On joining the WTO in 2007, Viet Nam embarked on an ambitious process of integrating into the world market. It then succeeded in posting rapid growth rates through to 2008. Owing to its dependency on exports and foreign investments, though, in 2009 the country was particularly hard hit by the global economic crisis. Nonetheless, GTZ’s long-standing cooperation with Viet Nam's State Bank, Ministry of Finance and business research community – which, for instance, led to the introduction of monetary policy instruments – left the country well placed to deal with the impact. The crisis has shown that the continued contribution of German development cooperation in this still fragile sector remains appropriate.

GTZ is supporting Viet Nam in developing the expertise, capacities and resources it needs to develop a political system based on a social market economy and an effective regulatory framework. The Government and the public sector are being assisted in developing an enabling legal framework. The aim is to bring key state functions into line with market economy principles and international standards. GTZ delivers expertise, supports the dialogue between Viet Nam and other Asian countries, helps improve the Vietnamese vocational training system and contributes insights from German and European legislative and administrative practice.

Germany and Viet Nam have been successfully working on reforming the country’s financial and public finance systems since 1993. Starting in 2005, the two countries began to strengthen the analytical and forecasting capacities of various Vietnamese institutions. In 2008 the Central Bank set up a new economics department. In 2006 the banking supervisory authority ordered Viet Nam’s banks to introduce an internal audit system. The supreme audit authority, the Office of the State Audit, gained independence from the Government in 2002 and is accountable to the parliament and the public. Through its contributions in this field, Germany is also helping to strengthen democracy in Viet Nam. In 2004 the National Assembly was given more extensive powers, including the power to adopt the national budget. Future plans include integrating a modern risk management function into the public finance system and strengthening the public budget by adding a medium-term financial planning element. Political participation in the public planning system will be institutionalised. In mid 2010 a GTZ project will be implemented to create a modern social protection system.

The dynamic development of Viet Nam’s economy has boosted demand for skilled labour. However, only around one quarter of the working population currently holds a formal vocational qualification. The Vietnamese Government plans to more than double the number of skilled workers by 2020. GTZ is involved in a ten-year programme to support the implementation of the country’s VET reform. Priority is given to enhancing the existing VET system, institutionalising existing experience with alternative forms of training, and implementing measures to safeguard quality and ensure that the VET system is geared to the needs of the labour market.