1. ASEM TRUST FUND II Vietnam’s Implementation Status - June, 2006 Mr. Nguyen Ba Toan Deputy Director General International Cooperation Department, Ministry of Finance Brusells, June 28 th, 2006

2. Contents:  Background  Status of implementation  Assessment ASEM TRUST FUND II Vietnam’s Implementation Status - June, 2006

3. 1. Background  ASEM TF2 support to VN economic reform & sustainable growth  Three pillars Economic reform Social programs and human resources Public administration and governance ASEM TRUST FUND II Vietnam’s Implementation Status - June, 2006

4. 1. Background (Cont.,)  TA received from different donors (IFIs, EC and members, Japan, etc)  ATF 1 & 2 are important supporting sources  Focus on financial system reform and social policy reform

5. 1. Background (Cont.,)  17 grants: 6 projects in banking sector 4 projects in corporates reform 7 projects in social sectors and human resources  Total amount of 9.2 mill. USD $ 6.9 mil., for financial sector $ 2.3 mil., for social programs  Closing date: 30 June, 2006 ASEM TRUST FUND II Vietnam’s Implementation Status - June, 2006

6. 2. Implementation Status:  6 projects completed for total disbursement of $2,47 mil., over the granted amount of $2,60 mil., S.N0. Grant name of completed projects Grant Amount, USD Disb as of June 21, 2006 % Disb as of June 21, 2006 Closing Date 1 Support for Operations and Monitoring of Social Safety Net Fund for Redundant Workers 342,000 313,88591.8%31-Dec-03 2Banking Reform Program694,000 688,06799.1%31-Dec-03 3Strengthening Community Driven Development419,000 418,794100.0%31-Jan-05 4 Mekong Housing Bank: Diagnostic Review and Preparation for Strategic Partnering/Equitization 350,400 312,14689.1%31-Dec-05 5 Support for the Operation and Monitoring of the Social Safety Net for Redundant Workers (Phase 2) 369,926 362,18997.9%31-Dec-05 6Support Development of Social Security Law (SSL) in Vietnam434,500 375,05786.3%28-Feb-06 Total2,609,826 2,470,13894.6% ASEM TRUST FUND II Vietnam’s Implementation Status - June, 2006

7. 2. Implementation Status (Cont.,)  4 projects requested for extension to the end of July and August. ASEM TRUST FUND II Vietnam’s Implementation Status - June, 2006 Name of Extended ProjectsTF # Grant Amount, USD Disb as of June 21, 2006 % Disb as of June 21, 2006 Closing Date Banking Sector Regulation, Supervision and Development52046944,500 853,56290.4%31-Jul-06 Training of Directors and Management of Enterprises on Corporate Governance 52643325,000 221,13368.0%31-Aug-06 Improving Banking Sector Transparency and Reforming Policy Lending 53398975,500 698,18071.6%31-Jul-06 State Bank of Vietnam’s (SBV) Road Mapping/Master Plan54268342,000 53,59815.7%31-Aug-06 4 2,587,000 1,826,47370.6%

8. 2. Implementation Status (Cont.,)  7 projects are in final step to complete reports and closing procedure ASEM TRUST FUND II Vietnam’s Implementation Status - June, 2006 Grant NameTF # Grant Amount, USD Disb as of June 21, 2006 % Disb as of June 21, 2006 Closing Date Monitoring of SOE New Establishment and Transformations51834660,000 498,55475.5%30-Jun-06 Poverty Reduction in the Education Budget Processes51961450,000 230,86651.3%30-Jun-06 State Owned Commercial Bank Audit and Basel Core Principle Assessment 52587640,000 596,78593.2%30-Jun-06 Technical Twinning Arrangement for the Implementation of the BIDV Restructuring Plan 53365874,000 480,76355.0%30-Jun-06 Accelerating Capital Markets Development53399650,000 442,25368.0%30-Jun-06 Support for Strengthening Evidence-Based Pro-Poor Policy Making in Vietnam 53933305,640 217,85571.3%30-Jun-06 Support for the Resolution of non-performing Debt and Asset of State - owned Enterprises 54113427,594 272,36463.7%30-Jun-06 7 4,007,234 2,739,44068.4%

9. Vietnam: 3. Assessment Overall outcomes  Effective implementation and satisfaction to all recipient agencies and ICSC  Promoted acceleration of restructure process of SOE sector including state-owned commercial banks (400 SOEs and more than 15,000 workers)  Establishment of the Social Safety Net Fund (SSN) and run by well-trained government officials in line with international best practices ASEM TRUST FUND II Vietnam’s Implementation Status - June, 2006

10. Vietnam: 3. Assessment (Cont.,)  Successful training programs, surveys and information dissemination in line with poverty reduction strategy and human resources development. Lessons and Experiences:  ASEM TF procedures and disbursement to be learnt by the implementation agencies  Regular meetings of ICSC for effective implementation of the granted projects  Closer coordination among WB officers, ICSC members and staff of recipient agencies ASEM TRUST FUND II Vietnam’s Implementation Status - June, 2006

11. Vietnam: Recommendations:  Continuation of ASEM support to member economies is crucial and strongly recommended.  ASEM support should be based on specific needs of individual country, given that its modality and a new instrument might defer from the ASEM TF2 in accordance with the process of regional and global cooperation and integration. ASEM TRUST FUND II Vietnam’s Implementation Status - June, 2006

12. THANK YOU FOR YOUR ATTENTION ASEM TRUST FUND II Vietnam’s Implementation Status - June, 2006