Decision No. 986/QD-TTg dated August 08, 2018 of the Prime Minister on approving the Strategy for development of Vietnam’s banking sector through 2025, with orientations toward 2030

DECISION

Approving the Strategy for development of Vietnam’s banking sector through 2025, with orientations toward 2030^[1]

THE PRIME MINISTER

Pursuant to the June 19, 2015 Law on Organization of the Government;

Pursuant to the June 16, 2010 Law on the State Bank of Vietnam;

Pursuant to the June 16, 2010 Law on Credit Institutions and November 20, 2017 Law Amending and Supplementing a Number of Articles of the Law on Credit Institutions;

At the proposal of the Governor of the State Bank of Vietnam,

DECIDES:

Article 1. To approve the Strategy for development of Vietnam’s banking sector through 2025, with orientations toward 2030, with the following principal contents:

I. VIEWPOINTS AND OBJECTIVES

1. Viewpoints

a/ The monetary and banking system and operation of credit institutions are the lifeblood of the economy and continue to play a crucial role in the financial system of Vietnam. Stabilizing the operation of the credit institution system is key to monetary and financial stability, a precondition for macroeconomic stability and sustainable growth, and must be ensured by means of synchronous and effective coordination of monetary policy and fiscal and other macroeconomic policies, together with the harmonious and balanced development of the banking, securities and insurance sectors.

b/ Improving monetary and banking institutions plays a crucial role in completing the socialist-oriented market economy institutions. The legal framework concerning monetary and banking issues must be consistent with the market principles, ensuring the system safety, soundness and stability, and enhancing transparency, publicity, competitiveness, and conformity with the best international practices;

c/ Credit institutions, of all economic sectors, are treated equally and compete in accordance with law, and operate with autonomy and accountability. Particularly, domestic credit institutions play the leading role in mobilizing and allocating credit capital and providing banking products and services for the national socio-economic development.

d/ The State shall, through the State Bank of Vietnam, create a stable and safe money and banking business environment, encourage fair competition, ensure discipline and supremacy of law and respect for market rules. The State shall intervene primarily with market instruments, or through state financial resources; create every favorable condition for the private sector to develop on the basis of law observance. The State shall intervene with administrative measures directly in the monetary market and banking operations only when there is a risk of instability of the monetary market, threatening the system safety, potentially threatening the macroeconomic stability.

dd/ To promptly grasp opportunities and address challenges from the impact of the industrial revolution in order to orient the operation of the banking sector. To deeply aware that the application of modern science and technology and creative innovation coupled with the development of high-quality human resources are key to the rapid and sustainable development, increasing the competiveness and narrowing the gap in the development level of the banking sector between Vietnam and the region and the world.

2. Objectives

a/ Overall objectives

To modernize the State Bank of Vietnam (below referred to as the State Bank) in the direction of adopting a rational organization model and a synchronous, effective and efficient operation mechanism in line with the socialist-oriented market mechanism, with full legal standing and accountability; to pursue the priority objective of controlling inflation, contributing to macroeconomic stability and promoting sustainable growth; to ensure safety and soundness of the system of credit institutions to play the key role in ensuring financial stability; to play the role as the supervisor of payment systems and as the payment and settlement center for payment systems and financial and monetary transaction systems in the economy.

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