1. 1 Mr. Nguyen Ba Toan Deputy Director General Ministry of Finance of Vietnam THIRD INTERNATIONAL ROUNDTABLE Managing for Development Results Hanoi, February 5-8.2007 Vietnam PFM Reform Strategy: Implementation and Support of Donors

2. 2 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

3. 3 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

4. 4 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

5. 5 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

6. 6 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

7. 7 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.

8. 8 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

9. 9 Vietnam PFM Reform Strategy: Implementation and Support of Donors THANK YOU FOR YOUR ATTENTION