The World Bank Report No: ISR9538 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: 16 Status: ARCHIVED Archive Date: 13-Feb-2013 Country: Vietnam Approval FY: 2003 Product Line: IBRD/IDA Region: EAST ASIA AND PACIFIC Lending Instrument: Specific Investment Loan Implementing Agency(ies): Key Dates Board Approval Date 22-May-2003 Original Closing Date 28-Feb-2009 Planned Mid Term Review Date Last Archived ISR Date 01-Apr-2012 Effectiveness Date 04-Sep-2003 Revised Closing Date 28-Feb-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 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 Moderate Implementation Status Overview The project continues to make progress toward achieving its development objectives. The leadership and staff at the Ministry of Finance (MoF) remain highly committed to successfully complete the project. The project has now a cumulative IDA disbursement of US$60 million (80%), with US$11 million disbursed in since July 2012. The Treasury and Budget Management Information System (TABMIS) has been operational in all intended treasuries and financial agencies across all 63 provinces, and 37 spending ministerial organizations. TABMIS rollout completion in late 2012 has been one of the major milestones of the project. The Government of Vietnam has now the core platform for the Page 1 of 7 The World Bank Report No: ISR9538 development of a wide range of financial management planning, control, reporting and analysis. Steady progress has been noted on the activities to enhance the management of public debt– notably was the smooth implementation of the DMFAS system for recording and management of domestic debt. The activities to strengthen the monitoring of SOEs fiscal risks have gathered pace recently, with the finalization of relevant legal framework and gradual enhancement of risk management and assessment capacity. Overall project management remains satisfactory. Public Disclosure Copy However, there are outstanding issues related to the remaining contract deliverables by TABMIS contractor (IBM) and their final handover of responsibility to MoF. Resources and capacity of MoF appear to be thin and therefore needs significant augmentation to be able to successfully take over the operation and maintenance of the system. Though TABMIS has been operational for a while, several software issues of TABMIS remain persistent. Some critical functions such as commitment control and Treasury Single Account operation have yet to be fully implemented. Further work is needed to fully utilize TABMIS reporting capability to provide policy makers, managers and data users the information they require for policy-making, and economic and budget management purposes. 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 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 practices in budget execution and reporting compliance. a unified Chart of Accounts; a unified Chart of Accounts; ateach level of government. TABMIS in place nationwide-- TABMIS in place nationwide-- in central, and provincial and in central, and provincial and district treasury and financial district treasury and financial offices of 63 out of 63 offices of 63 out of 63 provinces; progress on the provinces; progress on the road towards commitment road towards commitment accounting and Treasury accounting and Treasury Single Account. Single Account fully operational. Date 31-Jan-2003 30-Jan-2013 28-Feb-2013 Comments Public Disclosure Copy 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 CPRGS. 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. Page 2 of 7 The World Bank Report No: ISR9538 Date 31-Jan-2003 30-Jan-2013 28-Feb-2013 Comments Greater fiscal sustainability through improved, Text Value Limited ability to monitor and Modern approaches to the Modern approaches to the Public Disclosure Copy 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 was integrated; (i) integrated recording of risks. Monitoring regulations for debt; and (ii) processes for SOEs operation and risks is identification and analysis of being developed. fiscal risks from SOEs. Date 31-Jan-2003 30-Jan-2013 28-Feb-2013 Comments Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target 1(a). Utilization throughout government of Text Value Achieved. a restructured and integrated chart of accounts Date 31-Dec-2012 for treasury and budget management, Comments consistent with appropriate international standards (by end 2011). 1(b). Implementation of TABMIS in Treasury Text Value Achieved. head office, MOF and two pilot provinces (by Date 30-Apr-2009 June 2009), with relevant staff trained. Comments 1(c). Roll-out of TABMIS to all Treasury and Text Value Achieved. Finance offices in provinces and districts (by Date 31-Dec-2012 end 2011), with relevant staff trained. Comments 1(d). Implementation of budget allocation Text Value Achieved. module in 40 large central ministries and Date 31-Dec-2012 government agencies (by end 2011), with Comments relevant staff trained. Public Disclosure Copy 1(e). Roll-out of budget allocation module Text Value Pending. deployment to selected major supervising Date agencies at central budget level (by March Comments 2013), with acceptable performance and relevant staff trained. 