The State Bank of Vietnam is set to streamline its operations with significant restructuring, reducing its number of administrative units from 20 to 18, according to new government regulations.
On February 24, the Vietnamese government issued Decree No. 26, which outlines the functions and organizational structure of the State Bank. This change will take effect on March 1, marking a pivotal moment as the institution aims to improve its efficiency and effectiveness in managing the nation’s monetary policies and banking operations.
The amended structure will consist of 18 administrative bodies, including departments focused on monetary policy, payment systems, credit for economic sectors, and financial stability, as well as units dedicated to international cooperation and legal affairs. Notably, the restructuring encompasses the reduction of departments from 11 to 8, following the merger and streamlining of specific roles.
Governor Nguyen Thi Hong has been appointed to lead this restructuring initiative. She noted the planned elimination of the Internal Audit Department and the Communications Department, along with the transformation of the Foreign Exchange Management Department, which will now operate as the Foreign Exchange Management Bureau. The new framework also introduces the Credit Institution Supervisory Bureau, aimed at enhancing the safety of the financial system.
"We need to have pathways to guarantee regular operations of the industry and to secure state assets," emphasized Governor Hong during discussions about the impending changes. Her remarks reflect the commitment of the State Bank to safeguard both the institution and the broader economy during this transition.
Changes don’t stop at departmental cuts. Public service units supporting the State Bank will also see reductions, moving from five units down to two: The National Credit Information Center and the Banking Times. Governor Hong is tasked with reporting to the Prime Minister on the status of these units and any additional adjustments necessary to improve operations.
The restructuring effort is attracted considerable attention, especially as it coincides with broader initiatives to optimize the banking sector's operations. At the annual conference on banking objectives held on December 14, 2024, Deputy Prime Minister Ho Duc Phoc highlighted the significance of this restructuring, advocating for continuous reviews and adjustments within the State Bank to optimize efficiency.
Phoc noted, "The largest reductions will be at bank branches and the banking supervisory agency," pointing out the need for effective oversight amid such systemic changes. These adjustments also link to the government’s objectives surrounding digital transformation and credit system restructuring expected to be pivotal for the banking sector over the next fiscal year.
Throughout this transition, Governor Hong has acknowledged the challenges faced by staff and external stakeholders. The need for careful planning and pathway development is emphasized to prevent disruptions to banking operations and uphold commitments to personnel within the state’s regulatory framework.
The State Bank plans to conduct thorough evaluations of each departmental function, creatively finding ways to consolidate workloads without sacrificing the quality of service rendered to the public. This diligence ensures the continuity of support to the nation’s banking industry and instills confidence among investors and consumers alike.
With this pivotal reconstruction, the State Bank of Vietnam strives to establish itself as not only a regulatory entity but as a proactive participant facilitating the country’s socioeconomic growth through strategic financial policies and responsive governance.
Looking forward, as the Vietnamese banking sector evolves, this restructuring initiative could set the stage for increased competitiveness and innovation, particularly as the nation navigates complex economic landscapes, both regionally and globally. Stakeholders within the banking community will be watching closely as the reforms take root, eager to see how they translate to enhanced operational capabilities and greater stability.