Tài liệu Dinh hue phuong

FOREIGN TRADE UNIVERSITY FACULTY OF ECONOMICS AND INTERNATIONAL BUSINESS INTERNSHIP REPORT Topic: Recommendations for strengthening Vietnam – Korea financial cooperation relation. Student: Dinh Hue Phuong Class: High quality course A Major: International Economics Student number: 05 Lecturer: Lu Thi Thu Trang Hanoi, July 2010 Recommendations for strengthening Vietnam – Korea financial cooperation relation 2010 PREFACE International Cooperation has played an important role in the progress of founding and protecting our country. In the war time, the support in term of material and spiritual and of friends from all over the world was the motive power for us to struggle for the independence and freedom. Nowadays, international cooperation has become an more and more requisite aspect for in economic development of Vietnam. Since Vietnam issued “Doi Moi” policy, Vietnam’s government exerted all the effort to expand external relations of Vietnam to all countries in the world, and we can proud of our achievements. Vietnam joined Association of South East Asia Nations (ASEAN) in 1995, The AsiaEurope Meeting (ASEM) in 1996, Asia-Pacific Economic Cooperation (APEC) in 1998, and the World Trade Organization (WTO) in 2007. Vietnam has been affiliating and developing with the global economy with a extraordinary pace. In the development of international relation, Vietnam priors the closed relationship with the neighbor countries like ASEAN countries and the partner of ASEAN in Asia like Japan, China, Korea, India, etc. in which Korea has been a strategic partner of Vietnam since the official visit of Korea's CEO President Lee Myung-bak in October 2009. Vietnam has been received a lot of support packages from Korea in many areas: economic, investment, education and culture, etc. In internship period in International Cooperation Department of Ministry of Finance, I had a very good opportunity to participate in an activity under Vietnam – Korea financial cooperative program, receiving many instructions from experts in this department and research on this field. I think that Vietnam – Korea relationship will be better and better and both Vietnam and Korea will get a lot of benefit from each other if we have a suitable policies and actions to consolidating and improving this relation. Therefore, I would like to choose the topic for my research be “Recommendations for strengthening Vietnam – Korea financial cooperation relation” In this research, I would like to express the financial cooperation relation between Vietnam and Korea in the Governments’ level as well as the Ministries’ level, especially 2 Dinh Hue Phuong – HQ A – International Economics – K46 Recommendations for strengthening Vietnam – Korea financial cooperation relation 2010 under the ASEAN +3 and ASEAN – Korea Comprehensive Economics Partnership frameworks. As I mentioned above, this research gives some suggestions for Ministry of Finance of Vietnam – the organization which is main responsible for managing the financial relation with all country in the world- with its power, to consolidate and strengthen the financial relation in the future. The structure of this research consists of three chapter as follow Chapter 1: An overview about the organization structure, tasks and powers of Ministry of Finance of Vietnam and the International Cooperation Department. Chapter 2: The background of financial relation between Vietnam and Korea, both intergovernmental relation and relationship of Ministry of Finance of Vietnam and Ministry of Strategy and Finance of Korea. Chapter 3: Some suggestions for the financial relation in each criteria listed in chapter 2. Last but not least, I would like to give special thanks to all experts in International Cooperation Department and Banking Finance and Financial Institutions Department for providing me materials, information and advice during the time I interned in Ministry and prepared for the research. I also want to give a deep thank to my lecturer, Ms Lu Thi Thu Trang for her support for me in finding the topic, checking the outline and fulfill the research. Finally, it is my pleasure to receive comments and assessment from my lecturers for this research. They will be a very useful advice for me to be better in doing the final thesis as well as other researches in the future. Thank you very much. Student Dinh Hue Phuong ABBREVIATIONS ASIA Bond Market Initiative 3 Dinh Hue Phuong – HQ A – International Economics – K46 Recommendations for strengthening Vietnam – Korea financial cooperation relation 2010 ABMI AFDM ASEAN Vice Minister of Finance and Deputy Governor of State Bank Meeting AFMM ASEAN