Viet Nam: SOE Reform and Corporate Governance Facility

Sovereign Project | 39538-012 Status: Closed

Summary

The main objective of the TA is to prepare the SOE Reform and Corporate Governance Facilitation Project (SRCGF) by formulating a focused and sequenced series of measures to facilitate SOE reform and enhance corporate governance. The measures will be consistent with and supplementary to the Government's overall strategy for SOE reform.

The TA outputs will include detailed design of the SRCGF into two components: (i) Component 1 - Design Assistance for Equiptaization and Listing of state owned commercial banks (SOCBS)/governement corporations (GCs), and (ii) Component 2 - Design an Institutional Development Scheme for SOE Reform.

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Project Name SOE Reform and Corporate Governance Facility
Project Number 39538-012
Country Viet Nam
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 4911-VIE: SOE Reform and Corporate Governance Facility
Technical Assistance Special Fund US$ 300,000.00
Financial Sector Development Partnership US$ 500,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change Partnerships
Private sector development
Sector / Subsector

Public sector management - Economic affairs management

Gender Equity and Mainstreaming No gender elements
Description

The main objective of the TA is to prepare the SOE Reform and Corporate Governance Facilitation Project (SRCGF) by formulating a focused and sequenced series of measures to facilitate SOE reform and enhance corporate governance. The measures will be consistent with and supplementary to the Government's overall strategy for SOE reform.

The TA outputs will include detailed design of the SRCGF into two components: (i) Component 1 - Design Assistance for Equiptaization and Listing of state owned commercial banks (SOCBS)/governement corporations (GCs), and (ii) Component 2 - Design an Institutional Development Scheme for SOE Reform.

Under Component 1, the TA will develop a modality for providing financial and technical support to select SOCBs/GCs for equitization and listing, with a clear set of selection criteria and guidelines for project implementation. The financing scheme will be used for the direct costs of equitization and listing, including asset restructuring (SOCBs) and debt/liability restructuring (GCs). The TA will clearly identify the technical inputs needed by the selected SOCBs and GCs to undertake activities that are considered direct costs and not funded by the Government, such as (i) financial restructuring, (ii) valuation for equitization, and (iii) listing in the formal stock exchange.

Under Component 2, the TA will identify a set of specific measures to support the institutional development of the Debt Asset Trading Corporation and the State Capital Investment Corporation to ensure their long-term sustainability and efectiveness, including various insitutional and human resource development components. The TA will examine and recommend legal and policy reforms to improve these insitutions and promote SOE reforms. The TA will further examine and recommend measures for reforming organizational structures to improve corporate governance and operational efficiency in the selected GCs and SOCBs.

The TA will be implemented in two phases. Phase 1 will cover all the activities stated above, and include the detailed design for the SRCGF, including procedures, strategies, and operational plans for each component, the institutional capacity development plan; a draft development policy matrix; and implementation arrangements. Phase 2 will be decided by ADB in consultation with Government at the end of the final design and start fo the SRCGF.

Project Rationale and Linkage to Country/Regional Strategy The ADB?s Country Strategy Program and Update (2006-2008) also confirms that SOE reform is crucial to sustaining Viet Nam?s economic growth. The Government request for ADB assistance for SOE reform was further discussed during the last country programming mission. A PPTA was included in 2005, which was later moved to 2006 as a firm nonlending program.
Impact

Project Outcome

Description of Outcome
Progress Toward Outcome
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location

Safeguard Categories

Environment C
Involuntary Resettlement C
Indigenous Peoples C

Summary of Environmental and Social Aspects

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation

Business Opportunities

Consulting Services The TA will be implemented over 15 months, from early March 2007 to July 2008. An international consulting firm for 16.0 person-months for international and 16.5 person months for national consulting services to carry out Phase 1. The TOR of Phase 1 is shown in the Consultant Service Recruitment Notice. (The allocation of resources for Phase 2 will be decided at the end of the final design and start of the SRCGF under a separate contract). The fixed-budget selection method will be used to select the consultants. Short-listed firms will submit simplified technical proposal with detailed terms of reference.

Responsible Staff

Responsible ADB Officer Valyoor Subramanian
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Public Management, Financial Sector and Trade Division, SERD
Executing Agencies
Ministry of Finance
28 Tran Hung Dao
Hanoi, Viet Nam

Timetable

Concept Clearance -
Fact Finding 11 Sep 2006 to 13 Sep 2006
MRM -
Approval 20 Dec 2006
Last Review Mission -
PDS Creation Date 27 Feb 2006
Last PDS Update 18 Jan 2010

TA 4911-VIE

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
20 Dec 2006 27 Feb 2008 27 Feb 2008 31 Jul 2008 31 Dec 2009 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
300,000.00 500,000.00 200,000.00 0.00 0.00 0.00 1,000,000.00 20 Dec 2006 732,807.63

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


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