Vietnam Central Bank Governor Compliments success in mitigating Inflation in Sri Lanka

The Governor of the Central Bank of Viet Nam, known as the State Bank of Viet Nam (SBV), Nguyen Thi Hong, expressed optimism and encouraging sentiments about the improvement of the economy of Sri Lanka during the last 12 months when the Ambassador of Sri Lanka to Viet Nam Prof. A. Saj U. Mendis met her at the Head Office of the SBV. 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 Vietnam, and thus, Vietnam, 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 effectual and competent central bankers in the world. Ambassador Mendis complimented, both during the meeting as well as in writing, this achievement, which reflected and manifested the efficacious and result-oriented policies executed by the SBV.

On the same note, Governor Hong conveyed the best wishes to the Governor of the Central Bank of Sri Lanka Dr. P. Nandalal Weerasinghe, who was also 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 a marked reduction of interest rates, increase of official foreign reserves, and stabilizing of the national currency of Sri Lanka. The ambassador stated that Vietnam, today, has become one of the fastest-growing economies in the world, thus being noted by major advanced economies and large multinational corporations the world over.

He added that a central bank of any nation, be it 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 USD 90 in the 1990s, today has risen to USD 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, among others.

Ambassador 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 envisaging FDI of around $30 billion in 2023. Some of the largest corporates, which are household names, have committed significant investments and FDIs in Vietnam amounting to a total FDI stock of $450 billion.

Both the governor and envoy agreed that one of the determining and deciding factors of this iconic feat of the economic augmentation of Vietnam was the FTAs and partnership agreements it has with a number of key and select countries, numbering 17. Ambassador Mendis also stated that Sri Lanka 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 exports and to woo FDIs and foreign institutional investments. Both the governor and envoy discussed policies and measures that have led to economic advancement and augmentation of countries including Vietnam.