Finance Ministers Meeting AKFTA ASEAN – Korea Free Trade Area APEC Asia-Pacific Economic Cooperation ASA ASEAN Swap Agreement ASEAN Association of South East Asia Nations ASEM The Asia-Europe Meeting BSA bilateral swap arrangements CEO Chief Executive Officer CMI Chiang Mai Initiative FDI Foreign Direct Investment HS Harmonized System ICD International Cooperation Department KDB Korea Development Bank KDI Korea Development Institute Kexim Korea Export Import Bank KIEC Korea Export Insurance Corporation MoF Ministry of Finance MOFE Ministry of Finance and Economic MoFV Ministry of Finance of Vietnam MoU Memorandum of Understanding SMEs Small and Medium Enterprises SOEs State Owned Enterprises VDB Vietnam Development Bank WTO World Trade Organization 4 Dinh Hue Phuong – HQ A – International Economics – K46 Recommendations for strengthening Vietnam – Korea financial cooperation relation 2010 LIST OF FIGURES 1. Figure 1: Structure of International Cooperation Department – MoF of ………...12 Vietnam. 2. Figure 2: List of Projects sponsored by Korea since 2009………………………..13 3. Figure 3: List of projects prepared to be sponsored by Korea in the near future…14 5 Dinh Hue Phuong – HQ A – International Economics – K46 Recommendations for strengthening Vietnam – Korea financial cooperation relation 2010 TABLE CONTENTS PREFACES ..................................................................................................................... 1 ABBREVIATIONS ......................................................................................................... 3 LIST OF FIGURES ........................................................................................................ 5 Chapter 1: Overview about the Ministry of Finance of Vietnam and the Department of International Cooperation.......................................................................................... 8 1.1. The Ministry of Finance of Vietnam .................................................................... 8 1.1.1. Tasks and powers .......................................................................................... 8 1.1.2. Organization structure of the Ministry of Finance of Vietnam ..................... 10 1.2. International Cooperation Department ............................................................... 11 1.2.1. Tasks of International Cooperation Department ......................................... 11 1.2.2. Structure of the International Cooperation Department .............................. 13 Chapter 2: Financial Cooperation between Vietnam and Korea ............................... 14 Vietnam – Korea Government financial cooperation program ........................... 14 2.1. 2.1.1. Overview of Vietnam – Korea relation ........................................................ 14 2.1.2. Financial cooperation under ASEAN + 3 frameworks ................................. 17 2.1.3. Financial cooperation under the framework of ASEAN – Korea Comprehensive Economics Partnership (AKFTA). ................................................... 19 2.1.4. 2.2. Cooperation in Taxation and Customs sectors ............................................ 19 Bilateral Cooperation between Ministry of Finance of Vietnam and Ministry of Finance and Strategy of Korea ..................................................................................... 20 6 Dinh Hue Phuong – HQ A – International Economics – K46 Recommendations for strengthening Vietnam – Korea financial cooperation relation 2010 2.2.1. Memorandum of Understanding in September 2006 .................................... 20 2.2.2. Memorandum of Understanding on cooperation in October 2009 ............... 22 Chapter 3: Recommendations for strengthening Vietnam – Korea financial cooperation relation. ..................................................................................................... 25 Suggestions for strengthening Vietnam – Korea financial cooperation relation .. 25 3.1. 3.1.1. Under ASEAN – Korea Comprehensive Economics Partnership framework 25 3.1.2. Under ASEAN + 3 framework ..................................................................... 25 3.1.3. In taxation and custom sectors .................................................................... 26 3.2. Recommendations for strengthening financial relation between Ministry of Finance of Vietnam and Ministry of Finance and Strategy of Korea ............................ 27 3.2.1. Recommendations for implementing MOU 2006 ......................................... 27 3.2.2. Recommendations for implementing MOU 2009 ......................................... 27 3.3. Other recommendations ..................................................................................... 