Switzerland supports Vietnam in the implementation of structural reforms

Bern, 13.09.2013 - On 13 September 2013 the Federal Council decided to grant Vietnam general budget support of CHF 24 million for the years 2013 to 2015. Switzerland is thereby supporting the South-east Asian country in the implementation of necessary structural reforms.

Vietnam has achieved considerable success in its economic development in recent years. The Vietnamese economy has become increasingly integrated in the global economy and oriented towards the principles of a free market. As a dynamic economy of South-east Asia, Vietnam stands at a critical point in its development: while it now needs to consolidate sustainably its status as a medium-income country, further growth is being hampered by the sluggish implementation of structural reforms, difficulties in the banking sector and deficiencies in governance.

Budget support is an appropriate instrument to continue supporting Vietnam in the future as it faces a range of complex challenges, as medium-income countries often lack specialised skills and administrative capacities. Through performance-based disbursements and targeted policy dialogue, budget support helps to advance the reforms urgently needed and to implement specific measures. In particular, budget support reinforces measures that contribute to a stable macroeconomic environment, a transparent and efficient public financial management, and an improved business environment. Switzerland's budget support is made in the form of cofinancing through a World Bank trust fund, together with six other donors.

Vietnam is one of the priority countries for development cooperation of the State Secretariat for Economic Affairs (SECO). Budget support forms part of the package of measures to implement the framework credit on financing economic and trade policy measures.


Address for enquiries

Monica Rubiolo, SECO, Head of Department Macroeconomic Support, Tel. 031 324 07 85


Publisher

The Federal Council
https://www.admin.ch/gov/en/start.html

Federal Department of Economic Affairs, Education and Research
http://www.wbf.admin.ch

https://www.admin.ch/content/gov/en/start/dokumentation/medienmitteilungen.msg-id-50242.html