On the morning of November 28, 2022 at the headquarters of the State Bank of Vietnam (SBV), Deputy Governor Dao Minh Tu had a meeting with Mr. Shawn Steil, Ambassador Extraordinary and Plenipotentiary of Canada to Vietnam.
Also attending the meeting were representatives of Department III of the Banking Supervision Agency – SBV and Project of Strengthening the People’s Credit Funds Network (STEP project).
On the Co-operative Bank of Vietnam (Co-op Bank)’s side, there were Mr. Nguyen Quoc Cuong, Chairman and Mr. Nguyen Thac Tam, Deputy CEO/Director of STEP Project.
At the meeting, SBV Deputy Governor Dao Minh Tu discusses with Mr. Shawn Steil – Ambassador Extraordinary and Plenipotentiary of Canada to Vietnam about the co-operation relationship between the Government of Canada and Vietnam, especially in the context that the two countries have just celebrated the 5th anniversary of the Comprehensive Partnership (2017-2022) and the 50th anniversary of diplomatic ties (1973-2023). Over the past 50 years, Canada has always accompanied Vietnam in its socio-economic development through the implementation of many support projects, including project on Institutional strengthening and capacity building for SBV and credit institutions in Vietnam. Specifically, Banking reform project in the period 2005-2010, Strengthening the capacity of banking inspection and supervision project in the period 2014-2019 and the STEP project being implemented since 2017.
Regarding the National Comprehensive Financial Strategy to 2025, with orientations to 2030 of the Vietnamese Government, Mr. Dao Minh Tu said: The SBV has issued the Action plan to implement the above Strategy with a number of important objectives such as: (i) Develop a variety of supply organizations, distribution channels, financial products and services provided by licensed organizations to improve the accessibility and use of those who have not or few access to financial products and services especially in remote areas; (ii) Promote the development of financial products and services for small and medium enterprises, co-operatives, production and business households and (iii) Develop a system of organizations, programs and microfinance projects that operate safely, effectively and sustainably, with the aim of serving the poor, low-income people, women and microenterprises with diversified, flexible and appropriate financial service products, contributing to the implementation of the Party and State’s policies on ensuring social security and sustainable poverty reduction.
SBV Deputy Governor Dao Minh Tu said, up to now, with a network of 1,179 People’s Credit Funds (PCFs) operating in 57/63 provinces and cities in 2,832 communes/wards/towns serving nearly 2 million members, The PCF system plays an important role in the implementation of Vietnam’s National Financial Strategy. Therefore, the Government of Vietnam in general and the SBV in particular highly appreciate the timely support of the Government of Canada through the STEP Project – jointly implemented by DID and Co-opBank – to strengthening capacity for 75 PCFs which participated in the project.
The model of the PCFs in Vietnam has been learned by the SBV from the Canadian model of the PCGs system since the early 1990s. After nearly 30 years, the current system still has a number of limitations leading to the requirement of research, review and adjustment, timely respond to the new economic conditions, in line with the development trend of other co-operative credit institution models in the world, including the Canadian model of PCF.
Mr. Dao Minh Tu proposed the Government of Canada consider supporting the development of a new project to restructure the model of the PCFs system, towards building a safe, efficient, highly interconnected system bases on Canadian experiences, thereby actively contributing to the implementation of the Financial Inclusion Strategy in Vietnam.
At the meeting, Mr. Shawn Steil – Ambassador Extraordinary and Plenipotentiary of Canada to Vietnam said that The Canadian government is very interested in Vietnam’s comprehensive financial strategy. Mr. Shawn Steil also expressed his gratitude on the SBV’s appreciates to the support of Canadian Government in general and the STEP Project in particular for the development of the PCFs system. Canadian Government has high expectations for the positive impacts the STEP project can bring and hopes that the SBV will continue to support to replicate the project’s results to the entire PCF system.
At the end of the meeting, SBV Deputy Governor Mr. Dao Minh Tu once again congratulated Mr. Shawn Steil on his appointment as Ambassador Extraordinary and Plenipotentiary of Canada to Vietnam and expressed his belief that the Ambassador would make great contributions on the diplomatic relations between the two countries as well as the PCFs system in Vietnam.
Some pictures of the meeting:
Overview of the meeting
SBV Standing Deputy Governor Mr. Dao Minh Tu and Co-opbank Chairman Mr. Nguyen Quoc Cuong
Co-opBank Chairman Mr. Nguyen Quoc Cuong gives a gift to Mr. Shawn Steil – Ambassador Extraordinary and Plenipotentiary of Canada to Vietnam
PV