28 CONCLUSIONS ........................................................................................................... 29 REFERENCES ............................................................................................................. 30 7 Dinh Hue Phuong – HQ A – International Economics – K46 Recommendations for strengthening Vietnam – Korea financial cooperation relation 2010 Chapter 1: Overview about the Ministry of Finance of Vietnam and the Department of International Cooperation 1.1. The Ministry of Finance of Vietnam 1.1.1. Tasks and powers The Ministry of Finance is a Government agency which has the function of implementing the State management in finance (including: State budget, tax, fees and other revenues of the State budget, national reserve, State financial funds, financial investment, corporate finance and financial services); customs; accounting; independent auditing; insurance; prices; securities; conducting the ownership rights to the State’s investment capital in enterprises according to regulations of the Law. The main tasks and duties of the Ministry of Finance are pursuant to the Decree No 118/2008/NĐ-CP issued by the Government as follows: - Submit to the Government and Prime Minister for approval law and ordinance projects. Draft legal documents, strategy and development planning, long-term, fiveyear and annual plans on the fields within the Ministry’s authority. - Issue legal documents within the Ministry’s authority. - Instruct, guide, supervise and to be in charge of implementing the legal documents, strategy, planning, plan; to set up the propaganda, disseminate, educate legal documents on the fields within the Ministry’s authority. - Manage the State budget, the collection of tax, fees and other revenues under the State budget, the budget fund, the State reserve fund and other State financial funds and the national reserves. - Manage the State assets. - Manage corporate finances and the State capital at the enterprises. - Manage the Government borrowings and debt servicing from domestic and abroad; and international grants. - Implement the State management in accounting and auditing 8 Dinh Hue Phuong – HQ A – International Economics – K46 Recommendations for strengthening Vietnam – Korea financial cooperation relation 2010 - Manage banks and non-banking financial institutions regarding issues; financial services. - Manage customs operations. - Implement the State management in prices. - Issue Government bonds and participate in stock market management under the regulations of law, Manage, supervise stock and stock market. - Organize and guide the implementation of statistics in the fields within the Ministry’s authority. - Undertake international cooperation and economic integration in the fields within the Ministry’s authority. - Organize and guide the implementation of scientific research, scientific and technology application in the field within the Ministry’s authority. - Decide specific orientations and measures and guide the operating mechanism of public services providing organizations in the fields within the Ministry’s authority in accordance with provisions of Laws; to manage and guide the implementation of activities of non-productive units within the Ministry’s authority. - Implement the State management to associations and non-Govermental organizations in the fields within the Ministry’s authority. - Inspect, control, settle complaints and denouncements, resist corruption, and be processed by authorized level or be submitted to the competent levels for setlement in accordance to the regulations of law applied for finance-budget management regime breaks and violations. - Conduct administrative reform under the Government program. - Manage organizational structure, permanent staff; guide the implementation of the provisions on salary, bonuses, disciplines for the State officers within the Ministry’s authority; train and retrain staff in the whole sector. - Manage the assigned capital and assets and the distributed budget plan under the provisions of the Law. 9 Dinh Hue Phuong – HQ A – International Economics – K46 Recommendations for strengthening Vietnam – Korea financial cooperation relation 2010 1.1.2. Organization structure of the Ministry of Finance of Vietnam The Ministry of Finance comprises one Minister, six Vice Ministers who support directly to the Minister and 29 departments each specializes in a specific area related to financial issues. Furthermore, there are an organizational system of financial institutes and financial organizations of MoF in each city and province throughout the nation. 