ASEAN finance ministers commit to cautious fiscal policies

They made the commitment at the 20th ASEAN Finance Ministers’ Meeting, the 12th ASEAN Central Governors’ Meeting, and the second Finance Ministers and ASEAN Central Governors’ Meeting that took place in Vientiane, Laos on April 3-4.

Finance Minister Dinh Tien Dung and Deputy Governor of the State Bank Nguyen Thi Hong attended the event.

Ministers agreed to strengthen cooperation and launch integration initiatives with a view to maintaining ASEAN’s stable development amid potential external shocks and financial uncertainties.

Reviewing tasks in the ASEAN’s financial-monetary integration roadmap in terms of liberalisation of financial services and capital, as well as capital market development, they said regional countries concluded negotiations on the seventh package of financial services liberalisation and are set to launch the eighth round of negotiations this year to further open the financial services market, with a focus on further liberalising insurance services in the region.

Ministers and central governors pledged to continue removing existing obstacles to trade and direct investment. Indirect investment and other sources of capital will continue to be liberated depending on each country’s conditions and appropriate trade defence measures.

They vowed to promote regional capital market connectivity via creating a regional integration environment and building infrastructure while supporting financial cooperation initiatives for increased connectivity and internal trade development.

At the meetings, participants reaffirmed the commitment to developing inclusive finance as a policy priority and a pillar in the ASEAN financial cooperation within the framework of the ASEAN Economic Community Blueprint.

They also discussed an action plan on ASEAN financial integration strategy with a vision to 2025, which will serve as a reference to orient regional integration and financial coordination for the next decade.

On the occasion, they also agreed to hold the ASEAN Finance Ministers’ Investors Seminar this year.

On the sidelines of the event, ministers held meetings with the US – ASEAN Business Council and the EU – ASEAN Business Council.