In the morning of March 26, 2021, a Delegation from the State Bank of Vietnam (SBV) attended the virtual Meeting between the ASEAN Finance and Central Bank Deputies with Mr. Robert Kaproth - Deputy Assistant Secretary of the United States Department of the Treasury. This was an important event in the series of the ASEAN finance and banking cooperation process under Brunei Darussalam’s chairmanship in 2021.
The SBV delegation attends the virtual ASEAN - US Treasury Deputies' Meeting
Attending the Meeting there were representatives from the Central Banks and the Finance Ministries of the ASEAN member countries, together with the US Department of the Treasury and the ASEAN Secretariat. At the Meeting, on the basis of the priorities for cooperation in the banking and finance sector in 2021 as proposed by the host country Brunei Darussalam, themed "Recovery, Digitalization and Sustainability", the ASEAN Central Banks and Finance Ministries exchanged and discussed the key aspects, namely: (i) Enforcing economic policies in response to the COVID-19 pandemic; and (ii) Sustainable finance.
Economic policies in response to the COVID-19 pandemic
In the discussion session on Economic Policies in response to the COVID-19 pandemic, the US representative shared that the COVID-19 pandemic and the economic crisis have undermined the health and economic well-being of many Americans. Until now, more than 9.5 million US workers have lost their jobs since the emergence of COVID-19, of which 4 million people have lost their jobs for more than 6 months. Without government support, the economic and public health crises can linger, and the national vaccination program could be jeopardized. In parallel with the direct cash support to the people, the US government has also provided prompt emergency aids, loans and investments to those small businesses struggling to restructure and retain their workers, and to acquire necessary medical equipment to ensure safety for their employees.
From Vietnam, the SBV also shared about Vietnam's recent successes, especially in implementing the dual goals of both successfully containing the pandemic while maintaining the economic growth, and the positive prospects for FDI attraction based on Vietnam's political stability, abundant and qualified human resources, the newly signed FTAs, etc. The National Assembly and the Government of Vietnam have set a growth target at 6-6.5% for 2021, and inflation is expected to be controlled around 4%.
Photos of delegates attending the Meeting
In the coming time, Vietnam will continue to prioritize the goal of successful response and containment of the COVID-19 pandemic, with special focus on ensuring vaccination for all people. In the banking sector, the monetary policy will continue to be flexibly managed to maintain the liquidity in the banking system, support businesses and the people facing difficulties caused by the pandemic, while continuing with the policy of improving credit quality and handling with bad debts.
Sustainable finance
For the post-COVID period, the Biden Administration has set a number of priorities for economic recovery including climate issues both inside and outside the US, employment, modern and sustainable infrastructure, and restoration of scientific integrity in the federal government. In order to realize these priorities, the US representative confirmed that the Biden Administration would sign and issue a series of relevant executive order, re-establish the President's Science and Technology Advisory Council, etc., thereby delivering a clear message of considering issues related to climate, science, and integrity as an essential element of the US foreign and national security policy.
The SBV representative affirmed that sustainable finance plays an important role in improving the efficiency and competitiveness of the regional economy, while protecting the ecological systems and enhancing the cultural diversity and the social well-being. The SBV hoped to contribute positively to the international community's efforts to respond to climate change impacts – as one of the top global challenges. The SBV also emphasized the need for a comprehensive, balanced approach in order to avoid serious consequences for the Earth and humanity due to the impacts of climate change, including negative impacts on security and stability in many regions of the world.
On the same day, after the virtual ASEAN - US Treasury Deputies' Meeting, the SBV delegation would also attend the ASEAN Finance and Central Bank Deputies’ Meeting (AFCDM).
VA