Regions and Countries

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p. 3 of 4 BACK | NEXT I. Current Development Trends and Issues II. Implementation of the Country Strategy and Program III. Portfolio Management Issues IV. Country Performance and Assistance Levels

Country Strategy and Program 2005-2006: Socialist Republic of Viet Nam

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III. Portfolio Management Issues

A. Portfolio Performance

16. Since operations resumed in 1993 until end-2003, ADB provided 43 loans—amounting to $2.645 billion—and 147 TA grants totaling $100.7 million. During 2003, implementation performance was mixed, with improvements in a number of areas and some deterioration in others. The disbursement ratio, at 21.3%, rose for the first time above the ADB-wide average (20.2%), and 2003 contract awards and disbursements exceeded projections (by 13% and 7%, respectively). On the other hand, the number of loans rated “at risk” increased from 3 in 2002 to 5 in 2003, and the contract-award ratio dropped to 14.3%⁵ (ADB-wide average was 17.3%). Implementation delays continued to be a critical factor in portfolio performance during 2003: 12 projects (36% of the portfolio) faced delays of 20% or more. Delays in signing and effectiveness and in the recruitment of consultants contributed to impair the project start-up phase.

17. In 2003, ADB continued to help the government address cross-cutting implementation issues through TAs for financial management, the legal framework for resettlement, procurement, and ODA harmonization. An agreement was reached with the government about the eligibility of SOEs for ADB procurement. The Guidelines on ADB-Funded Project Preparation, completed in December 2002, were adopted for all TA and loan processing. Significant improvements in TA processing have taken place since 2002: average time elapsed from TA approval to signing fell from 5.6 months for 2001 to 2.7 months for 2003. Delays in loan signing and/or effectiveness are the focus of special efforts during 2004. A manual on project implementation is being prepared based on the success of the processing guidelines.

18. The third joint portfolio review held in May 2003 by ADB, World Bank, and JBIC was joined for the first time by AFD and KfW allowing a comprehensive review of issues affecting the most significant development banks operating in Viet Nam. ADB played a lead role in coordinating ODA partners on involuntary resettlement issues, including revisions to the government’s decree.

B. Performance Monitoring and Evaluation

19. So far, ten post-1993 loans have been closed, and project completion reports are available for six projects. All ten projects have been classified successful. Three project performance audits have been completed, for the Agriculture Sector Program loan, Financial Sector Program, and Saigon Port project, all rated successful. Five advisory TAs (ADTAs) were post-evaluated in 2003 as successful, including one as highly successful. Activities are under way to apply the project performance management system.

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