According to the WB, the strengths that Vietnam has achieved in public debt management include clearly defining authority, goals, and specific borrowing purposes, and having legal documents regulating each field.
According to information from the Ministry of Finance , Deputy Minister of Finance Tran Quoc Phuong recently had a meeting and worked with experts from the World Bank (WB) on the 2024 Public Debt Management Assessment (DeMPA) results of the WB for Vietnam.
From 2024, the WB expert team will work with the Ministry of Finance and relevant agencies to conduct the DeMPA assessment in Vietnam.
The objective is to assess Vietnam's debt management practices, compare them with good practices, and identify areas for improvement.
According to the WB Report, the overall debt management performance is assessed as good and affirms that there have been positive developments in the legal framework since the new Public Debt Management Law was promulgated in 2017, as well as the promulgation of internal procedures for implementation.
According to the WB, the strengths that Vietnam has achieved in public debt management include: Clearly defining authority, goals, and specific borrowing purposes, and having legal documents regulating each field.
In terms of organizational structure, there is good coordination between parties, staff are competent to manage debt. Debt management strategy is of good quality, basic information on outstanding debt is published periodically.
Financial audits and compliance audits are conducted by the State Audit and annual reports, implementation status and recommendations are submitted to the National Assembly and made public. There is coordination with fiscal and monetary policies.
The process of domestic and foreign borrowing, guarantees and re-lending is clearly organized and planned. Cash flow forecasting and treasury management have been significantly improved. Full, accurate and timely debt recording for both domestic and foreign debts…
Based on this report, Mr. Lars Jassen, Chief Debt Management Specialist of the World Bank, also proposed some contents that need to be improved, such as the need to publicly report to the National Assembly on public debt; the annual debt plan has not yet provided targets for risk indicators; performance audits, fiscal risk reports and debt sustainability analysis (DSA) have not been performed.
Together with WB experts, Mr. Lars Jassen also discussed recommendations aimed at continuing to improve the effectiveness of public debt management, focusing on solutions to diversify loan sources, and improving the operations of specialized debt management agencies.
Deputy Minister Tran Quoc Phuong said that public debt management is one of the important areas that need to be focused on in the process of building and developing the socio-economy, especially in the new period. To meet economic growth targets, Vietnam needs to strongly promote the process of capital mobilization both domestically and internationally. On the other hand, it is also necessary to optimize the use of capital sources to ensure real and sustainable efficiency.
“As Vietnam develops, there will be no more preferential loans, so there will be many difficulties in capital mobilization. In that context, detailed assessments and especially recommendations from the WB are very necessary for Vietnam,” Deputy Minister Tran Quoc Phuong emphasized.
Deputy Minister Tran Quoc Phuong expressed his hope that the WB expert team will continue to research and gain a deeper understanding, thereby providing consultations at many different levels; including from the technical and professional level to recommendations on strategies and management solutions; at the same time, the WB will continue to work effectively with the focal point of the Ministry of Finance, the Department of Debt Management and Foreign Economic Relations, as well as other units of the Ministry of Finance in the spirit of support and cooperation to improve public debt management capacity./.
Source: https://baolangson.vn/ngan-hang-the-gioi-danh-gia-tot-ve-hieu-qua-quan-ly-no-cong-cua-viet-nam-5054034.html
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