Vietnam Cooperation Programme 2021 2024
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COOPERATION
PROGRAMME
Vietnam
Cooperation Programme 2021 – 2024
Content Editorial Vietnam’s private sector as
an engine of growth
Country context 5
With this Cooperation Programme
2021–2024, the Swiss State Secretar-
SECO’s main goal is to support Vietnam in
iat for Economic Affairs SECO is sup-
porting Vietnam in achieving market-
achieving market-oriented, sustainable growth.
oriented, sustainable growth. To this end, SECO’s support will focus on pro-
Vietnam has emerged as a thriving
middle-income economy with a low moting reliable economic framework conditions
Development 9 poverty rate. Nevertheless, further
and an innovation-friendly business environ-
cooperation structural reforms are needed to
programme unleash its full economic potential.
SECO promotes economic growth
ment that will allow Vietnam’s private sector to
and sustainable prosperity. Therefore,
SECO’s development cooperation
thrive. In particular, the programme fosters
Thematic priorities 13
programme aims to further strengthen
the economic resilience of Vietnam.
activities geared towards supporting growth-
In line with the United Nation’s (UN) 2030 Agenda for promoting economic policies and reliable public
Sustainable Development and Switzerland’s new Strat-
egy for International Cooperation 2021–2024, SECO institutions, enhancing the private sector’s
takes a three-pronged approach: It considers Vietnam’s
development priorities, Switzerland’s perspective on competitiveness and market access, creating
Vietnam and the added value that Switzerland can offer
with this partnership. These criteria define the two the-
decent income opportunities and fostering
matic priorities of Switzerland’s Cooperation Programme
2021–2024 in Vietnam that are outlined on the following
climate-resilient urban development.
pages.
Taking into account the lessons learned and building on
the results achieved in the 2017–2020 cycle, this Coop-
eration Programme 2021–2024 defines the strategic SECO’s thematic priorities for Vietnam
framework for the future activities of SECO over the
next four years. SECO aims to remain a responsible and
reliable development partner. This requires persistence
during challenging times and support in mitigating risks
as well as seizing opportunities when they arise. We
count on the ownership and leadership of our Vietnam-
ese partners to achieve lasting reforms and results. We
are confident that with the present programme we can
support Vietnam’s further development aspiration.
SECO is looking forward to continuing its excellent part-
nership with Vietnam in the years to come. Promoting market-oriented and Enhancing the private sector’s
reliable economic framework competitiveness and market
conditions access
Marie-Gabrielle Ineichen-Fleisch
State Secretary, Director of SECO
Raymund Furrer
Ambassador, Head of Economic Cooperation
and Development SECO
Country
context
Since the launch of its economic reforms, or Doi Moi
(renewal), in 1986, Vietnam has emerged as a thriving
middle-income economy. In line with its rapid eco-
nomic growth over the past three decades, Vietnam
has achieved remarkable progress towards the UN’s
Sustainable Development Goals (SDGs). It has per-
formed particularly well in terms of human develop-
ment, social inclusion and poverty reduction. Never-
theless, the country lags behind in the achievement of
a number of key development goals, namely related
to industry, innovation and infrastructure (SDG 9), cli-
mate change and environmental protection (SDGs 13,
14 and 15), as well as quality governance and inde-
pendent institutions (SDG 16) in particular. While the
transformation from a low- to a middle-income coun-
1 try has been rather smooth, it was clearly at the
expense of the environment. Without further eco-
nomic and institutional reforms Vietnam may face
challenges to reach its declared goal of reaching
high-income status by 2045.
1 Supporting Vietnam in making its energy mix more
sustainable: SECO promotes renewable energy supply.
2 Addressing traffic congestion in urban areas: SECO
promotes integrated urban development.
3 Enhancing climate change adaptation in urban
areas: SECO tackles recurrent flooding in Vietnamese
cities.
4 Providing reliable basic public services: SECO
supports improved supply of public goods and services.
2 3 4
4 5
Vietnam is in the process of a twofold structural and biodiversity are threatened by environmental deg- Main results achieved Lessons learned
transformation. One goal is to transition from a centrally radation, partially explained by its booming economic
planned economy to a market-oriented economy1. The activities, rapid urbanisation and accelerated climate ■ SECO, together with its implementing partners, has supported ■ SECO’s Vietnam portfolio covers a broad range of topics.
