Home / Economy / Banking & Finance
ASEAN urged to enhance cooperation to stay strong in Covid aftermath
Hai Yen 17:24, 2020/11/11
The ASEAN way against the pandemic is an inspiration for the world to foster global cooperation and build a better world, stated the IMF managing director.

ASEAN countries should support each other and take advantage of the current Covid-19 situation to further integrate into global value chains and speed up the digitalization process of regional economies, according to Vice Governor of the State Bank of Vietnam (SBV) Nguyen Thi Hong.

 Overview of the meeting. Source: SBV. 

Mrs. Hong made the point at a conference jointly held by the SBV and the International Monetary Fund (IMF) on November 10, discussing future policies for the ASEAN to secure growth and resilience in the aftermath of Covid-19.

The event was held on the sidelines of the upcoming 37th ASEAN Summit, scheduled to take place in the form of videoconference on November 12–15.

The SBV’s vice governor stressed the regional finance–banking sector has been playing a key role in carrying out measures to aid economic recovery and bolster the resilience against external shocks.

Deputy Prime Minister anf Foreign Minister Pham Binh Minh added ASEAN has been an example for the world in putting efforts together against the pandemic, including the formulation of a common fund for Covid-19 fight, standardized procedures in response to Covid-19 and public health crisis, Hanoi action plan, among others.

IMF’s Managing Director Kristalina Georgieva said the world community is impressed with the strong unity of ASEAN over the years, as well as the bloc pandemic impact mitigation efforts  .

Ms. Georgieva expected the ASEAN way against the pandemic is an inspiration for the world to foster global cooperation and build a better world.

At the conference, governors of central banks and finance ministers of ASEAN, along with representatives of organizations, stressed that more efforts are needed to support the most vulnerable groups including teenagers, woman, informal workers, small and micro-sized enterprises.

To further enhance economic resilience, delegates expected countries to boost public investment, especially in major projects. In the long term, countries should continue to invest in high quality human resources and accelerate the digitalization process, while enhancing capabilities against climate change and boosting green growth.

 Delegates at the online meeting. Source: SBV. 

Vietnam’s timely Covid-19 response

In case of Vietnam, SBV Vice Governor Hong said in an attempt to mitigate Covid-19 impacts, the Vietnamese government has lowered the interest rate cap for three times to help commercial banks reduce lending rates. Meanwhile, relief packages worth a combined of VND120 trillion (US$5.18 billion), or 2% of the GDP, have been provided to aid enterprises and the people affected by the pandemic, which are in the forms of financial support, freezing and waiving of taxes, fees and land rental fees, among others.

Mrs. Hong said the government’s timely actions in monetary and fiscal support have been key to stabilize macro-economic conditions and helped the country’s GDP growth to stay positive at 2.12% in the first three quarters this year.

Notably, Vietnam continues to be a favorite destination for foreign investors with committed foreign direct investment (FDI) in the January – October period coming at US$23.5 billion.

Despite global uncertainties, Vietnam would continue to control inflation rate and stabilize macro-economy to foster sustainable development, stated Mrs. Hong.

TAG: ASEAN IMF Vietnam covid-19 coronavirus nCoV pandemic monetary fiscal policies SBV central bank State Bank of Vietnam
Other news
08:11, 2021/11/19
Vietnam economy to enjoy a rosy 2021: HSBC
Thanks to its successful Covid-19 containment, Vietnam saw one of the highest GDP growth rates in the world in 2020.
06:39, 2021/39/19
Vietnam stock market watchdog addresses overload issue
A short-term solution would be to optimize the transaction process by increasing the minimum trading lot from 10 to 100 shares, starting from January 4, 2021.
17:48, 2021/48/15
Central Bank steps up efforts to address US tag of currency manipulation
New regulations shows that the SBV will reduce one-way intervention in the foreign exchange market.
10:31, 2021/31/12
Vietnam budget deficit forecast at 3.6% of GDP in 2021
Fitch Solutions holds a more optimistic view on Vietnam’s economic rebound in 2021, with its real GDP growth forecast at 8.6%, against the government’s 6.5% target.
15:12, 2021/12/11
Vietnam Central Bank targets credit growth at 12% in 2021
The State Bank of Vietnam aims to keep the inflation rate below 4% this year to ensure the stability of the monetary and foreign exchange markets.
15:02, 2021/02/11
Early positive signs for Vietnam stock market in 2021
It is not a coincidence that a strong economic growth period happened when the local stock market was setting new records.