Viet Nam, European Union and Germany kick off project to strengthen Public Finances

In Hanoi on 13 April 2023, the project on “Strengthening Public Financial Management in Viet Nam”, with a total EUR 14 million in funding from the European Union (EU) and the German Government, officially kicked off. The project is implemented by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH in cooperation with the Ministry of Finance (MoF) of Viet Nam and will contribute to sustain Viet Nam’s robust growth through enhanced public financial management.

Speaking at the event, Mr. Tran Van Son, Deputy Chair of the Project Steering Committee remarked: “I would like to express our sincere thanks to the European Union and the German Government for supporting the Ministry of Finance with strengthening public financial management in Vietnam. By focusing on our priority areas, namely the state budget and revenue forecast, public debt, tax and revenue, and bringing in international expertise and practices, the project will make a significant contribution to the enhancement of public finance management in Viet Nam.”

Ms. Bunde Kristina, Counsellor - Head of Cooperation, Delegation of the European Union in Viet Nam said: “The European Union is pleased to see that the operational activities are about to start in this project and that once again we can work together as Team Europe. To put it simply, this project should help Vietnam to collect more and spend better. Moreover, it comes at the right time, because the PFM reforms under this project will give a boost to our energy budget support operation.”

Mr. Jens Schmidt-Kreye, First Secretary German Development Cooperation at the German Embassy in Viet Nam, commented: “We at the German Embassy are delighted to see that the project ‘Strengthening Public Financial Management in Viet Nam’ is ready to run at full speed with a clear implementation plan in place. Effective public financial management ensures that scarce public resources generate maximum impact where they are most needed. We believe that the project will help the Government of Viet Nam achieve its policy and development objectives and to set the stage for robust public service delivery.”

The project engages relevant government agencies, as well as other partners that operate country wide, in working to improve Viet Nam’s public financial management by i) improving the quality of medium-term budget planning and increasing fiscal transparency; ii) creating better risk management systems for public debt management; and iii) increasing revenue potential and the economic efficiency of tax policy.

The project encompasses a tailored set of interlinked activities, including analytical work, legal and policy advice, and organisational development. In addition, it provides formal and on-the-job training, coaching and mentoring, as well as peer-to-peer learning.