Viet Nam Central Bank Governor compliments improvement in Lanka’s economy

Governor of the Viet Nam Central Bank known as State Bank of Viet Nam (SBV), Nguyen Thi Hong, recently expressed optimism and encouraging sentiments of the improvement of the economy of Sri Lanka, during the last 12 months, when Sri Lanka’s Ambassador Prof A. Saj U. Mendis, paid a courtesy call on her. 

Both the Governor and Envoy discussed, in detail, micro and macro-economic issues and policies as well as monetary and fiscal policies implemented and executed by Viet Nam, thus Viet Nam attained unprecedented economic growth during the last couple of decades. 

Governor Hong, was one of the three Governors of Central Banks who were chosen by the prestigious “Global Financial Magazine” as the most effective and competent Central Bankers in the world. Ambassador Mendis complimented, both during the meeting as well as in writing, of this achievement, which reflected and manifested the efficacious and result-oriented policies executed by the Central Bank i.e. SBV. 

On the same note, Governor Hong conveyed the best wishes to the Governor of the Central Bank of Sri Lanka (CBSL), Dr. P. Nandalal Weerasinghe, who was also being selected by Global Financial Magazine as one of the best and competent Central Bankers in the world. Governor Hong noted that Sri Lanka succeeded in reducing the inflation from 65% to 5% within a space of 12 months as well as marked reduction of interest rates, increase of official foreign reserves and stabilising of national currency of Sri Lanka. 

Mendis stated that Viet Nam, today, has become one of the fastest-growing economies in the world, thus being noted by major advanced economies and large multinational corporates world over. Mendis further added that a Central Bank of any nation, be developed or developing, plays an influential and seminal role in navigating and steering the economy. That said, Viet Nam which had a GDP per capita of only $ 90 in 1990s, today has risen to $ 4,450 as well as bilateral trade exceeding $ 730 billion including exports of over $ 370 billion in 2022. Viet Nam maintains economic and political stability with highly impressive economic indicators such as inflation, interest rates, and unemployment, amongst others.

Prof. Mendis also stated that the SBV was pivotal and decisive in creating a milieu for foreign investors, corporates and FDI to flow into the country since Viet Nam received FDI in excess of $ 20 billion in 2022 and envisaged FDI of around $ 30 billion in 2023. Some of the largest corporates, which are household names, have committed significant investments and FDIs in Viet Nam amounting to a total FDI stock of $ 450 billion. 

Both the Governor and Envoy agreed that one of the determining factors of this iconic feat of the economic augmentation of Viet Nam was the FTAs and Partnership Agreements it has with a number of key and select countries, numbering 17. Envoy Mendis also stated that Sri Lanka too has FTAs with major countries in South Asia as well as in the process of concluding a number of FTAs with select countries in order to increase the exports and to woo FDIs and foreign institutional investments, amongst others. Both the Governor and Envoy discussed policies and measures which have led to economic advancement and augmentation of countries including Viet Nam, amongst others.