The World Bank Report No: ISR11964 Implementation Status & Results Vietnam Multi-Donor Trust Fund to Support Public Financial Modernization in Vietnam (P110525) Public Disclosure Copy Operation Name: Multi-Donor Trust Fund to Support Public Financial Project Stage: Implementation Seq.No: 4 Status: ARCHIVED Archive Date: 17-Oct-2013 Modernization in Vietnam (P110525) Country: Vietnam Approval FY: 2009 Product Line: Recipient Executed Activities Region: EAST ASIA AND PACIFIC Lending Instrument: Technical Assistance Loan Implementing Agency(ies): Key Dates Board Approval Date 01-Apr-2009 Original Closing Date 30-Jun-2011 Planned Mid Term Review Date Last Archived ISR Date 01-Mar-2013 Effectiveness Date 07-Sep-2009 Revised Closing Date 31-Dec-2013 Actual Mid Term Review Date 15-Aug-2011 Project Development Objectives Project Development Objective (from Project Appraisal Document) Strengthened capacity for: increased coordination and transparency in public financial management; improved revenue mobilization; and effective and efficient public expenditure management. Has the Project Development Objective been changed since Board Approval of the Project? � Yes No Component(s) Component Name Component Cost Coordination and Transparency 1.73 Revenue Management 1.61 Expenditure Management 2.00 Overall Ratings Public Disclosure Copy Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Implementation Status Overview The MDTF has four months left for implementation (until the closing date of 31 December 2013). Thirteen out of fourteen of technical projects (TA) under the first implementation plan (IP1) have been completed. Out of fifteen projects under IP2, two have been completed ( PEFA assessment and the development of the bond market roadmap until 2020) and two (tax policy review and regulatory impact assessment -RIA) completed by 90%. The remaining nine projects are under implementation with various degree of advancement. Out of which three needs special attention if they are to be completed on time. Since the last ISR, around 40 activities were approved to be added to the existing projects in IP2, most Page 1 of 5 The World Bank Report No: ISR11964 significant ones of them are: dissemination of PEFA assessment report; study of property tax regulation, roll out of the standard database on public asset management to six provinces; and development of the Financial Development Strategy’s Medium-Term Action Plan (MTAP) 2014-2016. These activities will contribute to achieving the objectives of the MDTF and are funded through the saving of budget of previously completed projects. The Procurement Plan has been revised accordingly and approved. Some major procurement works completed recently include completion of recruitment of all consultants to support development of MTAP (A9) and signing of a large consulting contract for security assessment Public Disclosure Copy of the existing IT infrastructure of the MOF (A12). Locations No Location data has been entered Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Prioritized Medium-Term Action Plan for Text Value FDS 2011-2020 and Action MTAP developed and Financial Development Strategy 2011-2020 Plan adopted by MOF. adopted by MOF adopted. Medium Term Action Plan for 2014-2016 is under preparation Date 12-Sep-2013 31-Dec-2013 Comments Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Completed Public Expenditure and Financial Text Value No PEFA assessment. PEFA assessment published. PEFA assessment published. Accountability (PEFA) Review Date 01-Jul-2012 12-Sep-2013 31-Dec-2013 Comments Target met Adopted regulations on disclosure of Text Value Regulations developed and Domestic debt data recording Public Debt Bulletin published information on public and publicly guaranteed adopted completed and being with external and domestic debt validated. Public Debt Bulletin debt information. for 2013 will be published by Public Disclosure Copy Q4 of 2013 Date 01-Jul-2012 12-Sep-2013 31-Dec-2013 Comments Developed system for Regulatory Impact Text Value Pilot RIA conducted for Results of pilot RIAs fed into Assessment of PFM legislation Budget, Social Security, Tax MOF RIA policies. and Corporate Finance Laws. Date 12-Sep-2013 31-Dec-2013 Comments Page 2 of 5 The World Bank Report No: ISR11964 Adopted legal framework for the establishment Text Value Implementing decree for Implementing decree for Decree approved by NA of internal audit mechanism in Vietnam internal audit developed internal