I. FINANCIAL INSTITUTIONS.

Concept: are institutions whose main activity is to act as financial

intermediaries in the process of transferring capital from lenders to riders
or saver to investor.
II. TYPICAL INTERNATIONAL FINANCIAL INSTITUTIONS.
1. International Monetary Fund.
Conceived in July 1944 at the United Nations Bretton Woods Conference in New
Hampshire, USA
Concept: an international organization that oversees the global financial system
by monitoring exchange rates and balance of payments, as well as technical
assistance and financial help when required. The IMF headquarters are located in
Washington, D.C., the capital of the United States
2. Types of IMF credit.
+ Ordinary credit: the borrowed country must have a short-term economic
adjustment program; the maximum amount to be borrowed is 100% of that country's
shares in the fund; term 3-5 years; 3-year grace period with interest rate of about 5-
7.5%.
+ Additional loans: the loan amount can be from 100% to 350% of the shares of
that country, depending on the degree of shortage; term 3-5 years; grace period of 3.5
years; interest rates at market interest rates.
+ Provision loan: maximum 62.5% of shares; 5-year term; grace period 3.5
years; market interest rate.
+ Long-term loans: borrowing countries must have medium-term economic
adjustment programs and all loans must closely follow the implementation of the
program quarterly and annually. The loan amount is equal to 140% of the shares; term
of 10 years; grace period of 4 years; interest rate 6 - 7.5% per annum.
+ Loans to compensate for export losses: for developing countries with a
sudden shortage of trade balance during the year. The maximum loan amount is equal
to 100% of the shares; term and interest rate like regular credit.

+ Transitional loans to the economy: new types of credit appear to support

countries to transition from a centralized economy to a market economy; 5-year loan
term; 3.25-year grace period; market interest rate. In addition, there are some other
types of credit such as borrowing to maintain conditioning reserves, borrowing to
adjust the structure, etc.
III. Functions and tasks of the International Monetary Fund

The IMF has the primary task of ensuring the stability of the world's monetary
system – the system of international exchange rates and payments that allows citizens
and their countries to trade with each other.
 The IMF supports member countries through 3 main functions:

1. Supervise

Monitor the global economic situation and member countries and also advise on
economic policies for member countries. This function is performed through the
study, analysis, statistics and forecasting of regional, national and global economies.

The IMF will also provide advice to member countries and promote policies
designed to promote economic stability, reduce vulnerability to economic and
financial crises and contribute to raising living standards.

2. Financial support

Provide short- and medium-term financial assistance to Member States when

they encounter temporary difficulties related to the balance of payments. Specifically,
offering interest-free loans with extended maturity periods. The financial assistance
function is a core responsibility of the International Monetary Fund.

3. Capacity Development

Technical development assistance to Member States to improve their ability to

run their economies. Examples include the design and implementation of more
effective policies for management and taxation, monetary policy and exchange rates,
expenditure management, supervision and administration of banking and financial
systems, economic statistics and legislative frameworks.

IV. Role:

The mission of the organization is as follows: "Promote global monetary

cooperation, financial stability, facilitate international trade. Thereby promoting
sustainable economic growth, as well as reducing poverty worldwide."

1. The IMF plays an important role in developing tools for countries to

measure, assess and improve macroeconomic status as well as financial, price and
monetary stability. Accordingly, the IMF will help countries find better solutions to
implement measures in these areas, identify lessons learned from countries and clarify
the choices any country can have.
2. Help create a global community of practising professionals through
dialogue, consultancy, research as well as technical assistance and training.
3. Promote international cooperation through a permanent institution
responsible for providing a collaborative and consultative apparatus for resolving
international monetary issues.
4. Facilitating the expansion and balanced growth of global trade activities,
contributing to the increase in employment demand, real incomes and the
development of productive resources in member countries.
 5. Enhance foreign exchange stability in order to maintain the order of
foreign exchange activities among members, avoid currency devaluations to compete
among countries.
6. Support the establishment of a multilateral payment system among
members and remove foreign exchange restrictions that affect the growth of world
trade.
7. Shorten the time and minimize the balance in the balance of payments of
member countries.

V. Organizational structure of the IMF

The highest governing body is the Board of Governors, which meets once a year,
decides on basic issues, for a term of 5 years. In addition to the Board of Governors
there are development committees, interim committees of the Board of Governors.
The Board of Directors is chaired by the general manager, carrying out the day-to-day
work.

