Countries and Regions

	Table of Contents
p. 10 of 10 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 A. Lending Level Proposed B. Nonlending Program C. Summary of Changes to Lending and Nonlending Program

Country Strategy and Program Update 2006-2008: Viet Nam, Socialist Republic of : IV. Country Performance and Assistance Levels

---

C. Summary of Changes to Lending and Nonlending Program

21. Many of the lending and nonlending projects for 2006 were included in the CSPU 2005–2006. Changes to the 2006 program were based on discussions with government ministries and agencies. Following the planned project preparatory TA and proposals received from the Government, a pipeline of projects for 2007–2008 was developed. Proposed adjustments to the lending, and nonlending program, and new projects proposed for 2006–2008 include the following:

1. Sustainable growth. The investment project in support of agriculture science and technology and related advisory TA are firm for 2006. The SME Development Program loan, Subprogram II, and related advisory TA are confirmed for 2006 approval. Project preparatory TA in 2007 for a follow-up SME Development Program loan II (standby) in 2008 is included to ensure long-term support for enterprise development. In light of the renewed emphasis on larger infrastructure and poverty reduction and the Government’s request for OCR support, the lending and TA pipeline in the transport and power sectors are strengthened. OCR operations are being planned for large transport and power projects. A new hydropower project Song Bung 4 is added as standby in 2006 and firm in 2007. Ho Chi Minh City Metro Rail System is included for 2007 as standby and for 2008 as firm. Timing and details of the private sector pipeline will be defined as opportunities become available.
2. Inclusive social development. A grant project to support the Government in HIV/AIDS prevention among youth is standby in 2005 and firm in 2006. A followup program loan to support poverty reduction implementation under the multi-ODA partners and the Government-formulated Poverty Reduction Support Credit V is included as firm in 2006. An advisory TA in 2006 and a project preparatory TA in 2007 will assist the Government in addressing short-term costs that may arise during implementation of WTO commitments (assuming Viet Nam accedes to WTO by early 2006).
3. Good governance. Subprogram II of the program loan for Support Implementation of the PAR Master Program is standby in 2006 and firm in 2007. Project preparatory TA for its preparation is confirmed in 2005, with possible additional project preparatory TA for Subprogram III in 2008. Timing of the loan will depend on government confirmation and successful completion of subprograms I and II.
4. Geographic focus on the central region. For 2006, Forests for Livelihood Improvement in the Central Highlands Project (standby in 2005); and Rural Infrastructure for Sustainable Livelihood in Central Region Project are firm; Central Region Small and Medium Towns Urban Development Project will be standby in 2006 and firm in 2007. Timing of related capacity-building TAs is adjusted accordingly. Future programs will focus on a few provinces. An innovative urban sector development pilot project is included as standby in 2008, for which a project preparatory TA will be mobilized in 2007.
5. Regional cooperation in the GMS. ADB approved the Regional Cooperation Strategy and Program (RCSP) 2004–2008 for GMS in early 2004, and its annual update (2006–2008) is being prepared. Planned GMS loan projects in Viet Nam include
   
   
   1. a sequence of expressway and rail projects for the Kunming–Hanoi–Haiphong section of the GMS North–South Economic Corridor (2006–2008)
   2. GMS Power Interconnection Phase I (2007), which will allow Lao People’s Democratic Republic, Thailand, and Viet Nam to share electricity based on differences in peak loads, and reduce their needed reserve capacities
   3. GMS Southern Coastal Corridor (2007), which is part of the Southern Economic Corridor involving Cambodia, Thailand, and Viet Nam
   4. GMS Pro-Poor Tourism Development (2007) to improve the development and sustainability of the tourism sector’s ability to promote improved livelihoods and reduce poverty
   5. GMS Flood Management and Mitigation (2008) to implement structural and flood proofing measures recommended in an earlier regional TA involving the Mekong River Commission
   
   Where circumstances permit, ADB assistance for GMS investments will be additional to the performance-based allocation of ADF resources. Efforts to mobilize resources from other sources, including the private sector will be intensified, and use of OCR will be explored for revenue-generating projects with loan repayment capability. The full GMS TA program will be included in the RCSP update.

22. Following the final performance-based ADF resource allocation, an additional amount of about $40 million was allocated to Viet Nam for 2005 and 2006. The 2005 lending and nonlending program was adjusted accordingly. A summary of the 2005 lending, grant, and nonlending products and services are shown in Table A 4.1 and Table A 4.2, respectively.

Back B. Nonlending Program	Country Strategy and Program Update 2006-2008: Viet Nam, Socialist Republic of