Public Financial Management (PFM) in Vietnam




Vietnam, Asia


Integra provides capacity-building support for the USAID government counterpart on economic growth and public health. This activity aims to strengthen the Ministry of Finance’s (MOF) key role in state financial management and improve the Ministry’s effectiveness and transparency in state finance. The team is directly supporting the State Security Commission (SSC), Insurance Supervisory Authority (ISA), the National Institute of Finance (NIF), and the International Cooperation Department (ICD ) to help reform the securities market, capital market for start-ups, debt securitization, and insurance and trade markets. Below are tasks that are illustrative of the support Integra is providing:

  • Conducted a capacity building on inspection and supervision of the securities market, supporting the development of a program to establish a capital market for start-ups in Vietnam, providing expertise on debt securitization and green bonds, and supporting the development of a risk-based capital model for Vietnam’s life and non-life insurance markets. Conducted a policy impact assessment and state budget revenue forecast for the NIF.
  • Developed and delivered virtual trainings covering topics such as building capacity for market supervision over securities firms, building capacity at the exchanges to supervise trading, and techniques for battling insider trading and market manipulation. They provided hands-on knowledge and skills of modeling software, familiarized attendees with the dynamic Vietnam Policy Advisory Group (VIPAG) model, and instructed them on how to model taxes and government accounts, including simulation and policy analysis.
  • Delivered an in-person training in Hanoi titled “Developing Risk-Based Capital (RBC) Model for Vietnam’s Insurance Market” for capacity-building for the NIF. The team presented the RBC model in Taiwan and Singapore on the solvency of the Japanese regime and on the do’s and don’ts to replicate in Vietnam. These trainings provided the necessary skills, best international experience, in-depth knowledge, and improved capacity.
  • Conducted a training session covering oversight of securities and derivatives firms, insider trading and market manipulation, market surveillance, exchange responsibilities and oversight, and enforcement and remedies for violations with two representatives from the U.S. SEC co-hosting and contributeing their expertise to the sessions.
  • The Integra team continues to make progress on a report on debt securitization for the SSC, a report on import/export services and e-commerce management, and an analysis using data collected from insurance companies to support the development of a risk-based capital model for life and non-life insurance markets for the ISA.
  • Authored a report called “The Application of the VIPAG Model,” including a summary of USAID activities, baseline forecasts, a policy impact assessment example, and recommendations.
  • Developed a briefing on trade policy between Vietnam and the U.S. Integra continues to work with USAID and counterparts in Vietnam to plan training, workshops, and research.

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