Transcript FDI in Vietnam: what we have done and going to to

Mutual accountability: From
Paris Declaration to Hanoi Core
Statement
Dar Es Saalam 11-2005
Vietnam: A big market with high
GDP growth rate
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Population: 82 million
Stable political system and social security
GDP growth rate (1990 – 2005): > 7%
GDP growth of 2005: 8.5%
FDI: Some figures
• 1987 – 2004: 5 500 projects with 48.5
billion USD capital; 3 500 projects in
production and business activities
• FDI = 20% of the total investment
• FDI = 14.5% GDP
• FDI = 50% exports
• FDI = 740 000 direct jobs
• FDI 2005: > 5 billion (previsions)
Vietnam: ODA recipeipts
(1993 – 2004)
• Engagements: 28.4 Billions USD
• Disbursements: 14.8 Billions USD
• Sectors invested:
- Poverty reduction;
- Economic and social infrastructures
(Transport, Telecommunication, power
supply, Agriculture, Rural development,
Health, Education, …)
Vietnam: ODA receipts
(USD million)
Receipts
2001
2002
2003
Net ODA
1450
1277
1769
Bilateral share
4.5%
3.6%
4.5%
Net ODA/GNI
4.5%
3.6%
4.5%
Vietnam: Top ten donors
(2002-2003, USD million)
1
2
3
4
5
6
7
8
9
Donors
Japan
WB (IDA)
ADB (AsDF)
France
Denmark
Germany
Australia
Netherlands
United Kingdom
Gross ODA
452
414
224
96
59
52
38
35
31
Constraints identified
• Lack of an long term plan for ODA
mobilisation and utilisation;
• Lengthy decision making processes;
• Deficiency in the legal framework;
• Human capacity to execute ODA projects.
• …
Mutual accountability: why and
when ?
Concepts:
• OECD: Mutual assessment of progress in
implementing agreed commitments of
donors and recipient countries on aid
effectiveness under 4 aspects: Ownership,
Alignment, Harmonisation, Simplication
• Vietnam: In added: the division of
responsibility based on riel context,
conditions and capacities
Mutual accountability: why and
when ?
Why and When ?
• Needs on better and more effectiveness of
ODA use
• Differences on policies, objective, mechanism,
methodologies of identifications, planning,
implementing, monitoring and evaluation
• Needs of change with volunteers: Opening,
localisation and globalisation
Hanoi Core Statement – The
nationalisation of the Paris
Declaration
• Ownership:
- Indicators:
5 years Socio-Economic Development Plan
(SEDP) is finalised and effectively implemented,
CPRGS principals are integrated
- Targets to 2010:
5 Year SEDP targets are achieved
Hanoi Core Statement
• Alignment: Indicators and targets to 2010
+ Donors assistance strategies are aligned to
the SEDP and related national, regional,
provincial and sector strategies (all donors)
+ Strengthening of PMUs (all PMUs)
+ Strengthening of building programmes
capacities (100%)
Hanoi Core Statement
• Alignment: Indicators and targets to 2010
+ Strengthening of Public procurement system
(>50% of donors and >50% of aid flows)
+ Strengthening of Public financial management
system (>50% of aid flows and donors
channeling)
+ improve environmental and social safeguard
(100% funded projects implemented to
international standards and at least 30% using
government systems
Hanoi Core Statement
• Harmonisation and simplification: Indicators
and targets to 2010:
+ Fewer, better, core diagnostic and country
analytical reviews (75%)
+ Common project cycle management tools
agreed and used throughout the
project/programmes cycle (> 50% of donors)
+ Coordination on policies and sector framework
(75% of aid)
+ Donor delegation authority to country offices
(75% of interventions)
Hanoi Core Statement
• Management for results : Indicators and
targets to 2010
+ Results framework developed and used
to assess the performance of SEDP and
sector programmes (DAC criteria and
continuous monitoring)
Hanoi Core Statement
• Mutual accountability:
+ Periodic mutual assessment of progress
(Annual assessment)
Experiences
1- Division of responsibility
• Donors:
+ UN institutions and Like Minded Donor Group :
transaction cost
+ Partnership Group on Aid Effectiveness: public finance
management, trade reform, …
+ WB and others: country assistance strategies
+ 5 Banks Group: Project management, harmonisation of
procedures, financial management, …
+ Consultative Group for Vietnam (CG): forum for
discussions on policies, strategies; evaluation of reform
schedule and financing
Experiences
1- Division of responsibility
• Vietnam Gov:
+ Building sustainable country system
+ Revision of ODA legal framework
+ Establishment of ODA master Plan (2006 –
2015)
+ Monitoring framework
+ Simplication of procedures: Procurement and
financial systems
Experiences
2- Strengthening of Country procurement
system
- Assistance of Like Minded Donor Group
+ Revision of relevant regulation
+ Promotion of transparency and fair competition
+ Information system (bulletin and website)
=> Final law document to be adopted by the
National Assembly
Experiences
3- Strengthening the public financial
management
- Assistance of 5 Banks Group
- Pilot exercise (4 sectors and 4 provinces)
+ Strengthening medium term expenditure
planning
+ Streamline the country’s fiscal planning
framework
+ Modernisation of state budget management
=> Final Decree document to adopt by the
Government
Experiences
4- Developing a common results-based
monitoring framework
- Assistance of UNDP and other donors
+ Design common indicators
+ 5 years Plan (2006 – 2010)
+ Software on evaluation and monitoring
=> The software on assistance projects on
evaluation and monitoring transferred (9/2005)
Lessons learned
• Necessary of participation of stakeholders on
every step of the reform
• Every stakeholders would benefit from the
development of the country’s capacity and the
Gov. system regardless of funding sources or
aid modalities
• Donors and recipient country could look into real
situation with concrete analysis before set down
targets and performance indicators
Steps to continue
• Undertake a baseline study of donor operation
procedures (cycle time, cost, schedule, …)
• Sharing opinions between Gov and donors on
the 5 years Plan
• Action Plan on environmental and social
safeguards (including projects/program
preparation)
• Donors to continue to develop and implement
joint activities
• Donors to outline their plan for decentralisation
• …
Thank you for your attention !