29 departments in MoF include: - State Budget Department - Investment Department - Department No.I - Administrative Finance Department - Tax Policy Department - Banking Finance and Financial Institutions Department - Accounting and Auditing Policy department - International Cooperation Department - Legal Department - Finance and Planning Department - Personnel and Organization Department - Commendation and Emulation Department - Financial Inspection - Ministry’s Office - Public Asset Management Department - Corporate Finance Department - Debt Management and External Financial Department - Insurance Management and Control Department - Price Control Department - Informatics and Financial Statistics Department - General Department of Taxation - General Department of Customs 10 Dinh Hue Phuong – HQ A – International Economics – K46 Recommendations for strengthening Vietnam – Korea financial cooperation relation 2010 - General Department of State Resevre - State Treasury - State Security Commission - Institute of Strategy and Financial Policy - Financial Times of Vietnam - Financial Review - Institute of Financial Training The Minister of MoF is Mr. VuVan Ninh. He is in charge of providing general and comprehensive directions, instructions on implementation of all tasks of the whole Ministry and Finance Sector; making decisions and solutions on the Ministry and sector’s strategies, policies, mechanism and major tasks. Six Vice Ministers are - Vice Minister Nguyen Cong Nghiep - Vice Minister Tran Xuan Ha - Vice Minister Do Hoang Anh Tuan - Vice Minister Pham Sy Danh - Vice Minister Tran Van Hieu - Vice Minister Nguyen Huu Chi - International Cooperation Department 1.2. International Cooperation Department 1.2.1. Tasks of International Cooperation Department Pursuance to the Decision No 2146 /QĐ-BTC issued by the Ministry of Finance, The main tasks and duties of International Cooperation Department are to counsel and support to the Minister of the MoF to deal with economic integration and international financial cooperation under the MoF’s control’s fields; to manage the programs and projects which are sponsored by foreign nations and organizations to the MoF; to perform external affair issues of the MoF. 11 Dinh Hue Phuong – HQ A – International Economics – K46 Recommendations for strengthening Vietnam – Korea financial cooperation relation 2010 In particular, the main tasks of International Cooperation Department includes:  Preparing and presenting to the Ministry the projects and tentative of legal documents, strategies, action plans, long-term, medium-term and annual plans about international cooperation, legal documents regulate the duties and relations between departments in the MoF in implementing international cooperation tasks; Instructing and inspecting the implementations of such legal documents of departments and organizations in the MoF.  Being main responsible for preparing contents of agreements and commitments in international financial cooperation of the MoF with the support of other related organizations in and out of the MoF, and participating in all cooperation programs based on such preparations; implementing supervision mechanism macroeconomic, preparing plans for managing, supervising, reporting the implementations of these regional and international financial cooperation agreements and commitments.  Setting up and presenting to the Ministry the tentative for the general and annual plans about the demand for government financial supports; being responsible for asking for sponsorships or supporting to other departments and organizations in requesting for sponsorships for actions and programs in specific cooperation fields; instructing concerning departments to prepare and consider necessary documents for these programs;, negotiating with foreign partners; supervising, assessing and solving struggles in performing, managing and prepare the general report for approval of the Leader of th Ministry.  Prepare for the procedure to instructing, supervising and assessing the Ministry’s departments and the administration of the Ministry’s projects; Managing action plans for in- coming and out-going delegations of the Ministry, being responsible for translation and reception duties in greeting foreign delegations to the MoF, holding and being a main responsible person in international conferences of MoF 12 Dinh Hue Phuong – HQ A – International Economics – K46 Recommendations for strengthening Vietnam – Korea financial cooperation relation 2010 and being on behalf of MoF in signing cooperation agreements and commitment with approval of the Leader of the Ministry.  