CELEBRATING TWO YEARS OF IMPACT AND INNOVATION

On December 15, 2023, the International Cooperation Department (ICD) of the Ministry of Finance (MOF) and Integra Government Services International convened for the Annual Review, a moment of reflection on the Vietnam Public Financial Management (PFM) Activity under the Asia Emerging Opportunities contract. The agenda assessed achievements and explored potential areas for future collaboration under the Memorandum of Understanding (MOU). Representatives from the International Cooperation Department (ICD), the Insurance Supervisory Agency (ISA), and the State Securities Commission (SSC) reflected on the significant strides made in strengthening the Ministry of Finance’s central role in managing state finances. Leaders from the ICD, MOF, and a representative from the United States Agency for International Development (USAID) set the tone for the event with welcoming remarks, emphasizing the importance of international cooperation and the collective effort driving the initiative. The event highlighted that this initiative has been a driving force for improving efficiency and transparency in financial matters at the state level.

The AEO Vietnam Public Financial Management (PFM) activity aimed to enhance the Ministry of Finance’s central role in managing state finances, promoting efficiency and transparency at the state level. With a $2.45 million buy-in from USAID, the project spanned two years and six months (June 2021 – December 2023). The challenges in Vietnam’s PFM, highlighted by USAID, included low transparency, public participation, and a high budget deficit. The project’s objectives centered on strengthening the Ministry’s capacity, improving legal frameworks, and deepening financial markets. The first year focused on finalizing a ten-year PFM strategy, capacity building for MOF staff, and developing legal frameworks. In subsequent years, efforts continued to forecast state budget revenue, complete legal frameworks for the security market, enhance capacity building, study taxes, and address other tasks. Notable accomplishments included comprehensive training sessions, workshops on green finance, taxes, and green financing studies, a debt securitization report, and initiatives in artificial intelligence and machine learning training, e-commerce, and risk-based capital models for the insurance market. The project aimed to support Vietnam’s economic growth, public health, and overall governance improvement.

In its inaugural year, the Integra AEO team prioritized key objectives to strengthen the Ministry of Finance. This included finalizing a ten-year public financial management strategy through extensive stakeholder consultations, developing action plans, and assessing policy impacts on the budget and financial sector. They also conducted training programs on evidence-based budgeting, data-driven analysis, gender-based budgeting, and debt management to empower ministry staff. Additionally, efforts were made to enhance legal frameworks in the securities market, improve tax policies, and establish a foundation for a transparent financial system. In the subsequent second and third years, the team made substantial progress, focusing on tasks such as state budget forecasting, completing the legal framework for the security market with an emphasis on green bonds, ongoing capacity building for Ministry of Finance officials, comprehensive evaluation of tax policies, and engagement in diverse initiatives like SSC Capacity Building, Green Taxonomy Workshop, and efforts for a Stock Exchange for Start-Ups, demonstrating the project’s multifaceted impact.

IMPACT AND ACHIEVEMENTS

Throughout the closeout event, representatives from the beneficiary departments pointed out numerous remarkable milestones, highlighting the effectiveness of Integra’s work, including:

• SSC Capacity Building Training: Collaborative sessions with U.S. Securities and Exchange Commission experts received high participant satisfaction.
• Debt Securitization Report: A comprehensive report on debt securitization, including a qualitative impact study, laid the foundation for further initiatives.
• Artificial Intelligence and Machine Learning Training: Responding to SSC’s request, AEO committed to providing AI and ML training, aligning with establishing an exchange for small, high-growth companies and startups.
• Risk-Based Capital Model: AEO developed a risk-based capital model for Vietnam’s insurance market, providing a roadmap for its full implementation.

LOOKING AHEAD: THE LASTING IMPACT OF AEO’S EFFORTS

Despite the short implementation period, the initiative’s impact is already profound, marking a testament to the power of strategic collaboration and dedicated efforts in shaping a resilient and progressive future for Vietnam. By empowering the Ministry of Finance, fostering transparency, and embracing innovation, the project is enhancing Vietnam’s financial landscape and contributing to its overall governance systems. This even celebrated achievements while laying the groundwork for future collaboration. The MOU implementation has been a positive force for change, and the potential areas discussed during the event signal a promising future. The collaborative spirit evident throughout the day underscores a commitment to international cooperation and a collective journey toward shared goals. A representative from USAID Vietnam remarked, “We concluded the USAID Public Finance Management successfully with positive momentum for potential cooperation with the Ministry of Finance.”

Pictured: Representatives of Integra and the acting director of USAID/Vietnam and the trade and competitiveness advisor presented with letters of appreciation from Vietnam’s MOF for their valuable contributions to the technical assistance provided on public financial management.