Monetary policy enters era of strategic communication

Monetary policy enters era of strategic communication

Policy communication is emerging as a core pillar of monetary management, playing a decisive role in shaping expectations, stabilising markets, and sustaining public and business confidence.

At a seminar on the role of banking policy communication held on April 2 in Hanoi, experts emphasised that policy communication in the banking sector needs to shift decisively from a reactive approach to a proactive one. This requires anticipating market reactions across policy cycles and developments, thereby enabling the development of coordinated communication scenarios and implementation plans.

Pham Thanh Ha, Deputy Governor of the State Bank of Vietnam (SBV), said global and domestic economic conditions are becoming increasingly complex and unpredictable, placing greater demands on monetary policy management.

He noted that maintaining currency stability, safeguarding banking operations and credit institutions, and ensuring the resilience of the national payment system, while supporting socioeconomic development, has now become a critical mandate.

“Each financial, monetary, and banking policy introduced today carries significant implications for recovery and development across sectors and for people’s livelihoods,” he said. “Party resolutions over multiple terms have consistently stressed the need to fundamentally reform communications, ideology, theory, and journalism in the new context, with policy communication required to be proactive, timely, accurate, and well-oriented to build consensus and shared understanding.”

Pham Thanh Ha, Deputy Governor of the State Bank of Vietnam (right)

Ha added that the Party’s 14^th National Congress documents also highlight the goal of developing a professional, humanistic, and modern media system that masters technology, with policy communication at its core, which is delivered quickly, accurately, and effectively to foster social consensus and inspire national development in the digital era.

“To effectively convey the Party and state’s policies on monetary management, as well as resolutions of the National Assembly and government on socioeconomic development, and the SBV’s implementation efforts to the public, communication plays a pivotal role, with policy communication as its foremost pillar,” he said.

Experts also underscored the need to strengthen data-driven communication and scenario-based analysis. As audiences become increasingly diverse, policy messaging must go beyond technical data, translating complex information into clear, logical narratives that different groups can understand, thereby capturing both the intent and direction of policy actions.

To Huy Vu, chairman of the Members’ Council at Agribank, emphasised the importance of enhancing communication capacity within commercial banks. These institutions are not only policy beneficiaries but also key partners, effectively acting as an extension of SBV communication.

“Close coordination is needed to ensure consistency and connectivity between SBV and commercial bank communications, thereby supporting the effective implementation of policies related to interest rates, services, and fees. Ultimately, policy communication should be designed as a two-way process,” said Vu.

“Beyond information dissemination, mechanisms should be established to capture feedback and measure market reception, allowing authorities to adjust messaging in a timely manner. Understanding public reactions will enable regulators to better calibrate both content and delivery in line with market realities,” he added.

To Huy Vu, chairman of the Members’ Council at Agribank

Vo Tri Thanh, director of the Institute for Brand and Competitiveness Strategy and a member of the Prime Minister’s Economic Advisory Council, noted that policy communication must be comprehensive and precisely targeted. While official information remains the most credible source, Thanh noted that this alone is not sufficient.

“The market does not only listen to the message; it also assesses the execution capacity behind it. A policy lacking a convincing foundation in terms of resources or implementation capability will struggle to build trust, no matter how clear the message is. Therefore, communication must be accompanied by explanation, evidence, and consistency to reinforce policy credibility,” he stated.

In addition to common challenges, Vietnam has unique characteristics that make policy communication more demanding, added Thanh. In many countries, central banks operate independently from other financial institutions, whereas in Vietnam, governance is highly integrated.

"The SBV not only conducts monetary policy but also performs regulatory and supervisory functions, while coordinating closely with agencies such as the Ministry of Finance and the State Securities Commission,” said Thanh. “This structure creates a highly interconnected policy framework, but also imposes stricter requirements for coordination and consistency in communication. If messaging is not aligned, the market may face information noise and confidence could be undermined.”

Vo Tri Thanh, director of the Institute for Brand and Competitiveness Strategy

Meanwhile, Le Anh Dung, deputy director general of the Payment Department at SBV, stressed that effective communication can accelerate policy impact, while missteps may produce adverse effects.

“It is advisable to establish dedicated sections to publish research papers and scientific studies by sector officials. This would demonstrate the SBV’s technical capacity and enhance the credibility of future policy communications. At the same time, communication must be multidimensional, moving beyond one-way messaging to actively incorporate market feedback and adjust communication intensity accordingly,” he said.

VIR