Through the lens of the Integrated National Financing Framework (INFF), the report analyzes the composition, characteristics and trends of Viet Nam's development finance and development investment resources, with comparisons to other largely ASEAN region countries.
The report provides an overview of the changing development finance landscape in Viet Nam, characterized by high Foreign Direct Investment (FDI) and remittance inflows that contrast with declining ODA and slowly rising government revenue insufficient to sustain the high level of public investment needed to meet increasing spending obligations with climing public debt.
Mr. Haoliang Xu said the Development Finance Assessment Report highlighted the rapidly changing development finance landscape in Viet Nam. However, he noted that “While the volume of domestic private investment in 2015 has doubled since 2002, its share of total development finance, of around 40%, and per capita domestic private investment - US$490 in 2015 compared to the ASEAN average of US$690 - are amongst the lowest in the ASEAN region”.
In response to the report’s findings, Mr. Haoliang Xu called for urgent actions that include incentives for increasing domestic private investment; public investment crowding in private investment; attraction of FDI that helps solidify domestic firms’ linkages with global value chains; enhanced tax collection, state asset management and introduction of property and environmental taxes; as well as progress towards an integrated national financing framework for SDGs.
He reaffirmed UNDP’s readiness to partner with Viet Nam in effective financing for SDGs, especially enhancing synergies of all finances (public, private, national and international) and maximizing their contributions to SDG outcomes.