Vietnam works with World Bank to improve debt management

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The Ministry of Finance has invited a group of World Bank experts to come and work with Vietnamese agencies in an attempt to improve the country's debt management.

The mission, between September 27 and October 6, will focus on the management of public debt and foreign debt in Vietnam.

The World Bank experts are expected to finish an assessment report including their findings and recommendations eight to ten weeks after the mission ends, according to a statement posted on the ministry's website last week.

The assessment will be based on the World Bank's Debt Management Performance Assessment Tool, a methodology for assessing performance through a set of performance indicators including legal framework, managerial structure, cash flow forecasting and debt records.

According to the World Bank, the tool can help highlight the strengths and weaknesses of government debt managemnent practices in each country.

The Ministry of Finance said in a statement in late August that Vietnam's outstanding government and government guaranteed external debt in 2010 totaled US$32.5 billion, up $4.6 billion compared to 2009. Government debt accounted for $27.86 billion, or 85.7 percent of the total figure.

Total external outstanding debt was equivalent to 42.2 percent of the country's GDP, compared to 39 percent in 2009, the ministry said.

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