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Countries and Regions Country Partnership Strategies Document
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Country Strategy and Program 2002-2004: Socialist Republic of Viet Nam
VI. Performance Monitoring and Evaluation77. The Government recognizes that effective implementation of its national poverty reduction strategy requires clear performance indicators and an effective monitoring strategy. To this end, the Government, together with its development partners, including ADB, is engaged in the process of defining development goals that are specific to Viet Nam, but compatible with the IDGs (para. 20). To complement this process and link it to ADB's new CSP for Viet Nam, the Government and ADB have agreed on a two-tier performance monitoring system: (i) the Partnership Agreement, focusing on short -, medium-, and long-term goals, targets, and actions that ADB's CSP is designed to support; and (ii) country-specific triggers, comprising policy and process indicators that will determine the ADF lending scenario applicable to Viet Nam. This two-tier structure will help ensure accountability and direct mid-course corrections in strategy implementation. Also, through the trigger mechanism, it will ensure consistency between the Government's efforts to improve the policy and institutional framework in key areas related to ADB operations and the ADF resource allocation process. A. Agreed Performance Indicators78. The indicators included in the Partnership Agreement are based on Viet Nam's development goals (Table 1). They also include a number of other indicators specifically related to proposed areas of ADB support. Triggers for PBA have been developed for each of the main areas of ADB support, namely, rural and private sector development, socially inclusive development, and governance. In addition, macroeconomic performance and portfolio implementation will be monitored, to ensure a conducive development environment and effective use of ADB and government resources. The lending triggers (Appendix 11) comprise key actions considered necessary to achieve the outcome and intermediate goals, and cover the entire CSP period. Annual CSP updates will review, further detail, or revise the list of required actions, selecting relevant PBA triggers for the following year. B. Monitoring Process and Plan79. The Government's poverty reduction strategy will include a detailed monitoring strategy and action plan. Several instruments will be used to collect the necessary information for monitoring progress, including national accounts, balance of payments, public expenditure reviews, sector reviews, and studies to be commissioned for the purpose. A new multipurpose household survey (MPHS) will provide data on poverty and other socioeconomic conditions on a biannual basis. The monitoring process will involve several institutions including the General Statistical Office (GSO) and the Ministry of Planning and Investment (MPI) in which it is located, the Ministry of Finance (MOF), State Bank of Viet Nam (SBV), and relevant sector ministries. 80. The institutional capacity among government agencies for monitoring is uneven: GSO, which has been the recipient of ODA support for carrying out living standards and other surveys, has the requisite expertise in a number of areas. However, the comprehensive nature of the new poverty reduction strategy being developed and the associated monitoring requirements, including the MPHS, will impose additional demands that may stretch government capacity. In addition, sector information systems will need to be developed. Bottlenecks in coordination between central agencies and local governments will need to be addressed by strengthened information systems at the local level. ADB will be part of the coordinated effort by members of the PTF to support the Government's efforts to monitor and evaluate implementation of the poverty reduction strategy, and will enhance data collection and analysis through ongoing project benefit monitoring and evaluation (with special emphasis on the gender and ethnic minority dimensions) and periodic ESW.
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