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Assessment of the success of projecte Government of Vietnam''s capacity for external debt management

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Nội dung chi tiết: Assessment of the success of projecte Government of Vietnam''s capacity for external debt management

Assessment of the success of projecte Government of Vietnam''s capacity for external debt management

MID TERM REVIEWPROJECT OF THE GOVERNMENT OF VIET NAMVIE 10/010: CAPACITY DEVELOPMENT FOR EFFECTIVE ANDSUSTAINABLE EXTERNAL DEBT MANAGEMENTExecutive Su

Assessment of the success of projecte Government of Vietnam''s capacity for external debt management ummaryObjective of Mid-Term ReviewThe objective of the review is to assess the likely success of VIE 10/010 in meeting its goal of strengthening the G

overnment of Viet Nam’s capacity for external debt management.MethodologyThis assessment is based on the direct assessment by the team of repons and t Assessment of the success of projecte Government of Vietnam''s capacity for external debt management

raining programmes conducted by the project, the views of national counterpart staff and beneficiaries - expressed both through interviews and questio

Assessment of the success of projecte Government of Vietnam''s capacity for external debt management

nnaires submitted to beneficiaries -- and examination of project documents.Main FindingsThe project has progressed considerably towards meeting its ob

MID TERM REVIEWPROJECT OF THE GOVERNMENT OF VIET NAMVIE 10/010: CAPACITY DEVELOPMENT FOR EFFECTIVE ANDSUSTAINABLE EXTERNAL DEBT MANAGEMENTExecutive Su

Assessment of the success of projecte Government of Vietnam''s capacity for external debt management ng planned activities are successfully implemented. The sustainability of the good results is open to some doubt, however.Sub-Objective 1: Strengtheni

ng the institutional and legal framework for effective and sustainable external debt managementInterpreted literally, this objective has not yet been Assessment of the success of projecte Government of Vietnam''s capacity for external debt management

met and perhaps will not be met by the end of VIE 10/010. The Decree 90 (1998) still has not been revised in order to be consistent with the new State

Assessment of the success of projecte Government of Vietnam''s capacity for external debt management

Budget Law, which makes the Ministr}- of Finance responsible for external debt management. Organisational measures in the External Finance Department

MID TERM REVIEWPROJECT OF THE GOVERNMENT OF VIET NAMVIE 10/010: CAPACITY DEVELOPMENT FOR EFFECTIVE ANDSUSTAINABLE EXTERNAL DEBT MANAGEMENTExecutive Su

Assessment of the success of projecte Government of Vietnam''s capacity for external debt management nderstanding of this objective by the Deputy National Project Director, the capacity to strengthen the institutional legal framework has been strength

ened. The initial impetus for this has been the report produced by VIE 10/010 on the institutional and legal framework covering external debt manageme Assessment of the success of projecte Government of Vietnam''s capacity for external debt management

nt andassociated workshops for the staff in the technical working group covering tills area, and a study tour abroad. The report was well-received by

Assessment of the success of projecte Government of Vietnam''s capacity for external debt management

the beneficiaries and the national counterpan staff. The team is satisfied with the quality of the report and the associated workshops and study tour.

MID TERM REVIEWPROJECT OF THE GOVERNMENT OF VIET NAMVIE 10/010: CAPACITY DEVELOPMENT FOR EFFECTIVE ANDSUSTAINABLE EXTERNAL DEBT MANAGEMENTExecutive Su

Assessment of the success of projecte Government of Vietnam''s capacity for external debt management ral months of work, the reason being differences in interpretation of the new State Budget Law and the differing perspectives of the participating age

ncies.Nevertheless, whatever the outcome, it is an achievement that the representatives of the different agencies are sitting down together and discus Assessment of the success of projecte Government of Vietnam''s capacity for external debt management

sing the appropriate legal and institutional framework. The issue is also now receiving attention from the policy making bodies in government.Subobjec

