Name
The State Bank of Vietnam was originally established by the Democratic Republic of Vietnam (i.e. the North Vietnamese regime during the Vietnam War) on May 6, 1951. At that time, it was originally called "Ngân hà ng Quc gia Vit Nam/Vietnam National Bank" (Vietnam National Bank), and later officially changed its name to "Ngân hà ng Nhà nc Vit Nam" on October 26, 1961 (State Bank of Vietnam).] "Nhà nc" and "Quc gia" have different meanings in Vietnamese. "Nhà nc" generally refers to the government entities of the country, and "Quc gia" refers to the country as a whole. Therefore, the name "Ngân hà ng Quc gia Vit Nam" is now generally used in Vietnamese to refer to the State Bank of Vietnam established by South Vietnam.
At the same time, the State of Vietnam (i.e. the regime of Emperor Bao Da) also established its own National Bank on December 31, 1954, also known as "Ngân hà ng Quc gia Vit Nam/
History
See: History of Vietnam
The 20 Piast French Indochina Dollar Note issued by the Saigon Branch of Oriental Exchange Bank in 1898
Vietnam was under French colonial rule in French Indochina in the late 19th century. At that time, the colonial government entrusted a local commercial bank, Oriental Exchange Bank, to manage the currency issuance of Indochina. In August 1945, after the Vietnam Alliance for Independence (Viet Minh) launched the August Revolution to overthrow the government of Vietnam (the regime of Emperor Bao Da), on September 2 of the same year, Ho Chi Minh issued the Declaration of Independence in Hanoi's Ba Dinh Square, declaring Vietnam's independence, and the Democratic Republic of Vietnam was officially established. However, in the early days of the country's establishment, urgent livelihood issues in the country were waiting to be resolved, and the new government was facing many financial challenges. The government's coffers kept more than 1.25 million piastres of French Indochina dollars left by the previous government, and more than half of the banknotes were in a damaged state; while the banknote issuing institution, Oriental Exchange Bank, was still under the control of the French colonialists. The new government was unable to make ends meet, so it was ready to issue new currency as soon as possible to replenish the national treasury.
However, soon after the First Indochina War broke out in December 1946, and the whole country of the Democratic Republic of Vietnam entered a wartime economic state. The government established three currency areas to issue currencies in their respective regions. On February 3, 1947, Vietnam's first credit institution, the "Production Credit Office" (Vietnamese: Nha tín dúng sn xu t/ya credit Later, on May 6, 1951, the State Bank of Vietnam (Vietnamese: Ngân hà ng Quc gia Vit Nam) was officially established in accordance with the Decree No. 15/SL issued by President Ho Chi Minh (S c lnh s15/SL ngà y 6-5-1951). In 1959, the Central Committee of the Communist Party of Vietnam decided to unify the South with armed forces, and the Vietnam War broke out. On October 26, 1961, the State Bank of Vietnam changed its name from "Ngân hà ng Quc gia Vit Nam" (Vietnam National Bank, VNB) to "Ngân hà ng Nhà nc Vit Nam" (State Bank of Vietnam, SBV).
During the period from the partition of the North and the South to the end of 1964, the State Bank of Vietnam gradually developed cooperative relations with 265 banks from 41 countries. During the same period, under the leadership of the State Bank, the Vietnam Construction Bank (Vietnamese: Ngân hà ng Kin tht Vit Nam/Bank Construction Vietnam?) and the Vietnam Foreign Trade Bank (Vietnamese: Ngân hà ng Ngoi thng Vit Nam/Bank Foreign Vietnam?) were established.
US troops withdrew from Vietnam in 1973. By the end of 1974, North Vietnam launched the Spring Offensive. In April 1975, Saigon fell and the regime of the Republic of Vietnam in the south disintegrated. In the same year, the Provisional Revolutionary Government of the Republic of South Vietnam led by North Vietnam took over the power in the south. During this period, in order to restore society and develop the post-war economy, the State Bank of Vietnam in North Vietnam took over the State Bank of Vietnam in South Vietnam and its banking system.
After the State Bank of Vietnam seized power in the South, in order to remove and destroy the South Vietnamese dong left over by the old regime and gradually unify the national currency, the Political Bureau of the Central Committee of the Communist Party of Vietnam decided to issue the Vietnamese dong in the South to replace the legacy currency of the South Vietnamese regime, and from September 22 to 30, 1975, the population replaced it with 500 old South Vietnamese dong for 1 new Vietnamese dong. Since Vietnam has formed two major currency areas, one is the northern area issued by the State Bank of Vietnam (SBV) of the Democratic Republic of Vietnam, and the other is the southern area issued by the State Bank of Vietnam (VNB) of the Provisional Revolutionary Government of the Republic of South Vietnam.
In July 1976, the administrative institutions of South Vietnam were incorporated into North Vietnam, Vietnam was officially unified, and the Socialist Republic of Vietnam was established. At this time, the State Bank of Vietnam in South Vietnam was officially merged into the State Bank of Vietnam in the North. In order to officially start the unification of the national currency, on April 1, 1978, the Political Bureau of the Central Committee of the Communist Party of Vietnam issued "Resolution No. 08" (Ngh'quy t s 08/NQ-TW). According to the resolution, the State Bank of Vietnam began to issue new banknotes and recycle old banknotes across the country on May 5 of the same year.
In 1986, after the Communist Party of Vietnam changed its leadership, it gradually changed its economic policy, learned the model of market economy and opening up investment, and began to reform and open up. In May 1990, Vietnam's National Assembly approved two banking regulations, and Vietnam's banking system entered a period of comprehensive transformation. From 1990 to 1996, the State Bank of Vietnam adopted an active interest rate policy tool to manage monetary policy and establish a sound money market. During this period, domestic credit grew at an average annual rate of 36%. In 1997, the National Assembly of Vietnam approved the Law on the State Bank of Vietnam (Lu t Ngân hà ng Nhà n c Vit Nam 1997) and the Law on Credit Institutions (Lu t Các tch c tín d ng), which laid the basic legal foundation for the continued transformation of Vietnam's banking system towards a market-oriented and further international integration. In 2003, the National Assembly of Vietnam issued the Law on the Amendment of the State Bank of Vietnam (Lu t saži bsung Lu t Ngân hà ng Nhà nc Vit Nam 2003), and in 2010, the National Assembly of Vietnam issued the new Law on the State Bank of Vietnam (Lu t Ngân hà ng Nhà nc Vit Nam 2010). On May 6, 2015, the official website of the State Bank of Vietnam was changed, the interface was redesigned, and the new emblem was also adopted. The old emblem is no longer used
The Governor of the State Bank of Vietnam is one of the members of the Cabinet of the Government of Vietnam. The President is nominated by the Prime Minister and approved by the National Assembly, while the Deputy Governor is recommended by the Governor and appointed by the Prime Minister. The term of office of the President and the Deputy Governor is 5 years.
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