The World Bank Report No: ISR12347 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: 18 Status: ARCHIVED Archive Date: 30-Oct-2013 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-Oct-2013 Effectiveness Date 04-Sep-2003 Revised Closing Date 31-Oct-2013 Actual Mid Term Review Date 11-Dec-2006 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 67.00 COMPONENT 2: STRENGTHENING STATE BUDGET AND INVESTMENT PLANNING 0.90 COMPONENT 3: STRENGTHENING MANAGEMENT OF PUBLIC DEBT AND SOE FISCAL RISKS 1.20 COMPONENT 4: PROJECT MANAGEMENT SUPPORT 1.10 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 Moderate Low Implementation Status Overview The project continues to make progress toward achieving its development objectives, under strong leadership and full commitment of the Ministry of Finance (MOF). The project has been long, complex and at times very challenging. At this stage, the project is largely completed and ready to be wrapped up. The project, and Treasury and Budget Management Information System (TABMIS) in particular, is already realizing commendable benefits for the government during challenging budget times thanks to improved accuracy, timeliness, and transparency in budget execution and reporting at each level of government. Experience from the pilot Medium-Term Fiscal Framework (MTFF) and Medium-Term Expenditure Page 1 of 9 The World Bank Report No: ISR12347 Framework (MTEF) has resulted in valuable lessons towards improving budget planning in Vietnam particularly to inform the ongoing amendments of the State Budget Law. The implementation of the Debt Management and Financial Analysis System (DMFAS) and a number of other Technical Assistance activities have steadily helped the government to strengthen the institutional arrangements, systems, and capacity for the management of public debt and the monitoring of fiscal risks from the State-Owned Enterprises (SOEs). The envisaged outcomes and intermediate outputs of the project have largely been achieved. The operation remains to be highly relevant to the country’s current development priorities, Public Disclosure Copy and the project development outcomes will very likely be maintained. However, with only a few weeks away from the project closing date, there are still a number of ongoing consultancy activities across the components, which requires acceleration of progress while ensuring good quality of the work supported by the project. Locations No Location data has been entered Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Accuracy, timeliness, relevance, transparency Text Value Treasury, budget and Treasury and budget Treasury, budget and and compliance with international best spending unit accounting accounting systems based on spending unit accounting practices in budget execution and reporting systems based on different a unified Chart of Accounts; systems based on a unified ateach level of government. Charts of Accounts; no effective Treasury and Budget Chart of Accounts; effective centralized system in place Management Information Treasury and Budget and operational in all central, System (TABMIS) in place Management Information provincial and district treasury and operational in all central, System (TABMIS) in place offices; cash accounting; no provincial and district treasury and operational in all central, Treasury Single Account. offices; progress on the road provincial and district treasury from cash to accruals offices; progress on the road accounting and to a Treasury from cash to accruals Single Account. accounting and to a Treasury Single Account. Date 31-Jan-2003 15-Oct-2013 31-Oct-2013 Comments Target will largely be achieved at project close. Public Disclosure Copy Better planning of the State Budget and the Text Value Modern state budget and Modern state budget and Modern state budget and Public Investment Program to achieve the nvestment planning investment planning investment planning growth and poverty reduction goals set out in approaches not established in approaches established in approaches established in the SEDP. any ministries or provinces. MOF, MPI, four pilot sector MOF, MPI, four pilot sector ministries and four pilot ministries and four pilot provinces. provinces. Date 31-Jan-2003 15-Oct-2013 28-Feb-2009 Comments Original target achieved in the past. Page 2 of 9 The World Bank Report No: ISR12347 Greater fiscal sustainability through improved, Text Value No integrated recording of Modern approaches to the Modern approaches to the >integrated recording of external/domestic debt; Processes for management of public debt management of public debt public&publicly guaranteed debt;improved identification, analysis and and SOE liabilities monitoring and SOE liabilities monitoring capacity to monitor SOE liabilities & ability to management of fiscal risk not established in core established in core Public Disclosure Copy assess fiscal risks. established. government agencies, government agencies, including (i) integrated including (i) integrated recording of debt; and (ii) recording of debt; and (ii) processes for identification, processes for identification, monitoring and analysis of analysis and management of fiscal risk. fiscal risk. Date 31-Jan-2003 15-Oct-2013 31-Oct-2013 Comments Target will largely be achieved at project close. Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target 1(a). Utilization throughout government of Text Value Utilization throughout a restructured and integrated chart of accounts government of a restructured for treasury and budget management, and integrated chart of consistent with appropriate international accounts for treasury and standards (by end 2011). budget management, consistentwith appropriate international standards (by end 2012). Date 31-Dec-2012 Comments Target achieved with one- year delay. 1(b). Implementation of TABMIS in Treasury Text Value Implementation of TABMIS in head office, MOF and two pilot provinces (by Treasury head office, MOF June 2009), with relevant staff trained. and two pilot provinces (by April 2009), with relevant staff trained. Public Disclosure Copy Date 30-Apr-2009 Comments Target achieved two months in advance. 1(c). Roll-out of TABMIS to all Treasury and Text Value Roll-out of TABMIS to all Finance offices in provinces and districts (by Treasury and Finance offices end 2011), with relevant staff trained. in provinces and districts (by end 2012), with relevant staff trained. Date 31-Dec-2012 Page 3 of 9 The World Bank Report No: ISR12347 Comments Target achieved with one- year delay. 1(d). Implementation of budget allocation Text Value Implementation of budget Public Disclosure Copy module in 40 large central ministries and allocation module in 40 large government agencies (by end 2011), with central ministries and relevant staff trained. government agencies (by end 2012), with relevant staff trained. Date 31-Dec-2012 Comments Target achieved with one- year delay. 1(e). All large state budget expenditure Text Value All large state budget commitments & associated contracts expenditure commitments & (>VND100mil & 500mil for recurrent & capital associated contracts expenditures respectively)'re controlled and (>VND100mil & 500mil for monitored through TABMIS by end '13 recurrent & capital expenditures respectively)'re controlled and monitored through TABMIS by end '13 Date 15-Oct-2013 Comments Target achieved. 1(f). Budget execution results consolidated Text Value Budget execution results from TABMIS are published on MOF website consolidated from TABMIS on a monthly basis within 15 days after the end are published on MOF of the month (after the revised SBL is adopted website on a quarterly basis by VN's NA) within 45 days after the end ofthe quarter. Date 15-Oct-2013 Comments Unlike to be achieved by project close. 1(g). Preservation of at least 30 dedicated and Text Value Preservation of at least 30 Public Disclosure Copy properly trained technical specialists at central, dedicated and properly to manage TABMIS databases, system trained technical specialists at security, user access, and provide technical central, to manage TABMIS support to end users databases, system security, user access, and provide technical support to end users. Date 15-Oct-2013 Comments Achieved. Page 4 of 9 The World Bank Report No: ISR12347 1(h). Progress on the road from cash to Text Value Progress on the road from accruals accounting; unified chart of accounts cash to accruals accounting. for consolidation of state accounting Date 15-Oct-2013 information developed (by March 2013). Public Disclosure Copy Comments Target will partially be achieved at project close. 1(i). Model, roadmap for development & Text Value Model, roadmap for implementation of cash management system development and completed (by end'13); and treasury single implementation of cash accountintroduced (by Oct'13) management system not yet completed; Treasury Single Account piloted. Date 15-Oct-2013 Comments Target will partially be achieved at project close. 1(j). Model, implementation roadmap, Text Value Model, implementation technical requirements and bidding document roadmap, and technical for TABMIS portal developed. requirements for TABMIS portal developed. Date 15-Oct-2013 Comments Target will partially be achieved at project close. 1(k). Model and implementation roadmap for a Text Value Model and implementation government financial management information roadmap for a government system developed. financial management information system is being developed. Date 15-Oct-2013 Comments Target will likely be achieved at project close. 2(a). 3 year MTFFs and MTEFs piloted as part Text Value 3 year MTFFs and MTEFs of budget cycle in four sectors & four piloted as part of budget cycle Public Disclosure Copy provinces; & rolled over, updated & published in four sectors & four as part of each subsequent budget cycle provinces; & rolled over, (starting from FY'05 till '08) updated & published as partof each subsequent budget cycle (starting from FY'05 till '08). Date 31-Dec-2008 Comments Target achieved in the past. Page 5 of 9 The World Bank Report No: ISR12347 2(b). Workshops on medium-term budget Text Value Workshops on medium-term planning provided to relevant senior National budget planning provided to Assembly deputies & Gov.officials (by'08), relevant senior National withconsensus for wider roll-out of medium- Assembly deputies & Gov. Public Disclosure Copy term budget planning emerging officials (by'08), withconsensus for wider roll- out of medium-term budget planning emerging. Date 31-Dec-2011 Comments Target achieved in the past. 2(c). Guidelines for nationwide implementation Text Value Guidelines for nationwide of MTFF and MTEF finalized (by October implementation of MTFF and 2013). MTEF developed. Date 15-Oct-2013 Comments Target will partially be achieved by project close. 