State Bank of Vietnam Governor calls for stronger banking safeguards

State Bank of Vietnam Governor Pham Duc An emphasized the necessity of strengthening the defensive shield of the credit institution system to ensure safety and health amid complex global and domestic economic developments expected through 2025 and early 2026.

During a banking industry conference, the Governor highlighted that credit institutions have played a vital role in stabilizing the macroeconomy, controlling inflation, and supporting growth through priority credit programs and interest rate reductions. He noted that effective exchange rate management has helped stabilize the Vietnamese Dong and attract foreign investment.

Governor An specifically underscored the critical importance of internal control, auditing, and inspection systems. He compared these functions to an “immune system” for a living organism, noting that if these systems are weak or ineffective, risks may go undetected, leaving institutions vulnerable to external shocks and serious consequences.