audit submitted to committee National Assembly committee for review Public Disclosure Copy Date 01-Jul-2012 12-Sep-2013 31-Dec-2013 Comments Action Plan for implementation of FDS Text Value FDS 2011-2020 approved by Development of the Medium- Medium-Term Action Plan (2011-2020) approved by MOF and the PM Term Action Plan 2014-2016 developed. Monitoring and Evaluation framework of FDS with M&E framework is fully developed underway with assistance from international and local consultants. Date 01-Jul-2012 12-Sep-2013 31-Dec-2013 Comments Developed and adopted indicators and Text Value Development of indicators for Monitoring indicators piloted monitoring system for oversight of SOE financial monitoring and in three State Economic financial performance performance assessment of Groups. SOEs is completed Date 12-Sep-2013 31-Dec-2013 Comments Adopted roadmap for Public Sector Accounting Text Value Roadmap developed for Adopted roadmap for Standards with finalized gap analysis transition to IPSAS cash. transition to IPSAS cash Work on development of accounting. IPSAS compliant Vietnam PSAS has started Date 12-Sep-2013 31-Dec-2013 Comments Completed audit of IT security arrangements in Text Value Contract awarded to firm on IT security policies adopted. MOF with action plan for follow up implementing the IT security implementation package Public Disclosure Copy Date 12-Sep-2013 31-Dec-2013 Comments Develop decree to implement modern treasury Text Value Draft Decree developed but Decree adopted by MOF for cash management its issuance will be delayed implementation. until the Budget Law is revised in 2014. Despited this, pilot of TSA has been intiated at 2 out of four state own commercial banks which are Page 3 of 5 The World Bank Report No: ISR11964 providing government banking service Date 12-Sep-2013 31-Dec-2013 Public Disclosure Copy Comments Developed model for asset management Text Value Model developed, and Standardized business information system with more standardized standardized business processes rolled out country- business processes processes being piloted in wide. three provinces Date 12-Sep-2013 31-Dec-2013 Comments Implementation of 11 tax policy areas reviewed Text Value Review completed and results Review of tax policies has with recommendations submitted to MOF informed the revision of three informed amendment of at tax laws: Tax Administration, least three tax-related VAT and CIT. legislation Date 12-Sep-2013 31-Dec-2013 Comments Reviewed the existing corporate accounting Text Value 13 out of 26 VAS was Complete review of all 26 standards in Vietnam with recommendations reviewed and consultation on VAS with recommendations for update revised drafts are being for transition to International conducted. Issuance of the Financial Reporting revised VASs is expected by Standards. end of 2013. Date 12-Sep-2013 31-Dec-2013 Comments Given the time taken to review and consult on the revision of the first batch of 13 standards, it is not possible to complete review of all 26 VAS as per the original plan. Adopted model and implementation roadmap Text Value SAG models developed and Adopt preferred model and for State Accounting General function recommendation submitted to roadmap for SAG. Public Disclosure Copy MOF leadership Date 12-Sep-2013 31-Dec-2013 Comments Developed and adopted roadmap for the Text Value Roadmap developed and Roadmap developed and development of Vietnam’s bond markets adopted. adopted. Date 07-Feb-2013 07-Feb-2013 Comments Target met Data on Financial Performance (as of 13-Aug-2013) Page 4 of 5 The World Bank Report No: ISR11964 Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P110525 TF-94240 Effective 05-May-2009 02-Jun-2009 07-Sep-2009 30-Jun-2011 31-Dec-2013 Public Disclosure Copy Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P110525 TF-94240 Effective USD 7.19 7.19 0.00 3.72 3.46 52.00 Disbursement Graph Key Decisions Regarding Implementation With the MDTF2 coming to an end by December 2013, it was agreed that the World Bank, MOF and Donors would discuss and agree on possible TA needs and modality of financing Public Disclosure Copy to ensure continuous TA support to the Government PFMR reform program in the coming years. It is expected that the TA needs will be informed by the Financial Development Strategy’s Medium-Term Action Plan (MTAP) 2014-2016. Restructuring History There has been no restructuring to date. Related Projects There are no related projects. Page 5 of 5