Independence of the State Bank of Vietnam in performing central bank fucntions

Abstract

On the basis of the criteria for assessment of central bank independence, the paper points out the inadequacies and limitations of the legal provisions on the independence of the State Bank in performing central bank functions such as: since the central bank is under the management of the Government, it is hard for it to protect the objectives of monetary policies; decisions of the central bank depend on the policies of the Government and the Governor of the State Bank of Vietnam; and the lack of statutory powers to manage and operate the performance of central bank functions. This requires to amend and supplement the Law on the State Bank with the view that the State Bank should only perform functions of the central bank of the Socialist Republic of Vietnam.