The IMF has an organizational structure consisting of the following main

components:

Board of Governors: This is the supreme decision-making body, consisting of a

governor and an alternate governor from member states.
The governor is appointed by the member state and is usually the finance
minister or central bank governor.

Ministerial Committees: The Board of Governors is consulted by two

Ministerial Committees: the International Monetary and Financial Committee
(IMFC) and the Development Committee.

Executive Board: The 24-member Executive Board is responsible for managing

the day-to-day affairs of the IMF. The 24 members of the Executive Board will
represent the 189 member states. The Executive Board will discuss and resolve all
issues such as reviewing the economic status of member countries, economic policy
issues related to the global economy.
Voting mechanism

Any resolution may only be passed in the Board of Governors or the Board of
Chief Executive Officers with a minimum of 85% vote. The voting rights of each
member state depend on the contribution of financial resources to the fund.
 VI. RELATIONSHIP BETWEEN IMF AND VIETNAM
The Republic of Vietnam joined the International Monetary Fund in 1956. In
1975 membership passed to the Republic of South Vietnam. In 1976, the Socialist
Republic of Vietnam officially joined under membership of the previous two
countries.
In the period 1993-2004, the IMF provided Vietnam with 3 loans with
total capital of 473 million SDR (equivalent to 653.3 million USD). From April
2004 to
Now, there is no longer a loan program between the two sides. As of 31/12/2012,
Vietnam has paid off all previous debts to the IMF.
Currently, Vietnam-IMF relations continue in many areas such as
macroeconomic monitoring, dialogue, policy advice, training and technical assistance
to Vietnam. Namely:
- Macroeconomic monitoring: Every year, periodically, the IMF conducts
assessments on the macroeconomic situation of Vietnam through 2 delegations:
Article IV delegation and staff delegation to study and update the macroeconomic
situation of Vietnam

Nam to give advice, assessment and proposals on macro policies in the fields of
finance, banking, trade, SOE reform ... Recently (in 2018), for the first time, the IMF
applied the shortened order (Lapse-of-time, LOT, no procedure passed at the
Executive Board) to the Article IV Delegation Report for Vietnam, expressing its
appreciation for macroeconomic results and policy management of the Government
and SBV as well as confidence in the economic prospects of Vietnam and other
countries. Government management solutions in the coming time.
- Technical assistance: From 1994 to 2020, the IMF provided 200 technical
assistance delegations
support for Party and Government agencies of Vietnam, including the Central
Economic Department
The State Bank, the Ministry of Finance, the Ministry of Planning and
Investment (General Statistics Office) on such contents as: Public investment
management, Building models of policy analysis and forecasting, foreign sector
statistics, budget management, monetary and foreign exchange activities, central
banking operations, etc banking supervision inspection, anti-money laundering and
counter-financing of terrorism, economic statistics, debt management... In 2020, in
addition to the aforementioned areas, the IMF provided technical assistance on
assessing the framework for managing self-borrowing and self-paying external debt.
In addition, the IMF also regularly organizes dialogues on policy advice and
information for Party, State and Government agencies. In 2020, in addition to some
technical assistance that was delayed under the impact of the Covid epidemic such as
the project to strengthen the statistical capacity of the external sector. Other technical
assistance projects such as the Technical Assistance Project on Building Capacity
Building Forecasting Systems and Policy Analysis continue online.
 - Training: Every year, the IMF provides master's and doctoral scholarships and
grants for staff of the SBV and related ministries and branches to attend long-term and
short-term training courses on policy topics and macroeconomics, finance, banking,
currency, statistics, etc. at IMF Regional Training Institutes in Singapore, USA; IMF
regional offices such as Regional Office for Asia and the Pacific (OAP), Office for
Capacity Building in Thailand (CDOT)...; and selected member states. From 1993 to
December 2020, the IMF has trained more than 1700 Vietnamese officials in the
fields of macroeconomic management, economics, finance, banking, etc. In addition,
the IMF Representative Office in Vietnam also organizes technical assistance
activities, secondments, and regular experience exchange with officials of ministries
and agencies such as the Ministry of Planning and Investment, the Ministry of Finance
and the SBV.