Decision No. 112/2006/QĐ-TTg on approving the Project for the Development of the Banking Industry in Vietnam until 2010 and orientations until 2020

Pursuant to …;

Regarding the approval of the Project on Developing the Banking Industry of Vietnam until 2010 and the orientation until 2020

PRIME MINISTER

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Pursuant to the notification No. 191-TB/TW dated September 1, 2005 of the Central Committee of the Communist Party of Vietnam on the objectives, solutions for developing the Banking Industry of Vietnam until 2010 and the orientation until 2020;

Considering the proposal of the Governor of the State Bank of Vietnam at the report No. 49/TTr-NHNN-m dated February 9, 2006.

Pursuant to …;

Article 1Approve the Project on Developing the Banking Industry of Vietnam until 2010 and the orientation until 2020 attached hereto.

Article 2. The State Bank of Vietnam shall take the lead and coordinate with the Ministry of Finance, the Ministry of Planning and Investment, relevant ministries and sectors, People's Committees of provinces and centrally governed cities, and credit organizations to organize the implementation of projects and programs to achieve the objectives, orientations, and solutions for developing the Banking Industry of Vietnam as set forth in this Decision; provide guidance, inspection, supervision, and compile reports on the implementation situation annually to the Prime Minister; conduct mid-term reviews in 2007 and final reviews in 2010.

Entrust the State Bank of Vietnam to take the lead and coordinate with relevant ministries and sectors to organize the implementation of research and development of important projects and programs as follows:

1. The Law on the State Bank of Vietnam (new) to replace the Law on the State Bank of Vietnam (1997) and the Law Amending and Supplementing Certain Provisions of the Law on the State Bank of Vietnam (2003), (to be submitted to the National Assembly in 2008).

2. The Law on Credit Organizations (new) to replace the Law on Credit Organizations (1997) and the Law Amending and Supplementing Certain Provisions of the Law on Credit Organizations (2004), (to be submitted to the National Assembly in 2008).

3. The Law on Deposit Insurance, (to be submitted to the National Assembly after 2007).

4. The Law on Supervision of Safety in Banking Operations, (to be submitted to the National Assembly after 2007).

5. The Program to Enhance Financial Capacity (increase own capital, handle financial arrears, mainly bad debts) of commercial banks according to international accounting standards, loan classification, and the roadmap for the privatization of state-owned commercial banks, (to be submitted to the Prime Minister before June 30, 2006 for approval).

6. The Program to Develop and Improve the Efficiency of Management Activities of Non-Bank Credit Institutions, (to be submitted to the Prime Minister before December 31, 2007 for approval).

7. The Program to Develop and Improve the Efficiency of Management Activities of Other Organizations Engaged in Banking Activities, (to be submitted to the Prime Minister before December 31, 2007 for approval).

8. The Program to Develop Cashless Payments from 2006 to 2010 and Vision until 2020, (to be submitted to the Prime Minister in 2006 for approval).

9. The Project to Modernize Banking and Payment Systems Phase II funded by the World Bank, (to complete implementation before December 31, 2007).

10. The Project on Information Management System and Banking Modernization funded by the World Bank, (to be submitted to the Prime Minister before June 30, 2007 for approval).

11. The Program on the Roadmap to Enhance the Convertibility of the Vietnamese Dong, gradually addressing dollarization in the economy, (to be submitted to the Prime Minister in 2006 for approval).

12. To build a Program on Propaganda and Development of Small-Scale Financial Activities, enhancing the role of small-scale financial activities in poverty reduction efforts, (to be submitted to the Prime Minister before December 31, 2007 for approval).

13. To draft the Government Decree stipulating the provision of information for building and managing national monetary policy, (to be submitted to the Government in 2006 for approval).

Entrust the General Statistics Office to take the lead and coordinate with the State Bank of Vietnam and relevant ministries and sectors to study and develop regulations on the form and mechanism for publishing inflation information (to be completed in 2006).

Within their respective duties and authorities, the State Bank of Vietnam shall proactively develop and implement programs and projects to achieve the objectives, orientations, and solutions for developing the Banking Industry of Vietnam as set forth in the Project on Developing the Banking Industry of Vietnam until 2010 and the orientation until 2020 attached hereto.

Article 3. This Decision takes effect 15 days after its publication in the Official Gazette.

Article 4. The Governor of the State Bank of Vietnam, Ministers, Heads of ministerial-level agencies, Heads of agencies under the Government, Chairpersons of People's Committees of provinces and centrally governed cities are responsible for implementing this Decision./.