Canadian international assistance in Vietnam

Vietnam has made significant development progress during the past two decades and it has increasingly integrated into the world economy. The government has strong ownership of its development agenda and consistently demonstrates an effective use of international development assistance.

Vietnam has reduced poverty at an unprecedented rate: the value for poverty headcount ratio at $1.90 a day (2011 PPP) (% of population) was 3.1 in 2016. Over the past 20 years this indicator reached a maximum value of 49.21 in 1992 and a minimum value of 3.1 in 2016.

Economic growth has slowed in recent years, although GDP continued to grow in 2015, by 5.10%, despite weaknesses in the global economy.

The United Nations Development Programme ranked Vietnam 115 out of 188 countries on its 2016 Human Development Index of 0.683.

Recent economic growth has improved the quality of life for many Vietnamese, but some sectors of the population, particularly the rural poor, ethnic minorities and female-headed households, are not equally benefiting from economic growth. In addition, Vietnam faces ongoing economic instability and a need to reform its financial sector to meet the demands of its evolving economy.

A single party dominates Vietnam's political system. Corruption and excessive regulations and state controls continue to constrain development, while significant concerns remain regarding rights to freedom of expression and association. There are signs, however, of greater government transparency and accountability, especially within the National Assembly, of more participatory citizen consultations and of better public financial management.

Vietnam's transition to a lower-middle-income economy has brought about new challenges and needs. To promote private sector development and facilitate the ease of doing business, there is a need for legal and policy reforms.

There is also a need for reforms to ensure the robustness of the banking and public financial system, to better connect public services to the demands of the market and citizens and to combat corruption. Vietnam's ongoing decentralization of its public finance accounts and service delivery highlight the need to strengthen provincial capacities, and a focus on increasing agricultural competitiveness is needed to address sustained poverty reduction in rural areas.

Our international development assistance

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Canada's current development cooperation program in Vietnam responds to the Government of Vietnam's poverty reduction priorities and focuses on improving the enabling environment for investment and to support rural enterprise development and agricultural competitiveness.

We focus on supporting policy reforms that improve the transparency and accountability of public institutions and market-driven growth. To do so, Canada is helping to promote private sector development and entrepreneurship, small and medium-sized enterprises, legislative and banking reforms and improved access to skills for employment.

Key anticipated results:

Canada focuses on increasing agricultural competitiveness by improving food safety and quality and by supporting agricultural innovation and the development of marketing techniques for farmers and traders, especially at the provincial level.

Key anticipated results

Progress on aid effectiveness

Vietnam is recognized internationally as a leader in aid effectiveness for its strong local vision, ownership and implementation of a made-in-Vietnam poverty reduction strategy.

Vietnam offers an effective model for donor coordination at the policy level. The Government of Vietnam's commitment to transparent results reporting is set out in the Hanoi Core Statement on Aid Effectiveness and the Vietnam Partnership Document, which adapt the Paris Declaration on Aid Effectivenessand the Busan Partnership agreement to the Vietnamese context.

Canada, along with other donors and development partners, is actively engaged in the Government of Vietnam's donor consultative group coordination process. Canada also plays an active role in supporting recognition of and space for Vietnamese and international civil society in the country's development plans.

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