Vietnam in reforming part of its economic legal framework and Streamlining the country portfolio by developing fewer but more
second goal is to accomplish a structural shift from the change impacts. Pollution from inefficient use of institutions that are key to the country’s transformation from cen- comprehensive programmes could generate greater impact and
still important agricultural sector to a fast-growing resources imposes severe costs on the society, nega- tral planning towards a more market-oriented economy. In addi- lead to a clearer branding of SECO’s work in Vietnam.
manufacturing and service sector, the former employ- tively affecting quality of life and restricting sustainable
ing roughly 40% of the total workforce. Labour pro- development.
tion to other achievements, SECO’s support has enabled the
development of some key laws in public finance management
■ Past support by SECO has shown that the complexity and ambi-
tion level of individual projects needs to be better aligned with the
ductivity rates have begun to slow and the population is (PFM), in particular, the Public Debt Management Law. The new
Despite exemplary laws and excellent state pro- law has made a number of critical breakthroughs, including the
actual capacity of the Vietnamese counterparts. A very broad and
aging rapidly. Without further ambitious structural grammes for gender equality, female labour participa- removal of public debt management fragmentation, which has
ambitious project might become too complex to be viable within
reforms to strengthen private investments, improve the Vietnamese system. A thorough partner capacity analysis for
tion, especially at the decision-making level, is clearly strengthened the transparency of public debt management. SECO
new projects could help to better manage this challenge.
productivity, increase the efficiency of the public sector lower than male participation. Moreover, female has contributed to the acceleration of SOE reforms, which has
and reinforce its financial sector, Vietnam might get workers are often paid less, more often engage in helped to narrow down the state budget deficit and free up space ■ Within Vietnam’s single-party system, subnational govern-
stuck in a looming middle-income trap. At the same for private sector participation. ments, especially in large urban centres, play a crucial role in deliv-
informal work and are more likely to be exposed to
time, new trends like digitalisation and automation con- vulnerable employment situations. ■ SECO has successfully contributed to Vietnam’s private sector ering infrastructure and public services to the growing population
and economy. This is the outcome of a two-decades-long decen-
stitute opportunities as well as threats for Vietnam. development. Most notable is SECO’s support for deepening the
tralisation process. In order to take into account the important role
financial market, strengthening corporate governance among pub-
The country’s economic growth model still relies on lic listed companies, improving social and environmental responsi-
of the provincial government in service provision, SECO will inten-
input-driven growth, largely based on low-cost labour, sify its support at the sub-national level.
bilities in the corporate sector, and supporting reforms in business
cheap energy, relaxed enforcement of environmental registration and tax administration. This has led, for example, to ■ An integrated approach is not only important and beneficial for
standards and a favourable tax regime to attract for- the establishment of a national online business registry system. government bodies in Vietnam, but also for SECO. Integrated pro-
eign direct investment (FDI). Some export-related seg- Today, enterprises spend about half the time complying with busi- jects provide more holistic coverage of topics, allow for the crea-
ness registration procedures than before; enterprises are treated tion of synergies, and increase Switzerland’s visibility and impact in
ments of the economy are highly productive and equally regarding disclosure of information by the new registry. Vietnam.
internationally competitive, while the domestic sector,
including many state-owned enterprises (SOE), gener- ■ SECO has contributed to the development of one of the largest
solar power projects in Vietnam, bringing the CO2 reduction contri-
ally performs at lower levels. bution of the renewable energy sector up by 4%. The Ninh Thuan
Vietnam has become one of the most open economies solar power plants support the shift in Vietnam’s energy mix from
in the world. The country’s structural reform efforts carbon-intensive to renewable sources. In addition to its contribu-
tion to climate change mitigation, the project has had a significant
have focused on lowering trade barriers and better
effect on future infrastructure development in Vietnam. This solar
integration with global value chains. Key milestones in power plant is a benchmark for future investors in Vietnam. It
Vietnam’s trade opening were its accession to the demonstrates that commercial viability, development impact and
Association of South-East Asian Nations (ASEAN) in environmental benefits can be achieved at the same time.
