Friday, May 23, 2003
World Bank to help reform Vietnam's ailing public finance system
Agence France-Presse Hanoi, May 23
The World Bank said on Friday it has approved a $54 million soft loan for the reform of Vietnam's ailing and corruption-ridden public financial management system.
The project supports the government's goal of "promoting good governance... through strengthening budget planning, execution, reporting and accountability," the bank said in a statement.
Transparency and compliance with international standards were central to the reform of the current system, it said.
"The government of Vietnam has made steady progress in maintaining effective mechanisms to prevent over spending and misappropriation of resources," said World Bank country director for Vietnam, Klaus Rohland.
"However, there is an urgent need for further, accelerated reform to strengthen and integrate core treasury and budget management information system, to strengthen the link between budget management and the government's development goals, and to improve the management of public debts and fiscal risks."
In addition to the bank's interest-free loan, Britain's Department for International Development will contribute $10 million in a grant towards the project.
Many economists say the reform of Vietnam's public administration is crucial to tackling rampant corruption within government and state ranks.
The World Bank has repeatedly warned against falling into the "crony capitalism" trap that has beset other Southeast Asian countries in which the accumulation of wealth is linked to personal contacts and corruption. The communist-ruled country begun 'doi moi' or its transition to a market economy in 1986.
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