British Ambassador to Vietnam highly values the monetary reaction of Vietnam

Vietnam, as being an emerging economy and newly middle income country, would face numerous challenges and risks in exchange rate management, in ensuring investment efficiency in state-owned enterprises and in monetary issues. The explicit respone to risks of Vietnam’s government and Ministry of Finance in recent weeks is a positive message to the international community.



The newly-appointed British Ambassador to Vietnam Anthony Stokes highlighted this in the social meeting with minister of Finance Vu Van Ninh in the afternoon of March 9, 2011 at the headquarter of Ministry of Finance.



The British government is one of the countries granting largest grant assistance to Vietnam (total aid of up to 171 million British pounds) to support budget programmes, in particular the National Target Programme on education (21 million pounds – completely disbursed); 135 National Target Programme (16 million pounds, completely disbursed); programme on Water Supply and Sanitation in rural areas (total aid of 17 million pounds, expected to be disbursed in 2010-2013 period); Poverty Reduction Support Credit programme PRSC 6-10 (100 million pounds, expected to be annually disbursed with 20 million pounds in 2007-2011 period); School Education Quality Assurance Programme SEQAP (17 million pounds, expected to be disbursed in 2009-2012 period).



In addition, the British government is one of the few donors implementing IDA debt relief for Vietnam. Accordingly, from 2005 to 2015, the British government pledges to pay 10 percent of annual IDA debt obligation of Vietnam (valuing about $100 million). This debt relief money would be used for poverty reduction works of Vietnam (Vietnam received over $32 million in five years from 2005 to 2010). Those aids are transferred from the British government to the State budget of Vietnam to manage and use in accordance with the government’s regulations.



At the meeting, the Ambassador expressed his impress on the strong economic growth of Vietnam in the last 10 to 15 years, especially issues related to economic management, poverty reduction for Vietnamese people. The Ambassador hopes that the strategic cooperation between the two countries (signed in September 2010) would continue being the motivation which strongly ties the two countries in cooperation relationship.



Responding to the kindness of the Ambassador, minister Ninh affirmed that Ministry of Finance highly appreciates the support over the years of the UK and welcomes the spirit of developing cooperation, especially in financial sector, which is also the strength of the UK, particularly financial system, banking and insurance. Vietnamese government and Ministry of Finance would make every effort to promote the relation of the two countries to the new height.



Emphasising that Vietnam is determined to carry out inflation control, macroeconomic stability, ensure social security as well as business and investment environment, minister Ninh expressed his wish to received more assistance and support from the international community, for the government to realise the planned objectives. In particular, he expected that embassies would be the very effective connection for foreign investors to have better understanding on the policies that Vietnam has been implementing.



Under the plan, the London Financial Market will lead a delegation to visit Vietnam in late March 2011. minister Ninh said that the finance ministry hopes the upcoming visit of the Mayor of London Financial zone would not only strengthen cooperation between financial management agencies of the two countries, but also create motivation and support for the economic ownerships of the two countries to access to international markets. He added that Ministry of Finance would actively coordinate with British businesses operating in Vietnam to remove the difficulties and create favourable conditions to do business in accordance with the Vietnamese law.

Tags: Vietnam business news, Vietnam companies, Vietnam stock news

Posted by VBN on Mar 14 2011. Filed under Enterprises. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry