Within the framework of the ASEAN financial integration, a Delegation of the State Bank of Vietnam (SBV) led by Deputy Governor Pham Quang Dzung attended the 27th ASEAN Senior Level Committee on Financial Integration Meeting (SLC).
ASEAN Central Bank Deputy Governors take a group photo at the SLC 2024
At the policy dialogue between the ASEAN Central Bank Deputy Governors and the international organizations on the region's macroeconomic situation and outlook, the green finance and sustainable finance, a representative of the ADB delivered a presentation on green finance and transition finance in the region. According to the ADB, investments in sustainability bonds in ASEAN has a trend to increase in all terms of quantities, maturities and forms. However, the role of the ASEAN banking sectors in promoting sustainable finance is still quite modest, with the sustainable finance market share in the banking sector currently accounting for only 2%. Therefore, the ADB has recommended that ASEAN countries should additionally develop a transformation roadmap for the banking sector in the process of formulating a sustainable finance classification system (Taxonomy). Deputy Governor Pham Quang Dzung expressed his high appreciation for the ADB's information and recommendations, and said that with appropriate incentives, the domestic commercial banking system can play an important role in the process of promoting sustainable finance. In addition, building a sustainable finance classification system in ASEAN needs to ensure the flexibility, allowing the member countries to have their own transformation roadmaps based on the levels of development/readiness of the domestic financial and technical management systems. The delegates acknowledged the ideas of the SBV Deputy Governor and assigned the SLC's Working Group for Sustainable Finance to coordinate with the ADB to continue implementing the instructions of the Deputy Governors.
SBV Deputy Governor Pham Quang Dzung speaks at the SLC 2024
Also within the framework of the Conference, under the coordination of the Co-Chairs, the ASEAN Banking Cooperation Working Groups reported on the progress of implementing the initiatives/activities in 2023, and presented to the Deputy Governors for their approval/guidance on the work plans in the coming time. Agreeing with the delegates attending the Conference, the SBV Deputy Governor spoke highly of the efforts of the Working Groups in accomplishing most of the proposed activities in 2023 with remarkable results.
Toward the end of the Conference, the SBV and Bank Indonesia announced the assumption of the role of Co-Chairs of the SLC for the 2024-2026 period. This is the first time the SBV has assumed the role of a co-chair of the SLC, indicating the SBV’s responsibility with the ASEAN members, while contributing to improving the position and reputation of Vietnam in general and the SBV in particular in the process of banking integration in the region, in accordance with the Party’s and the Government's policy on multilateral foreign relations in the banking sector. This is also an opportunity for the SBV to strengthen the cooperation with the important partners. Speaking at the Conference, Deputy Governor Pham Quang Dzung congratulated the Monetary Authority of Singapore and the Bank of the Lao P.D.R. on having successfully fulfilling their roles as Co-Chairs of the SLC for the 2022-2024 period. As the next Co-Chairs of the SLC, the SBV Deputy Governor affirmed that the SBV and Bank Indonesia would continue to promote the achievements of the previous Co-Chairs, and hoped that the ASEAN Central Bank Deputy Governors would support the SBV and Bank Indonesia to successfully accomplish the tasks of the Co-Chairs of the SLC for the 2024-2026 period.
Le Hang