Prime Minister Nguyen Xuan Phuc has called for stronger co-operation and coordination in policymaking among APEC’s member economies towards establishing a stable financial system and achieving sustainable development.

Speaking at the opening ceremony of the 24th APEC Finance Ministers’ Meeting (FMM) in ancient city of Hoi An, Quang Nam Province, on Saturday, he noted that the meeting was the most important event under the APEC Finance Ministers’ Process (FMP).

FMP is a forum for APEC member economies to address regional macroeconomic and financial issues as well as domestic and regional financial policy priorities.

Phuc said the FMM was taking place in the context of global economic recovery as well as improvement in trade, investment and finance. However, the region faced many challenges, given the slowing trade, increasing trend of protectionism and use of non-tariff barriers as forecast by the Asian Development Bank (ADB), he said.

The Asia-Pacific region, which has several of the world’s leading and dynamic economies, continues to be a driver of global growth, but economic growth and productivity in some economies was still low, Phuc said.

“Practically, not all members of society benefit from globalisation and trade liberalisation and investment,” he added.

The PM also stressed the negative impacts of climate change on economic development.

Besides, the region is seeing some hotspots that may threaten peace, security and stable development of the region, he said.

“I hope that the ministers will continue their efforts to coordinate policy and provide practical solutions for implementing policy priorities and addressing difficulties and challenges in achieving the goals of a stable financial system and sustainable development,” the PM said.

Four financial cooperation priorities have been set for APEC 2017: long-term investment in infrastructure, base erosion and profit shifting (BEPS), disaster risk financing and insurance, and financial inclusion.

Through the year, APEC Finance Ministers have actively cooperated to promote deeper economic integration, creative and inclusive growth and enhancing the competitiveness of small and medium enterprises (SMEs).

The PM said that Viet Nam has made great strides in the last 30 years of its economic renovation process. From an under-developed economy, it has advanced to become a middle-income country in 2010, according to the World Bank.

Viet Nam has set a gross domestic product (GDP) target of 6.7 per cent for 2017, higher than 2016’s 6.21 per cent. Inflation will likely be kept at below 5 per cent, budget deficit below 4 per cent, and public debt below 65 per cent of GDP by the year-end.

Exports are expected to top US$200 billion, up 15 per cent year-on-year, while disbursement of foreign direct investment is estimated at over $15 billion, up 18 per cent year-on-year. By the end of September, stock market capitalisation had reached 93 per cent of GDP, a record since the markets’ establishment in 2000.

The GDP growth set for the period of 2016-20 is at 6.5-7 per cent per year.

PM Phuc said the public finance sector as well as development of the financial market have contributed significantly to these positive results. He affirmed that Viet Nam will continue to renovate it economy, especially the financial sector, towards improving efficiency and competitiveness, and ensuring sustainable growth.

Top APEC finance officials on Saturday issued a joint ministerial statement on regional financial co-operation and implementation of priority tasks through the year. – VNS