Assessment of the success of projecte Government of Vietnam''s capacity for external debt management

tive Two: Strengthening the capacity to formulate public external debt strategy including preparing portfolio reviews, reviewing and updating the exis

MID TERM REVIEWPROJECT OF THE GOVERNMENT OF VIET NAMVIE 10/010: CAPACITY DEVELOPMENT FOR EFFECTIVE ANDSUSTAINABLE EXTERNAL DEBT MANAGEMENTExecutive Su

Assessment of the success of projecte Government of Vietnam''s capacity for external debt management n this area through workshops, training and a study tour abroad arranged by VIE 10'010, along with reports on debt portfolio analysis and non-govemmen

t debt produced by the Project, which were well received by the beneficiaries. The Team considers the reports to be of high quality. A workshop in Feb Assessment of the success of projecte Government of Vietnam''s capacity for external debt management

ruary, 2004 on the debt sustainability analysis software selected by the project was well-received. Shortcomings in the database precluded a portfolio

Assessment of the success of projecte Government of Vietnam''s capacity for external debt management

review based on actual data, however, and therefore precluded the development of a revised debt strategy.Whether an actual debt portfolio review take

MID TERM REVIEWPROJECT OF THE GOVERNMENT OF VIET NAMVIE 10/010: CAPACITY DEVELOPMENT FOR EFFECTIVE ANDSUSTAINABLE EXTERNAL DEBT MANAGEMENTExecutive Su

Assessment of the success of projecte Government of Vietnam''s capacity for external debt management further training will take place, as discussed below. Some of the recommendations of the report on non-government debt have implications for the futur

e of DM FAS in SBV; these are discussed below'.Subobjective Three: Strengthening the capacity for external debt management in areas with strong fiscal Assessment of the success of projecte Government of Vietnam''s capacity for external debt management

links (such as guarantees, on lending, non-government public debt, and debt service) and in relation to international capital markets.Capacity has be

Assessment of the success of projecte Government of Vietnam''s capacity for external debt management

en strengthened in this area with the help of a report produced under VIE 10/010 and associated workshops, training and a study tour abroad. Beneficia

MID TERM REVIEWPROJECT OF THE GOVERNMENT OF VIET NAMVIE 10/010: CAPACITY DEVELOPMENT FOR EFFECTIVE ANDSUSTAINABLE EXTERNAL DEBT MANAGEMENTExecutive Su

Assessment of the success of projecte Government of Vietnam''s capacity for external debt management ortance of understanding the possible adverse fiscal implications of government guaranteed debt and government on lending. The team also considered th

e quality of the reports, training and study tour to be high. The2report on fiscal links has given added impetus to finalizing the DMFAS database in E Assessment of the success of projecte Government of Vietnam''s capacity for external debt management

xternal Finance Department through entering data on government guaranteed loans and on-lent loans.The further training being planned by the Project co

Assessment of the success of projecte Government of Vietnam''s capacity for external debt management

vering risk analysis, credit risk analysis in particular, and portfolio analysis will strengthen the likelihood of sustainable increase in capacity in

MID TERM REVIEWPROJECT OF THE GOVERNMENT OF VIET NAMVIE 10/010: CAPACITY DEVELOPMENT FOR EFFECTIVE ANDSUSTAINABLE EXTERNAL DEBT MANAGEMENTExecutive Su

Assessment of the success of projecte Government of Vietnam''s capacity for external debt management lly scheduled for 2003. but work did not begin in early 2004, resulting in the report not being finalized until June. Al the time of the MTR, the PSC

had not reviewed the report s recommendations (e.g. the guarantee fee should be related to risk). To help ensure that the knowledge gained is used it Assessment of the success of projecte Government of Vietnam''s capacity for external debt management

is important that the recommendations of the report should be quickly reviewed by PSC and decisions made on their implementation. Implementation depen

Assessment of the success of projecte Government of Vietnam''s capacity for external debt management

ds partly on changes in the regulatory framework (e.g. to allow for linking the size of the guarantee fee to risk), so progress in this area is linked

