On May 3, 2024, in Tbilisi city, Georgia, Finance Ministers and Central Bank Governors of ASEAN countries and partners China, Japan, and Korea (ASEAN+3) gathered meeting of the ASEAN+3 Finance Ministers and Central Bank Governors Meeting (AFMGM+3) co-chaired by Lao PDR and South Korea. This is the most important event of the ASEAN+3 financial cooperation process. Representatives of the Ministry of Finance of Vietnam and the State Bank of Vietnam attended the conference.
Strengthen the financial cooperation framework among ASEAN+3 countries
Bulletin of the 27th ASEAN+3 Meeting of Finance Ministers and Central Bank Governors (Tbilisi, Georgia, May 3, 2024)
On May 3, 2024, in Tbilisi city, Georgia, Finance Ministers and Central Bank Governors of ASEAN countries and partners China, Japan, and Korea (ASEAN+3) gathered meeting of the ASEAN+3 Finance Ministers and Central Bank Governors Meeting (AFMGM+3) co-chaired by Lao PDR and South Korea. This is the most important event of the ASEAN+3 financial cooperation process. Representatives of the Ministry of Finance of Vietnam and the State Bank of Vietnam attended the conference.
Regional macroeconomic outlook
At the conference, Finance Ministers and Governors of ASEAN+3 Central Banks and leaders of international financial organizations (International Monetary Fund - IMF, Asian Development Bank - ADB, Research Agency ASEAN+3 Macroeconomic Research - AMRO) shared views on the world and regional economic prospects as well as the risks and challenges facing in the coming time. The IMF believes that global inflation has gradually decreased, but public debt tends to increase, and global growth prospects are declining. The Asian economy is still the most dynamic region in the world with expected growth of 4.5% in 2024 and 4.3% in 2025 (higher than the expected global growth rate of only 3.2%. in both 2024 and 2025). Sharing the same opinion as the IMF, AMRO believes that the region still faces many adverse risks, especially structural issues (climate change, aging), fluctuations in the global supply chain, geopolitical tensions, rapid technological development. However, the ASEAN+3 region's economy still records positive growth, forecast to reach 4.5% in 2024 (higher than 4.3% in 2023). China's growth is forecast to reach 5.3%, the highest among the three +3 countries, while Vietnam is forecast to be in the group of countries with good growth in the ASEAN region with a growth rate of 6. 0% in 2024 and 6.5% in 2025. ADB emphasized the sustainable growth aspect of the region, and proposed that ASEAN+3 need to further strengthen its active role in promoting sustainable growth through collaborative initiatives. Commenting on short-term risks, the IMF believes that US monetary policy may continue to increase pressure on exchange rates in the near future, central banks need to continue to be cautious in their policies. monetary policy and exchange rates; The decline in the real estate market and fluctuations in Chinese exports have an impact on the region. The positive point is that China's growth is tending to recover. The IMF will coordinate closely with regional countries and provide advice to help countries intervene effectively to control exchange rates in the context of rising exchange rate pressure in many countries. ADB and AMRO also pledged to strengthen cooperation and support member countries through regional cooperation initiatives to improve policy formulation and macroeconomic monitoring capacity, towards sustainable growth.
Ministers and Governors shared their views with international financial institutions on the region's strong growth recovery and controlled inflation, although core inflation remains high in some countries. economy, financial conditions improved, credit growth remained stable and the stock market recovered. Ministers and Governors also commented that in the short term, inflation will continue to be moderate but will gradually decrease, domestic demand will remain stable, exports and tourism in the region will continue. Recovery will create more impetus for growth; In the medium term, the ASEAN+3 region will continue to be the growth engine of the global economy, growing faster than the world average and contributing about 45% to global growth in the period 2024-2030. . Member countries need to continue to improve policy space and fiscal sustainability to provide targeted support to the economy, while maintaining tight monetary policy in some member countries to ensure expectations. Inflation is maintained in the context of inflation risks continuing to increase. Structural reforms and increased investment in areas that enhance the economy's productivity and resilience are vital to exploiting growth potential and meeting the challenges ahead.
Strengthening ASEAN+3 financial cooperation
ASEAN+3 financial cooperation was initiated in 1997, and has so far developed important cooperation initiatives, including the Chiang Mai Initiative Multilateralization Agreement (CMIM), the Left Market Development Initiative Asia Bond (ABMI), Disaster Risk Response Finance Initiative (DRF), and also established the ASEAN+3 Macroeconomic Research Office (AMRO).
Regarding the Chiang Mai Initiative Multilateralization Agreement (CMIM), the Ministers and Governors recognized the results of cooperation, especially improving the effectiveness and sustainability of CMIM through the establishment of a Financial Instrument. rapid approval (RFF) and launch discussions on adjusting the contribution mechanism for CMIM, as well as continue to improve issues related to CMIM operating procedures such as reference interest rates and use of local currency. , continue to test CMIM to ensure the support mechanism operates effectively in real-life situations.
Regarding the Asian Bond Market Development Initiative (ABMI), Ministers and Governors recognized the efforts of working groups in promoting the development of bond markets in the region in a green direction. and sustainability, especially improving the process of issuing bonds mobilized in local currency, developing a sustainable financial ecosystem, including establishing the necessary legal frameworks, determining the local intelligence and disclosure of sustainability information.
Regarding the Disaster Risk Response Finance (DRF) initiative, Ministers and Governors recognized the results of implementing the DRF initiative with support from the World Bank and Southeast Disaster Risk Insurance Fund. Asia (SEADRIF) and the Inter-Agency Coordination Committee on ASEAN Disaster Risk Financing and Insurance Project (ACSCC-ADRFI). Ministers and Governors also welcomed the establishment of the DRF Initiative Secretariat and the update of the Initiative's Action Plan as a foundation for strengthening the region's resilience to economic and financial losses. potential disaster in the future.
Ministers and Governors highly appreciated AMRO's efforts in improving efficiency and strengthening system capacity to develop AMRO into a regional financial institution and regional financial knowledge center, strengthening capacity to monitor regional macroeconomics and provide in-depth analysis and timely policy advice to members, while continuing to play the role of the ASEAN+3 Secretariat and support member countries. effective implementation of the CMIM Agreement.
Although there are still different views on some issues in ASEAN+3 financial cooperation, such as the choice of currency in implementing the RFF tool, adjusting the CMIM contribution mechanism, and implementing of the DRF Secretariat, views on issues of geopolitical tension, but the Ministers and Governors, on the basis of consensus, agreed to adopt the Conference's Joint Statement, expressing their views and assessments. Ministers and Governors' opinions on issues of common concern in the region as well as ASEAN+3 financial cooperation.
International Cooperation Department
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