On December 1, 2021, the Ministry of Finance of Viet Nam and the United States Agency for International Development (USAID) signed a Memorandum of Understanding (MOU) on technical assistance in public financial management. This MOU is considered as an important cooperation program that aims to help the Ministry of Finance of Viet Nam improve public financial management capacity.
On December 1, 2021, the Ministry of Finance of Viet Nam and the United States Agency for International Development (USAID) signed a Memorandum of Understanding (MOU) on technical assistance in public financial management. This MOU is considered as an important cooperation program that aims to help the Ministry of Finance of Viet Nam improve public financial management capacity.
On December 1, 2021, the Ministry of Finance of Viet Nam and the United States Agency for International Development (USAID) signed a Memorandum of Understanding (MOU) on technical assistance in public financial management. The MOU is effective upon signature and remains in effect until December 31, 2023, and can be extended in writing by mutual consent of both Cooperants. The main contents of the MOU are as follows:
The objectives of MOU
The MOU is a technical assistance cooperation framework to help the Ministry of Finance in the following tasks: (i) Strengthening financial legal institutions to improve effectiveness and transparency of public financial management process; (ii) Enhancing performance of the securities market to increase businesses’ ability to access medium-term and long-term financial resources; (iii) Strengthening domestic financial resource mobilization, allocation, and efficient utilization; (iv) Providing training and building capacity of the staff of MOF departments and agencies.
Areas of cooperation
The Cooperants agree to work together in, but not limited to, assisting the MOF in the main following areas: (i) Conducting research and assessment to improve policies on corporate income tax, import and export tax, and other taxes, fees and charges; (ii) Assessing the policy impact on budgetary implications and the financial sector, and support budget, revenue and expenditure forecasting; (iii) Developing and implement the action plan to implement the Financial Development Strategy for the period of 2021-2030; (iv) Improving the legal framework to regulate the securities market for the period of 2021-2025; developing a strategic roadmap to improve the securities market by 2030; (v) Conducting research and assessment of financial policies and mechanisms for the establishment and operation of the domestic carbon market; (vi) Providing training and building capacity of MOF staff in innovative financing products and other topics. The Cooperants may identify further areas for cooperation in writing.
Expected outcome of MOU
The MOU was signed in the context of increased cooperation between Viet Nam and the US in economics, culture, society, politics, security, and defense. In particular, the United States has been providing technical assistance and advice to the Ministry of Finance of Viet Nam through the US Department of the Treasury, the US Trade Development Agency and USAID in the areas of public finance, such as taxes, insurance, capital and bond markets, accounting and auditing, and customs.
The signing of the MOU will further promote cooperation between USAID and the Ministry of Finance in various fields including budget and finance, revenue mobilization policy, stock market development, and capacity building, thereby gradually strengthening the effective cooperation between Viet Nam and the United States in the coming time.
ICD - MOF