UNDP, Australia and Switzerland Help Viet Nam Manage Public Debt
Ha Noi - The United Nations Development Programme (UNDP), the Governments of Australia and Switzerland and the Ministry of Finance (MOF) today signedÑ a project to support management of Viet Nam's external debts as the nation is striving to achieve ambitious objectives in modernization, industrialization and poverty alleviation.
Effective mobilization and use of domestic and foreign savings for development and poverty reduction is critical for Viet Nam. "This project, said Mr. Edouard Wattez, UNDP Resident Representative, is an important step toward increased sustainable management of financing for development"
The 3.5 year-project, External Debt Management Project, will help strengthen the Government capacity to manage its external debt in order to support sustainable development and minimize the risk of financial crises, as recently experienced in neighboring countries. The total budget is around $US 2,4 million, co-funded byÑ UNDP, the Governments of Australia and Switzerland.
Given relatively low domestic savings, Viet Nam has relied significantly on foreign capital to finance budget deficits and investments in the 1990s. According to experts, borrowing requirements are expected to rise in the coming years.
In his statement, the UNDP Resident Representative, emphasized the collaboration between different ministries and departments, as well as multiple donors, in the formulation and finalization of this project.The project aims at developing a comprehensive and consistent environment for external debt management. It also will assist the Government in improving the current debt management strategy to be integrated into macro-economic framework. A database will be built to collect and monitor debt-related information and improve wider public access to it.