Minister of Finance Nguyen Van Thang highlights finance and trade issues at AFMGM 12

These discussions took place as part of the 12th ASEAN Finance Ministers and Central Bank Governors (AFMGM 12) Meeting in Kuala Lumpur on April 9.

Minister Thang shared the viewpoints and initiatives of Vietnam to deepen collaboration between ASEAN nations, as well as between ASEAN and the international business community. The minister also highlighted important issues on finance and trade.

"Special attention is paid to the US reciprocal tariffs on ASEAN countries. This not only heavily hits ASEAN’s exports to the US but also directly affects businesses. The move will raise input costs for American firms, while American consumers will bear the higher prices," Thang said. “We hope American businesses raise their voice to the US government to adjust the policies to maintain good relations between the US and ASEAN countries. This will bring benefits not only to ASEAN countries but also to the US and American businesses alike.”

The minister noted that Vietnam was committed to administrative reforms and shortening decision-making time, ensuring the synchronous and stable operation of the legal regulations, and encouraging economic and financial integration within the ASEAN framework. Vietnam continues to make positive contributions to connecting investment, trade, and finance in the region.

“Fluctuations in global trade policies can affect the value chain and investment flows. In this context, we hope US-ABC acts as a bridge to connect the American business community with ASEAN, supporting countries in the region, including Vietnam, to adapt to changes and promote fair and sustainable trade,” the minister said.

During a key dialogue between ASEAN ministers and EU ABC, Minister Thang said, “Vietnam wishes to strengthen collaboration with European partners and countries, which pioneer sustainable development. Hopefully, the EU can share experience to manage and perfect the policy and attract green finance. We encourage European business and financial organisations to invest in key sectors such as green infrastructure, renewable energy, sustainable transport, and climate change response.”

Vietnam also agrees with ASEAN's common priorities on sustainable development. Vietnam is actively participating in developing regional tools such as the ASEAN Taxonomy and the carbon credit market. This is coupled with effectively implementing the Measurement, Reporting, and Verification mechanism to ensure transparency and credibility in emissions management.

“On this occasion, we call on EU ABC to increase technical, technological, and financial support for Vietnam as well as ASEAN countries in the energy transition and building sustainable financial markets. This is an important driving force for the region to move towards more inclusive and resilient development in the future,” the minister said.

Green finance development is one of the priority pillars of the Vietnamese government to realise a commitment to achieve net-zero emissions by 2050. Along with the National Strategy on Green Growth for 2021-2030, Vietnam has a system of policies and legal regulations to create the framework for green finance, including incentive mechanisms for green bond issuance and guidelines for identifying and classifying green projects.

At the dialogue between AFMGM and ABAC, Minister Thang said he appreciated the discussions to improve the competitiveness of the supply chain. Strategically located in the centre of Southeast Asia, Vietnam is becoming an attractive destination for the regional and global value chain. The country has stepped up its efforts to improve the investment climate, streamline administrative procedures, and raise logistics infrastructure capabilities, thereby better facilitating manufacturing, business activities, and cross-border trade.

“Vietnam looks forward to extensive collaboration with ABAC in connecting with regional companies and developing a sustainable supply chain, especially in the energy, technology, and smart agriculture sectors,” the minister noted.

The minister also acknowledged the positive role of ABAC in encouraging regional financial flows, supporting capital markets, and improving access to indirect investment capital.

“Vietnam expects ABAC to accompany us in the process of perfecting policies and developing financial market infrastructure, contributing to the transparency and resilience of the national financial system,” the minister added.

Minister of Finance Nguyen Van Thang met with Mariam Sherman, World Bank division director for Vietnam, Cambodia and Laos in Hanoi on March 21 to discuss upcoming projects using official development assistance (ODA).

The Ministry of Finance is proposing a reduction in preferential import taxes on several imported goods, including cars, timber, liquefied natural gas (LNG), and agricultural products, such as chicken thighs, cherries, and apples.

In a significant move to boost the high-tech sector, the Ministry of Finance (MoF) has pledged strong support for Intel’s projects in Vietnam, signalling hopes for the US firm to increase its investments in the country.