3(a). Identification of a lead department in Text Value Identification of a lead MOF to direct debt management across department in MOF to direct Government, with appropriate regulations debt management across issued (by mid 2009). Government, with appropriate regulations issued. Date 30-Jun-2009 Comments Target achieved on time. 3(b). Approval and publication of a long-term Text Value Approval and publication of a debt management strategy including debt long-term debt management management objectives (by end 2011). strategy including debt management objectives (in mid 2012) Date 18-Apr-2012 Comments Target achieved with slight delay. Public Disclosure Copy 3(c). Analytical capability in debt & risk Text Value Analytical capability in debt & management enhanced wz critical staff risk management enhanced identified & trained. Middle Office capacity's wz critical staff identified & sustained,e.g. at least 5 staff appropriate trained. Middle Office qualification & experience capacity's sustained,e.g. at least 5 staff appropriate qualification & experience Date 15-Oct-2013 Comments Target achieved. Page 6 of 9 The World Bank Report No: ISR12347 3(d). Domestic debt recording system (able to Text Value Domestic debt recording provide consolidated public debt data, including system (able to provide external debt) established and operational (by consolidated public debt data, end 2013), wz key staff trained in new systems/ including external debt) Public Disclosure Copy practices. established and operational (by end 2013), wz key staff trained in new systems/ practices Date 15-Oct-2013 Comments Target achieved with continuous improvements. 3(e). Strategy for debt and risk management Text Value Strategy for debt and risk information system developed (by September management information 2013). system developed (by October 2013). Date 15-Oct-2013 Comments Target will likely be achieved with slight delay. 3(f). DeMPA self-assessment on public debt Text Value DeMPA self-assessment on management performance conducted (by mid public debt management 2012). performance conducted (in 2011). Date 31-Dec-2011 Comments Target achieved several months in advance. 3(g). Legal framework and monitoring Text Value Legal framework and indicators adopted (in 2013); analytical monitoring indicators adopted capability enhanced, for monitoring of SOEs (in 2013); analytical capability fiscal risks. enhanced, for monitoring of SOEs fiscal risks. Date 15-Oct-2013 Public Disclosure Copy Comments Target will likely be achieved by project close: Legal framework adopted. Monitoring indicators are likely be adopted in 2013. Analytical capability has been continuously enhanced. Page 7 of 9 The World Bank Report No: ISR12347 4(a). Key project staff and equipment in place Text Value Key project staff and by 2004 and throughout project implementation equipment in place by 2004 period. and throughout project implementation period. Public Disclosure Copy Date Comments Target has been achieved throughout the project life. 4(b). Full compliance with procurement, Text Value Full compliance with financial management and reporting procurement, financial requirements. management and reporting requirements. Date Comments Target has been achieved throughout the project life. 4(c). International project and contract Text Value International project and management consultant(s) in place (by March contract management 2011). consultant(s) was in place in 2011. Date Comments Target achieved on time. 4(d). Study on follow-on public financial Text Value Study on follow-on public management reforms and systems financial management development conducted (by October 2013). reforms and systems development conducted (by October 2013). Date Comments Target will unlikely be achieved by the project close. Data on Financial Performance (as of 15-Oct-2013) Public Disclosure Copy Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P075399 IDA-37670 Effective 22-May-2003 06-Jun-2003 04-Sep-2003 28-Feb-2009 31-Oct-2013 P075399 IDA-48630 Effective 03-Feb-2011 07-Apr-2011 06-Jul-2011 28-Feb-2013 31-Oct-2013 P075399 TF-50988 Closed 06-Jun-2003 06-Jun-2003 04-Sep-2003 28-Feb-2009 31-May-2011 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P075399 IDA-37670 Effective USD 54.33 54.33 0.00 57.48 3.81 106.00 Page 8 of 9 The World Bank Report No: ISR12347 P075399 IDA-48630 Effective USD 14.00 14.00 0.00 6.42 7.67 46.00 P075399 TF-50988 Closed USD 10.29 9.34 0.96 10.45 0.00 112.00 Public Disclosure Copy Disbursement Graph Key Decisions Regarding Implementation None. Restructuring History There has been no restructuring to date. Related Projects Public Disclosure Copy P120613-Additional Financing to the Public Financial Management Reform Project Page 9 of 9