HISTORY

Before the August Revolution in 1945, Vietnam was a feudal-colonial country under the French colonialists’ rule. The banking and credit system was founded and protected by the French colonialists through the Indo China bank. It functioned as both the central bank of the whole Indochinese region (Vietnam, Laos and Cambodia) and a commercial bank with commercial banking operations and investment.

After the August Revolution, one of the key tasks of the August Revolution then, was to build an independent and autonomous monetary and banking system to serve for the national cause of revolution and construction. The task was fulfilled by 1950, when the anti-French resistance war grew stronger, obtaining many triumphs in the battled field, and expanding the liberalized region. In this context, the development required economic and financial activities to be improved and promoted to meet new demands. On the basis of the new economic and financial policy set out in the 2nd Congress of the Vietnam Workers’ Party (February,1951), President Ho Chi Minh signed Decision 15/SL on the establishment of the Vietnam National Bank – Bank of the first people’s democratic state in Southeast Asia in order to carry out five urgent missions: issuing banknotes, managing treasury, carrying out credit policy in order to facilitate production and coordinating with the trade authorities for monetary management and struggling against the enemy. The foundation of the Vietnam National Bank was the result of the struggle process to develop an independent, and autonomous monetary and credit system, marking a new development step, i.e, changing the quality of the national monetary and credit sector.

During anti – American resistance war ( 1955 – 1975), the performance of the Vietnam National Bank focused on currency management and circulation under the socialist economic management principles; formulated and promoted bank credit scheme for state - owned and collective rnterprises; improved non-cash payment, established payment centers as commercial banks; expanded international credit and payment relationship; implemented the state exclusive scheme for foreign exchange management.

The Vietnam National Bank was renamed as the State Bank of Vietnam on October 26, 1961.

From 1975 to 1985 - the ten-year postwar economic recovery period: The banking sector had quickly taken over banking system of the old regime in the South, revoked the old banknotes in both the South and the North and issued new kinds of banknotes of the Socialist Republic of Vietnam. In this period, basically, the state banking system did not implement the market – oriented monetary, but still served as a budget tool.

On March, 1988, the Council of Government issued Decree No. 53/HDBT laying the foundation to "transform the banking system to commercial operations”. In May 1990, the Ordinance on the State Bank of Vietnam and ordinance on banking, credit co-operatives and finance companies, were enacted, thereby officially changing the operation mechanism of the banking system of Vietnam from one-tier to two – tier system, in which the SBV implements the state management of currency trading and banking, and implements the task of a central bank; The tier of commercial banks and credit institutions conduct currency trading, credit, payment, foreign exchange and banking services in line with law.

From 1990 up to now, the functions, roles and responsibilities and structure of the SBV continue to be supplemented and completed in line with the Law on the State Bank of Vietnam and the Law on Credit institutions dated 2/12/1997 and their revision in 2003; the the Law on the State Bank of Vietnam 2010, the Law on Credit institutions 2010 and Degree No.88/1998/NĐ-CP dated November 2, 1988 and Degree No.52/2003/NĐ-CP dated May 19,2003, Degree No.96/2008/NĐ-CP dated August 26, 2008 and Degree No.156/2013/NĐ-CP dated November 11, 2013.  

MAJOR RESPONSIBILITIES

Pursuant to the Law onthe State Bank of Vietnam dated June 16, 2010, the State Bank of Vietnam (SBV) is a ministerial agency of the Government - the Central Bank of the Socialist Republic of Vietnam. The SBV performs the state management of monetary and banking activities and foreign exchange; performs the issuance of money, acts as the bank of credit institutions and provides monetary services for the Government; and performs the state management of public services under the jurisdiction of the State Bank. The operations of the SBV aim at stabilizing the value of Vietnamese currency, ensuring safe and sound banking operations and the system of credit institutions, ensuring safety and efficiency of national payment system, and contributing to socio – economic development under the socialist orientation.

Basing on the Law on the State Bank of Vietnam 2010, the Government issued Decree No. 16/2017/NĐ-CP dated February 17, 2017 on defining the functions, tasks, powers and organizational structure of the State Bank of Vietnam. Accordingly, the SBV includes 26 entities, of which 20 entities advise and assist Governor to perform the state management and the central bank functions, 6 entities are theSBV non – productive units.

According to Decree No.16/2017/NĐ-CP, the SBV Governor promulgated several decisions to define the tasks, mandates and organizational structure of the SBV functional entities, as follows:

- Monetary Policy Department:Advising and assisting Governor in formulating national monetary policy and utilizing monetary policy tools in line with applicable laws.

