Viet Nam: Financial Sector Development and Inclusion Program, Subprogram 1

Sovereign (Public) Project | 49331-001

ADB will use a programmatic, policy-based lending modality to support the government's reform agenda. This approach, which combines extensive policy dialogue with technical assistance (TA), recognizes the long-term time horizon required for financial sector development, the need to sequence reforms, and the catalytic role played by ADB.

Project Details

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Project Name Financial Sector Development and Inclusion Program, Subprogram 1
Project Number 49331-001
Country Viet Nam
Project Status Closed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3743-VIE: Financial Sector Development and Inclusion Program
concessional ordinary capital resources lending / Asian Development Fund US$ 100.00 million
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Private sector development
Sector / Subsector

Finance / Finance sector development - Inclusive finance - Insurance and contractual savings - Money and capital markets
Gender Equity and Mainstreaming Some gender elements
Description ADB will use a programmatic, policy-based lending modality to support the government's reform agenda. This approach, which combines extensive policy dialogue with technical assistance (TA), recognizes the long-term time horizon required for financial sector development, the need to sequence reforms, and the catalytic role played by ADB.
Project Rationale and Linkage to Country/Regional Strategy To achieve middle-income country status and further reduce poverty by 2020, Viet Nam will need to continue reforms under the Socio-Economic Development Strategy (SEDS) 2011 -2020, including efforts to develop its financial sector and broaden access to finance. The Financial Sector Development and Inclusion Program will continue ADB's support to financial sector development and will: (i) enhance financial sector stability, (ii) continue developing and deepening the domestic capital markets, and (iii) promote financial inclusion. The program is consistent with ADB's interim country partnership strategy and is included in the country operations business plan, 2016 2018, approved in 2015.
Impact The program is aligned with the Socio-Economic Development Strategy (SEDS) 2011 2020 and will support the government's efforts to increase the role of the nonbank financial sector and deepen the financial markets in Viet Nam.
Project Outcome
Description of Outcome A deeper, more inclusive financial sector.
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

1. Financial sector stability strengthened.

2. Domestic capital market broadened and deepened.

3. Financial inclusion promoted
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Nation-wide
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 budget allocates 4 person-months of consulting inputs to one consulting firm, 20 person-months of consulting inputs to international consultants, and 8 person-months of consulting inputs to national consultants. Areas of focus include (i) strengthening problem banks and NPL resolution, (ii) reducing friction costs in securities markets, (iii) applying risk-based capital to the insurance sector, (iv) encouraging market development, (v) introducing derivatives, (vi) encouraging the development of financial technology, and (vii) improving the supervision of microfinance and microinsurance. The executing agency for the TA will be the SBV, and the implementing agencies will be the SBV, MOF, and State Securities Commission. The TA will be implemented from January 2018 to December 2020.
Procurement The executing agency is the SBV, and the implementing agencies are the MOF, State Securities Commission, Hanoi Stock Exchange, and SBV. Subprogram 1 was implemented from July 2015 to December 2016; subprogram 2 began in January 2017 and will be implemented through June 2018.
Responsible ADB Officer Nguyen, Duong T.
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Public Management, Financial Sector and Trade Division, SERD
Executing Agencies
State Bank of Vietnam
Le Duc Thuy
[email protected]
47-49 Ly Thai To Street
Hanoi
Vietnam
Timetable
Concept Clearance 22 Apr 2016
Fact Finding 13 Feb 2017 to 17 Feb 2017
MRM 23 May 2017
Approval 04 Dec 2018
Last Review Mission -
Last PDS Update 04 Dec 2018

Loan 3743-VIE

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
04 Dec 2018 03 Jun 2019 28 Nov 2019 30 Jun 2020 - 15 Aug 2020
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 100.00 Cumulative Contract Awards
ADB 100.00 07 Sep 2021 100.00 0.00 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 07 Sep 2021 100.00 0.00 100%

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Tenders

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Procurement Plan

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