1995 and the World Trade Organisation (WTO) in ■ SECO’s development cooperation programme has positively
2007. Recently, Vietnam’s economic integration has contributed to more efficient production and improved participa-
been further enhanced through the conclusion of sev- tion of local small and medium-sized enterprises (SME) in global
eral new-generation free trade agreements (FTA), such value chains. Many companies were able to improve their produc-
tion practices, which will result in healthier working conditions,
as the European Union (EU)-Vietnam FTA and the
reduced energy consumption and lower production costs. Assis-
Regional Comprehensive Economic Partnership (RECP) tance targeted at industry-sector levels has strengthened business
agreement among 15 Asia-Pacific nations, including support organisations (BSO) and allowed SMEs to better integrate
Vietnam. Vietnam is further underpinning its ambi- themselves in global value chains. This sector-level approach was
tions to play a more decisive role in the region and the leveraged through support for the reformulation of the FDI strat-
world. egy of Vietnam.
Despite Vietnam’s impressive progress, development
challenges persist. The country’s rich natural capital
1 Today’s system is referred to as a “law-ruled socialist market economy”.
Facts about Vietnam
Capital: Hanoi
Population size: 97 million
Ease of doing business ranking: 70th / 190
Political system: one-party system (Communist
Party of Vietnam)
Trade: largest export market is the United
States; largest import market is China
6 7
Development
cooperation
programme
1 2 3
Vietnam’s development priorities
Vietnam’s development agenda is defined in its
national Socio-Economic Development Strategy (SEDS)
2021–2030. Measures and means, including key eco-
nomic and institutional reforms, are outlined in the
Socio-Economic Development Plan (SEDP) 2021–2025,
which constitutes the foundation for the government
to formulate strategic sector plans.
The SEDS 2021–2030 affirms the government of Viet-
nam’s ambition to sustain a high annual economic
growth rate of 7 % and to strive for further interna-
tional integration. Within the framework of the SEDS
2021–2030, Vietnam’s private sector is considered to
be the main engine of economic growth. Therefore
strengthening private companies’ competitiveness is a
key consideration. The SEDP 2021–2025 highlights the
following main orientations with the aim of promoting
Vietnam’s sustainable economic development:
1 SECO fosters gender equality as a transversal theme
in all its projects.
2 Enhancing access to affordable financing: SECO
assists Vietnam in strengthening its financial infrastruc-
ture and promoting digital financial services.
3 Improving the economic, environmental and social
performance of industries in Vietnam: SECO supports
the Eco-Industrial Park Initiative to promote resource
efficiency and cleaner production solutions in Vietnam.
4 Improving working conditions and productivity in
mass production sectors: SECO supports international
partner organisations to promote decent jobs and
boost competitiveness of Vietnam’s private sector.
4
8 9
1. Advancing the transformation from a centrally with broader private sector participation, especially Switzerland’s perspective on Vietnam protection and double taxation. To further boost trade
planned to a fully market-based economy: The with regard to infrastructure. Sound framework condi- and investment between the two countries, negotia-
Since establishing formal ties with Vietnam five dec-
government wants to focus on regulatory and institu- tions should encourage the private sector to finance a tions for a FTA under the umbrella of the European
ades ago, bilateral relations have evolved. For the past
tional reforms with the aim of establishing an enabling timely expansion of infrastructure stocks. The building Free Trade Association (EFTA) are ongoing.
30 years, a development and economic cooperation
environment for businesses while securing a stable of transport systems (roads, ports, etc.) and smart, cli- Economic cooperation and the conclusion of the FTA
programme funded by the Swiss Agency for Develop-
macro-economic framework. Reforms to improve mate-resilient cities will facilitate the growth of the will strengthen the partnership between Switzerland
ment and Cooperation (SDC) and SECO, mobilising
state management also include conducive policies for industrial and manufacturing sectors and contribute to and Vietnam. A well-integrated Vietnam that applies
more than USD 500 million in grant funding, has sup-
regional development and the promotion of eco- a stable business environment. and recognises international standards is a stronger
ported Vietnam’s development path. This has been
friendly economic zones to drive decentralisation and economic and political partner, which is in the interest
4. Meeting sustainable development targets: complemented by frequent high-level political con-
a green, sustainable economy. of both Switzerland and Vietnam.
