Int’l Cooperation in Public Financial Management

 

As part of PFPG’s working plan, the meeting was an important event for the Ministry of Finance and development partners. PFPG Conference 2015 delved into discussions and dialogues: Strengthening of PFPG activities in 2015-2016; and solutions and policy recommendations concerning SOE restructuring, tax and customs procedure reform. Particularly, 2015 is an important year as it is the last year of the five-year socioeconomic development plan (2011-2015) and lays the groundwork for the next five year plan (2016-2020). The Ministry of Finance has actively guided solutions and tasks for implementing the socioeconomic development plan and State budget estimation in 2015 in order to further strengthen macroeconomic stability, facilitate business development and promote growth. The ministry has also carried out tight fiscal policies, encouraged effective and economical management and utilisation of resources, strengthened fiscal disciplines, created a favourable production and business environment, and improved competitiveness. It has also effectively advanced economic restructuring and changed growth model.

 

Officials from the Ministry of Finance acknowledged and appreciated active and effective supports of international organisations and development partners for the ministry in the past years. The reform results that the ministry has achieved have been significantly contributed by international organisations and development partners and by the good coordination of relevant ministries. The Ministry of Finance’s partnership with international donors and development partners in public financial management ​​reform has gone deeper into reality and effect.

 

Speaking at the meeting, Ms Victoria Kwakwa, World Bank Country Director for Vietnam, appreciated radical directions of the Government and the Ministry of Finance of Vietnam for carrying out of consistent and resolute solutions to further stabilising macro economy, control inflation, restore solid growth, deal with difficulties, and empower the competitiveness of businesses and the economy in recent years. She added that public financial reform will continue to play an important role in valorising the macro economy, stabilising social security life and achieving economic restructuring objectives stated in the Vietnam Financial Strategy to 2020. She believed that, with PFPG’s new action mechanisms through in-depth policy dialogues, carrying out planned specific actions on the basis of mutual understanding and trust will help strengthen the relationship between development partners and the Ministry of Finance of Vietnam, thus paving the way for achieving objectives of the Financial Strategy to 2020. The WB Director for Vietnam affirmed the WB will continue to coordinate closely with the Ministry of Finance of Vietnam further public financial reform in the future

The high-level PFPG meeting, themed “Restructuring State-owned enterprise and reforming tax and custom procedures, comprised three sections: (i) Report by the Ministry of Finance on PFPG performances in 2014-2015 and action plans in 2015-2016; SOE restructuring; tax and customs administration reform; (ii) keynote speeches by development partners on SOE restructuring, tax and customs administrative reform; and (iii) discussions and dialogues on SOE restructuring and tax and customs administration reform.

 

With drastic actions of the Government in carrying out consistent measures to speed up economic restructuring together with changing growth model, reshuffling sector development, and improving investment and business environment, PFPG 2015 will help Vietnamese authorities, international organisations and development partners to understand the perspectives of each other on public finance management policies in general and SOE restructuring, tax and customs administration reform in particular.