1(f). About 80% of state budget expenditure Text Value In progress. commitment and 100% of capital expenditure Date commitment are recorded and monitored Comments through TABMIS (by end 2011). Page 3 of 7 The World Bank Report No: ISR9538 1(g). Budget execution results directly Text Value Pending. obtained from TABMIS are published on MOF Date website on a monthly basis within 15 days after Comments the end of the month (by March 2013). Public Disclosure Copy 1(h). Preservation of at least 30 dedicated and Text Value In progress. properly trained technical specialists at central, Date to manage TABMIS databases, system Comments security, user access, and provide technical support to end users 1(i). Progress on the road from cash to Text Value In progress. accruals accounting; unified chart of accounts Date for consolidation of state accounting Comments information developed (by March 2013). 1(j). Model, roadmap for development and Text Value In progress. implementation of cash management system Date adopted (in'12); study on cash management Comments tools and systems conducted; treasury single account introduced (by Mar'13) 1(k). Model, implementation roadmap, Text Value In progress. technical requirements and bidding document Date for TABMIS portal developed. Comments 1(l). Model and implementation roadmap for a Text Value In progress. government financial management information Date system developed. Comments 2(a). 3 year MTFFs and MTEFs piloted as part Text Value Achieved. of budget cycle in four sectors & four Date provinces; & rolled over, updated & published Comments as part of each subsequent budget cycle (starting from FY'05 till '08) Public Disclosure Copy 2(b). Workshops on medium-term budget Text Value Achieved. planning provided to relevant senior National Date Assembly deputies & Gov.officials (by'08), Comments withconsensus for wider roll-out of medium- term budget planning emerging 2(c). Guidelines for nationwide implementation Text Value Pending. of MTFF and MTEF finalized (by March 2013). Date Comments Page 4 of 7 The World Bank Report No: ISR9538 2(d). Feasibility study of a budget preparation Text Value Pending. system completed (by March 2013). Date Comments Public Disclosure Copy 3(a). Identification of a lead department in Text Value Achieved. MOF to direct debt management across Date Government, with appropriate regulations Comments issued (by mid 2009). 3(b). Approval and publication of a long-term Text Value Achieved. debt management strategy including debt Date 18-Apr-2012 management objectives (by end 2011). Comments 3(c). Analytical capability in debt & risk Text Value In progress. management enhanced wz critical staff Date identified & trained. Middle Office capacity's Comments sustained,e.g. at least 5 staff appropriate qualification & experience 3(d). Domestic debt recording system (able to Text Value Achieved. provide consolidated public debt data, including Date 30-Jan-2013 external debt) established and operational (by Comments end 2011), wz key staff trained in new systems/ practices. 3(e). Strategy for debt and risk management Text Value In progress. information system developed (by March Date 2013). Comments 3(f). DeMPA self-assessment on public debt Text Value Achieved management performance conducted (by mid Date 31-Dec-2011 2012). Comments 3(g). Legal framework and monitoring Text Value In progress. indicators adopted (by end 2011); analytical Date Public Disclosure Copy capability enhanced, for monitoring of SOEs Comments fiscal risks. 4(a). Key project staff and equipment in place Text Value In progress. by 2004 and throughout project implementation Date period. Comments 4(b). Full compliance with procurement, Text Value In progress. financial management and reporting Date requirements. Comments Page 5 of 7 The World Bank Report No: ISR9538 4(c). International project and contract Text Value Achieved. management consultant(s) in place (by March Date 2011). Comments Public Disclosure Copy 4(d). Study on follow-on public financial Text Value Pending. management reforms and systems Date development conducted (by March 2013). Comments Data on Financial Performance (as of 08-Jan-2013) 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 28-Feb-2013 P075399 IDA-48630 Effective 03-Feb-2011 07-Apr-2011 06-Jul-2011 28-Feb-2013 28-Feb-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 54.55 6.79 100.00 P075399 IDA-48630 Effective USD 14.00 14.00 0.00 5.02 9.17 36.00 P075399 TF-50988 Closed USD 10.53 9.34 0.96 10.45 0.00 112.00 Disbursement Graph Public Disclosure Copy Page 6 of 7 The World Bank Report No: ISR9538 Public Disclosure Copy Key Decisions Regarding Implementation None. 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 7 of 7