Private sector growth - key to financing sustainable development: UNDP report

Developing the private sector and expanding domestic private financial sources are key targets for Vietnam in order to meet financial demand for the successful implementation of the Sustainable Development Goals (SDGs) of the United Nations (Illustrative photo: VNA)

The recommendation was made in a report evaluating the financial conditions for Vietnam’s sustainable development, which was released by the UN Development Programme and the Ministry of Planning and Investment on September 11.

The report provides an overview of the changes in the country’s financing for development, with the aim of helping the country to improve the mobilisation, utilization and management of finance for development, in a bid to realise the UN’s 2030 Agenda for Sustainable Development.

It analysed the financial structure, characteristics, development trends and investment sources in Vietnam and made comparisons with other nations, mainly those in the ASEAN.

Vietnam is advised to extend its tax base and ensure better management of State property, as well as to enhance the efficiency of State expenditure, public investment and public debt management.

The report underlined the necessity of ensuring a smooth transition from the period of receiving official development assistance, and improving the management of the interactive relations among financial sources, while enhancing coordination and collaboration among the sources.

Deputy Minister of Planning and Investment Le Quang Manh said that financial sources for development and infrastructure remain the biggest challenge for Vietnam in realising the 2030 Agenda for Sustainable Development.

The report showed rapid changes in financing for development in Vietnam, said Haoliang Xu, Assistant Secretary General of the United Nations and Director of the Regional Bureau for Asia and Pacific at the UNDP.

Investment by the domestic private sector doubled in 2015 compared to 2002, but only accounted for 40 percent of total financing for development. The private investment rate of Vietnam stands at US$ 490 per person, among the lowest in ASEAN region.

Xu also recommended that Vietnam mobilise more private investment, attract more FDI projects which link domestic firms with global value chains and build a suitable financial framework for the implementation of SDGs./.

NDO