Managing and announcing financial cooperation program of MoF, encouraging MoF’s personnel to research individually or in group on economic and financial issues. 1.2.2. Structure of the International Cooperation Department To perform these above tasks effectively, the International Cooperation Department has been divided into 4 divisions, each is responsible for a specific tasks as follows: - External Affair Division - Project management Division - Economic Integration Division - International Financial Cooperation Division Figure 1: Structure of International Cooperation Department – MoF of Vietnam. The leader of the International Cooperation Department is Ms. Nguyen Thi Bich, Director General, moreover, there are three other Deputy Director Generals who are responsible for supporting Director General in the particular tasks of the Department. Presently, Deputy Director Generals are Mr. Nguyen Ba Toan, Ms. Nguyen Van Chi and Mr. Ha Duy Tung. 13 Dinh Hue Phuong – HQ A – International Economics – K46 Recommendations for strengthening Vietnam – Korea financial cooperation relation 2010 Chapter 2: Financial Cooperation between Vietnam and Korea 2.1. Vietnam – Korea Government financial cooperation program 2.1.1. Overview of Vietnam – Korea relation In economic, Korea is one of the most important economic partners of Vietnam. FDI from Korea to Vietnam up to now is about USD 17 billion sponsored to 2064 projects and created more than 500 thousand employees. Recently, Korea investment structure has transformed to service industry, heavy industry (steel production, construction, information technology); there are some large-scale projects (the processing and laminating steel complex project of Posco Corporation, West West Lake New Urban Area project of group of 5 Korean construction companies, Bac An Khanh Urban Area project of Posco – Vinaconex cooperation, etc.) About facilitative loan, since 2009, the MoF and Korea Export Import Bank signed the following Agreements: No. Unit: USD Projects Commited value 1 Providing equipments for Pleiku Hospital 3 000 000 2 Providing equipments for Hà Trung Hospital,Thanh Hoa 3 000 000 3 Constructing motorway Hanoi- Hai Phong package No10 100 000 000 4 Hoa Khanh Tay Water Supply Project 29 998 000 5 Thanh Hoa city social-economic development project 32 730 000 6 Water supply and waste water process project in Moc Chau 12 980 000 7 Providing equipments for Thanh Hoa College of Industry 3 000 000 8 Smart motorway system Ho Chi Minh City – Trung Luong 30 000 000 9 Contructing Vinh Thinh Bridge 100.000.000 Total 314.708.000 14 Dinh Hue Phuong – HQ A – International Economics – K46 Recommendations for strengthening Vietnam – Korea financial cooperation relation 2010 Figure 2: List of Projects sponsored by Korea since 2009 Source: Project Management Division – ICD - MoF Moreover, some Agreements are prepared for signing in next time including: Unit: USD No. Projects Committed value 1 Providing training equipments for Ayun Pa Vocational 2.963.000 College 2 Providing equipments for Ca Mau Hospital 2.963.000 3 Constructing Yen Bai Complex Hospital 45.000.000 Total: 50.926.000 Figure 3: List of projects prepared to be sponsored by Korea in the near future Source: Project Management Division – ICD - MoF Assessing the implementation of Korea’s lending Agreement: in general, the Korea’s loans are released tightly followed the schedules, meet the needs of the projects. However, there are some projects that needed to be renewal contract preparing and capital withdrawing time such as solid waste processing project in Ninh Binh, Project of constructing 5 Vietnam – Korea vocational colleges, Water supply Project in Hoa Binh. To reduce this problem, we need to focus on preparing the project before asking for approval and signing contract to maintain that the project runs fluently as expected. In international trade, Korean import export scale to Vietnam reached USD 8.85 billion in 2008, increased 34.4% in comparison with the year 2007, stood at the forth position. Vietnam exported USD 1.78 billion (increases 42,44% in comparison with the year 2007, focused on agriculture and aquaculture products, mineral, handicraft and light industry products), imported USD 7 billion (increased 32.38% % in comparison with the year 2007, focused on industrial products and process industry products). Korea is one of six 15 Dinh Hue Phuong – HQ A – International Economics – K46 Recommendations for strengthening Vietnam – Korea financial cooperation relation 2010 greatest trade deficit markets to Vietnam (in 2008. it got USD 5.28 billion, equal to 29.3% total trade deficit of Vietnam). The Intergovernmental Panel about economic and