Viet Nam, the EU and Germany jointly strengthen Public Financial Management

On 17 January 2023 in Hanoi, the Ministry of Finance of Viet Nam, the Delegation of the European Union (EU) to Viet Nam, the Embassy of the Federal Republic of Germany held the first meeting of the Steering Committee of the project “Strengthening Public Financial Management in Viet Nam”. With a total EUR 14 million in funding from the EU and the German Federal Ministry for Economic Cooperation and Development, the ultimate objective of the project is to contribute to poverty alleviation and sustainable growth in Viet Nam.

The project “Strengthening public financial management in Vietnam”, co-financed by the European Union and the German Government, is an important part of the roll-out of Viet Nam’s National Financial Strategy 2021-2030. The three focus areas of the project are also priorities of the Ministry of Finance in the coming time. I hope the tripartite cooperation between the Ministry of Finance, the European Union and the Federal Republic of Germany will be successful,” Viet Nam’s Vice Minister of Finance Nguyen Duc Chi remarked.

Speaking at the meeting, EU Ambassador Giorgio Aliberti said: “The European Union remains strongly committed to supporting sustainable development and inclusive growth in Viet Nam. Strengthening economic governance, including public financial management is important in the 2030 Agenda for Sustainable Development and our initiative "Collect More – Spend Better”. The “Strengthening Public Financial Management in Viet Nam” project is part of the ongoing EU-supported Enhancing Economic Governance Programme. I hope it will contribute to Viet Nam’s macroeconomic stability and strengthen the government’s ability to implement its fiscal and economic policies. I am happy we can partner up once again in a Team Europe approach.”

Mr. Jens Schmid-Kreye, Deputy Head of Department for Economic Cooperation and Development at the German Embassy in Viet Nam, remarked: “Building Viet Nam into a sustainable future requires joining hands. This four-year project reaffirms Germany’s long-standing commitment to support Viet Nam achieve its sustainable development goals. With extensive experience gained from our partnerships and joint initiatives, including with the Ministry of Finance, Germany remains committed to collaborate with our Vietnamese partners in the strengthening of public finances. A robust public finance management system will make substantial contributions to Viet Nam’s long-term socioeconomic growth.”

Implemented over a period of 66 months by German Development Cooperation GIZ in cooperation with the Ministry of Finance of Viet Nam, the project aims to (i) improve state budget management and revenue forecasting; (ii) enhance management of public debt; and (iii) enhance tax environment and revenue mobilisation.