MID TERM REVIEWPROJECT OF THE GOVERNMENT OF VIET NAMVIE 10/010: CAPACITY DEVELOPMENT FOR EFFECTIVE ANDSUSTAINABLE EXTERNAL DEBT MANAGEMENTExecutive Su

Assessment of the success of projecte Government of Vietnam''s capacity for external debt management related information, including finalizing and integrating existing DMFAS databases and improving the external information situation regarding externa

l financial data.Having a comprehensive, accurate and up to date database is a necessary foundation for good external debt management. Progress on ach Assessment of the success of projecte Government of Vietnam''s capacity for external debt management

ieving this objective was made during 2003 with the help of technical support and training missions from UNCTAD under the terms of VIE 10'010. Progres

Assessment of the success of projecte Government of Vietnam''s capacity for external debt management

s picked up markedly in recent months following the return to EFD of a skilled staff member seconded to UNCTAD as an intern under VIE 10/010. He, and

MID TERM REVIEWPROJECT OF THE GOVERNMENT OF VIET NAMVIE 10/010: CAPACITY DEVELOPMENT FOR EFFECTIVE ANDSUSTAINABLE EXTERNAL DEBT MANAGEMENTExecutive Su

Assessment of the success of projecte Government of Vietnam''s capacity for external debt management ltilateral debt database is expected to be finalized towards the end of 2004. Finalising the on-lent loans database is taking longer, but nevertheless

is expected to be substantially finished by the end of 2004.UNCTAD will continue Io support DMFAS in F.TD alter the end of V1L 10'010. SO the sustain Assessment of the success of projecte Government of Vietnam''s capacity for external debt management

ability of DMFAS is reasonably assured. UNCTAD will upgrade DMFAS to Version 5.3 and has recently negotiated a maintenance agreement with F.FD, thus i

Assessment of the success of projecte Government of Vietnam''s capacity for external debt management

nstitutionalizing UNCTAD’s assistance to Ministry of FinanceOn the government side, the management in EFD needs to focus on ensuring that staff is dil

MID TERM REVIEWPROJECT OF THE GOVERNMENT OF VIET NAMVIE 10/010: CAPACITY DEVELOPMENT FOR EFFECTIVE ANDSUSTAINABLE EXTERNAL DEBT MANAGEMENTExecutive Su

Assessment of the success of projecte Government of Vietnam''s capacity for external debt management k office” established, its duties including maintenance of the data base.3The Ministry is giving serious thought to this idea and UNCTAD has indicated

its readiness to provide assistance. Reorganization takes time, however, so, in the short term, it is up to management to ensure diligent attention t Assessment of the success of projecte Government of Vietnam''s capacity for external debt management

o the database. The returned intern can continue to play a strong role in training and support. The EFD should consider retaining the services of the

Assessment of the success of projecte Government of Vietnam''s capacity for external debt management

two consultants following the end of the project.Finalising the DMFAS database in SBV is proving to be harder work. Substantial progress in incorporat

MID TERM REVIEWPROJECT OF THE GOVERNMENT OF VIET NAMVIE 10/010: CAPACITY DEVELOPMENT FOR EFFECTIVE ANDSUSTAINABLE EXTERNAL DEBT MANAGEMENTExecutive Su

Assessment of the success of projecte Government of Vietnam''s capacity for external debt management enterprise loans have yet to be validated. The process is time consuming due to the sheer volume of loans (1600), the quarterly reporting requirement

and the continual changing of loan conditions which require reentering the main parameters into the system.To ease the burden on staff of External De Assessment of the success of projecte Government of Vietnam''s capacity for external debt management

bt Management Division in SBV of maintaining DMFAS, SBV suggested that the MTR team look into the pros and cons of extending DMFAS into provincial bra

Assessment of the success of projecte Government of Vietnam''s capacity for external debt management

nches of SBV, on the grounds that most enterprises report their externa) debt transactions to these branches. The team accordingly visited the SBV bra

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