TAILIEUCHUNG - Reforming the state bank of Vietnam towards an independent central bank: The application of new public management in Vietnam

Reforming the state bank of Vietnam towards an independent central bank: The application of new public management in many open-richf inancially develop ed countries, the central bank (CB) p lays an imp ortant role in the develop ment of a sound and eff ective f inancial system in par- ticular, and economic develop ment and stabilization of the economy in general. | Journal of Economics and Development Vol. 14, , December 2012, pp. 99 - 112 ISSN 1859 0020 Reforming the State Bank ofVietnam towards an Independent Central Bank: theApplication of New Public Management inVietnam Dang Ngoc Duc National Economics University, Vietnam Email: dangocduc@ Abstract In many open-rich financially developed countries, the central bank (CB) plays an important role in the development of a sound and effective financial system in particular, and economic development and stabilization of the economy in general. In these countries, the governance of the CB is based on the three main principles of New Public Management (NPM) known as the three ‘pillars’, which includes: (i) central bank independence; (ii) central bank accountability, and (iii) central bank transparency. Among them, central bank independence is considered the key and primary ‘pillar’. This implies that the reform of the central bank towards an independent entity thereby could be seen as one of the most important elements of a public administration reform program in developing countries (LCDs), and Vietnam should not be an exception. The State Bank of Vietnam (SBV) – as the Vietnam’s Central Bank – has been operating successfully in the last decades and has contributed greatly to Vietnam’s development. However, the dependence of the SBV on the Government has shown a number of weaknesses that should be overcome as soon as possible in the next stage of the development process, especially when Vietnam becomes an official member of the World Trade Organization (WTO) in 2018. In this paper, three issues will be covered, including: (1) The independent central bank and its positive impact on the development and stabilization of the economy as a theoretical framework for discussion on the need for and the way of the reform of the central bank in developing countries; (2) a factual analysis of the SBV’s problems resulting from its high dependence upon the government, as well

• Ngân hàng - Tín dụng
• Reforming the state bank
• Vietnam towards
• Independent central bank
• The application
• New public management in Vietnam
• Tạp chí khoa học
• Tạp chí Công nghệ
• Quản lí công nghệ
• New public management
• State management
• State management of science and technology