Mutual accountability: From Paris Declaration to Hanoi Core Statement Dar Es Saalam

Vietnam: A big market with high GDP growth rate Population: 82 million Stable political system and social security GDP growth rate (1990 – 2005): > 7% GDP growth of 2005: 8.5%

FDI: Some figures 1987 – 2004: projects with 48.5 billion USD capital; projects in production and business activities FDI = 20% of the total investment FDI = 14.5% GDP FDI = 50% exports FDI = direct jobs FDI 2005: > 5 billion (previsions)

Vietnam: ODA recipeipts (1993 – 2004) Engagements: 28.4 Billions USD Disbursements: 14.8 Billions USD Sectors invested: - Poverty reduction; - Economic and social infrastructures (Transport, Telecommunication, power supply, Agriculture, Rural development, Health, Education, …)

Vietnam: ODA receipts (USD million) Receipts Net ODA Bilateral share4.5%3.6%4.5% Net ODA/GNI4.5%3.6%4.5%

Vietnam: Top ten donors ( , USD million) DonorsGross ODA 1Japan452 2WB (IDA)414 3ADB (AsDF)224 4France96 5Denmark59 6Germany52 7Australia38 8Netherlands35 9United Kingdom31 10United State27

Constraints identified Lack of an long term plan for ODA mobilisation and utilisation; Lengthy decision making processes; Deficiency in the legal framework; Human capacity to execute ODA projects. …

Mutual accountability: why and when ? Concepts: OECD: Mutual assessment of progress in implementing agreed commitments of donors and recipient countries on aid effectiveness under 4 aspects: Ownership, Alignment, Harmonisation, Simplication Vietnam: In added: the division of responsibility based on riel context, conditions and capacities

Mutual accountability: why and when ? Why and When ? Needs on better and more effectiveness of ODA use Differences on policies, objective, mechanism, methodologies of identifications, planning, implementing, monitoring and evaluation Needs of change with volunteers: Opening, localisation and globalisation

Hanoi Core Statement – The nationalisation of the Paris Declaration Ownership: - Indicators: 5 years Socio-Economic Development Plan (SEDP) is finalised and effectively implemented, CPRGS principals are integrated - Targets to 2010: 5 Year SEDP targets are achieved

Hanoi Core Statement Alignment: Indicators and targets to Donors assistance strategies are aligned to the SEDP and related national, regional, provincial and sector strategies (all donors) + Strengthening of PMUs (all PMUs) + Strengthening of building programmes capacities (100%)

Hanoi Core Statement Alignment: Indicators and targets to Strengthening of Public procurement system (>50% of donors and >50% of aid flows) + Strengthening of Public financial management system (>50% of aid flows and donors channeling) + improve environmental and social safeguard (100% funded projects implemented to international standards and at least 30% using government systems

Hanoi Core Statement Harmonisation and simplification: Indicators and targets to 2010: + Fewer, better, core diagnostic and country analytical reviews (75%) + Common project cycle management tools agreed and used throughout the project/programmes cycle (> 50% of donors) + Coordination on policies and sector framework (75% of aid) + Donor delegation authority to country offices (75% of interventions)

Hanoi Core Statement Management for results : Indicators and targets to Results framework developed and used to assess the performance of SEDP and sector programmes (DAC criteria and continuous monitoring)

Hanoi Core Statement Mutual accountability: + Periodic mutual assessment of progress (Annual assessment)

Experiences 1- Division of responsibility Donors: + UN institutions and Like Minded Donor Group : transaction cost + Partnership Group on Aid Effectiveness: public finance management, trade reform, … + WB and others: country assistance strategies + 5 Banks Group: Project management, harmonisation of procedures, financial management, … + Consultative Group for Vietnam (CG): forum for discussions on policies, strategies; evaluation of reform schedule and financing

Experiences 1- Division of responsibility Vietnam Gov: + Building sustainable country system + Revision of ODA legal framework + Establishment of ODA master Plan (2006 – 2015) + Monitoring framework + Simplication of procedures: Procurement and financial systems

Experiences 2- Strengthening of Country procurement system - Assistance of Like Minded Donor Group + Revision of relevant regulation + Promotion of transparency and fair competition + Information system (bulletin and website) => Final law document to be adopted by the National Assembly

Experiences 3- Strengthening the public financial management - Assistance of 5 Banks Group - Pilot exercise (4 sectors and 4 provinces) + Strengthening medium term expenditure planning + Streamline the countrys fiscal planning framework + Modernisation of state budget management => Final Decree document to adopt by the Government

Experiences 4- Developing a common results-based monitoring framework - Assistance of UNDP and other donors + Design common indicators + 5 years Plan (2006 – 2010) + Software on evaluation and monitoring => The software on assistance projects on evaluation and monitoring transferred (9/2005)

Lessons learned Necessary of participation of stakeholders on every step of the reform Every stakeholders would benefit from the development of the countrys capacity and the Gov. system regardless of funding sources or aid modalities Donors and recipient country could look into real situation with concrete analysis before set down targets and performance indicators

Steps to continue Undertake a baseline study of donor operation procedures (cycle time, cost, schedule, …) Sharing opinions between Gov and donors on the 5 years Plan Action Plan on environmental and social safeguards (including projects/program preparation) Donors to continue to develop and implement joint activities Donors to outline their plan for decentralisation …

Thank you for your attention !