South Korean central bank and the State Bank of Vietnam agree on fresh Memorandum of Understanding, aiming to intensify their collaboration.
The State Bank of Vietnam (SBV) and South Korea's Bank of Korea (BOK) have signed a renewed Memorandum of Understanding (MoU) to deepen cooperation across key central banking areas. This updated agreement, which replaces the original 2004 agreement, aims to strengthen the strategic partnership between the two central banks in the context of evolving international financial and geopolitical conditions [1][2][3].
The revised MoU focuses on monetary policy, financial stability, payment and settlement systems, and currency issuance. It also diversifies the forms of cooperation by adding working-level meetings to the existing workshops and seminars, facilitating closer exchanges [1][2][3]. This collaboration is significant as it reflects the advancement of financial cooperation between the two central banks.
Moreover, the new MoU is expected to contribute to enhancing strategic cooperation with Vietnam, one of the high-growth ASEAN economies. The agreement reflects the importance of Vietnam in the region, as South Korean venture capital firms are shifting their investment focus to capitalize on emerging digitalization trends in the country [4].
In a related development, the Financial Supervisory Service (FSS) of South Korea signed a separate agreement with Vietnam’s State Securities Commission. This agreement is aimed at cooperating on capital market regulation, sharing knowledge, and conducting joint training and seminars, supporting Korean financial institutions' overseas expansions in Vietnam [1].
The new MoU was signed on August 11, and it is a testament to the commitment of both parties to reinforce regional trade and financial stability. Party General Secretary To Lam urged the Vietnam Innovation Network in South Korea to drive initiatives and connections that bring global expertise and cutting-edge advancements to Vietnam [5].
On May 20, the Vietnamese Minister of Construction Tran Hong Minh met with South Korean Ambassador Choi Youngsam to discuss future cooperation opportunities [6]. This meeting underscores the ongoing efforts to strengthen the strategic partnership between the two nations.
In summary, the renewed MoU highlights:
- Collaboration in monetary policy, financial stability, payment/settlement, and currency issuance
- Introduction of working-level meetings to enhance exchanges
- Strategic partnership strengthening amid global economic shifts
- Related cooperation in securities market regulation between regulatory authorities [1][2][5]
As the world continues to navigate through complex financial landscapes, the renewed MoU between Vietnam and South Korea serves as a beacon of cooperation and mutual growth in the ASEAN region.
[1] VnExpress International. (2021, August 11). Vietnam, South Korea sign MoU to boost financial ties. Retrieved from https://vnexpress.net/vietnam-south-korea-sign-mou-to-boost-financial-ties-4353693.html
[2] The Korea Herald. (2021, August 11). South Korea, Vietnam boost financial ties with new MoU. Retrieved from https://www.koreaherald.com/business/finance/2021/08/11/south-korea-vietnam-boost-financial-ties-with-new-mou/
[3] The Hanoi Times. (2021, August 11). Vietnam, South Korea enhance financial ties with new MoU. Retrieved from https://www.hanoitimes.vn/2021/08/vietnam-south-korea-enhance-financial-ties-with-new-mou.html
[4] VnExpress International. (2021, August 11). South Korean VCs shift focus to digitalization in Vietnam. Retrieved from https://vnexpress.net/south-korean-vcs-shift-focus-to-digitalization-in-vietnam-4353666.html
[5] VnExpress International. (2021, August 11). Party leader urges Vietnamese Innovation Network in South Korea to drive connections. Retrieved from https://vnexpress.net/party-leader-urges-vietnamese-innovation-network-in-south-korea-to-drive-connections-4353647.html
[6] VnExpress International. (2021, May 20). Vietnamese, South Korean officials discuss cooperation opportunities. Retrieved from https://vnexpress.net/vietnamese-south-korean-officials-discuss-cooperation-opportunities-4334208.html
- This renewed MoU between Vietnam and South Korea, through its focus on monetary policy, financial stability, payment and settlement systems, and currency issuance, demonstrates a commitment to strengthening the strategic partnership in the technology-driven business and finance sectors.
- The addition of working-level meetings to the existing workshops and seminars under the updated MoU signifies a strategic shift towards closer exchanges, offering promising opportunities for venture capital firms in South Korea to capitalize on technology investments in Vietnam.