While maintaining a high economic growth rate tacts, regular political consultations, labour rights dia-
2. Boosting productivity and resilience of the remains the key priority, Vietnam will improve its logue, structured human rights dialogue and the Switzerland and Vietnam are also multilateral partners.
economy: The government wants to advance the responses to climate change and enhance the man- opening of a Consulate General in Ho Chi Minh City, In 2016, Switzerland became a Sectoral Dialogue Part-
restructuring of the economy in line with its pri- agement of natural resources as well as reinforce envi- which was the vehicle to establish a shared Swiss Busi- ner of ASEAN, which will further strengthen Switzer-
vate-sector centred growth model. In doing so, Viet- ronmental protection. The government also wants to ness Hub in Hanoi and Ho Chi Minh City. Strengthen- land’s political and economic relations with Vietnam
nam will focus on enhancing the productivity, quality, focus on strengthening institutions and law-enforce- ing trade and investment relations, as well as expand- and the Asia Pacific region. Vietnam’s development
efficiency, and overall competitiveness and resilience ment capacities across sectors. ing cooperation in terms of culture and education has positive regional spill-over effects, which is also in
of the economy. Subsequently, this will add domestic illustrate the growing Swiss footprint in Vietnam. Switzerland’s interest. Switzerland aims to enhance its
Although the coronavirus disease 2019 (COVID-19)
value to production chains and therefore provide bet- Around 140 Swiss companies are active in Vietnam. cooperation with ASEAN in line with the Federal
crisis has halved the projections of the gross domestic
ter access to regional and global markets. Furthermore, Swiss companies, mostly in areas such as construction, Council’s Foreign Policy Strategy 2020–2023. The pro-
product (GDP) for 2020, Vietnam’s economy is
the government attaches great importance to facilitat- food processing, IT and pharmaceuticals, have created gramme will further contribute to enriching the Sec-
expected to bounce back faster than other Southeast
ing a comprehensive digital transformation of its econ- several thousand jobs in Vietnam through their invest- toral Dialogue Partnership by developing and support-
Asian states thanks to its continuous robust FDI inflow
omy and promoting innovation and entrepreneurship. ments. This makes Switzerland the sixth-largest Euro- ing relevant initiatives in ASEAN member states.
and other enabling factors. However, COVID-19 has
3. Enhancing the efficiency of social investments, demonstrated that building stronger resilience against pean investor in Vietnam.
including public investments: By strengthening and future external shocks will be key in sustaining a long- Switzerland has concluded a series of bilateral eco-
deepening the financial sector, the government aims term development path. nomic treaties with Vietnam, including on investment
to mobilise and allocate resources more efficiently and
Accountability, monitoring and risk management Financial resources Working with partners
70
SECO continuously monitors and evaluates ■ Country risks: SECO identifies and eval- SECO’s activities under this programme SECO’s operational activities help to pro- a high-level policy dialogue with the gov-
the results achieved and incorporates les- uates the relevant risks in its partner coun- will be financed through the Swiss frame- mote economic growth and sustaina- ernment. Switzerland is among the top ten
sons learned into its operations. tries as well as the implications for the work credit 2021–2024 for economic and ble prosperity in Vietnam. They are well development partners providing grants to
Project evaluations are conducted during project portfolio. trade policy measures within development aligned with Vietnam’s SEDS. SECO’s main Vietnam. Others include the US, Japan, the
or after project implementation. In addi-
tion, SECO commissions independent the-
■ Project risks: Before approval, all pro- cooperation. implementing partners in Vietnam are the
World Bank Group (including IFC) and UN
EU, Australia, Germany and Korea. In addi-
tion to an overarching donor coordination
jects are screened for development The final allocation of funds will depend on
matic or country portfolio evaluations. the identification of suitable programmes agencies. These partnerships allow SECO group, SECO participates in a variety of
(achievement of objectives), security, fidu-
and projects, the absorption capacity, as to access international expertise, leverage thematic working groups.
