General Budget Support Vietnam 2013-2016 (EMCC)

As Vietnam graduated to a middle-income country, the introduction of EMCC implies a shift from an exclusive focus on poverty reduction towards sustaining Vietnam's development and growth path by supporting critical second generation reforms. Vietnam has seen most impressive records on economic growth and poverty reduction in the space of twenty five years. There is growing recognition however that reform now need to promote an efficient use of its production factors to icrease productivity. EMCC is co-financed by the Asian Development Bank, Japan, Canada and Switzerland, while other donors contribute to analytical work.

The overall objective of this Budget Support Operation is to promote competitiveness to sustain growth and poverty reduction gains, by supporting the implementation of the socio-economic development plan. The focus on economic management reforms will contribute to higher productivity in Vietnam. The program is based on three pillars: i) macroeconomic stability- ii) transparency, efficiency, and accountability of the public sector- and iii) business enabling environment. The program is aligned with the government's objective of improving market institutions and administrative reforms

Sustained macroeconomic stability through the pursuit of fiscal discipline, financial sector stability and structural reforms.

Sound business environment through increased efficiency, transparency and equity in business regulations.

Enhanced transparency, efficiency and accountability in the public sector through strengthened public administration, improved management of state enterprises, and more effective public investment management.

Protection of the poor and vulnerable against the adverse impacts of Vietnam’s economic transition through effective social protection measures.

Principaux résultats attendus:  

Policy dialogue: Through policy dialogue the government of Vietnam and the development partners agree on development priorities as well as on performance targets and operational procedures. Switzerland focuses especially on Financial Sector Reform and Public Financial Management issues.

Catalog of Reforms: Triggers and policy actions for the Budget Support are negotiated with the government using the overall strategic results-framework.

Analytical Work: The Budget Support Operation finances analytical work and short-term technical assistance to inform the policy dialogue and discussion with the government.

Principaux résultats antérieurs:  

Vietnam is one example where high growth rates (more than 7.5 percent during 2001-06) were attributed to achievements in the five policy areas related to the previous budget support operation's growth objectives (trade, private sector development, infrastructure, state enterprise reform, and banking reform). Previous Operations supported the results in growth and development. Vietnam has made tremendous efforts to achieve its Millennium Development Goals by 2015. It has already achieved to eradicate hunger and reduce poverty for half and the target to promote gender equality. Vietnam is also very likely to achieve its targets related to child mortality, malaria and universal primary education.

Phase 3 01.01.2013 - 30.09.2016   (Active)