WB, SECO support Da Nang City’s public financial management reforms

At the ceremony. Photo: WB

The Public Financial Management Reform Program (PFMRP), during 2019–2025, is funded by a CHF3-million grant provided by SECO and administered by the World Bank for the benefit of Da Nang City.

It 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 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 Public Expenditure and Financial Accountability (PEFA) assessment in Da Nang City. This support is expected to build a good basis for broadening and deepening reforms and collaboration in the medium-term.

“Da Nang City is an emerging growth pole with a long-term vision to be an international gateway and regional commercial hub,” said 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.”

“Vietnam and its secondary cities have been priority partners for Switzerland’s cooperation support for many years. SECO focuses on effective economic policies and institutions, including public financial management reforms among other areas,” said Marcel Reymond, Head of Cooperation, Embassy of Switzerland in Vietnam.

“SECO appreciates the vision and level of ambitions of Da Nang City 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.”

“The City considers this a strategic partnership with SECO and the World Bank, which provides necessary advisory and capacity-building support to a number of beneficiary departments in our priority reform areas,” said Huynh Duc Tho, Chairman, People’s Committee of Da Nang City.

“To ensure effective implementation of the program in 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.”