Support to Trade, Financial Sector and Private Sector Development

In the trade area

A project on Rules of Origin has just been completed with a total fund of SEK 1.9 million (2003-2005). This was a cooperation between Swedish National Board of Trade (Kommerskollegium) and Vietnamese National Committee for International Economic Cooperation (NCIEC) to develop the legal framework for rules of origin in Vietnam in conformity with WTO standards. Further support in this high priority area of trade policy support is envisaged.

Sweden is co-financing with the Swiss Development Cooperation to support Vietnam in achieving its export growth targets through assistance to Vietnam Trade Promotion Agency. Sweden’s contribution is SEK 5 million in a period from 2004 to 2007.

In the financial sector development 

There is a contribution to Central Bank Cooperation – an arrangement between State Bank of Vietnam and Swedish Riksbanken, which mainly involves sharing experience and staff exchange in several important areas such as monetary policy, foreign exchange management, payment system, etc.

In the private sector development

Sweden is now a large co-donor in the regional Mekong Private Sector Development Facility (MPDF) initiated by International Financial Corporation (IFC). MPDF activities spread over Vietnam, Laos and Cambodia. Sweden’s contributions is SEK 20 million in a period from 2003 to 2007.

VCCI and ILO are currently the major partners in 2 Sweden-funded projects: the Start and Improve Your Business (SIYB) 1998-2004 and Poverty Reduction through Integrated Support to Enterprise Development (PRISED) 2005-2008. While the former project was nationwide and mainly provided business training to small and micro entrepreneurs in Vietnam (both in classes and by air –through radio), the latter takes more holistic approach to assist in creating enabling environment for local economic growth and private sector development in selected provinces (Thanh Hoa, Quang Ngai, Binh Phuoc and Tra Vinh). A possible new support in this area is promoting rural women entrepreneurs in doing business with heavily gender mainstreaming, with Vietnam Women Union, VCCI and VCA jointly being potential partners.     

Policy for Trade-related Development Cooperation
Swedish trade support aims to assist poor countries to integrate into the world economy in a way that makes it possible for them to benefit from trade to promote sustainable, poverty reducing growth.

Policy on Financial Sector Development
Sida’s goal is to contribute to the provision of efficient, sustainable and competitive financial services to the benefit of governments, enterprises, households and individuals.

Policy Guidelines for Support to Private Sector Development 
Swedish support is to contribute to sustainable poverty reducing growth.