Local governments access to finance in Vietnam

Thứ Năm, 14/12/2017, 20:32
The Ministry of Finance and the Agence Française de Développement (AFD - French Development Agency) coorganize a seminar on “Local governments access to finance in Vietnam”. The seminar takes place on December 14 and 15 in Danang.

Vietnam has experienced big economic changes in the past decades with (i) high GDP growth, (ii) GDP per capita increases from US$ 130 in 1990 to US$ 2,050 in 2016, (iii) urban population increases from 20% of the total population to 34.2% in 2016, (iv) population growth rate is more than 1% per annum. 

At the event.

As a consequence, the need of indispensable infrastructure (such as roads, electricity, water, information, environmental sanitation) is high. Local government access to finance is a key issue to meet those needs in infrastructure development.

Therefore, the workshop is organized for the purpose of discussing and sharing the needs and financial constraints of local authorities in Viet Nam, as well as relevant international experiences and measures. 

It aims at exploring feasible solutions as well as recommendations to the central government in order to improve the legal basis so that local governments can access and use financial resources effectively for infrastructure development, for the purpose of promoting social and economic growth and improving people's living conditions.

The seminar will introduce (i) Vietnam context, the actual difficulties, and the conditions for local governments’ access to finance ; (ii) AFD’s activities in the field of local governments’ finance ; foreign examples and experiences (local government access to finance and foreign exchange risk management ; foreign decentralized financial institutions and financial decentralization / autonomy of local governments) ; opportunities and way forward with a view to further developing local governments’ access to final in Vietnam.

This seminar is a unique opportunity to gather and share experiences between key stakeholders with about 100 representatives from central agencies (Ministry of Finance, Ministry of Planning and Investment, State Bank); local governments (People's Committees, Departments of Finance and Departments of Planning and Investment of provinces, together with local Development Investment Funds) and commercial banks.

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