SBV Deputy Governor Pham Thanh Ha attends series of ASEAN high-level meetings

At the ASEAN-US Treasury Deputies’ Meeting, the representative from the US Department of the Treasury shared and discussed with the ASEAN Finance Deputy Ministers and Central Banks’ Deputy Governors on the topics of economic recovery and digital finance. It was agreed by the delegates that the economic recovery process in ASEAN member states is facing several risks from the tightening of the monetary policies in developed countries and the surge in commodity prices, causing increased inflationary pressures and supply chain disruptions. Regarding digital finance, the US Department of the Treasury shared that the US President had issued an Executive Order on Ensuring Responsible Development of Digital Assets, which prescribes for the management of risks and leveraging the advantages of digital assets and new technologies. The Order emphasizes the priority of protecting customers and investors, financial stability, and national security when developing digital assets. At the meeting, ASEAN member states also shared their views and practices on developing digital assets, especially the application of digital technologies in revenue collection and the implementation of the central bank's digital currencies (CBDCs). The member states also proposed and hoped that the US Department of the Treasury would provide enhanced support for the capacity building in and share experience with ASEAN member states in order to promote the development of digital assets in this region. The delegations committed to maintain and strengthen the cooperation between the US Department of the Treasury and the Ministries of Finance and the central banks of ASEAN member states, and emphasized the importance of jointly implementing the above-mentioned engagement activities in the future.

At the ASEAN Central Bank Governors and ASEAN Financial Institution CEOs Dialogue, the participants discussed and shared about two current themes of common interest: i) the ASEAN Banking Interoperable Data Framework and the ASEAN Interoperable QR Code Initiatives, and (ii) Enhancing Financial Connectivity across the ASEAN Region. The participants all agreed that the ASEAN Banking Interoperable Data Framework could bring about great benefits to the ASEAN Community, such as innovating banking products and services to reach out to the underserved and under-accessed populations; more comprehensive information access for the policy-making; improving the transparency and the integrity of shared information, and enhancing the efficiency and compliance (such as anti-money laundering and combating terrorist financing programs). The outcomes of this Framework are expected to bring about great benefits, especially in terms of creating an interoperable data flow across borders, which is unbound by regulatory constraints. The participants also supported and highly appreciated the initiative for enhancing the ASEAN financial connectivity through the establishment of an interoperable and multilateral cross-border payment system connecting all ASEAN member states, thereby enabling the ASEAN people to make and receive payments in a timely, cost-effective, and secure manner.

At the ASEAN Finance and Central Bank Deputies’ Meeting (AFCDM), after having listened to a presentation by the host country Cambodia on the cooperation priorities for ASEAN in 2022, the delegates exchanged and discussed the economic developments over the recent months and the Roadmap for ASEAN Integration in Finance, focusing on the performance results and the future cooperation priorities of the Working Groups. The delegates shared the view that the region's economic outlooks have been obviously impacted by the COVID-19 pandemic, as well as the current geopolitical tensions. Regarding the topic of sustainable financial cooperation, the delegates made high evaluation for the completion and publication of the ASEAN Taxonomy for Sustainable Finance, which demonstrates the joint commitment of the ASEAN member states in transitioning towards a region of sustainable development. Speaking at the meeting, SBV Deputy Governor Pham Thanh Ha highly appreciated the efforts of the ASEAN Working Groups in effectively implementing the initiatives of the ASEAN monetary and financial cooperation process in the context of numerous challenges and difficulties caused by the COVID impacts. Thanks to those efforts, ASEAN has become increasingly integrated in terms of finance and banking, and has maintained relatively stable conditions in the face of uncertainties in the global economy. The SBV Deputy Governor proposed that in the near future, the Working Groups need to put current issues of interest such as digital transformation and sustainable finance into their work plan priorities. The SBV Deputy Governor also affirmed the SBV's commitment to enhancing financial stability and integration in the ASEAN region in order to ensure the progress of the region's economic recovery and development.

 

Delegations attending the meeting

On the side of the high-level meetings, a seminar themed "Sustainable Finance: Mobilizing financial resources for post-COVID economic recovery" was held with the participants from the international financial institutions (the Asian Development Bank, the World Bank, the International Monetary Fund and the Asian Infrastructure Investment Bank). At the seminar, the participants shared their experience, exchanged and discussed about possible solutions to mobilize financial resources to promote green and sustainable recovery, and to facilitate the realization of the goals in the regional Sustainable Development Agenda. In addition, the participants also discussed about possible solutions to address the current fiscal challenges, and committed to further strengthening the cooperation to respond to the climate change challenges, heading toward the achievement of the Sustainable Development Goals in the long run.

LK