UNCTAD and the Government of Vietnam signed a Memorandum of Understanding (MoU) on debt and development finance strategies.
Signed on the sidelines of the Trade and Development Board session, the MoU will serve as the basis for future cooperation in support of Vietnam's development agenda and to promote the achievement of the Sustainable Development Goals (SDGs).
The Vietnamese government lauded UNCTAD for its capacity building support in the development of rule-based, transparent, inclusive international trading system and the ongoing cooperation.
The signing of the MoU comes at a time when the issues of debt management and accessing development finance are critically important in Vietnam as the country faces the challenge of diminished access to concessional borrowings.
“We are confident that the signing of this MoU marks the beginning of a new phase in cooperation between UNCTAD and the government of Vietnam in the area of debt and development finance strategies”, Stephanie Blankenburg, Head, Debt and Development Finance Branch.
UNCTAD's Debt Management and Financial Analysis System (DMFAS) Programme has provided technical assistance to both the Ministry of Finance's Debt Management External Finance Department (DMEFD) and the Vietnamese State Treasury (VST), including the provision of the DMFAS software and capacity-building in public debt management.
UNCTAD has also worked with the Government of Vietnam to improve the institutional capacity to address the debt servicing implications of external shocks and climate change through risk analysis and the use of innovative risk-management instruments.
With UNCTAD's support, the government of Vietnam has established a comprehensive debt database that includes both external and domestic debt, and has integrated debt flows into the accounting and budgetary process in support of its reforms of public finance management. This has in turn resulted in the strengthening of public financial management, information and transparency.
Overall, the government has built a stronger capacity for the day-to-day management of its public debt, for producing comprehensive and reliable debt statistics and for conducting debt sustainability and risk analysis.
Consequently, the government seeks UNCTAD's support to upgrade its debt management system and to strengthen its sustainable debt and development finance strategies, specifically through the revision of existing regulations and legislation on public and private sector debt.
UNCTAD and the government of Vietnam have collaborated in the area of public debt management since 1995 through the successful implementation of two technical assistance projects.