On April 5th, the 28th ASEAN Finance Ministers' Meeting was held in Luang Prabang, Laos. Welcoming the achievements of the 27th ASEAN Finance Ministers' Meeting and efforts to improve the ASEAN financial sector, especially customs and taxation, the conference laid the groundwork for international trade opportunities for businesses in the Southeast Asian region, particularly SMEs.
In 2024, as the rotating Chairmanship of ASEAN, Laos successfully hosted the 28th ASEAN Finance Ministers' Meeting in Luang Prabang. This was one of the key events in the 2024 ASEAN Finance Ministers and Central Bank Governors' Meetings series. Vietnam, represented by Minister of Finance Ho Duc Phoc, led the delegation from the Vietnamese Ministry of Finance.
At the conference, the Vietnamese Minister of Finance emphasized the importance of trade connectivity while welcoming the completion of technical studies on Laos' new-generation ASEAN Single Window mechanism. Electronic data exchange within the ASEAN Single Window mechanism streamlines the preparation of documentation, and travel, and maximizes convenience for businesses during import and export procedures. As of February 15th, 2024, 250 administrative procedures from 13 ministries and sectors have been integrated into the National single-window mechanism, involving 69,500 enterprises (an increase of about 2,500 enterprises compared to the end of 2023). For the ASEAN Single Window mechanism, efforts continue to expand and maintain electronic data exchange on the D form certificate of origin with all 9 ASEAN member states . The completion of technical studies on the ASEAN Single Window mechanism is seen as a milestone to reduce risks for Vietnamese businesses, especially SMEs, and partly overcome barriers in trade, enhance participation in global supply chains, explore new trade opportunities, and optimize production and business processes.
In addition to customs, taxation was also a matter of interest and welcomed at the conference, as the ASEAN Tax Forum (AFT) task force implemented initiatives related to enhancing and improving bilateral tax treaty networks. In recent years, international tax reform has been extensive; however, the effective participation in and implementation of international tax reforms in each region remains a priority for discussion.
Speaking at the 28th ASEAN Finance Ministers' Meeting, Minister of Finance Ho Duc Phoc stated that enhancing the network of agreements to avoid double taxation within ASEAN has encouraged cross-border economic activities, and facilitated transparency in investment environments in ASEAN countries . According to statistics from the General Department of Taxation - Ministry of Finance, by 2020, Vietnam had signed double taxation avoidance agreements with 80 countries and territories, mostly ASEAN member countries. Enhancing the network of tax agreements has spurred businesses, especially SMEs, to expand into international markets and increase revenue.
The conference also focused on insurance, securities, etc., aiming to address emerging issues in the region such as green finance, digital finance, mobilization of resources for infrastructure, and disaster risk management . Close financial cooperation between Vietnam and ASEAN countries sets the stage for SMEs to receive preferential treatment in trade, especially regarding tariffs, investment conditions, and foreign services. Additionally, at the seminar "ASEAN Market: From Initiative to Action," Dr. Nguyen Thi Thu Trang, Director of the WTO and Integration Center (Vietnam Chamber of Commerce and Industry - VCCI), noted that opportunities from ASEAN agreements will help remove non-tariff barriers and administrative procedures, making trade rules at borders more transparent and predictable, thereby reducing costs, enhancing business efficiency, and improving competitiveness for businesses in the region, while also creating conditions for SMEs to develop not only in the domestic market but also in the Asian region.
References:
Thai Binh/Ngoc Loan (06/03/2024). About 70,000 enterprises carry out procedures via National Single Window Mechanism. Customs News
VNA (05/04/2024). Vietnam attends 28th ASEAN Finance Ministers’ meeting. Vietnam Plus
May 06, 2024
