The 2013 Vietnam Finance Conference needs to recognise the importance of improving the nation’s macro-economic and financial supervision proficiency in the context of a turbulent market environment.
Deputy National Financial Supervisory Commission (NFSC) Chairman Ha Huy Tuan made the statement at the opening ceremony of the conference themed “Reinforcing National Financial Supervision: Policy and Technology Initiatives”, in Hanoi on August 27.
He recalled the impact of the global financial crisis on Vietnam’s economy and stressed the need for stabilisation. He said Vietnam’s financial monitors and supervisors must be capable of identifying incipient financial crises, preventing systematic risks, and addressing crisis-related issues as promptly as possible.
Tuan recommended strictly adhering to the principles of the market, expanding supervisory agency powers, and promoting transnational cooperation in macro-economic supervision.
Vietnam should look to construct a legal framework facilitating marco-economic stabilisation and consult with foreign experts to stress test the national financial system.
Central Institute of Economic Management Deputy Director Tran Kim Chung summarised the current state of Vietnam’s financial supervision system.
He said the system’s focus on banking, insurance, and securities has delivered a healthier monetary market and more intense competition.
Chung warned the system’s jurisdictional overlaps reveals opacity in financial management and inefficiency in auditing.
The system can eliminate this waste by encouraging relevant agencies to share information and apply the information technology infrastructure that can alert authorities to emerging symptoms of potential problems.
State Bank of Vietnam’s Strategic Banking Institute Director Nguyen Thi Kim Thanh raised her concerns regarding the risks Vietnam faces as the national economy takes the lead in the ongoing international integration process—risks balanced by a surfeit of potentially lucrative opportunities.
Other delegates touched upon the current supervisory system’s strengths and weaknesses including its rate of IT application and its promotion of market surveillance and local stock market information disclosure.
Vietnam Finance 2013 also offered participants a chance to learn from their peers’ experiences and familiarise themselves with the latest technological solutions developed by international experts on the industry’s cutting edge.
The conference was jointly organised by the Finance Ministry and the International Data Group (IDG Vietnam).