Quang Nam (VNA) - The24th APEC Finance Ministers’ Meeting – the most important event of the APECFinance Ministers Process - closed in Hoi An ancient city in the central provinceof Quang Nam on October 21 after issuing a joint ministerial statement.

Following is the full text of the joint ministerial statement of the 24th APEC Finance Ministers’Meeting.

1. We, the Finance Ministers of the economies ofAsia-Pacific Economic Cooperation (APEC), convened our 24th meeting in Hoi An, Vietnamon 21 October 2017 under the chairmanship of H.E. Dinh Tien Dung, Minister ofFinance of Vietnam.

Global and Regional Economy

2. We discussed the economic and financial outlook thatour economies face and shared views on appropriate policy actions. Thenear-term outlook for global economic growth is encouraging, with a morebroad-based pick up across both emerging markets and advanced economies. In themedium term, the risk of global financial conditions tightening remains andslower productivity gains continue to inhibit sustainable growth. We commit tofocus on our priorities and economic and financial cooperation to promotegrowth, towards the goal of fostering a shared future.

3. We are committed to use all policy tools – monetary,fiscal and structural – individually and collectively to achieve strong,sustainable, balanced and inclusive growth. Fiscal policy tailored to membereconomy's circumstances should be used flexibly and be growth friendly, whileensuring that the public debt as a share of GDP is on sustainable path. Monetary policy should continue to support economic activity and ensure pricestability, consistent with central banks’ mandates. Strong fundamentals,sound policies, and a resilient international monetary system are essential tothe stability of exchange rates, contributing to strong and sustainable growthand investment. Flexible exchange rates, where feasible, can serve as a shockabsorber. We recognize that excessive volatility or disorderly movements inexchange rates can have adverse implications for economic and financialstability. We will refrain from competitive devaluation and will not target ourexchange rates for competitive purposes. We reaffirm the key role of structuralreforms in strong, sustainable, balanced and inclusive growth. 

4. We reaffirm the importance of the APEC Finance Ministers'Process (FMP) as an active forum for fostering policy cooperation and exchangeof experience among economies in the region.

Cebu Action Plan

5. We welcome the efforts made by member economies inidentifying and implementing activities under the Cebu Action Plan (CAP).  We encourage member economies, on a voluntaryand non-binding basis, to continue to submit activities and initiatives inalignment with the CAP for implementation as appropriate to their domesticcircumstances.

6. We welcome the active engagement of internationalorganizations and appropriate APEC sub-fora and encourage their continuedassistance to help member economies achieve the goals of the CAP. We welcomeABAC and the APFF’s contribution to the implementation of the CAP, includingthe recommendations on financial market infrastructure and micro insurance. Weencourage continued collaboration among interested relevant stakeholders inadvancing these initiatives of the CAP.

Long term Investment in Infrastructure

7. We recognize the importance of mobilizing long-terminvestments in infrastructure and reiterate the relevance of qualityinfrastructure for sustainable economic growth. While recognizing the role ofpublic investment in APEC economies, diversification of financing sources andfostering private sector involvement in infrastructure projects is an importantsolution to meet the significant demand for long-term capital forinfrastructure.

8. We welcome the efforts and achievements in cooperationunder the theme of long-term investment in infrastructure in APEC 2017, whichare in line with Pillar 4 of the CAP. In this regard, we endorse the policy statementon Diversifying Financing Sources and Fostering Private Sector Involvement inInfrastructure Investment in APEC Member Economies (Annex A), and encourageeconomies, to take into consideration these recommendations to improvelong-term investment in infrastructure projects.

9. Recognizing the importance of building risk allocationmechanisms and applying appropriate risk mitigation instruments in PPPcontracts as important elements of a successful project, we welcome the reporton Selected Good Practices for Risk Allocation and Mitigation in Infrastructurein APEC Economies, developed by the Organization for Economic Cooperation andDevelopment (OECD), in collaboration with the Global Infrastructure Hub (GIH)and the Asian Development Bank (ADB), as a good reference for member economiesin building bankable PPP infrastructure projects.

10. We encourage economies to continue strengtheningregional cooperation, explore and develop effective financing solutions forinfrastructure, and promote private sector involvement in infrastructureprojects in the region. We call on OECD, the World Bank Group (WBG), ADB, GIHand other international organizations to continue to work with APEC economiesto study good practices and provide technical assistance and capacity buildingon quality infrastructure investment for member economies.

Base Erosion and Profit Shifting

11. We recognize the importance of base erosion and profitshifting (BEPS) issues in APEC member economies, and the need for enhancedregional cooperation in sharing experiences, approaches and good practices ontax policy development, legislative design and tax administration, in order toaddress the challenges of BEPS in the region while enhancing the certainty,transparency and fairness of the tax system.

12. We welcome the efforts of APEC membereconomies in promoting a mutual support program, sharing experiences in theimplementation of BEPS minimum standards and other relevant BEPS actions, inthe context of the Inclusive Framework in the APEC region, under the work planinitiated in Vietnam’s host year 2017. We will continue these efforts in PapuaNew Guinea’s host year 2018. We appreciate the active support frominternational organizations, such as ADB, IMF, OECD, WBG and encourage theseorganizations to continue their support for APEC economies

Disaster Risk Financing and Insurance

13. We recognize the importance of improvinginstitutional and legal frameworks on disaster risk insurance against theincreasing impacts of natural disasters and their contingent liabilities ineconomies in the region. Effective strategies on disaster risk financing andinsurance, including solutions for financial risk management of public assets,will help mitigate and transfer risks, thereby better support timely rehabilitationand reconstruction when disaster occurs.

