ASEM TRUST FUND II Vietnam’s Implementation Status

Background ASEM TF2 support to VN economic reform & sustainable growth  Three pillars  Economic reform  Social programs and human resources  Public administration and governance..

Mr Nguyen Ba Toan Deputy Director General International Cooperation Department,

Ministry of Finance Brusells, June 28 th , 2006

 Background

 Status of implementation

 Assessment

ASEM TRUST FUND II Vietnam’s Implementation Status - June, 2006

1 Background

 ASEM TF2 support to VN economic

reform & sustainable growth

 Three pillars

 Economic reform

 Social programs and human resources

 Public administration and governance

ASEM TRUST FUND II Vietnam’s Implementation Status - June, 2006

1 Background (Cont.,)

 TA received from different donors (IFIs, EC and members, Japan, etc)

 ATF 1 & 2 are important supporting sources

 Focus on financial system reform

and social policy reform

1 Background (Cont.,)

 17 grants:

• 6 projects in banking sector

• 4 projects in corporates reform

• 7 projects in social sectors and human resources

 Total amount of 9.2 mill USD

• $ 6.9 mil., for financial sector

• $ 2.3 mil., for social programs

 Closing date: 30 June, 2006

2 Implementation Status:

 6 projects completed for total disbursement of

$2,47 mil., over the granted amount of $2,60 mil.,

S.N0

Grant name of completed projects

Grant Amount, USD

Disb as of June

21, 2006

% Disb as of June 21, 2006 Closing Date

1 Support for Operations and Monitoring of Social Safety Net Fund for Redundant Workers 342,000 313,885 91.8% 31-Dec-03

2 Banking Reform Program 694,000 688,067 99.1% 31-Dec-03

3 Strengthening Community Driven Development 419,000 418,794 100.0% 31-Jan-05

4 Mekong Housing Bank: Diagnostic Review and Preparation for

Strategic Partnering/Equitization 350,400 312,146 89.1% 31-Dec-05

5 Support for the Operation and Monitoring of the Social Safety Net

for Redundant Workers (Phase 2) 369,926 362,189 97.9% 31-Dec-05

6 Support Development of Social Security Law (SSL) in Vietnam 434,500 375,057 86.3% 28-Feb-06

Total 2,609,826 2,470,138 94.6%

ASEM TRUST FUND II Vietnam’s Implementation Status - June, 2006

2 Implementation Status (Cont.,)

 4 projects requested for extension to the end of

July and August.

Name of Extended Projects TF # Grant Amount, USD

Disb as of June

21, 2006 June 21, 2006 % Disb as of

Closing Date

Banking Sector Regulation, Supervision and Development 52046 944,500 853,562 90.4% 31-Jul-06

Training of Directors and Management of Enterprises on

Corporate Governance 52643 325,000 221,133 68.0% 31-Aug-06

Improving Banking Sector Transparency and Reforming Policy

Lending 53398 975,500 698,180 71.6% 31-Jul-06

State Bank of Vietnam’s (SBV) Road Mapping/Master Plan 54268 342,000 53,598 15.7% 31-Aug-06

4 2,587,000 1,826,473 70.6%

2 Implementation Status (Cont.,)

 7 projects are in final step to complete reports and

closing procedure

ASEM TRUST FUND II Vietnam’s Implementation Status - June, 2006

Grant Name TF # Amount, Grant

USD June 21, 2006 Disb as of

% Disb as

of June 21, 2006

Closing Date

Monitoring of SOE New Establishment and Transformations 51834 660,000 498,554 75.5% 30-Jun-06 Poverty Reduction in the Education Budget Processes 51961 450,000 230,866 51.3% 30-Jun-06 State Owned Commercial Bank Audit and Basel Core Principle

Assessment 52587 640,000 596,785 93.2% 30-Jun-06 Technical Twinning Arrangement for the Implementation of the BIDV

Restructuring Plan 53365 874,000 480,763 55.0% 30-Jun-06 Accelerating Capital Markets Development 53399 650,000 442,253 68.0% 30-Jun-06 Support for Strengthening Evidence-Based Pro-Poor Policy Making in

Vietnam 53933 305,640 217,855 71.3% 30-Jun-06 Support for the Resolution of non-performing Debt and Asset of State -

owned Enterprises 54113 427,594 272,364 63.7% 30-Jun-06

7 4,007,234 2,739,440 68.4%

3 Assessment

Overall outcomes

 Effective implementation and satisfaction to all recipient agencies and ICSC

 Promoted acceleration of restructure process of SOE sector including state-owned commercial banks (400 SOEs and more than 15,000 workers)

 Establishment of the Social Safety Net Fund (SSN) and run by well-trained government officials in line with international best practices

ASEM TRUST FUND II Vietnam’s Implementation Status - June, 2006

3 Assessment (Cont.,)

 Successful training programs, surveys and information dissemination in line with poverty reduction strategy and human resources development

Lessons and Experiences:

 ASEM TF procedures and disbursement to be learnt

by the implementation agencies

 Regular meetings of ICSC for effective implementation of the granted projects

 Closer coordination among WB officers, ICSC members and staff of recipient agencies

ASEM TRUST FUND II Vietnam’s Implementation Status - June, 2006

 Continuation of ASEM support to member economies is crucial and strongly recommended

 ASEM support should be based on specific needs of individual country, given that its modality and a new instrument might defer from the ASEM TF2 in accordance with the process of regional and global cooperation and integration

ASEM TRUST FUND II Vietnam’s Implementation Status - June, 2006

THANK YOU FOR YOUR ATTENTION

ASEM TRUST FUND II Vietnam’s Implementation Status - June, 2006