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 Name||Financial Sector Development and Inclusion Program|
|Project Type / Modality of Assistance||Loan
|Source of Funding / Amount||
|Strategic Agendas||Inclusive economic growth
|Drivers of Change||Gender Equity and Mainstreaming
Governance and capacity development
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.|
|Outcome||A deeper, more inclusive financial sector.|
1. Financial sector stability strengthened.
2. Domestic capital market broadened and deepened.
3. Financial inclusion promoted
|Summary of Environmental and Social Aspects|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design|
|During Project Implementation|
|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|
State Bank of Vietnam
47-49 Ly Thai To Street
|Concept Clearance||22 Apr 2016|
|Fact Finding||13 Feb 2017 to 17 Feb 2017|
|MRM||23 May 2017|
|Last Review Mission||-|
|Last PDS Update||27 Sep 2017|
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.
The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.
The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.
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|Title||Document Type||Document Date|
|Chương trình Mở rộng tài chính và Phát triển khu vực tài chính, Việt Nam||Translated PDS||May 2016|
|Financial Sector Development and Inclusion Program: Concept Paper||Concept Papers||Apr 2016|
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.
None currently available.
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