The monitoring of the cooperation pro- ciary, financial, environmental and social
well as the efficiency and effectiveness of its resources effectively and participate in
gramme will be based on the results risks. During project implementation, the
framework (see page 16/17) along the rel- identified risks and corresponding mitiga- the cooperation with the relevant partners
CHF million
evant business lines and impact hypothe- tion measures are regularly monitored. in the country. Accordingly, the following
information on planned commitments for
ses. Accountability reporting is carried out
annually.
■ Institutional risks: SECO monitors the the four-year period is indicative. This in-
risks it faces as an institution and that may formation serves merely as a basis for the
SECO is dedicated to ensuring comprehen- compromise the successful implementa- forward spending plans that are reviewed Vietnam also benefits from
sive and rigorous risk management. Based tion of SECO’s mandate. each year by the Swiss Parliament. regional and global initiatives
on the Organisation for Economic Cooper-
ation and Development’s (OECD) concep- Planned commitments for Vietnam 2021– financed by Switzerland that may
tual framework for aid risk analysis, SECO’s 2024: not be included in these financial SECO
risk management distinguishes between projections.
three levels of risk:
10 11
SECO’s contribution to
gender equality in Vietnam Thematic
Vietnam has favourable gender equality legislation in place
and presents a balanced gender picture at first glance. How-
ever, traditional roles continue to be an obstacle keeping
priorities
women from full economic, political and social participation.
The current attitude reflects a culture of protecting rather
than empowering women. While some indicators perform
well (e.g. women have a 73% participation rate in the work-
force), other aspects, like women’s political empowerment
or the role of women in business or government leadership,
show little progress. The majority of women work in the
informal sector and, therefore, find themselves in more vul-
nerable employment situations.
Switzerland considers gender equality an important element
of poverty reduction, social inclusion and economic develop-
ment. Hence, SECO addresses gender gaps through a trans-
versal approach. Its current focus lies on improving working
conditions and workplace participation in Vietnam’s low-
skilled mass production sector, where women make up the
majority of the workforce.
By promoting good governance in the private sector, includ-
SECO’s contribution to Vietnam’s
ing financial institutions, SECO sensitises Vietnamese com- development agenda
panies to the importance of equal representation of men
SECO’s main goal is to support Vietnam in achieving
and women at the management and board levels, as well as
of equal pay for men and women in the same position
market-oriented, sustainable growth. Vietnam’s private
within their company. sector-centred growth model will require a cohesive set
of reforms to pave the way for a market-based economy
that promotes equal competition. To this end, SECO’s
support will focus on promoting reliable economic
SECO’s contribution to
framework conditions and an innovation-friendly busi-
climate change mitigation, ness environment that will allow Vietnam’s private sec-
adaptation and resource tor to thrive. In particular, the programme fosters activ-
efficiency in Vietnam ities geared towards supporting growth-promoting
Vietnam demonstrates dedication to combating climate economic policies and reliable public institutions,
change and improving resource efficiency through a range enhancing the private sector’s competitiveness and
of national policies and measures. While many laws and market access, creating decent income opportunities
strategies related to climate change and resource efficiency
and fostering climate-resilient urban development.
were introduced, implementation and enforcement remain
a challenge. Vietnam still lacks incentives for climate-friendly SECO’s Cooperation Programme 2021–2024 will build
trade and resource efficiency, and faces poor ownership on existing partnerships, lessons learned and results
and coordination between ministries and different levels of achieved. It will focus on areas where SECO has a proven
government. Vietnam’s intended nationally determined
track record and where it can add value by bringing in
contributions contain a greenhouse gas reduction target of
9% by 2030 (with an option to increase up to 27% with Swiss expertise and international good practices. The
international support). However, much remains to be done Cooperation Programme 2021–2024 is well aligned
to improve resilience to climate change, to avoid natural with Vietnam’s strategic orientation as laid out in its
degradation, the further depletion of biodiversity and SEDP 2021–2025. Based on its long-standing bilateral
other natural resources.
cooperation and its relevant economic competences,
SECO provides technical assistance, capacity building and SECO is well-positioned to continue responding to Viet-
financial support to promote resource-efficient industrial
production processes and environmentally friendly invest-
nam’s future development priorities in an efficient and
ments. In particular, SECO will support Vietnam’s fast-growing effective manner. SECO’s engagement will be flexible to
cities in sustaining their role as economic and social hubs by ensure that activities remain relevant and respond to
increasing their resilience to climate change and other exter- emerging priorities and needs. To maximise its impact,
nal shocks. Moreover, SECO will provide technical assistance the programme will focus on two thematic priorities.
to national and subnational entities to build up systems and
capacities for multi-sectoral, integrated urban planning and
management that take into account climate and green
finance, climate change resilience and green growth
potential. SECO is committed to ensuring compliance with
international labour and social standards.
