Việt Nam will keep boosting integration and regional financial connection in ASEAN, while promoting deeper links of the region with the international community for sustainable development and better resilience, as well as enhancing institutional capabilities.

Deputy Governor of the State Bank of Việt Nam (SBV), Phạm Thanh Hà made the commitment at the 28th Meeting of the ASEAN Senior Level Committee for Financial Integration (SLC).

He stressed that Việt Nam, as co-chair of the event, will do its utmost, with responsibilities to other member countries, to strengthen co-operation and integration with regional and international partners.

“The year 2024 is pivotal for ASEAN, as it serves as both a reflection on the progress of the ASEAN Community Vision 2025 and a forward-looking moment to sketch ASEAN's future by developing Strategic Plans to implement the ASEAN Community Vision 2045,” Hà said at the opening ceremony.

"Our agenda is comprehensive, covering crucial updates from the Bank for International Settlements (BIS) and ASEAN+3 Marcroeconomic Research Office (AMRO) on global and regional macroeconomic developments, progress reports from our various working committees and key initiatives including the ASEAN Taxonomy, ASEAN Green Map and the re-establishment of the ASEAN Swap Agreement.”

Hà said the 28th SLC Meeting was held in context of the evolving regional and global economic landscape as the global economic outlook is positive and economies are regaining their strength.

He, warned however that many uncertainties and challenges still surround the outlook - financial markets are fluctuating, trade dynamics are shifting and technological advancements are reshaping our economies.

“ASEAN has demonstrated strong resilience and we must continue working together to ensure that our financial systems are both integrated and stable, as outlined in the ASEAN Economic Community Vision 2025,” he said.

He suggested that all participants should engage actively in these discussions in shaping ASEAN's financial future.

Head of Economics and Financial Markets, BIS, Philip Wooldridge, said there is increasing sensitivity within the global markets to changes in monetary policy, particularly in advanced economies.

He also said inflation is falling faster than expected globally and it is continuing to get close to targets, due to the easing of supply side pressure and tightened monetary policy and the financial system has proved remarkably resilient.

In his presentation, Philip suggested that as central banks in the US and other major economies adjust their policy stances, emerging markets including those in ASEAN may experience significant spillovers and this environment calls for a more proactive and coordinated monetary policy approach within ASEAN.

Senior Economist from AMRO, Catharine Kho, also shared briefs on the Regional Economic Outlook.

She said: “The region's growth outlook, which anticipates robust growth and moderate inflation for ASEAN in the near term. The positive outlook is driven by strong domestic demand, a rebound in tourism and solid export performance, especially in the technology sector.

"However, we must remain mindful of ongoing challenges, such as inflationary pressures stemming from rising global energy costs and increasing geopolitical uncertainties.

“In light of the current global uncertainties, it is essential to enhance our financial integration and regional cooperation. Strengthening economic ties and adopting innovative financial strategies will be critical to mitigating external shocks and sustaining economic growth across the region.”

A working committee of the ASEAN Banking Integration Framework (WC-ABIF) suggested a solid foundation for deeper financial integration in ASEAN was needed over risks such as global economic slowdown, high inflation, cyber security and climate change.

Hà also highly appreciated the recognition of financial cooperation and fostering inter-sectoral collaboration, as well as recommendation of establishment of a Task Force to implement those cooperations.He also expressed his support of Malaysia's proposals, under its ASEAN 2025 Chairmanship, regarding sustainability, payment connectivity and local currency transactions, as well as collective financial and banking cooperations.

The SLC meeting, which was co-chaired by SBV and the Bank Indonesia, included governors from ASEAN central banks and delegates from Banco Central de Timor Leste, who were there as observers. — VNS