Deputy Minister Tran Xuan Ha attended the virtual 2021 APEC Finance Ministers Meeting 27/10/2021 05:38:00 958

On the morning of 22th October 2021, the 28th APEC Finance Ministers Meeting was convened virtually under the chair of the Honorable Grant Robertson, Deputy Prime Minister and Minister of Finance of New Zealand (the host of APEC in 2021), the participation of Finance Ministers of member economies and international financial institutions. Deputy Minister of Finance Tran Xuan Ha attended the virtual meeting with representatives of the related Departments under the Ministry of Finance.

Deputy Minister Tran Xuan Ha at the meeting

According to the Agenda, the 2021 APEC Finance Ministers met with 6 sessions including: Opening; Update from ABAC Chairman; Discussion on response on Covid-19 for the sake of sustainable and inclusive recovery; Discussion on fiscal and budgetary policies in response to future challenges; Adoption of the Joint Statement and Implementation Strategy of the Cebu Action Plan; Speech session by the Chairman of the APEC 2022 Finance Ministerial Process of Thailand and Closing session.

The Virtual APEC Finance Ministers Meeting is an international forum for member economies to exchange and share experiences on available policy options in a sustainable and inclusive response to the Covid-19 pandemic, as well as using fiscal policy and budgetary frameworks to address the long-term challenges facing APEC member economies.

The meeting emphasized the importance of APEC member economies working together to address current challenges in the region, set priorities, and jointly implement the Putrajaya Vision for an Asia-Pacific Community open, dynamic, self-reliant and peaceful, and for the prosperity of all its people.

The long-term effects of the Covid-19 pandemic have led to a long-term health crisis and a major economic challenge. The meeting noted the ongoing economic recovery across the region. However, it might be impossible to achieve a full recovery this year. Many APEC member economies have made some achievements economic recovery through effective policies such as: support for people and businesses, extend vaccine coverage, restoration and reopening of domestic economic activities. However, APEC member economies should be cautious in restoring economic activities due to the dangerous nature of new variants.

Member States at the meeting

APEC member economies have also shared experiences in successfully applying fiscal and monetary policy tools in response to the Covid-19 pandemic in terms of economy and finance, enhancing long-term sustainability and resilience to negative impacts on socio-economic life due to the pandemic while ensuring social security, towards a strong, sustainable, balanced and inclusive economic recovery. Fiscal policy and budgetary systems are enhanced to maintain jobs, support the weak subjects and the hard-hit areas have played a key role in limiting the negative impact of the pandemic. Economies reached consensus on the need for support policies which are most appropriate to each economy's situation, however, should be cautious to ensure the long-term goal of stabilizing the financial system.

Sharing about Vietnam's response to the Covid-19 pandemic, Deputy Minister of Finance Tran Xuan Ha emphasized the priorities of using fiscal tools effectively in accordance with the situation of each period, flexibly but prudently; maintaining targeted support measures focusing on subjects and fields heavily impacted by the pandemic, combined with monetary policy towards stabilizing the macro-economy and achieving growth targets.

Deputy Minister Tran Xuan Ha said that the 4th wave of the Covid-19 pandemic has caused comprehensive and profound effects around the world, including Vietnam. However, with the control of the pandemic and the acceleration of vaccination, so far the pandemic has been gradually prevented and repelled; Production and business activities, goods circulation began to be eased and returned to normal. Accordingly, the economic situation also prospered, the budget balance remained close to the set targets. In order to cope with the impacts of the Covid-19 pandemic, in 2021, Vietnam has maintained support policies in terms of fees and taxes to ease difficulties and promote production and business, such as extending and delaying payment tax; reducing corporate income tax and value-added rental for a number of fields affected by the Covid-19 pandemic in the fourth quarter of 2021; allocating resources to purchase vaccines and medical equipment for pandemic prevention and control, support workers who lost their jobs; as well as using fiscal tools effectively and in line with the situation of each stage; maintaining targeted support measures focusing on the subjects and fields most affected by the pandemic shall be Vietnam's policy priorities in the coming time. In order to achieve a sustainable, balanced and comprehensive recovery, Vietnam shall pursue flexible and prudent fiscal policy, combined with monetary policy to ensure macroeconomic stability and target growth in the medium and long term.

Panoramic meeting at the bridge point of the Ministry of Finance of Vietnam

Deputy Minister Tran Xuan Ha said that promoting universal vaccination is the most basic solution to overcome the pandemic. The Deputy Minister also acknowledged and highly appreciated the support of APEC member economies in facilitating Vietnam's access to vaccines. Deputy Minister Tran Xuan Ha hoped to receive effective support from APEC member economies in the supply and distribution of vaccines to Vietnam in the coming time.

The meeting adopted the Joint Statement of the APEC Finance Ministers, which identified the correct monetary and financial policy solutions that APEC economies have applied to overcome many challenges to move towards achievements in macroeconomic recovery across the Asia-Pacific region in 2021. The meeting called for cooperation to share experiences in promoting economic growth along with ensuring social security for people and businesses, as well as efforts to increase production, supply and sharing of vaccine technology across the region.

H.Thọ