Delegates at the APEC Finance and Central Bank Deputies’ Meeting (Source: VNA) Quang Nam (VNA) - International delegates attending the APECFinance and Central Bank Deputies’ Meeting (FCBDM) spoke highly of fourpriorities for APEC cooperation initiated by Vietnam in 2017, including Long-term Investment inInfrastructure, Base Erosion and Profit Shifting, Disaster Risk Financing andInsurance and Financial Inclusion.
In aninterview with Vietnam News Agency reporters on the sidelines of the FCBDM, SebastianEckardt, Lead Economist and Programme Leader at the World Bank Group, stressed thatthe priorities are important to many APEC economies.
He emphasised the significance of the avoidance of Base Erosion and ProfitShifting (BEPS) in the Asia-Pacific. He said “BEPS is an important topic in theregion that is very strongly integrated, where you have a lot of companiesoperating across borders.”
In that context, corporate tax across border plays an important role forVietnam as the country is currently home to a line-up of multinationalcorporations. Thus, it is crucial to set up a legal investment framework,including transfer pricing, Eckardt added.
[APEC 2017 Finance and Central Bank Deputies’ Meeting kicks off]
The Southeast Asian nation has experienced numerous climate change shocks,which have resulted in 0.5 percent loss in the national gross domestic productsas estimated by the WB, he noted.
It is necessary to put in place efficient ways to ensure finance safety so thatin case of disasters, finance can be mobilised quickly to support relief andpromote the recovery of related construction.
Regardingfinancial inclusion, Eckardt said achieving financial inclusion will ensurethat population and all enterprises can access to a wide range of financialresources and it is good for economic growth and alleviate poverty.
Michelle Theresa Curry, CEO at the Foundation for Development Cooperation,University of Sydney, also lauded Vietnam’s four priorities. She said thatfinancial risk management tools should be prioritised, especially training forrural women in using credit services through commercial banks.
In a bid to promote financial inclusion, APEC economies should furtherconnections, seek solutions to improve capital access for people living inrural and remote areas as they are playing an increasing role in sustainable agricultures,she added.
Under the national theme of APEC 2017 “Creating newdynamism, fostering a shared future”, the APECFinance and Central Bank Deputies’ Meeting in Nha Trang in February 2017 hasagreed on the four policy priorities in 2017.
On Long-term Investment in Infrastructure, the focus is the mobilisation oflong-term capital from the private sector for infrastructure projects,especially protection of interests and risk mitigation for private investors in public-privatepartnership (PPP) projects.
Base Erosion and Profit Shifting is the topic of great concern of APEC membereconomies and strongly supported by international organizations, especiallyOECD and WB. Upon discussion in the Workshop on BEPS Action Plan Deployment inAPEC (February 2017), FCBDM, andSFOM, the finance officials agreed on the necessity of strengthened knowledgeand practice sharing, regional cooperation in training activities for awarenessraising on BEPS and active participation in the BEPS project of G20/OECD.
On DisasterRisk Financing and Insurance, the topic focuses on financing regimes andinsurance for natural disasters and subsequent compensation.
On Financial Inclusion, the discussionfocuses on credit market and financial services products in order to serve theagriculture and rural development, for sustainable poverty reduction, reformand development of the agriculture sector.-VNA
