03:23 (GMT +7) - Thursday 24/10/2019

Vietnam Today

Switzerland & World Bank to work with Da Nang

Released at: 09:29, 07/10/2019

Switzerland & World Bank to work with Da Nang

Photo: WB

Joint collaboration program established to strengthen city's institutions and capacity in financial resources management.

by Doanh Doanh

The Swiss State Secretariat for Economic Affairs (SECO), the World Bank, and the Da Nang City People’s Committee have announced a joint collaboration program to strengthen the city’s institutions and capacity to mobilize and utilize financial resources in a more effective, efficient, accountable, and sustainable manner.

The program provides advisory and capacity building support in four key areas of common interest - Fiscal Strategy, Medium-term Budgeting, Public Service Performance Reporting, and Public Debt Management - which were highlighted in the city’s Public Expenditure and Financial Accountability (PEFA) assessment. This support is expected to build a solid basis for broadening and deepening reforms and collaboration in the medium-term.

“Da Nang is an emerging growth pole with a long-term vision to be an international gateway and regional commercial hub,” said Mr. Ousmane Dione, World Bank Country Director for Vietnam. “But it is facing a host of challenges to deliver vital urban infrastructure and services in a fiscally-constrained environment. These challenges reinforce the need for more efficient resource mobilization, planning and implementation of spending programs within a medium-term framework that ensures long-term fiscal sustainability, and sound management of public debt and fiscal risks.”

This is the first partnership between SECO and the World Bank in support of public financial management reforms at the sub-national level in Vietnam. It complements their joint support for public finance management reform at the national level.

The Public Financial Management Reform Program (PFMRP), during 2019-2025, is funded by a $3 million grant provided by SECO and administered by the World Bank for the benefit of Da Nang.

“Vietnam and its secondary cities have been priority partners for Switzerland’s cooperation support for many years,” said Mr. Marcel Reymond, Head of Cooperation at the Embassy of Switzerland in Vietnam. “SECO focuses on effective economic policies and institutions, including public financial management reforms, among other areas. It appreciates Da Nang’s vision and ambition to drive reforms. The program needs a committed partner to build a policy feedback loop from the subnational level to the central government in order to leverage results.”

“To ensure the effective implementation of the program over the next six years, the city looks forward to establishing a joint Steering Committee with the World Bank and SECO as governing body to oversee the strategic focus of the program, discuss progress, and address challenges that may arise during implementation,” said Mr. Huynh Duc Tho, Chairman of the Da Nang City People’s Committee.

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