VietNamNet Bridge - Approved by the National Assembly as the Governor of the State Bank of Vietnam (SBV) with a majority of votes on Saturday (April 9), Mr. Le Minh Hung is the youngest-ever leader of the central bank of Vietnam. In the talks with reporters after the vote, some NA deputies said they highly appreciated Hung’s ability.

SBV Governor Le Minh Hung.

Deputy Tran Du Lich of HCM City, a well-known economic expert, said Hung has many advantages.

"Hung previously served as the vice governor of the central bank so he has a lot of experience, and should also have extensive experience in the banking sector. I hope Hung will continue to inherit the unfinished restructuring process of his predecessor," Dr. Lich said.

Dr. Lich said, compared with his predecessor Governor Nguyen Van Binh when taking office, the situation of the banking system is more favorable at present than in 2011, but there are some difficulties, for example, the arrangement and strengthening of commercial banks, settlement of bad debt and the exchange rate policy.

Dr. Lich noted that the new Governor also has to pay attention to interest rates, specifically controlling interest rates and setting flexible exchange rates to benefit exports.

Regarding the exchange rate policy, deputy Lich said though the banking sector has a new governor, Vietnam will find it difficult to have new exchange rate policy because the central bank is not an independent unit, but a member of the government.

"For years the central bank carried out the government's goal of stabilizing macroeconomics, controlling inflation and the exchange rate policy. The State Bank of Vietnam is different from the central bank of other countries that it is a member of the Government, it has to implement the Government’s resolutions," Lich added.

On the issue of bad debts, economist Lich said the new Governor needs to take stronger solutions for the purchasing of assets because the debt trading market is out of the hands of banks.

National Assembly deputy Tran Hoang Ngan, who is also an expert from the HCM City Economics University and a member of the National Financial and Monetary Advisory Council also said that the new Governor of the State Bank of Vietnam Le Minh Hung is knowledgeable about monetary policy, the national financial system.

"In the new term, I believe that the governor will continue to inherit the achievements of his predecessor, especially in giving priority to macro-economic stability, controlling inflation, ensuring reasonable growth, continuing the process of restructuring the banking system to make it stronger and more effective in order to ensure safe banking system and become a lifeline for the economy and the continuing process of bad debt," Ngan said.

Ngan added that to resolve bad debt, in the future the restructuring of the banking system should be strengthened.

Commenting on the new Governor of the central bank, deputy Dang Thanh Tam, Chairman of the Tan Tao Group, said: "We have great expectations for the new governor. He was the vice governor for a long time, then assumed other positions and has returned as the Governor. He is still very young so he may have new and creative thinking".

"One of the biggest expectations is to unfreeze the capital flows for small and medium-sized enterprises. Small and medium enterprises create a lot of jobs but it is very hard for them to have access to capital. The central bank should appropriately allocate capital," Tam said.

Brief biography of Governor Le Minh Hung

Hung, a member of the Party Central Committee, was born on December 11th 1970 in the central province of Ha Tinh. He has been the deputy chief of the Office of Central Party Committee since 2014.

From October 21st 2011 to late 2014, Hung was Deputy Governor of the State Bank of Vietnam.

Previously Hung spent many years working at the SBV under various high positions. Hung was appointed head of the Foreign Exchange Management Department of the central bank at the age of 30. He then held other important titles including head of the International Cooperation Department and the Personnel Department.

While assuming the post of the Deputy Governor of SBV (2011 – 2014), he was responsible for foreign exchange management and international cooperation.

Hung is the son of the late colonel general, Politburo member, Minister of Public Security Le Minh Huong.

Compiled by Na Son