technology cooperation was set between two countries. About labor issue, Korea is the third largest labor exporting market of Vietnam at present. There are around 54,000 Vietnamese labors working in Korea. On May 25 th, 2004, we signed an agreement on moving labors from Vietnam to Korea pursuant to the Employment Permit System of Korea. In tourism factor, recent years, Korean tourists have become one of the main sources to Vietnam: in 2007 there are 475,000 tourists, in 2008, as the affects of economic recession, this figure reduced to 450,000 people. In education and culture sector, mutual agreement between two nations in August 1994, Memorandum of Understanding about culture, arts, sport and tourism in October 2008 and many other agreements about youth exchange and education. Two nations usually hold cultural exchange programs, exhibitions, motion-picture industry. In 2006, Korea established Korean Culture Center in Hanoi. Ministry of Education and Training chose Korea to be the strategic informatics partner in education and training. Government, universities and organizations of Korea sponsored to many project to improve education system of Vietnam such as constructing elementary schools project, Middle-Vietnam vocational schools. Scholarship funds like Korea Foundation, Samsung, Kumho, etc. provided many scholarships for poor students in Vietnam, improve language and profession skills in Korea. At present, there are about 5000 Vietnamese students studying in Korea. In the end of October 2009,on occasion of the President Lee Myung-bak had official visit to Vietnam, the Leaders improved relation between two nations to be “strategic partnership” 16 Dinh Hue Phuong – HQ A – International Economics – K46 Recommendations for strengthening Vietnam – Korea financial cooperation relation 2010 2.1.2. Financial cooperation under ASEAN + 3 frameworks Under ASEAN +3 frameworks (comprise of 10 ASEAN member countries, and three partners: China, Japan and Korea), the financial cooperation relationship between Vietnam and Korea has not been quite plain, mostly focus on dialogues and exchanges information about the macroeconomic situations, participating in regional cooperative initiatives including Chiang Mai initiative, Asia bond market initiative and ASEAN research group. Compared to Japan, the role of Korea in ASEAN +3 finance is quite modest. However, recently, Korea has encouraged to research on improving cooperative relationship within ASEAN +3 such as analyzing the procedure of credit support for small and medium enterprises in South East Asia area. These are some initiatives of financial cooperation in ASEAN area with the participation of Korea. Chiang Mai Initiative (CMI): Under ASEAN +3 frameworks, CMI was approved in May 2000 in order to improve cooperative relationship and facilitation in the region on foreign exchange to provide urgent aid to the countries facing temporary difficulties in terms of balance of payment. This important monetary cooperation consists of the following contents: - Expanding the capital scale of ASEAN swap (ASEAN Swap Agreement – ASA) - Establishing the system of bilateral swap arrangements (BSA) among member 8 members of ASEAN +3 - Improving the provision mechanism and policy dialogues in ASEAN +3 in the level of: (i) Minister of Finance (AFMM +3); and (ii) Vice Minister of Finance and Deputy Governor of State Bank (AFDM +3) The aim of CMI is to expand the ASEAN Swap Arrangement (ASA) to all ASEAN members and to set up a network of bilateral swap arrangements among ASEAN 17 Dinh Hue Phuong – HQ A – International Economics – K46 Recommendations for strengthening Vietnam – Korea financial cooperation relation 2010 members and 3 partners China, Japan and Korea to provide liquidity support for member countries that experience short-run balance of payment deficits. Up to now, there are 16 bilateral swap arrangements signed, in which Korea signed 5 arrangement with ASEAN5. However, Korea has no action to speed up negotiation bilateral swap arrangements with other ASEAN countries including Vietnam. ASIA Bond Market Initiative (ABMI): ASEAN +3 have prepared to implementing ABMI aims to develop efficient and liquid bond markets in Asia, which would enable better utilization of Asian savings for Asian investments. ASEAN bond market development is an important content of financial cooperation of AFMM +3, in which Korea and Japan are the leaders of this initiative. Vietnam bond market in general and capital market in particular are quite young and weak in the development process towards effectively integrate to regional bond market. Under this initiative, Vietnam has been received many