12 12 13
Thematic priority 1 Thematic priority 2
Promoting market-oriented and reliable Enhancing the private sector’s competitiveness
economic framework conditions and market access
The focus of the first thematic priority will be to support SECO will continue improving Vietnam’s framework The programme aims to increase the overall perfor- BSOs’ capacities. In addition, SECO will promote the
Vietnam to shape a solid macro-economic framework, a conditions for a rules-based trade system. By enhanc- mance of the Vietnamese private sector, focusing on development of business linkages between local sup-
sound financial sector as well as efficient and transparent ing Vietnam’s trade policies and promoting consulta- SMEs. These play a central role in Vietnam’s economic pliers with larger local firms or multinational compa-
management of public finances that will lay the ground- tion processes with the private sector, SECO contrib- growth, job creation and poverty reduction. However, nies through business networks, digital platforms and
work for growth-promoting infrastructure and other utes to the ongoing negotiation process of a FTA with a large number of SMEs still face significant constraints the newly established database for the business-to-
investments. This will allow the public sector to provide EFTA. SECO will support Vietnam in implementing the when it comes to international competition and partic- business initiative.
reliable and sufficient public goods and services in a more respective internationally recognised technical stand- ipating in global value chains. A lack of productivity,
inclusive and efficient manner. It will also help to foster a ards and quality assurance systems in line with the skilled workers and inadequate access to affordable
business environment that enables the private sector to country’s WTO commitments and those contained in finance are the major challenges for SMEs. Addressing
flourish and innovate. SECO will also assist Vietnam to the bilateral and multilateral FTAs. these obstacles will unlock the private sector’s full
improve the fundamentals for integrated urban develop- A comprehensive climate-resilient and sustainable infra- potential.
ment and infrastructure services. structure setup establishes the fundamentals for firms to Accordingly, SECO will continue to support SMEs to
SECO’s assistance in the area of PFM and its support in be competitive. In this regard, an integrated, multi-sec- tap into diversified sources of finance. Among other
developing stable, diversified financial and capital mar- toral and multi-level approach that brings the different things, the programme will further assist Vietnam in
kets solidifies the macroeconomic framework. The stakeholders and their mandates together will be essen- strengthening its financial infrastructure and place a
transfer of technical expertise on economic forecasting tial with regard to infrastructure planning and imple- particular focus on promoting innovative and digital
and monitoring will help the government to formulate mentation. SECO will focus on supporting the govern- financial services. The COVID-19 reality offers new
prudent fiscal policies. ment to improve the quality of urban planning and opportunities for cooperation with Vietnam and finan-
With regard to an efficient and transparent PFM system, management, as well as by applying digital solutions. cial markets participants as it is accelerating the trend
SECO will promote international good practices for busi- of creating new digital products.
