 32 countries.

This year, the event included several conferences and workshop on Bank Management Challenge and Bank Managers Convention; Technology Decision Makers School and Conference; International Transaction Banking Convention; Supply Chain Challenge; and Financial Markets Infrastructure Dialogue.