- Foreign Exchange Management Department: Advising and assisting Governor in conducting the state management function of foreign exchange, foreign exchange activities and gold trading in line with applicable laws.

- Payment Department: Advising and assisting Governor in conducting the state management function over settlement of the economy in line with applicable laws.

- Department of Credit for Economic Sectors:Advising and assisting Governor in conducting the state management function over banking credit operations and management of money market in line with applicable laws.

- Monetary Forecasting and Statistics Department: Advising and assisting Governor inconducting monetary forecast and statistics in line with applicable laws.

- International Cooperation Department:Advising and assisting Governor in conducting the state management function of international cooperation and integration under the SBV jurisdiction in line with applicable laws.

- Monetary and Financial Stabilization Department:Advising and assisting Governor in conducting the task of stabilizing monetary and financial sector under the SBV jurisdiction in line with applicable laws.

- Internal Audit Department:Advising and assisting Governor in conducting internal audit and control of operations of the SBV entities.

- Department of Legal Affairs: Advising and assisting Governor in conducting the state management function by formulating legal framework for monetary, banking and foreign exchange operations.

- Finance and Accounting Department:Advising and assisting Governor in conducting the task of finance, accounting, basic infrastructure investment and conducting state management function of accounting and basic infrastructure investment of banking sector in line with applicable laws.

- Human Resources Department:Advising and assisting the CPV Management Board of the SBV and the Governor on human resources management, staffing, management and use of civil servants, officials, remunerations and others as stipulated in applicable laws and regulations.

- Emulation and Rewarding Department: Advising and assisting the Governor in implementing the state management function of emulation and rewarding in the banking sector in accordance with applicable laws.

- Communication Department: Advising and assisting the Governor in managing and implementing the task of information and communication in the banking sector related to the state management function of the SBV.

-SBV Office: Advising and assisting the Governor in instructing and managing the banking operations; implementing administrative reform of the SBV; managing the records and archive activities of the banking sector in accordance with applicable laws.

-Information Technology Department: Advising and assisting the Governor in carrying out the state management function of information technology in the banking sector and applying information technology to the SBV.

-Issue and Vault Department: Advising and assisting the Governor in implementing the state management and central bank’s functions of currency issuance and vault operation in accordance with applicable laws.

-Administration Department: Advising and assisting the Governor in management of public assets, (excluding assets transferred to non-productive units), administrative activities of the SBV in Hanoi and Ho Chi Minh City, including: management of assets, finance, technical infrastructure, logistics, security and heath care for employees.

-Central Banking Department: Advising and assisting the Governor in conducting central bankingoperations.

-Banking Supervision Agency: The banking Supervision Agency is a General Department level agency of the SBV; implementing functions of administrative inspection, specialized inspection and supervision in the banking field within the SBV’s jurisdiction; advising and assisting the Governor in implementing the state management functions over credit institutions, small –scale financial institutions, and banking operations of other institutions; conducting the anti-money laundering in accordance with applicable laws.

-SBV municipal and provincial branches: These branches are dependent units of the SBV, under the central management and leadership of the SBV Governor; advising the Governor to implementing the state management in the fields of monetary and banking operations in their locations and implementing several central banking operations under the Governor’s authorization.

-Banking Strategy Institution: is the state non-productive unit of the SBV; implementing functions of researching and developing banking development strategies and plans; conducting research and banking technology development for the execution of the SBV’s state management functions on monetary and banking activities in accordance with relevant laws and regulations.

-National Credit Information Center of Vietnam: is the state non-productive unit of the SBV; implementing functions of collecting, processing, recording and analyzing credit information for the execution of the requirement of the state management of the SBV; providing information services in accordance with the SBV’ regulations and relevant laws.

-Banking Times: is the state non-productive unit of the SBV; the propagandist and social forum to disseminate the Party’s orientation and guidelines, the State’s legislation and policies and banking operations in accordance with the SBV’s regulations and relevant laws.

-Banking Review:is the state non-productive unit of the SBV; the propagandist and professional forum to disseminate banking profession, science and technology; disseminate the Party’s orientation and guidelines, the State’s legislation and policies and banking operations, scientific and technology achievements of the banking industry in accordance with the SBV’s regulations and relevant laws.

-Banking Training School: is the state non-productive unit of the SBV; training and enriching the knowledge, state management and professional skills of the SBV and banking sector’s staff to meet the development requirements; improving the staff capacity of the SBV and the banking sector in accordance with the Governor’s approved plans.

-Banking Academy: is the state non-productive unit of the SBV; training and strengthening human resource capacity in economic, banking and finance fields at the intermediate, college, undergraduate and graduate level, and in other areas when being authorized; conducting research and consultancy in the economic, banking and finance areas.