ness-friendly taxes, transparent public expenditure and SECO will also support local exporters and producers
financial means to reinforce environmental protection. Vietnam’s development priorities to increase their productivity and ensure product qual- Vietnam’s development
While the national PFM system is mature enough to roll ity and sustainability across value chains. Specifically, priorities
out decentralisation, sub-national governments face Socio-Economic Development S
trategy the programme will help SMEs promote social and
constraints in terms of the absorption of increasing (SEDS), 2021–2030 environmental sustainability standards, as well as Socio-Economic Development Plan
responsibilities. Going forward, SECO will reinforce the Annual economic growth of 7% international labour standards, diversify export and (SEDP), 2021–2025
ability of sub-national governments to implement fun- achievable by: sales channels, incentivise innovation and develop Objective: from a centrally planned to a
damental reforms geared towards accountability and a) completing the transformation to a demand-driven skills. Consequently, this will improve fully market-based economy
transparency of state resource management. private sector centred economy SMEs’ overall ability to grow and compete in interna- ■ Boost the productivity and resilience of
Affordable financing is important for companies to b) solidifying the macro-economy and tional markets. the economy
grow. Therefore, the modernisation of Vietnam’s
financial and capital markets is paramount. This
c) international integration of the economy Many Vietnamese exporters still face substantial chal-
lenges in terms of meeting or demonstrating con-
■ Increase the role of the private sector in
the economy
includes boosting the sector’s resilience: SECO will Socio-Economic Development Plan formity with entry requirements in destination mar-
increase the capacity for banking executives to lead (SEDP), 2021–2025 kets. To enable improved market access for Vietnamese ■ Enhance the efficiency of social invest-
their institutions while applying international corporate ■ Enhancing efficiency of public SMEs, SECO will reinforce the provision of trade pro- ments including public investments
governance principles. investments motion services for exporting SMEs by strengthening ■ Meet sustainable development targets
■ Meeting the SDGs, specifically those while maintaining high economic
related to climate change and environment growth rates
14
Results monitoring for Vietnam
Thematic priority 1 Thematic priority 2
Promoting market-oriented and Enhancing the private sector’s
reliable e
conomic framework competitiveness and market access
conditions
Theory of change Theory of change
If SECO supports Vietnam to then the government will be able to because an efficient manage- If SECO supports the develop- then the Vietnamese because improved competitiveness
build a sound financial sector establish a solid macro-economic ment of public finances, a sound ment of an innovation- and private sector will grow of SMEs will lead to better integra-
and improve effective and framework, an innovation-friendly financial sector and trade system, investment-friendly business sustainably and offer more tion in global value chains and
transparent allocation and business environment, a rules-based trade and adequate infrastructure are environment and helps to and better job increased income for the population
use of public resources, system and provide adequate public prerequisites for businesses to improve local SMEs’ access to opportunities, in Vietnam.
services, grow and prosper. markets and financial services,
Transversal themes Transversal themes
Gender equality Climate and resource efficiency Gender equality Climate and resource efficiency
SECO fosters gender equality, namely by SECO addresses climate change adaptation SECO fosters gender equality as a transversal SECO addresses climate change considerations,
promoting equal representation of men and and mitigation, namely by supporting theme, especially by improving labour participa- namely by promoting resource-efficient
women at the board level and supporting fast-growing cities to increase their resilience to tion and working conditions in sectors with high industrial production and environmentally
workplace cooperation in industrial sectors climate-change related risks. female representation (e.g. textile). sustainable investments.
dominated by women.
Contribution to selected SECO business lines Contribution to selected SECO business lines
Growth-promoting Innovation-friendly Urban development and
Rules-based trade system Access to financing Integration in value chains Market-oriented skills
economic policy business environment infrastructure services
If SECO supports sound and If SECO promotes the simplifica- If SECO helps Vietnam If SECO promotes resilient and If SECO fosters effective and inclusive local If SECO provides technical assistance to If SECO strenghtens the skills qualification
diversified financial markets, and tion of bureaucracy and the implement internationally sustainable urban development, the financial and capital markets to provide business support organisations and of workers aligned with the needs of the
consistent application of legal recognised technical standards use of renewable energies (SDG affordable financial services, producers, and labour market and the requirements of digital
principles (SDG 8.3), and and quality assurance systems in 7.2), sustainable urban mobility change (SDG 4.4),
If SECO contributes to an line with WTO and FTA commit- (SDG 11.2) and greater resilience to
effective, transparent allocation then entrepreneurs, producers and cities If SECO helps local firms to integrate in
ments, and climate-induced hazards (SDG 11.b) will have access to adequate financial
and use of public resources, If SECO supports the develop- in urban contexts, international markets, then companies can find skilled workers
ment of a conducive framework services (SDG 9.3) and are more innovative (SDG 8.5), while
for SMEs fostering innovation and If SECO supports the application women and men, including young people,
then Vietnam can achieve environmental and social of international working standards, then this helps to create the then the competitiveness of companies and increase their chances of finding work and
reliable and predictable because the private sector can benefit from producers is strengthened (SDG 9.3), and
responsibilities, conditions for sustainable earning more
macroeconomic conditions (SDG better framework conditions, and
economic growth and broader
8.3) and ultimately provide better then the trade volume increases social prosperity
public services to all market then the competitiveness and and relevant framework conditions then they are better integrated into because in the digital age, availability and
because the financial and capital markets sustainable local, regional and international
players, thus helping to strengthen productivity of SMEs improve improve development of skilled workers are a
are able to respond adequately to the needs value chains (SDGs 8.9, 9.3, 12b)
the private sector and stimulate because cities and infrastructure necessity.
