Vietnam seeks Belgian advice on global minimum tax policy

In a recent working visit to Belgium, Vietnamese Minister of Finance Ho Duc Phoc, along with his delegation, engaged in significant dialogue with the Belgian authorities to fortify mutual ties and cooperation.

During a meeting on July 4, Minister Phoc and his team engaged with Belgium's Deputy Prime Minister and Finance Minister Vincent Van Peterghem on discussions about Vietnam's economy, where Belgium's support for Vietnam's initiatives took centre stage.

Vietnam's macroeconomic situation has seen steady progression in the first six months of the year. This growth is underscored by a consistent positive trend in production, export, enterprise development, and foreign direct investment (FDI) inflows.

The country has managed to control its debt safety indicators, driving a marked improvement in its public and government debt portfolios by increasing domestic debt proportions and reducing foreign ones.

The Belgian DPM welcomed the efforts made by Vietnam and vowed to extend the country's support in various areas where Belgium possesses notable strengths.

Minister Phoc requested the Belgian government to augment its official development assistance (ODA) to Vietnam by adopting direct budget support methods and providing more autonomy to the beneficiaries.

Vietnam is keenly exploring the introduction of a global minimum tax policy and appreciates Belgium's guidance in this matter.

"Given the complexity of implementing the GMT, as outlined in the EU Directive which takes effect on January 1, 2024, we look forward to leveraging Belgium's experience in its adoption," he said.

DPM Van Peterghem indicated his intent to instruct specialised agencies to continue research, coordination, and support for Vietnam in the future. He also promised to address Vietnam's proposals related to ODA loans and grants.

During his visit, Minister Phoc met Jean-Paul Servais, chairman of Belgium's Financial Services and Markets Authority (FSMA), who concurrently heads the International Organisation of Securities Commissions (IOSCO). Minister Phoc highlighted the successes of Vietnam's securities market and its future development direction.

The Vietnamese Ministry of Finance is in the process of formulating a strategy to evolve its securities market by 2030, centred around four key pillars: commodities, trading markets, intermediaries, and investors. Special emphasis will be placed on the significant expansion of the network of institutional investors, adhering to the direction of green financial development, serving the goal of sustainable growth.

The minister suggested multiple strategies to propel the collaboration between both sides, with the State Securities Commission participating as a full member of IOSCO.

"We wish to continue receiving extended support from you as chairman of the FSMA and IOSCO for the development of Vietnam's securities market," he proposed.

He also called for technical assistance in developing a modern, effective market surveillance system capable of early detection of market violations.

Additionally, Minister Phoc expressed his desire for Vietnam to host an upcoming annual IOSCO conference, seeking Servais's backing for the proposal.

Servais, impressed with Vietnam's stock market development direction, pledged his support and encouraged Vietnam to apply to host a future IOSCO conference.

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