The World Bank Report No: ISR6204 Implementation Status & Results Vietnam Public Financial Management Reform Project (P075399) Public Disclosure Copy Operation Name: Public Financial Management Reform Project (P075399) Project Stage: Implementation Seq.No: 15 Status: ARCHIVED Archive Date: 16-Jan-2011 Country: Vietnam Approval FY: 2003 Product Line: IBRD/IDA Region: EAST ASIA AND PACIFIC Lending Instrument: Specific Investment Loan Implementing Agency(ies): Ministry of Finance Key Dates Board Approval Date 22-May-2003 Original Closing Date 28-Feb-2009 Planned Mid Term Review Date Last Archived ISR Date 16-Jan-2011 Effectiveness Date 04-Sep-2003 Revised Closing Date 28-Feb-2013 Actual Mid Term Review Date Project Development Objectives Project Development Objective (from Project Appraisal Document) To strengthen budget planning, execution, reporting and accountability. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost COMPONENT 1: STRENGTHENING TREASURY AND BUDGET MANAGEMENT 44.50 COMPONENT 2: STRENGTHENING STATE BUDGET AND INVESTMENT PLANNING 4.50 COMPONENT 3: STRENGTHENING MANAGEMENT OF PUBLIC DEBT AND SOE FISCAL RISKS 2.00 COMPONENT 4: PROJECT MANAGEMENT SUPPORT 1.50 Overall Ratings Public Disclosure Copy Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial Implementation Status Overview The project continues to make progress toward achieving some of its development objectives. MOF management remains committed to successfully complete the project. An Addition Financing (AF) of $14million and a 4-year extension were approved on account of cost overrun; scaled-up the implementation of selected activities; and addition of limited number of new activities. However, to date completing the key project activities by the closing date remains a challenge, as addressing key technical and contractual issues is taking time. Two missions were conducted in 2011 to provide timely implementation support for the project. Page 1 of 5 The World Bank Report No: ISR6204 For component 1 (strengthening Treasury and Budget Management), significant implementation progress of the Treasury and Budget Management Information System (TABMIS) has been made with roll out completed in another 16 provinces since January 2011. By end of February 2012, TABMIS was operational in the treasury and finance offices at the central level, and at the provincial and district levels of 46 of 63 provinces-- including Hanoi. There were also improvements in system response time and increased awareness of Public Disclosure Copy MOF to take strong ownership on system administration and monitoring. A dedicated core team of IT specialists has been created to take over the system administration role. Additional advisory support is being engaged to help in rapid resolution of critical technical and contractual issues. Additional 4,200 Oracle EBS software licenses were purchased. However, there is still an urgent need to resolve a number of critical issues: (i) timely purchase of additional hardware to ensure successful nationwide rollout by project end (notwithstanding the technical difficulties in server sizing); (ii) timely resolution of a number of issues regarding the standard Oracle's software platform to improve system performance and capability; (iii) staffing and capacity of MOF to fully take-over the administration role after completion of the rollout; and (iv) completion of the important work toward the government’s longer term vision of Government Financial Management Information System (GFMIS) (including preparatory activities for the Budget Preparation System, the GFMIS Web Portal, and expansion of Budget Allocation Module). Attention from MOF leadership to timely resolve these critical issues is an imperative. For component 2 (strengthening State Budget and Investment Planning), the medium-term fiscal and expenditure frameworks have been successfully piloted in 6 ministries and 4 provinces. Further work under the the AF include (i) preparing for the institutionalization of the MTFF and MTEF into relevant law and mainstreaming them into the annual budget process; and (ii) completing a feasibility study on a Budget Preparation System which among other things can support the preparation of MTEF. However due to more time consuming preparation of the new budget law, both these actions have been delayed to take account of some of the critical changes expected by the law. Related activities were therefore not initiated in 2011 but planned for 2012. For component 3 (strengthening Management of Public Debt and Monitoring of SOE Fiscal Risks), the