Project profile — Good Governance and Aid Effectiveness - Component III



Overview 

CA-3-A032787003
$3,898,000
IBRD Trust Funds - World Bank (44001)
2008-12-08 - 2021-06-30
Operational
Global Affairs Canada
OGM Indo-Pacific

Country / region 

• Vietnam (100.00%)

Sector 

• Public sector policy and administrative management:
Public sector policy and administrative management (15110) (60.00%)
Public finance management (15111) (30.00%)
Legal and judicial development (15130) (10.00%)

Policy marker 

• Gender equality (not targeted)
• Environmental sustainability (cross-cutting) (not targeted)
• Participatory development and good governance (significant objective)
• Trade development (not targeted)
• Biodiversity (not targeted)
• Climate change mitigation (not targeted)
• Climate Change Adaptation (not targeted)
• Urban issues (not targeted)
• Desertification (not targeted)
• Children's issues (not targeted)
• Youth Issues (not targeted)
• Disability (not targeted)
• Indigenous Issues (not targeted)
• ICT as a tool for development (not targeted)

Description 

This project aims to respond to relatively small-scale multi-donor initiatives that share the objective of improving core government systems, such as procurement, management of official development assistance, anti-corruption, public administration and overall aid effectiveness in Vietnam. The project supports initiative identification, planning and operations in the field and allows for timely, streamlined and harmonized responses to sub-project opportunities. Each initiative must enhance the effectiveness of Canada's development assistance in Vietnam. This includes taking advantage of multi-donor efforts using pooled funding or co-financing arrangements, thus enhancing donor harmonization and leveraging the impact of Canadian resources through partnerships. The intended results of the project include increased capacity of core government systems to ensure aid effectiveness. This component supports initiatives implemented by the World Bank, the International Finance Corporation and other implementing partners.

Expected results 

N/A

Results achieved 

Results achieved as of the end of the project (November 2022) include: (1) conducted public expenditure reviews to improve the linkages between investment budget and fiscal resource envelopes. The government conducted three review workshops and reported to the Prime Minister. Also achieved 62 out of 68 policy recommendations; (2) authorities strengthened their commitment to monitoring. Spending units receive regular reports from the Treasury and Budget Management Information System (TABMIS) and the Treasury now monitors 80% of commitments (in value). Furthermore, authorities reduced the processing time of requests from two days to one day. Cash forecasting was improved, reducing the difference between forecasted cash flow and actual payments to 10%. The reform of the monitoring of public service delivery units (PSDUs) also made good progress with the issuance of Decree 60 on the financial autonomy of PSDUs and an enhanced monitoring framework over the performance of these units; (3) the government produced quality fiscal information by implementing accounting reform through International Public Sector Accounting Standards (IPSAS), financial reporting using Government Finance Statistics (GFS) and Whole-of-Government Financial Statements (WOGFS); (4) developed the State-owned Enterprise (SOE) Corporate Information Management System (CIMS) to collect financial information of 800 SOEs. Two large SOEs (Vietnam Electricity and Petrolimex) have been piloted. Also formalized the adoption of the International Financial Reporting Standards (IFRS) through the Ministry of Finance’s Decision 345. The government also developed the Financial Development Strategy 2021 to 2030 and the first consolidated subnational debt report and to prioritize public finance management reforms over the next ten years.

Budget and spending 


Original budget $2,000
Planned disbursement $0
Transactions
Country percentages by sector
Type of finance Aid grant excluding debt reorganisation
Collaboration type Bilateral
Type of aid Basket funds/pooled funding
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