Regions and Countries

	Table of Contents
p. 12 of 20 BACK | NEXT I. Country Performance Assessment II. Country Operational Strategy III. Sector Strategies A. Agriculture B. Infrastructure C. Social Infrastructure and Environment D. Governance Dimensions of ADB Operations E. Gender Dimensions of ADB Operations F. Private Sector Operations IV. Regional Cooperation V. Donor Activities and Aid Coordination VI. Cofinancing and Catalyzing External Resources VII. ADB’s Operational Program VIII. Economic and Sector Work Program IX. Local Cost Financing

Country Assistance Plans - Viet Nam : III. Sector Strategies

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D. Governance Dimensions of ADB Operations

60. Critical issues for the improvement of governance include (i) the rationalization of the role of the State, the public administration and the policy formulation process; (ii) the continuing development and transparent enforcement of the legal and regulatory framework; and (iii) the implementation of an effective system of public financial management. Vietnamese authorities have given strong signals that they wish to pursue broad-based reform of the machinery of government organization and its functioning, going beyond routine improvements in public administration, including the structure and system of economic and financial management.

61. ADB has undertaken in recent years a number of initiatives through TA to enhance the capacity of key central institutions and facilitate good governance practices. They include: Capacity Building at the Ministry of Planning and Investment (1995) and Support for Decentralization and Participation in Planning (1999); Institutional Strengthening of National Procurement Office (1994, 1995 and1996, in three phases), Capacity Building at State Auditor General’s Office (1995 and 1998 in two phases), Strengthening Capacity for Public Administration Reform (PAR) at the Government Committee on Organization and Personnel (1996 and 1998 in two phases), and Retraining of Government Legal Officers at the Ministry of Justice (1997). In addition, transparency, accountability and predictability at the macroeconomic and sector levels are being supported through the policy and institutional components of lending operations, whether under project, program or sector lending modalities.

62. For the 2001-2003 period, it is proposed that ADB operations in the area of governance focus on (i) facilitating a better structured and more focussed approach to effecting public administration reforms in Vietnam, through support for the Office of Government’s efforts to improve public service efficiency and effectiveness; (ii) development and further implementation of a comprehensive legal framework for the more efficient and effective operation of the market economy, including support to the Ministry of Justice in legal education and in publicizing information on new legislative instruments; (iii) increasing the effectiveness of public financial management through improving transparency, accountability and capacity in the management of public finance at all levels of government. Decentralization will be supported by involving to the maximum extent possible the lower levels of government in project design and implementation. Governance improvements will be supported both directly through stand-alone and cluster TAs and indirectly by using the overall project pipeline to pursue governance objectives. The ADB’s Viet Nam Resident Mission (VRM) is expected to play a key role in the design and implementation of governance-related operations, given the need for frequent and close contact with the Government on these matters.

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