Strengthening Public Financial Management in Viet Nam by implementing OECD/Inclusive Framework Two Pillar Solution and Exchange of Information (EOI)
IBFD’s technical assistance to Viet Nam's General Department of Taxation (GDT), as part of the project “Strengthening Public Financial Management in Viet Nam”, co-funded by the European Union and the Federal Ministry for Economic Cooperation and Development of Germany (BMZ), implemented by GIZ in collaboration with the Ministry of Finance of Viet Nam, is making significant strides in enhancing GDT's tax administration capabilities. The primary goal of IBFD’s technical assistance is to support GDT in implementing the OECD/Inclusive Framework Two Pillar Solution and advancing international standards on the Exchange of Information (EOI).
Overview
This technical assistance aims to bolster Viet Nam's taxation framework by providing essential support in the OECD/Inclusive Framework Two Pillar Solution and aligning with global EOI standards. It involves comprehensive desk research, report submissions, guideline development, and targeted training sessions.
Achievements and Progress
Since its inception, IBFD has contributed to several activities including in-depth desk research and the delivery of policy papers tailored to Viet Nam’s specific needs. In June, an IBFD team led by Carlos Gutiérrez, Shee Boon Law and Robert McLaren, conducted a successful kick-off mission in Viet Nam.
During the mission, the team held technical meetings in Hanoi and delivered a full-day training session focused on Pillar 1 - Amount B. The team then shifted to Da Nang, where a crucial consultation meeting was organized by GDT. This meeting, which involved key stakeholders including representatives from the corporate sector, tax advisory firms (Big4), highlighted the importance of close collaboration between GDT, GIZ and IBFD. The Vice Director General of GDT emphasized the need for continued partnership on Pillar Two and other areas, underscoring the value of this cooperative effort.
Learning Opportunities
The technical assistance has demanded a high level of flexibility and adaptability, given the need to align with the evolving priorities and timelines of GDT. This dynamic environment has provided valuable insights into the challenges faced by developing countries in implementing global tax standards, particularly in balancing foreign direct investment goals with administrative capacity and investment agreements.
Looking Ahead
In the coming months, the focus will shift to providing targeted assistance to GDT in training and desk research related to Pillar Two draft regulations, the Subject to Tax Rule (STTR), and Pillar One - Amount B.
The technical assistance continues to be a cornerstone of our efforts to support global tax reforms, and we look forward to the ongoing partnership with Viet Nam’s GDT and other stakeholders as we advance these critical initiatives.
We would like to express our gratitude to our IBFD colleagues who have been instrumental in driving the technical assistance forward:
Carlos Gutiérrez, Tax Technical Lead; Robert McLaren, Project Manager; Victor van Kommer, Director Capacity Building; Niek de Jong, Eve Lin and Paula Gabriel, Finance, Legal and Compliance; Myra Flaminiano, Manager of Programmes.