Viet Nam: Support for Developing Capital Markets and Building Capacity in the Financial Sector
The TA will complement reforms supported under the Third Financial Sector Program Loan (FSPL III), thus providing continuity to ADB's policy dialog and support for financial sector reforms and development in Viet Nam. Both the FSPL III and the proposed TA are fully aligned with the Government's current Socio-Economic Development Plan 2006-2010, which strongly emphasizes the objectives of business development, private investment, and a continuing transition to a market economy.
Schuster, Stephen R.
Southeast Asia Department
Request for information
- Technical Assistance
|Project Name||Support for Developing Capital Markets and Building Capacity in the Financial Sector|
|Project Type / Modality of Assistance||Technical Assistance
|Source of Funding / Amount||
|Strategic Agendas||Inclusive economic growth
|Drivers of Change||Governance and capacity development
|Sector / Subsector||
Finance / Money and capital markets
|Gender Equity and Mainstreaming||No gender elements|
|Description||The TA will complement reforms supported under the Third Financial Sector Program Loan (FSPL III), thus providing continuity to ADB's policy dialog and support for financial sector reforms and development in Viet Nam. Both the FSPL III and the proposed TA are fully aligned with the Government's current Socio-Economic Development Plan 2006-2010, which strongly emphasizes the objectives of business development, private investment, and a continuing transition to a market economy.|
|Project Rationale and Linkage to Country/Regional Strategy||
ADB's Country Strategy and Program (2007-2010) highlights the strategic importance of supporting financial and related market institutions due to their critical role in supporting Viet Nam's economic growth. The TA is included in the Viet Nam Country Operations Business Plan 2007-2009.
Financial sector reform and development is a complex process, requiring time and continuity to enable the accumulation of incremental changes into substantial outcomes. The proposed TA is a part of a continuing, long-term engagement of ADB with financial sector development in Viet Nam, through TAs and two program loans (FSPL I approved in 1996 and FSPL II approved in 2002). The financial sector in Viet Nam started off as a rudimentary mono-bank system with virtually no capital markets, weak or absent intermediaries, poor infrastructure and inadequate or missing legal and regulatory framework. ADB assistance and support over the past decade has sought to address critical bottlenecks in infrastructure, legal and regulatory structure, and institutional capacities. FSPL I facilitated the laying down of legal and regulatory foundations of a commercialized banking sector and development of diverse institutions, instruments and markets. FSPL II continued the process of developing alternative channels of intermediation through development of non-bank financial sector; it focused inter alia on strengthening regulatory and supervisory framework for insurance industry, developing a legal framework for leasing industry, introducing an anti-money laundering regime and strengthening financial-market infrastructure. FSPL III along with the proposed TA will build on these successes by focused support for developing bond markets, strengthening investor protection, improving regulatory framework of insurance industry, and continuing enhancement of financial infrastructure.
|Impact||Capital markets play a greater role in domestic financing.|
|Description of Outcome||Alternative channels of market-based financial intermediation are strengthened.|
|Progress Toward Outcome|
|Description of Project Outputs||
(i) Coordinated institutional framework and related capacity for government debt issuance established.
(ii) Money markets are strengthened.
(iii) Monitoring and enforcement by regulator in securities markets is enhance.
(iv) Enhanced protection for consumers in insurance industry.
(v) Improved accounting and auditing standards.
(vi) Legal framework for leasing, bankruptcy, deposit insurance, and securitized transactions strengthened.
(vii) Institutional framework for regulatory coordination in capital markets strengthened.
(viii) Anti-money laundering regime strengthened.
|Status of Implementation Progress (Outputs, Activities, and Issues)||Various capacity building activities in relation to the project outputs were undertaken since approval of the TA, including round table discussions, workshops, trainings and study tours.|
|Summary of Environmental and Social Aspects|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design|
|During Project Implementation|
|Consulting Services||The TA will require an estimated 45 person-months of consulting services, consisting of 30 person-months of international and 15 person-months of domestic consulting services. Consultants will be engaged on an individual basis in accordance with the Guidelines on the Use of Consultants by Asian Development Bank and its Borrowers and other arrangements satisfactory to ADB for the engagement of domestic consultants. Outline terms of reference will be developed in consultation with relevant Government counterpart.|
|Responsible ADB Officer||Schuster, Stephen R.|
|Responsible ADB Department||Southeast Asia Department|
|Responsible ADB Division||Public Management, Financial Sector and Trade Division, SERD|
State Bank of Vietnam
Le Minh Hung, General Director, ICD
47-49 Ly Thai To Street Hanoi Vietnam State Bank of Vietnam
Ms. Thinh Thi Hong
International Cooperation Department State Bank of Viet Nam 47-49 Ly Tha To Street, Hanoi, Viet Nam
|Concept Clearance||21 Dec 2007|
|Fact Finding||21 Jan 2008 to 24 Jan 2008|
|Approval||05 Jun 2008|
|Last Review Mission||-|
|PDS Creation Date||26 Feb 2008|
|Last PDS Update||25 May 2011|
|Approval||Signing Date||Effectivity Date||Closing|
|05 Jun 2008||11 Nov 2008||11 Nov 2008||31 Aug 2009||30 Jun 2011||-|
|Financing Plan/TA Utilization||Cumulative Disbursements|
|1,000,000.00||0.00||250,000.00||0.00||0.00||0.00||1,250,000.00||07 Sep 2021||782,011.46|
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
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|Title||Document Type||Document Date|
|Support for Developing Capital Markets and Building Capacity in the Financial Sector: Final Report||Consultants' Reports||Dec 2012|
|Support for Developing Capital Markets and Building Capacity in the Financial Sector||TA Completion Reports||May 2012|
|Support for Developing Capital Markets and Building Capacity in the Financial Sector||Technical Assistance Reports||Jun 2008|
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.
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Evaluation Documents See also: Independent Evaluation
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