ASEAN steadfast in commitment to promoting regional economic growth

The Press Conference on the outcomes of AFMGM (Photo: VietnamPlus)

Hanoi (VNA) - Finance Minister Dinh Tien Dung and Governor of the State Bank of Vietnam (SBV) Le Minh Hung on October 2 co-chaired the sixth ASEAN Finance Ministers and Central Bank Governors’ Meeting (AFMGM).

The online meeting is the most important event in a series of regional finance-banking cooperation activities hosted by Vietnam in 2020.

During the event, participants discussed global and regional macro-economic situation, COVID-19 response policies as well as measures to support economic recovery following the pandemic.

They affirmed their commitment to promoting economic growth towards finance stability and integration in the ASEAN region despite uncertainties caused by the COVID-19 pandemic.

They also considered the launch of cooperation initiatives within the framework of the ASEAN monetary-financial integration roadmap.

Promoting application of technology

The participants exchanged their views on risks and challenges posed by the COVID-19 pandemic to the global and regional economy.

They agreed that the pandemic could be complicated and this is the biggest risk to economic recovery in the region in 2021.

Representatives of international organisations said that financial and monetary and banking management agencies of ASEAN member nations should continue to be cautious when building and implementing fiscal and monetary policies to both help businesses and economies return to normal, and ensure the safety of domestic finance-banking systems.

Due to uncertainties caused by the health crisis, they highlighted the need to step up technological application and digital transformation in financial-banking services which, they said, will contribute to a sustainable regional economy resilient to shocks similar to COVID-19.

Participants agreed that regional finance cooperation is one of the key factors that helps countries strengthen their capacity to cope with the impact of economic uncertainties in the coming time while supporting economic recovery in an inclusive and sustainable way.

They reaffirmed commitments to ensure the continuous flow of goods and services, expressing their belief that cooperation is key to help ASEAN win the pandemic as well as resume the regional growth.

Commitments to continue implementing priorities for cooperation and policy coordination among countries in the region and international financial institutions will promote sustainable economic growth and enhance financial stability in the ASEAN region, Finance Minister Dinh Tien Dung said.

Liberalisation of financial services

In their joint statement, Finance Ministers and Governors of Central Banks acknowledged implementation outcomes of working groups.

Regarding capital market development, they noted and approved a report on promoting sustainable finance within ASEAN with valuable recommendations for the bloc’s member countries.

They also acknowledged negotiation outcomes of the Working Group on Financial Services Liberalisation and the ninth package of financial commitments under the ASEAN Framework Agreement on Services, while calling on ASEAN member nations to make more meaningful and significant commitments in the field.

The meeting adopted the draft revised Roadmap to the ASEAN Insurance Integration Framework (AIIF).

The 6th ASEAN Finance Ministers and Central Bank Governors’ Meeting (AFMGM). (Photo: VietnamPlus)

Promoting regional payment connection

Participants spoke highly of cooperation outcomes of working groups in the banking sector with almost all the targets set early this year being met.

Central bank governors also approved a number of cooperation initiatives, including a report on the role of the central banks in climate and environment risks, principles of Sustainable Banking in ASEAN proposed by Vietnam, and the cyber security risk information sharing programme (CRISP), among others.

Governor of SBV Le Minh Hung stressed that Finance Ministers and Governors of Central Banks were committed to continue promoting regional finance-monetary integration, adding that the regional finance and monetary cooperation process is still going strong in spite of severe impacts of the COVID-19 pandemic./.