implementation of the domestic debt recording system (DMFAS) has started following the finalization of related contracts. The public debt strategy to 2020 was submitted to the government, taking into consideration the contingent liabilities from State-Owned Enterprises. MOF is keen to enhance monitoring fiscal risks from the SOEs, and is formulating a comprehensive set of monitoring indicators. In general, envisioned activities are on track. For component 4 (Project Management Support), overall project management remains satisfactory. MOF has been rationalizing internal procurement procedures toward better harmonization with Bank guidelines. The procurement plan has been frequently updated and rationalized to ensure a timely completion of ongoing activities and a successful implementation of the additional activities. Locations No Location data has been entered Results Project Development Objective Indicators Public Disclosure Copy Page 2 of 5 The World Bank Report No: ISR6204 Indicator Name Core Unit of Measure Baseline Current End Target Accuracy, timeliness, relevance, transparency Text Value Limited accuracy, timeliness, Accounting systems for Accounting systems for and compliance with international best relevance, transparency and treasury and budget based on treasury and budget based on Public Disclosure Copy practices in budget execution and reporting compliance. a unified Chart of Accounts, a unified Chart of Accounts; ateach level of government. TABMIS in place in central, TABMIS in place nationwide-- and provincial and district in central, and provincial and treasury and financial offices district treasury and financial of 46 out of 63 provinces; offices of 63 out of 63 progress on the road towards provinces; progress on the commitment accounting and road towards commitment Treasury Single Account. accounting and Treasury Single Account fully operational. Date 31-Jan-2003 29-Feb-2012 28-Feb-2013 Comments Better planning of the State Budget and the Text Value Significant weaknesses in Modern state budget and Guidelines to instutionalize Public Investment Program to achieve the planning of the State Budget investment planning the modern state budget and growth and poverty reduction goals set out in and the Public Investment approaches (MTFF and investment planning the SEDP. Program. MTEF) successfully piloted in approaches (the Medium- MOF, MPI, four sector Term Fiscal and Expenditure ministries andthree provinces. Frameworks) finalized. Guidelines to institutionalize MTFF and MTEF have not been developed. Date 31-Jan-2003 29-Feb-2012 28-Feb-2013 Comments Greater fiscal sustainability through improved, Text Value Limited ability to monitor and Modern approaches to the Modern approaches to the more integrated recording of external/domestic manage public debt and fiscal management of public debt; management of public debt public and publicly guaranteed debt;capacity to risks. Recording of external and and SOE liabilities including monitor SOE liabilities; ability to assess fiscal domestic debt is being (i) integrated recording of risks. integrated; Monitoring debt; and (ii) processes for regulations for SOEs identification and analysis of Public Disclosure Copy operation and risks is being fiscal risks from SOEs. developed. Date 31-Jan-2003 29-Feb-2012 28-Feb-2013 Comments Intermediate Results Indicators Page 3 of 5 The World Bank Report No: ISR6204 Indicator Name Core Unit of Measure Baseline Current End Target [n/a -- old format PAD] Text Value Date Public Disclosure Copy Comments Data on Financial Performance (as of 29-Feb-2012) Financial Agreement(s) Key Dates Project Loan No. Status Approval Date Signing Date Effectiveness Date Closing Date P075399 IDA-37670 Effective 22-May-2003 06-Jun-2003 04-Sep-2003 28-Feb-2013 P075399 IDA-48630 Effective 03-Feb-2011 07-Apr-2011 06-Jul-2011 28-Feb-2013 P075399 TF-50988 Closed 06-Jun-2003 06-Jun-2003 04-Sep-2003 31-May-2011 Disbursements (in Millions) Project Loan No. Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P075399 IDA-37670 Effective USD 54.33 54.33 0.00 42.41 19.21 78.00 P075399 IDA-48630 Effective USD 14.00 14.00 0.00 3.66 10.58 26.00 P075399 TF-50988 Closed USD 10.53 9.57 0.96 10.45 0.00 109.00 Disbursement Graph Public Disclosure Copy Page 4 of 5 The World Bank Report No: ISR6204 Key Decisions Regarding Implementation None. Public Disclosure Copy Restructuring History There has been no restructuring to date. Related Projects P120613-Additional Financing to the Public Financial Management Reform Project Public Disclosure Copy Page 5 of 5