Project profile — Poverty Reduction Support Credit 9-10 Vietnam

• Vietnam (100.00%)

• Other Multisector: Multisector aid (43010) (100.00%)

• Gender equality (significant objective)
• 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)
• Indigenous Issues (not targeted)
• Disability (not targeted)
• ICT as a tool for development (not targeted)

The Poverty Reduction Support Credit (PRSC) program is a World Bank-led multi-donor initiative that aims to enhance equitable economic growth in Vietnam through reforms that promote transparent and accountable governance. The purpose of the initiative is to support the Government of Vietnam’s poverty reduction and economic growth objectives. This project represents Canada’s contribution to the final two annual operations of the second five-year cycle of the PRSC. The PRSC supports a reform program directly linked to the four pillars of Vietnam’s Socio-Economic Development Plan 2006-2010 which are: (i) business development - the promotion of growth and transition to a market economy; (ii) social inclusion - reducing poverty and ensuring social inclusion, including addressing gender disparities and increasing women’s participation in decision-making; (iii) natural resources - managing the environment and natural resources in a sustainable manner; and (iv) modern governance - building transparent and accountable institutions. CIDA’s contributions to the PRSC are made through a World Bank trust fund, from which funds are released directly to the Government of Vietnam. CIDA’s current contribution aims to build upon and strengthen reforms from earlier annual operations of the PRSC. As with all budget support initiatives, Canada is working in close cooperation with other donors and the Government of Vietnam to focus on effective, transparent, and accountable country systems; increase donor coordination and harmonization; and strengthen mutual accountability. The PRSC also fosters greater policy dialogue among donors, government, and partners, thus helping to strengthen efforts for effective, focussed aid, as well as long-term development results. This initiative is continuously monitored and evaluated in coordination with other donors.

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Results achieved as of end of project (December 2012) include: (i) key reforms in the state sector to improve corporate governance, the system by which companies are directed and controlled; (ii) improvements to regulations governing the financial sector in order to better assess commercial banks' risk, develop capital markets, enhance public disclosure and strengthen supervision towards a more stable and sound financial system; (iii) adoption of regulations to improve the transparency of the financial information of state-owned enterprises; and (iv) efforts to combat corruption, reform public administration and civil service as well as integrate gender and environment considerations in socio-economic development planning. These results are helping to support the Government of Vietnam’s priorities in poverty reduction and economic growth.

• Proactive disclosure