By Judith Ugwumadu | 25 March 2014

Vietnam must show more transparency and accountability in the allocation and management of public money if it is to secure inclusive and sustainable growth, the head of the United Nations Development Programme has said.

Speaking in the Vietnamese capital Hanoi yesterday, UNDP administrator Helen Clark said public spending in areas such as education and health was not yet efficient enough, yet these sectors were crucial in the fight against poverty.

‘Public spending on education and health... [in Vietnam] as a percentage of gross domestic product was higher than for a number of other countries in the [Asian] region, but the efficiency of this spending remained an issue,’ she stated. 

‘Social coverage of social protection systems overall in Asia is low, compared to that of emerging regions like Latin America and Eastern Europe.’

She noted that although hundreds of millions of people in Vietnam had been lifted out of extreme poverty over the last two decades, the country’s rapid growth rates had often not been fully inclusive triggering some development challenges for Vietnam’s most vulnerable people.

Acknowledging that Vietnam had already taken steps on economic reforms, such as the restructuring of state-owned enterprises and an overhaul of the financial system, the UNDP administrator said more needed to be done. 

With the country facing an economic slowdown, it is examining ways to boost growth while continuing with the socio-economic progress of the last two decades. Public finance policies that promote inclusive and sustainable growth are crucial to the success of these efforts, Clark said.

‘More transparent and accountable public resource allocation and management are critical for maximising the development impact of a country’s resources,’ she said.

‘Combating corruption and engaging citizens in development processes are among the documented best international practices in promoting inclusive and sustainable development.’

She went on to highlight the role played by the Vietnam Provincial Governance and Public Administration Performance Index. This tool, which was launched in 2011, tracks Vietnamese citizens’ experience with governance and public administration.

The UNDP funded the index in its inaugural year and continues to support its development and expansion.

Clark noted some of the index’s key findings. ‘The poor face disparities in access to services and citizens are increasingly demanding improvements in the quality of services,’ she said.