of borrowers (SDG 8.10).
private-sector driven growth are planned and managed in a
because they are not hindered because Vietnam will be sustainable manner (SDG 11.3), and
by bureaucratic barriers, and equipped to make use of because enterprises/producers meet
because Vietnam is building opportunities offered by national, international quality and market access
strong, accountable institutions at regional and international trade because equal access to afforda- requirements, and
all levels that generate domestic because they can invest and grow (SDG 17.10). ble and reliable public services will
and foreign resources (SDGs 16.6, in a clearly defined framework. improve (SDGs 6.1, 6.2). because they are more productive.
17.1).
16 17
Abbreviations State Secretariat for Economic Affairs SECO –
Economic Cooperation and Development
ASEAN Association of South-East Asian Nations
BSO Business support organisation SECO’s Economic Cooperation and Development division is responsi-
ble for the planning and implementation of economic cooperation
CHF Swiss franc and development activities with middle-income developing coun-
COVID-19 Coronavirus disease 2019 tries, with countries of Eastern Europe as well as the new Member
States of the European Union. It coordinates Switzerland’s relations
EFTA European Free Trade Association with the World Bank Group, the regional development banks and
EiP Eco-industrial park the economic organisations of the United Nations. SECO is part of
the Federal Department of Economic Affairs, Education and Research.
EU European Union
FDI Foreign direct investment Switzerland’s international cooperation efforts as defined in the
International Cooperation Strategy 2021–2024 aim to alleviate pov-
FTA Free trade agreement erty worldwide, improve respect for human rights, promote democ-
GDP Gross domestic product racy and protect the environment. Accordingly, SECO’s economic
and trade policy measures strive to support sustainable and inclusive
IFC International Finance Corporation growth. The Economic Cooperation and Development division
OECD Organisation for Economic Cooperation and Development focuses its activities on its specific areas of competences and experi-
ence in two target outcomes aligned with the 2030 Agenda for
PFM Public financial management
Sustainable Development; 1) Access to markets and opportunities
PIDG Private Infrastructure Development Group and 2) Income opportunities. Special emphasis is placed on issues
related to climate and resource efficiency as well as gender equality.
RECP Regional Comprehensive Economic Partnership
SDC Swiss Agency for Development and Cooperation
For detailed information about the orientation of SECO’s economic
SDGs Sustainable Development Goals development cooperation, see: www.seco-cooperation.admin.ch/
secocoop/en/home.html
SECO State Secretariat for Economic Affairs
SEDP Socio-Economic Development Plan
SEDS Socio-Economic Development Strategy
SME Small and medium-sized enterprises
SOE State-owned enterprise
UN United Nations
USD United States dollar
WTO World Trade OrganisationImprint Publisher Federal Department of Economic Affairs, Education and Research EAER State Secretariat for Economic Affairs SECO Economic Cooperation and Development Holzikofenweg 36, 3003 Bern +41 (0)58 464 09 10 info.cooperation@seco.admin.ch www.seco-cooperation.admin.ch Design and layout Publications section, SECO Print Suter & Gerteis AG Photos SECO Cooperation Vietnam: 8 (3), 15, 12 Shutterstock: 1, 4 (2/3/4) InfraCo Asia: 4 (1) ILO: 8 (1/4) Mott Visuals: 8 (2), 14 Sources This publication contains data based on statistics from the World Bank Group, the IMF and other international bodies as well as national statistical services from Vietnam. The publication and maps used therein do not imply the expression of any opinion concerning the legal status of any country or territory or of its authorities, or concerning the delimitation of its borders. Copies of this publication may be downloaded from www.seco-cooperation.admin.ch or ordered by e-mail to info.cooperation@seco.admin.ch. CH-Bern 2021 20
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