VRB received positive support in the 12th session from Vietnam – Russia working group on cooperative banking (20/06/2014)

On 4/6/2014, the 12th session of Vietnam - Russia Working Group on cooperative banking took place at the Russian Central Bank headquarter in Moskva. Deputy Governor of the State Bank of Vietnam (SBV) - Mr. Le Minh Hung, Acting Chairman of the Sub-committee of Vietnam, Mr. Skobelkin Dmitry, Deputy Governor of the Central Bank of Russia, Chairman of the Russian Division co-chaired the session. Attending the meeting were representatives of related departments of the SBV and the Russian Federation, together with representatives of commercial banks of the two countries, international organizations such as the International Investment Bank (IIB), the International Bank for Economic Co-operation (IBEC) and the Eurasian Development Bank (EDB).

At the meeting, the two co-chairs exchanged views on the important developments in the banking sector of the two countries and the implementation of the agreements reached at the 11th session. In 2013 and the first quarter of 2014, the situation in the banking sector of the two countries has stabilized, bilateral trade has seen positive growth of more than $4 billion in 2013 and over $1 billion in the first quarter of 2014, creating a premise for the expansion of banking cooperation between the two countries. On the implementation of the agreement of the Working Group in the 11th session, the two co-chairs noted that cooperation agreements in areas such as cooperation in payment infrastructure, increasing the use of currency in bilateral payments, cooperation in the areas of trade finance, retail payments... have made certain progresses, although many issues need to be resolved.

Discussed on the areas of cooperation in the coming time, the parties agreed to focus on finding solutions to problems in cooperative banking to promote trade and investment between Vietnam and Russia. Russia pledged to urge Russian commercial banks to use available utilities to boost bilateral payments, especially in the form of internal currency, retail payments.

The co-Chairs also discussed and agreed that the two central banks would strengthen cooperation in exchanging information on relevant policy orientations, especially the development of the Russian payment system and the experience in the history of using internal currency in payments with China. The parties also agreed to continue the existing cooperation orientations such as linking card payment infrastructure, building Vietnam - Russia portal, using internal currency for payment, encouraging commercial banks to enhance payment via account, L/C, transfer money alongside new cooperation directions such as factoring products.

Members in the session also heard the remarks of the EDB on the operation of the EDB between two sessions and a presentation by representatives of the SBV on the process of research and work that were necessary to consider the possibility of cooperation with the EDB in the coming time.

Participants in the session noted information on the performance of VRB and supported the measures being taken to improve the efficiency in banking operation, clarified VRB's important role in supporting the development of economic and trade cooperation between the two countries. The two Central Banks expressed their support for the adoption of the VRB restructuring plan in the period of 2013 - 2015 and were ready to assist VRB in implementing this project. The parties also expressed their support for the efforts of VRB to actively participate in projects implemented on the territory of Vietnam with the participation of Russian companies, especially in the field of energy.

At the end of the session, Deputy Governor Le Minh Hung and Deputy Governor Skobelkin Dmitry signed the minutes of the 12th session of the Vietnam - Russia Working Group on cooperative banking and agreed to hold the 13th session in Vietnam in 2015.