Prof. Vo Xuan Vinh attends the 40th Conference of the Asian Shadow Financial Regulatory Committee (ASFRC), affirming UEH's academic position on the international stage

01/07/2025

From June 26th to 28th, 2025, Prof. Vo Xuan Vinh – Dean of the Institute of Business Research (IBR), University of Economics Ho Chi Minh City (UEH) – attended the 40th meeting of the Asian Shadow Financial Regulatory Committee (ASFRC) in Taipei, Taiwan. As an official member of the Committee, the participation of Prof. Dr. Vo Xuan Vinh not only enhances his personal prestige but also strongly affirms the position and role of the Institute of Business Research and UEH within the prestigious financial academic community in the region and the world.

The Asian Shadow Financial Regulatory Committee (ASFRC) is a prestigious academic forum that gathers independent experts, including leading academics and former senior officials from 15 economies in the Asia-Pacific region. The Committee's mission is to discuss current issues, analyze, and propose important economic and financial policies for the sustainable development of the region. The fact that Prof. Vo Xuan Vinh is a member of this prestigious Committee is a great recognition of his contributions and influence in the financial sector, and it also demonstrates the extensive research cooperation relationship of IBR-UEH with the international scientific community.

At the 40th meeting, the experts focused on discussing and issuing a joint statement on the theme "The Demand for Capital, Public-Private Partnerships and the role of Private Equity Firms in Asia-Pacific". The statement highlights Asia's urgent challenge in mobilizing huge capital, estimated at US$1.7 trillion per year until 2030, to invest in infrastructure and innovative technologies.

The joint statement, with contributions from Prof. Vo Xuan Vinh and other members, pointed out that neither governments nor the private sector alone can solve this capital problem. Therefore, the key proposed solution is to promote public-private partnerships (PPPs), especially by leveraging the role of private equity, venture capital funds, and buyout funds to enhance capital allocation efficiency and drive innovation.

Based on the experiences of countries such as the United States, China, Japan, and South Korea, the Committee has made 5 important policy recommendations:

1. Following the experience of China and the US in using equity-based culture to finance investments in innovative technologies, many Asian countries could increase awareness on promoting such a culture. This may be essential for implementing the substantial investment agenda in most countries.
2. With infrastructure there may also be a need for co-financing between the public and private sector. In contrast to the required equity-based financing for innovative technologies, here we see a great potential for involving national investment banks which would provide part of the required loans for an investment project of a company while private parties (such as commercial banks and bond holders) would provide the remainder.
3. Public-private partnerships for co-financing investments, as highlighted in the two points above, have distinct advantages. Promoting an equity-based culture has important advantages for enabling risky and innovative investment projects, even in times of capital shortages, which otherwise would not take place.
4. Promoting a larger role for national investment banks, which enables better risk sharing, may help to bring in private financiers. The example of Europe where the European Investment Bank has been active for almost fifty years, may serve as an inspiration for Asian countries to set up an Asian Investment Bank lending to firms directly. Such an Asian Investment Bank would be distinctly different from the current practices of the Asian Development Bank and the Asian Infrastructure Investment Bank which primarily lend to governments and not to companies.
5. When promoting government venture capital (GVC) or public-private partnerships (PPP), there are challenges to be addressed. As for GVC, this includes over-reliance on public funds and limited flexibility given to venture capital funds in their investment decisions. Stronger institutions and good governance are needed to prevent such GVC projects turning into rent-seeking opportunities. As for PPP, this includes managing demand risk, financial structure, and the need for transparent contract management.

The active participation and intellectual contributions of Prof. Vo Xuan Vinh at a regional-level policy forum once again demonstrate UEH's deep integration into the global academic network, not only in research but also in participating in shaping important economic and financial policies, contributing Vietnamese intellect to solving the common challenges of Asia and the world.

Joint Statements of the Asian Shadow Financial Regulatory Committee

By Institute of Business Research