On the occasion of the 80th National Day Anniversary (September 2, 1945 – September 2, 2025), Mr. Dao Minh Tu, Vice Governor of the State Bank of Vietnam, shared his thoughts on the remarkable milestones of the banking sector in the past, present, and its strategic vision towards 2045.
Reporter: On the occasion of the 80th anniversary of the National Day of the Socialist Republic of Vietnam (September 2, 1945 – September 2, 2025) and the 74th anniversary of the establishment of the State Bank of Vietnam, could you please share your insights on the contributions of the State Bank in monetary policy management during the country’s development journey over the past nearly eight decades?
Vice Governor Dao Minh Tu:
Along with the country’s deep international integration and development, the banking sector has undergone profound innovations, especially in the field of monetary policy formulation and implementation. The State Bank of Vietnam (SBV) has gradually improved and modernized its monetary policy tools, moving closer to the modern central banking operations, in line with international practices and the development trends of the national economy. Additionally, with a developing economy, where the banking system is the primary channel for capital allocation, monetary policy has played a crucial role as one of the government’s important macroeconomic policies in promoting economic growth and aiming for rapid and sustainable development. Throughout this historical journey, the SBV has consistently prioritized the goal of controlling inflation and ensuring macroeconomic stability in its monetary policy management. A stable macroeconomic environment and controlled inflation are prerequisites for the country’s economic development, strengthening the foundation, and maintaining the confidence of investors, businesses, and the public in the business environment. This, in turn, helps attract foreign investment, mobilize, and allocate resources optimally.
Monetary policy management has contributed to notable achievements in the country’s socio-economic development, including:
First, successfully controlling inflation in alignment with the targets set by the National Assembly and the Government each year, and maintaining stable inflation expectations. For over a decade, inflation has been kept below the 4.5% target, which is the most important political and economic foundation for ensuring stability and strengthening the national currency.
Second, ensuring liquidity in the credit institution system and providing adequate and timely capital support for production and business activities to foster economic development.
Third, maintaining a stable money market with a downward trend in lending interest rates to facilitate economic growth.
Fourth, achieving basic stability in exchange rates and ensuring smooth foreign currency operations, meeting all legitimate foreign currency demands.
Fifth, in the context of rising global risks and consecutive downgrades of many countries’ credit ratings due to the negative impact of the COVID-19 pandemic, international credit rating agencies have upgraded Vietnam’s credit rating, recognizing its stable macroeconomic foundation and promising growth potential.
Reporter: During the period of national division and prolonged war, especially during the challenging time of the resistance war against America to save the nation, how did the State Bank fulfill its political and financial tasks to contribute to the overall victory?
Vice Governor Dao Minh Tu:
After the Geneva Agreement (July 20, 1954), the North and the South were temporarily separated. The North embarked on the path of building socialism, while the South entered the era of the national democratic revolution.
During this period, the State Bank undertook an extremely special mission: to become the financial lifeline of the revolution, meeting the needs of national construction in the North and effectively supporting the Southern battlefield in the resistance war against America to save the nation.
In the North, which served as the great rear of the entire country, the banking system maximized its role as a powerful tool of the Party and the State in managing and regulating national currency and credit. This significantly contributed to economic stability, production development, and the gradual establishment of the foundation of socialism.
Banking activities during this period mainly focused on capital mobilization, credit, and cash management to ensure liquidity and support the production of food and other essential goods. These activities aimed to build a strong rear in the North and ensure a stable life for the people in both the North and the South.
By promulgating and synchronously implementing financial and credit policies suitable for the wartime conditions, the banking sector proactively mobilized resources from the people, cooperative societies, and various economic sectors, including state-owned and collective enterprises.
Bank credit funds were pooled together, and even actively mobilized with the enthusiasm and responsibility of each individual and socio-economic organization in the North, to channel financial resources to where they were most needed.
Notably, credit capital contributed to the development of the cooperative economy, agricultural estates, and key infrastructure projects during the initial industrialization in the North. Credit activities for production investment, agricultural credit, and savings credit also played a part in forming a self-reliant and self-sufficient economy, gradually moving away from the manual subsidy mechanism towards the construction of a socialist financial and banking system. This period was extremely important, laying the groundwork for the subsequent development of the banking sector.
In the South, on the front line of the battlefield, the unsung heroes of the banking sector directly participated in the resistance war for national liberation. Despite working quietly behind the scenes, their contributions and sacrifices on the financial and monetary front were immense. They braved the bombs and bullets to establish and provide financial resources for the Southern battlefield. Their efforts wrote a legendary chapter in history—the secret money transfer route to support the Southern battlefield from 1959 until the Liberation in 1975.
Looking back, we can affirm that the State Bank excellently fulfilled its political, financial, and monetary tasks during this extraordinary period in the country’s history. The banking sector not only ensured financial support for the resistance war but also contributed to establishing monetary independence and economic-financial sovereignty, ultimately leading to the great victory in the Spring of 1975, reunifying the country, and unifying the currency and the people’s hearts.
Reporter: As we envision the year 2045 – when the country celebrates its 100th anniversary of independence and enters a new era of prosperity and strength for the nation, what are the strategic goals set by the State Bank?
Vice Governor Dao Minh Tu:
Towards the vision of 2045 – a significant milestone marking the 100th anniversary of our national independence, the State Bank sets its strategic goal to steadfastly follow the leadership of the Party while promoting proactiveness, creativity, and a high sense of responsibility. We aim to closely coordinate with ministries, sectors, and localities to achieve the best possible outcomes for the country’s overall development goals.
