The aim of the conference was to discuss on difficulties, obstacles, needs and constraints in approach of financial resources of local governments in Vietnam, share international experience, suggest feasible solutions and recommendations to central agencies to improve the legal basis so that local governments could access and utilize financial resources effectively in developing major infrastructure in order to promote the socio-economic development and enhancing the living standards of local citizen.

In two days, delegates mostly discussed on difficulties met during the approach of financial resources and requirements in current context; AFD’s activities in local financial sector; international experience on local government’s approach to international finance and exchange rate risk management; financial decentralization and local government’s self-control; opportunities and solutions to improve the local governments’ approach to financing resources.

Among financial mobilizing channels for the local development investment, local investment funds (LIFs) are established as a channel for mobilizing non-budgetary capital, which are considered as the supportive arm of the local governments in lending and investing in infrastructure projects... However, according to the amended Law on Public Debt Management passed by the National Assembly (to be enforced since01/7/2018), credit and financial institutions are no longer subject to onlending of Government's foreign loans under the credit limit program. This is one of the most obstacles for the LIFs in mobilizing capitals for operation. Therefore, representatives of LIFs are of high interest in this matter and look forward to the guidance of the Ministry of Finance on this matter.

Addressing at the seminar, Mr. Hoang Hai, Deputy General Director of the Debt Management and External Finance Department of the Ministry of Finance, said that the Ministry of Finance, as the focal point for public debt management, takes all effort to improve the macro management of the government on provincial debt in order to both satisfy the need of local borrowings  and economic development  and ensure stable and sustainable debt management. In the coming time, the Ministry of Finance will regularly update and publicize the financial conditions of major donors such as World Bank, Asian Development Bank, AFD…so that the local governments could take into consideration in making borrowing decisions. The Ministry of Finance highly appreciated the initiative of AFD to organize a workshop to help localities have a clearer orientation and strategy in accessing financial resources to develop local infrastructure in line with new regulations on state budget management and public debt management. He also hoped that  AFD, as a donor with extensive experience in local funding, would jointly discuss research and propose comprehensive solutions of funding channels for local governments in Vietnam.