Good Governance and Aid Effectiveness - Component III

Results achieved as of the end of the project (November 2022) include: (1) conducted public expenditure reviews to improve the linkages between investment budget and fiscal resource envelopes. The government conducted three review workshops and reported to the Prime Minister. Also achieved 62 out of 68 policy recommendations; (2) authorities strengthened their commitment to monitoring. Spending units receive regular reports from the Treasury and Budget Management Information System (TABMIS) and the Treasury now monitors 80% of commitments (in value). Furthermore authorities reduced the processing time of requests from two days to one day. Cash forecasting was improved reducing the difference between forecasted cash flow and actual payments to 10%. The reform of the monitoring of public service delivery units (PSDUs) also made good progress with the issuance of Decree 60 on the financial autonomy of PSDUs and an enhanced monitoring framework over the performance of these units; (3) the government produced quality fiscal information by implementing accounting reform through International Public Sector Accounting Standards (IPSAS) financial reporting using Government Finance Statistics (GFS) and Whole-of-Government Financial Statements (WOGFS); (4) developed the State-owned Enterprise (SOE) Corporate Information Management System (CIMS) to collect financial information of 800 SOEs. Two large SOEs (Vietnam Electricity and Petrolimex) have been piloted. Also formalized the adoption of the International Financial Reporting Standards (IFRS) through the Ministry of Finance’s Decision 345. The government also developed the Financial Development Strategy 2021 to 2030 and the first consolidated subnational debt report and to prioritize public finance management reforms over the next ten years.