In this spirit, the State Bank has set forth several key objectives and orientations for the banking sector to realize the aspiration of making Vietnam a prosperous and thriving country with a high income by 2045.
Firstly, continue to innovate and perfect the institutional system.
Secondly, closely monitor and forecast domestic and international economic developments to proactively advise and report to the Government and the Prime Minister on appropriate policies and proactively, flexibly, timely, and effectively manage monetary policy. Ensure harmonious and close coordination with fiscal policy and other macroeconomic policies to control inflation, contribute to macroeconomic stability, and support economic growth, aiming for a double-digit growth rate.
Thirdly, manage credit in alignment with macroeconomic developments, inflation, and the economy’s absorptive capacity to promote economic growth.
Fourthly, continue to invest in and develop modern payment infrastructure and information technology. Additionally, strengthen inspection, supervision, and monitoring to ensure security, safety, and confidentiality in payment and banking activities, meeting the increasingly high demands of businesses and people.
Reporter: We learned that four years ago, on the occasion of the 70th anniversary of its establishment, the State Bank compiled and published a research work entitled “History of Vietnamese Currency.” Could you please share with us the significance and value of this special work?
Vice Governor Dao Minh Tu:
Currency, from a historical perspective, is not merely a means of payment but also a mirror reflecting the political, economic, social, and cultural context of each period. From the ancient coins of the feudal era to the revolutionary banknotes issued during the resistance war and the unified currency after 1975, each tells a story of national independence, the aspiration for national reunification, and Vietnam’s journey towards financial and monetary autonomy.
The book, “History of Vietnamese Currency,” is a special milestone with profound meaning for the banking sector. It is a project that we have cherished, prepared, and dedicated our hearts and minds to for a long time. As the editor-in-chief of this work, I can say that it is a collective effort of a team of scientists and researchers, with 50 people contributing to the publication of the book, “Dong Tien Viet Nam” (Vietnamese Currency). This reflects the meticulous research process, not only in terms of systematic and scientific compilation but also in the detailed analysis and evaluation of each currency during each period/stage. Notably, in this book, we chose the period from 968 (after Dinh Bo Linh unified the Twelve Warlords to establish Dai Co Viet) to 970, when the first currency, “Thai Binh Hung Bao,” was issued. Over the past millennium, we have gone through various historical stages, with thousands of currencies issued throughout our history, all of which are documented and compiled in this book. This work is not just a scientific document but also a legacy of knowledge and a treasure of historical, cultural, and economic value, vividly portraying the country’s development journey through the lens of currency.
We hope that this book will not only serve as a valuable research material for scientists, historians, and economists but also act as a “memory bridge” for the public, especially the younger generation, to understand the values that our forefathers have painstakingly built. It is also our way of expressing gratitude to the nation’s history and affirming the importance of the national currency in the cause of building and defending the country.
Reporter: One notable aspect is that the image of President Ho Chi Minh has been consistently featured on Vietnamese currency since its issuance by the Government of the Democratic Republic of Vietnam, now the Socialist Republic of Vietnam, from 1946 until today. What does this signify?
Vice Governor Dao Minh Tu:
The consistent presence of President Ho Chi Minh’s image on Vietnamese currency, from the first banknotes issued in 1946 to the current polymer banknotes, is a deliberate choice, reflecting a clear intention to showcase national symbols, political stability, and the distinct identity of Vietnamese currency. This is not merely a tribute to an individual in history but an affirmation of the core values that the Vietnamese nation has chosen and cherished.
President Ho Chi Minh is the founder of the Democratic Republic of Vietnam, now the Socialist Republic of Vietnam. More importantly, he is not only a historical figure but also a symbol of morality, culture, and thought for the entire nation. In the eyes of the Vietnamese people, the image of Uncle Ho evokes not only a specific person but also our cultural identity, patriotic spirit, and the moral and spiritual essence of the Vietnamese people. One can say that his image is both familiar and sacred in the consciousness of the Vietnamese nation. The Vietnamese currency, bearing the image of Uncle Ho, has created immense value, not only in economic terms and the stability of the currency’s value but also in fostering trust, pride, and cultural values among the people.
Reporter: From the work, “History of Vietnamese Currency,” what message would you like to convey to the younger generation and the public?
Vice Governor Dao Minh Tu:
The work, “History of Vietnamese Currency,” is not just a book about currency; it is a vivid portrayal of our nation’s history. Through the journey of our currency, we can witness the struggles for independence, sovereignty protection, and national construction of our forefathers.
I believe that for today’s youth and the public, understanding the history of our currency is also a way to comprehend our country’s history and the sacrifices and efforts made to achieve financial and monetary independence.
As President Ho Chi Minh once said simply yet profoundly, “Our people must know our history to understand the roots of our Vietnamese nation.” Understanding history—including the history reflected in our currency—is a way to foster patriotism, pride, and a sense of responsibility to preserve and promote the values that previous generations have painstakingly built.
I hope that today’s young generation—those who carry the aspirations to build a prosperous nation—will realize that each banknote holds not only material value but also the soul of the nation. It represents the sacrifices and efforts of countless generations who fought to protect our national currency, maintain stability, and create a foundation for the country’s future takeoff and robust development. Cherishing the Vietnamese dong is also a way to safeguard trust, ensure stability for the present, and build a brighter future for our beloved country.
Reporter: Thank you, Vice Governor!
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