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Regions and Countries Country Partnership Strategy Document
Country Strategy and Program Update 2007-2010: Viet Nam, Socialist Republic of
VI. Risks and Performance Monitoring and EvaluationA. Possible Risks155. SEDP Implementation. The CSP will directly support implementation of the SEDP.
Thus, its success is directly linked to the effective SEDP implementation. The use of
participatory approaches during SEDP formulation, and the strong focus on implementation
issues, institution-building (especially at the subnational level), and results-based approaches
and monitoring mechanisms in the SEDP design, suggest that the risk of potential problems in
SEDP implementation is being mitigated. The CSP promotes capacity strengthening at the
national, provincial and district levels to support SEDP implementation and monitoring.
158. Social and Environmental Impacts of Growth. Rapid growth has increased environmental pressures and has had major social impacts. Continuing strong growth, and international integration will result in continuing social pressure and will increase the need to better manage the environment. The CSP includes a strong focus on minimizing the social costs associated with economic transition (including the rural–urban transition), and measures to better manage natural resources and minimize industrial and urban pollution. 159. External Shocks. Viet Nam is vulnerable to external shocks such as disease outbreaks, natural calamities, and declines in export commodity prices (e.g., oil, rice, coffee, and rubber). Adverse shocks could hamper achieving SEDP outcomes and poverty reduction goals. The focus in the SEDP (and CSP) on diversified economic growth will help mitigate the impacts of commodity price fluctuations. The CSP also includes measures to mitigate disasters and disease outbreaks. 160. ODA Processing. Continuing delays in the processing and implementation of ODAassisted projects could lead to suboptimal development outcomes. ADB is helping develop capacity in public investment planning and administration, and is supporting harmonization initiatives to address this concern. The CSP includes specific measures to help develop national capacity in results-based monitoring to help identify and address constraints to effective and timely implementation of ODA and other public expenditures. B. Monitoring Process and Plan161. The CSP’s strength stems from the partnership that has been fostered with the Government, civil society, and development partners. The SEDP—prepared in close consultation with Viet Nam’s development partners—provides the central mechanism for coordinating development assistance. The CSP is aligned with the SEDP and synchronized and synergized to supplement the Government’s development goals and objectives. The CSP results framework matrix and the development coordination matrix have been designed within this framework.162. Robust results-based monitoring and evaluation systems will help track the progress of and assess SEDP and CSP implementation, and improve the quality of ADB assistance. ADB, together with the World Bank, provided support to the Government in the preparation of the results framework for the SEDP. A process of joint Government–ADB monitoring and managing for development results will help achieve the spirit of the Hanoi Core Statement. Monitoring activities will include ongoing cooperation with CSOs. 163. CSP monitoring and evaluation will follow the methods and indicators included in the results framework (Matrix 1). The results indicators are expected to be achievable within the CSP and SEDP time frame, and identify intermediate results arising from ADB operations. A draft of the results framework was shared widely with the Government, civil society, and development partners. The Government will monitor national implementation of the SEDP results and will share this information with ODA partners through the consultative group. ADB will review—jointly with the Government, civil society, and ODA partners—the progress of CSP implementation and its outcomes using the specified results indicators. C. Improving Implementation164. The five-banks harmonization initiative responds to a Government request to improve ODA effectiveness by harmonizing procedures and practices in procurement, common reporting procedures, financial management, environmental and social safeguard policies and practices, portfolio management, and economic and sector work. The banks identified short-term priority actions and longer-term actions. Significant progress has been made in procurement procedures, with the development of standard national competitive bidding documents for goods and works well advanced.165. Harmonization of financial management, particularly in financial reporting, has progressed with a pilot reporting format being tested in projects funded by the five banks. A joint assessment of private auditors has led to a shortlist of eight firms eligible to audit projects. In the area of environmental and social safeguards—where ADB VRM is taking a leading role—a study has provided a comprehensive comparison of the procedures of the five banks and the Government, and an action plan has been developed to address the remaining gaps over the coming years. Portfolio management will continue to be harmonized66 jointly with the five banks. 166. The five-banks initiative has also helped the Government formulate the Comprehensive ODA Harmonization Action Plan. The Government has localized the Paris Declaration in the Hanoi Core Statement. Effective implementation of these initiatives should greatly improve implementation performance and the effectiveness of ODA–supported activities. The CSP aims to support Government efforts and that of the Partnership Group on Aid Effectiveness to make this happen.
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