In the environmental safeguards area, harmonization efforts have converged towards agreement on environmental assessment (EA) coverage, consultation, mitigation measures, management plan, EA disclosure and timing.

A study to review similarities and differences in environmental safeguard procedures of the five banks and the Government of Vietnam (GoV) resulted in a draft report on “Harmonization of Environmental Safeguard Procedures and Practices” in April 2004. The report includes a summary “Common Requirements for EIA of Category A Projects”, and an assessment of the degree of difficulty of harmonizing environmental safeguards among the five banks, and with the government’s requirements. An Action Plan is expected to be ready for endorsement at the CG meeting in December 2004.

In the area of social safeguards, the AsDB, JBIC and the World Bank have very similar requirements and are moving towards a common position.

The focus has been on resettlement with provision of joint advice on the preparation of a Decree on involuntary resettlement, and use of common implementation mechanisms including compensation policies, external monitoring, and data storage and retrieval system for involuntary resettlement.

GoV adopted a new Land Law in December 2003. AsDB and WB are reviewing its compatibility with international standards.

The 5-bank group shares its findings and experiences on environmental and social safeguards with other donors.

A joint GoV-Donor Working Group Public Expenditure Report (PER) has been completed. Country Procurement Assessment Review (CPAR) and Country Financial Accountability Assessment (CFAA) were each done jointly with AsDB.

The focus of Government and donors is now on implementation. Joint economic and sector work such as a common AsDB, DFID, JBIC, World Bank Gender Action Plan is in progress.

UK and Japan (with comments from the wider PGAE group) developed a joint paper on budget and sector support . It is likely to pave the way towards delivery of sector budget support to Vietnam.

Joint DFID/SIDA Evaluation of Budget Support is in progress for 9 countries (including Vietnam). The work is led by DFID and the literature review has been completed. Final report in the form of a SIDA working paper is expected by December 2005.

A joint GoV - Donor Working Group PER has been completed. CPAR and CFAA were each done jointly with AsDB. The focus of Government and donors is now on implementation. Joint economic and sector work such as a common AsDB, DFID, JBIC, World Bank Gender Action Plan is in progress.

The LMDG has provided budget support training throughout the donor community in Vietnam. This will be followed with a field visit by senior Vietnamese officials to India to see budget support in action. Further training for Government officials is planned.

The Comprehensive Capacity Building Program (CCBP) is likely to be implemented in the 3rd.Quarter of 2004 with resources provided by Japan, WB and the LMDG. As part of this program, (i) a number of LMDG donors together with Japan and the WB have established a Procurement Training Center, and (ii) the Revision of Decree 17/2001/ND-CP dated 4 May 2001 on ODA Utilization and Management is underway. LMDG provided a harmonization adviser to work with MPI (on behalf of all the donors) on the HAP and the design of CCBP, and the group will assist in the implementation of the CCBP.

Two LMDG members also hosted (and funded participation in) a two-day training course on anti-corruption attended by representatives of 9 donors and 3 government agencies.

AsDB and the World Bank have agreed to use World Bank documents as base document for discussions on harmonizing the underlying monitoring information required for reporting of Government managed projects. A general agreement on procedures has been reached. However, the language used was (i) adjusted to apply to both AsDB and World Bank loans, and (ii) written from the perspective of the GoV.

Multilateral Organizations Performance Assessment Network (MOPAN) - an informal network of like-minded donors (Canada, Denmark, Germany, the Netherlands, Norway, Sweden, Switzerland and the UK) - was launched in 2002 in response to an increased focus on the performance of multilateral organizations at the country level. In 2003, MOPAN conducted a pilot performance assessment of select multilateral organizations (AfDB, AsDB, IADB, UNICEF, WB and WHO) who were involved in the health sector in 8 countries (Bangladesh, Ghana, India, Malawi, Mozambique, Nicaragua, Uganda and Vietnam). The assessment primarily looked at the organizations’ support for national policies and institutions and their participation in aid coordination activities and other partnerships. The report from this pilot exercise has been completed.

OECD/DAC Working Party has developed indicators (in a survey instrument) to monitor progress on harmonization and alignment. Field-testing has been completed in all of the fourteen countries (including Vietnam). A draft report has been prepared.

Joint DFID/SIDA Evaluation of Budget Support is in progress for 9 countries (including Vietnam). The work is led by DFID and the literature review has been completed. Final report in the form of a SIDA working paper is expected by December 2005.

UN Country Team (UNCT) for Vietnam is piloting a component of Knowledge Management which incorporates the introduction and development of a common database system (DevInfo) to house baseline data for national MDG/CPRGS monitoring, analysis and reporting. It will be rolled out as VIETINFO.

AsDB, DFID and World Bank hold regular joint portfolio performance meetings and carry out joint portfolio performance reviews. In addition, each bank holds its own portfolio review, meetings, missions and is now opening these meetings and missions to participation by other banks.

Ministry of Planning & Investment (with assistance from UNDP) is preparing a Master Plan on ODA Attraction and Utilization to Serve the Socio-Economic Development during 2006-2010. To date, regional consultative workshops have been held in Hanoi, Danang and Hochiminh Cities to provide perspectives and inputs from the local-level ODA management and beneficiary agencies.