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Mr. Nguyen Ba ToanDeputy Director General

Ministry of Finance of Vietnam

THIRD INTERNATIONAL ROUNDTABLEManaging for Development Results

Hanoi, February 5-8.2007

Vietnam PFM Reform Strategy: Implementation and Support of

Donors

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1. Background Economic reform Economic growth rates

7.6% (1990-2000) 7.5% (2001-2005) 8.17% (2006)

Vietnam PFM Reform Strategy:Implementation and Support of

Donors

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Achievements in PFM reform Contribution to macroeconomic

sustainability Increase in national financial

capacity for economic development

Active changes in structure of financial resource distribution

Vietnam PFM Reform Strategy:Implementation and Support of

Donors

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Vietnam PFM Reform Strategy:Implementation and Support of

Donors

2. PFM reform directions to 2010

Overall objectives Adequate financial resources for

economic development Enforcement of financial policies Sound system Capacity improvement

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Vietnam PFM Reform Strategy:Implementation and Support of

Donors

Specific targets Saving-Investment, Saving-

Consumption State budget revenue/GDP Increased allocation to education,

training and research Controlled state budget deficit Controlled Gov. debt

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Vietnam PFM Reform Strategy:Implementation and Support of

Donors

Specific targets (continued) Development of financial

markets Restructure of SOE sector Management of currency notes

and exchange rate

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Vietnam PFM Reform Strategy:Implementation and Support of

Donors

3. Major achievements of PFM reform

state budget management Tax administration Customs administration Public debt management Financial management in SOE sector Etc.

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Vietnam PFM Reform Strategy:Implementation and Support of

Donors

4. Donors support Donors: UNDP, IFIs, bilateral

governments and others Support received in almost sectors of

reform Diversified modalities of support Closed co-ordination between Gov. and

donors Obvious impact of supports

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Vietnam PFM Reform Strategy:Implementation and Support of

Donors

THANK YOU FOR YOUR ATTENTION