14. Given the importance of risk data and information forassessing the governments’ potential disaster-related contingent liabilitiesand financial impact on public assets, we welcome the cooperation on disasterrisk financing and insurance in 2017. Particularly we welcome the report onImproving Public Assets and Insurance Data for Disaster Risk Financing andInsurance Solutions; and report on Financial Risk Management of Public AssetsAgainst Natural Disasters in APEC Economies, developed by the WBG incoordination with member economies; and the report on Managing Disaster-relatedContingent Liabilities in Public Finance Frameworks, developed by the WBG andthe OECD in coordination with the ADB and with the active participation of anumber of member economies, as good reference for us. We look forward todiscussing the recommendations from this joint report in 2018. We encourage member economies to continue to improvetheir risk information systems considering their own particular circumstances.Recognizing the essential role of the private sector in providing innovativemarket-based risk transfer solutions, we encourage member economies to explorepartnership with the private sector for potential solutions.

15. We welcome the work of the APEC Working Group onDisaster Risk Finance and Insurance in 2017 with support from WBG as a leadtechnical facilitator and OECD and other international organizations, and lookforward to the implementation of the work plan for 2018. We encourage moreeconomies to join the Working Group to enhance the regional partnership andknowledge exchange on this agenda. We welcome the APEC disaster risk financeknowledge portal developed by WBG that serves as an online repository of policies,practices and lessons, which could help member economies develop effectivepolicies to address disaster risks. We are committed to enhancing ourcooperation and knowledge exchange on disaster risk finance and insurance,particularly on financial risk management of public assets.

Financial Inclusion

16. We acknowledge the significance of financial inclusionand appreciate the collective contributions of APEC member economies andinternational partners to the sustainable, innovative and inclusive developmentof financial services in the region. We welcome, in this respect, the OECD/INFEprogress report on financial literacy and financial consumer protection in APECeconomies and look forward for the final report.

17. We recognize that agricultural financemakes an important contribution to the sustainable development of agricultureand rural areas, and helps narrow income gaps through capacity building forpeople and businesses in developing household business, micro, small and mediumenterprises, value chains, and scientific and hi-tech based agriculturalproduction. The introduction of new and diversified financial solutions in thisarea will create more favorable opportunities for people and businesses toaccess suitable and affordable products and services. In this respect, wehighly appreciate the recommendations from international development partners,particularly the ABAC, the Foundation for Development Cooperation (FDC) and theBetter Than Cash Alliance (BTCA), to further promote financial inclusion anddigital payments toward the goal of sustainable agriculture and food securityin member economies. We encourage member economies, on a voluntary andnon-binding basis, to take into consideration these recommendations in order tocontribute to the agriculture restructuring and sustainable development.

18. We recognize the importance of financial infrastructure, particularly credit information, securedtransaction and insolvency systems as well as trade and supply chain finance.We also call on World Bank, IFC, ABAC and other development partners tocontinue supporting APEC economies in implementing initiatives to furtherimprove financial infrastructure development in the region and promote thecooperation on credit information to support cross border trade and investment.

Other Issues

19.We welcome the good progress on the development of the Asia Region FundsPassport (ARFP) and encourage member economies to consider participating inthis initiative to increase financial integration. We encourage the participatingeconomies to implement their needed arrangements in domestic regulations, toachieve successful implementation of the ARFP passport, and also encourageother member economies to participate in this initiative for the aim of moreintegrated financial cooperation in the APEC region.

20.We welcome the enhanced collaboration and coordination between APEC SeniorOfficials’ Meeting (SOM) and Senior Finance Officials’ Meeting (SFOM) officialsthis year, which are critical to promote greater coherence in APEC’s work andto ensure that the two processes are mutually supportive. In this regard, weencourage the development of an Action Agenda on Promoting Economic, Financialand Social Inclusion. We instruct SFOM officials to work closely with SOMofficials in finalizing this Action Agenda.

21. We welcome the joint activities betweensenior finance officials and the APEC Economic Committee (EC) this year andlook forward to ongoing collaboration to prepare the APEC Economic PolicyReport (AEPR) 2018 on ‘Structural Reform and Infrastructure’. We encouragecontinuing joint discussions between senior finance officials and EC officialsin 2018.

22. We welcome the exploratory dialoguesbetween senior finance officials, Life Science and Innovative Forum (LSIF) andHealth Working Group (HWG) to address the fiscal and economic impacts of thesteep rise in chronic disease and of ageing societies in APEC economies. Weencourage further dialogue with interested economies to share best practicesand explore innovative, sustainable health financing solutions.

23. We appreciate the support from ADB, IMF,OECD, WBG and ABAC to the FMP work during this year.

24. We thank Vietnam for hosting the APECFinance Ministers’ Process this year. We will meet again for our 25th meetingin Papua New Guinea in October 2018.-VNA