This brief summarizes the findings of policy advice prepared by ADB for the Viet Nam Ministry of Finance to support improvements in the fiscal risk management of government loan guarantees.

ADB, through its Improving Public Expenditure Quality Program, has provided policy and technical assistance to address critical public financial management weaknesses, increase the efficiency of public expenditure, and improve infrastructure and services for Viet Nam since 2014.

Key reform priorities of the program are to (i) develop clearer internal credit risk guidelines, (ii) introduce credit risk score cards, (iii) develop a simple and transparent rating system, and (iv) establish a stronger link between credit risks and guarantee fees.