supports from Japan, however, the support of Korea concentrated mostly on setting up and developing website Asianbondonline of ASEAN +3 to encourage member countries to update the development of bond markets in these countries to provide useful information to foreign investors. Up to now, this website has been run and Vietnam is one of the most active members in providing data for this website. Stimulating training and research activities: Korea has provided some training courses for high-grade personnel of Ministry of Finance and State Bank of ASEAN countries about the regional financial system and international financial integration under ASEAN +3 financial cooperation. These course were valued quite useful and effective. 18 Dinh Hue Phuong – HQ A – International Economics – K46 Recommendations for strengthening Vietnam – Korea financial cooperation relation 2010 2.1.3. Financial cooperation under the framework of ASEAN – Korea Comprehensive Economics Partnership (AKFTA). ASEAN – Korea Free Trade Area agreement had been signed officially on May 16th 2006 in Manila, Philippines, in which the tax reduction regulation will be implemented since 2006 and finished in 2011 for the founder members of ASEAN and Korea, 2016 for Vietnam and 2018 for Laos, Cambodia and Myanmar. However , tax reduction has not been performed because some ASEAN countries have not fulfilled their procedure to ratify the agreement. Korea has just ratified the agreement and is has been valid since June 1st 2007 but they have no more legal document about tax cut and tax reduction. Vietnam finished the procedures to announce new legal document about tax reduction, these document will be valid when Korea officially announce their regulations. 2.1.4. Cooperation in Taxation and Customs sectors In tax management, there are some agreement between the governments of the Socialist Republic of Vietnam and the Republic of Korea about double tax avoidance and the prevention of fiscal evasion with respect to taxes on income and capital gains. Since 2002, the General Department of Taxation of Vietnam and the National Tax Service of Korea had some meetings and agreements of cooperative activities of these departments. According to these agreements, two parties will have some exchange programs to learn experiences in tax management of experts in Vietnam to Korea every year. In customs cooperative activities, two countries established the relationship in customs field since 1995 and recently, the Governments of two countries has signed a bilateral agreement on cooperation in customs operations between Vietnam and Korea in Korea in 2006 and MoU about information technology in customs operations on May 16th 2006 in Korea. As these agreements, there were a lot of exchange programs of experts of Customs Departments of each country come to other country to study about customs procedures in partner’s countries. Korea provide Vietnam many support packages to help Vietnam to modernization Custom system by facilitating equipments and technology 19 Dinh Hue Phuong – HQ A – International Economics – K46 Recommendations for strengthening Vietnam – Korea financial cooperation relation 2010 using in customs processes, risk management, export – import activities and public relations. In the year 2008, 2009 and 2010, Vietnam has held enterprises and Customs Department dialogues platform to give explanation to Korean companies about customs procedures of Vietnam. 2.2. Bilateral Cooperation between Ministry of Finance of Vietnam and Ministry of Finance and Strategy of Korea 2.2.1. Memorandum of Understanding in September 2006 Contents Signed on September 25th 2006, the MoU is an agreement between Ministry of Finance of Vietnam and Ministry of Finance and Economic of Korea about banking and finance sectors. According to this 3 year MoU, MOFE of Korea will support to MoF of Vietnam in following activities: (i) Developing the policy system about finance and credit management and strengthening the management and provision ability of the Government in this sector (ii) Enhancing the activities of implementing and supervising credit investment and credit export policies (iii) Developing policy system and strengthening the control of the Government in managing the actions of credit guarantee fund system for Vietnamese small and medium enterprises. Activities according to the MoU 2006 After the MoU was approved, a general action plan was designed for the period 2007 – 2009 to specify the contents of the MoU. It was also a basic for preparing activities in a synchronous and comprehensive in each step of cooperation program. 20 Dinh Hue Phuong – HQ A – International Economics – K46