Enhance the effectiveness and efficiency of public financial management in Vietnam

Enhance the effectiveness and efficiency of public financial management in Vietnam 26/11/2018 10:16:00 556

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During November 23 - 24, 2018, the Ministry of Finance (MOF) and the World Bank (WB) jointly organized the workshop “Main directions in the implementation of the PFM AAA program” in Ha Long city, Quang Ninh province. The workshop was co-chaired by Mr. Do Hoang Anh Tuan - Vice Minister of Finance; Mr. Fily Sissoko - Practice Manager, Governance Global Practice – East Asia Pacific Region, the WB; and Mr. Marcel Reymond – Head of Economic Development Cooperation, Swiss State Secretariat for Economic Affairs (SECO), in Vietnam. Among the participants were representatives from SECO, the WB, the Program Management Unit of the PFM AAA program and relevant departments of the MOF.

During November 23 - 24, 2018, the Ministry of Finance (MOF) and the World Bank (WB) jointly organized the workshop “Main directions in the implementation of the PFM AAA program” in Ha Long city, Quang Ninh province. The workshop was co-chaired by Mr. Do Hoang Anh Tuan - Vice Minister of Finance; Mr. Fily Sissoko - Practice Manager, Governance Global Practice – East Asia Pacific Region, the WB; and Mr. Marcel Reymond – Head of Economic Development Cooperation, Swiss State Secretariat for Economic Affairs (SECO), in Vietnam. Among the participants were representatives from SECO, the WB, the Program Management Unit of the PFM AAA program and relevant departments of the MOF.

The Vietnam Public Financial Management (PFM) Analytical and Advisory Assistance (AAA) Program 2016-2020 is co-financed by SECO and the Global Affairs Canada (GAC) and entrusted through the WB with the aim to support Vietnam in its PFM reform at both national and subnational levels. The objectives of the Program are to: (i) support strengthening the capacity of executive bodies to make, implement, and monitor policies to improve budget planning and execution in a transparent, accountable, and sustainable manner; and (ii) provide empirical analysis of the effectiveness and efficiency of major public finance reforms at both the central and local levels of government.

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Mr. Đỗ Hoàng Anh Anh Tuấn (MOF), Mr. Fily Sissoko (WB) and Mr. Marcel Reymond (SECO)
co-chaired the workshop

In his opening remarks, Vice Minister Do Hoang Anh Tuan highly appreciated the initiative to organize this workshop and believed that the MOF-led PFM reforms have brought positive impacts, contributed to effective allocation and utilization of financial resources for socio-economic development and guarantee of macroeconomic stability; renewed the growth model; restructured the economy; further integrated into the global economy; developed different types of markets in sync and guaranteed national financial security.

Vice Minister Do Hoang Anh Tuan expressed his belief that the workshop “Main directions in the implementation of the PFM AAA program” will not only promote PFM AAA in Vietnam, but also learn and apply international experiences and standards to help the MOF effectively complete the tasks assigned by the Government.

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Vice Minister Đỗ Hoàng Anh Tuấn gave his opening remarks

In his speech at the workshop, Mr. Fily Sissoko- Practice Manager, Governance Global Practice - East Asia Pacific Region of the WB was very pleased about the priority the Government have given to PFM reforms as well as the close and effective partnership in PFM with the MOF in many years to promote TABMIS, MDTF2 and now AAA Programs.

Mr. Sissoko also analyzed and highly appreciated the close linkages between the MOF’s reform priorities and the objectives of the AAA Program. Nonetheless, he pointed out a number of risks and challenges of the Program. Mr. Sissoko stated that this workshop provides a welcome opportunity for the WB and SECO to discuss these frankly and map the way forward with the MOF and beneficiary units. “We at the WB with SECO’s support are very pleased to partner with the Government for the PFM AAA program,” he said and confirmed the WB’s commitment to supporting PFM reforms in Vietnam.

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Experts discussed in the workshop

In his turn, Mr. Marcel Reymond - Head of Economic Development Cooperation of SECO also confirmed SECO’s commitment to supporting reforms undertaken by the Vietnamese Government as well as the PFM AAA program. He expected that relevant stakeholders will speed up the implementation of sub-projects according to plan to boost the effectiveness and efficiency of the Program, and hence contribute to the socio-economic development of Vietnam.

Mr. Reymond also considered the development of financial institutions extremely important factors in sustainable development and economic growth in Vietnam. The application of international good practices is the best way to develop a PFM system which most effectively supports the economic growth process of Vietnam in the future.

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Participants discussed accounting standards

In the two-day workshop, in addition to the overview and progress assessment of the PFM AAA program, participants discussed several thematic topics, such as the MTEF implementation at national and subnational levels in Vietnam, issuance of Vietnam Public Sector Accounting Standards in line with International Public Sector Accounting Standards, production of Whole-of-Government Financial Statements in Vietnam, and annual and medium-term commitment management in Vietnam.

To conclude the workshop, all parties agreed to continue strengthening the close partnership to speed up the implementation progress of the program and to develop and issue a concrete action plan as well as a a suitable road map.

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Participants visited Vân Đồn airport - a BOT project

In the afternoon of November 24, participants conducted a study visit to a number of BOT projects in Van Don district, Quang Ninh province to discuss financial mechanisms and policies on resource mobilization and investment payback in BOT projects in Van Don and projects on transport connections to Van Don Economic zone. Besides, they also debated financial mechanisms and policies to encourage and manage the capital invested by the private sector in socio-economic infrastructure in encouraged investment areas.

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