On March 28 - 31, 2023, the delegation of the State Bank of Vietnam (SBV) headed by SBV Deputy Governor Pham Tien Dzung attended the 19th ASEAN Central Bank Governors' Meeting (ACGM), the 9th Joint Meeting of the ASEAN Finance Ministers and Central Bank Governors (AFMGM), and other related events held in Bali, Indonesia.
The theme for the regional cooperation in 2023
With the theme chosen by Indonesia for its ASEAN Chairmanship 2023 of “ASEAN Matters: Epicentrum of Growth”, Bank Indonesia (the central bank) and the Indonesian Ministry of Finance had announced a number of priority areas in the regional finance and banking cooperation for 2023 as follows: Restrucring the economy; Digital economy; and Sustainable development. These priority areas are further specified into the following activities: Collaborating policies on macro safety; Connecting regional payment; Enhancing the use of domestic currencies in the region.
On behalf of the SBV, Deputy Governor Pham Tien Dzung expressed high evaluation for the proposals of Bank Indonesia and the Indonesian Ministry of Finance, which aim to address the urgent issues that the member states are facing, and to provide long-term orientations towards sustainable development in the region.
The banking and finance integration process
Deputy Governor Pham Tien Dzung also expressed his appreciation for the achievements of the working committees over the past years; and proposed that these groups discuss about plans to review the set targets up to 2025 and prepare for the next planning process for the period of 2025 - 2035.
SBV Deputy Governor Pham Tien Dzung at the ASEAN Finance Ministers’ and Central Bank Governors’ Meeting.
The SBV Deputy Governor requested the Working Committee on Capital Account Liberalization (WC-CAL) to enhance the discussion and information sharing about the capital flow situation and the practices of macro safety policy application of the members. It is a very important aspect in the context that global financial conditions are facing many risks and unpredictable fluctuations.
Besides, the SBV Deputy Governor also requested the Working Committee on ASEAN Banking Integration Framework (WC-ABIF) to conduct assessments and share lessons learned from the supervision and risk management of the banking systems in the region, based on a number of recent bank failures in the US and Switzerland.
The SBV Deputy Governor welcomed the activities and the initiatives of the Working Committee on Payment and Settlement Systems (WC-PSS) over the past years, with a view to developing a cross-border payment connection network and considering the possibilities of establishing a multilateral payment mechanism in the ASEAN region. Vietnam has accomplished a bilateral QR payment connection with Thailand and has been discussing with the National Bank of Cambodia (NBC) on a connection plan between the two countries. Moreover, the SBV has been considering the possibilities of participating in multilateral connection projects and initiatives in the region.
The 20th Joint Meeting of the ASEAN Finance Ministers and Central Bank Governors will be held in Jakarta, Indonesia in August 2023.
LK