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8/8/2019 B.ViNaProApp_TrnVnT

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The Socialist Republic of VietnamThe Socialist Republic of Vietnam

The Public FinancialThe Public Financial

Management Reform ProjectManagement Reform Project(PFMRP)(PFMRP)

Presented byPresented by

ViceVice--Minister of Finance: Dr.Minister of Finance: Dr.Tran Van TaTran Van Ta


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Reform backgroundReform background

The Public Administrative Reform Master Plan overThe Public Administrative Reform Master Plan over20012001--2010 sets platform2010 sets platform

The revised State Budget Law promotesThe revised State Budget Law promotesdecentralization, transparency, accountability, anddecentralization, transparency, accountability, andadministrative rationalization & streamlining.administrative rationalization & streamlining.

The reform areas are recommended from analysisThe reform areas are recommended from analysissupported by the World Bank and other donors i.e.supported by the World Bank and other donors i.e. PERPER2000, PER2004, CFAA 2001, Vietnam Development Report 2003,2000, PER2004, CFAA 2001, Vietnam Development Report 2003,


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Identified five areas of reformIdentified five areas of reform

The PFMRP addresses the first 04 areas of reform:The PFMRP addresses the first 04 areas of reform:

Budget managementBudget management

Debt managementDebt management SOE fiscal risk managementSOE fiscal risk management

Public asset managementPublic asset management

To be addressed by the other 2 important projects:To be addressed by the other 2 important projects:

Revenue managementRevenue management::


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The PFMRPs project goalThe PFMRPs project goal

Aiming at good governance, contributing toAiming at good governance, contributing to

poverty reduction.poverty reduction.

Objectives:Objectives: to strengthen budget planning, execution, reportingto strengthen budget planning, execution, reporting

and accountability,and accountability,

to strengthen the links between budget managementto strengthen the links between budget management

and the developmental goals within a mediumand the developmental goals within a medium--termtermexpenditure framework; andexpenditure framework; and

to improve the management of public debt.to improve the management of public debt.


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Project performance indicatorsProject performance indicators

Improved accuracy, timeliness, relevance,Improved accuracy, timeliness, relevance,

transparency and compliance withtransparency and compliance with

international best practices;international best practices;

Better planning of the State Budget and theBetter planning of the State Budget and the

Public Investment Program; andPublic Investment Program; and

Greater fiscal sustainability.Greater fiscal sustainability.


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Project description overviewProject description overview

ComponentComponent 1: StrengtheningTreasury and1: StrengtheningTreasury andBudget ManagementBudget Management

ComponentComponent 2: StrengtheningState Budget and2: StrengtheningState Budget andInvestment PlanningInvestment Planning

ComponentComponent 3: Strengthening Management of3: Strengthening Management ofPublic Debt and Monitoring ofSOE FiscalPublic Debt and Monitoring ofSOE FiscalRisksRisks


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Component 1: StrengtheningTreasuryComponent 1: StrengtheningTreasury

and Budget Managementand Budget Management

TheTreasury and Budget Management InformationTheTreasury and Budget Management InformationSystem (TABMIS) will be operational in all central,System (TABMIS) will be operational in all central,

provincial and district treasury offices, finance &provincial and district treasury offices, finance &planning agencies, based on a new, integrated accountplanning agencies, based on a new, integrated accountcode structurecode structure

Review of policies and business processes in theReview of policies and business processes in thedevelopment of Unified Chart of Accounts/Statedevelopment of Unified Chart of Accounts/StateAccounting regimeAccounting regime

TreasurySingle Account.TreasurySingle Account.


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Component 2: StrengtheningStateComponent 2: StrengtheningState

Budget and Investment PlanningBudget and Investment Planning

Technical assistance for the piloting of the MediumTechnical assistance for the piloting of the Medium--term Fiscal Framework (MTFF) and the Mediumterm Fiscal Framework (MTFF) and the Medium--termterm

Expenditure Frameworks (MTEF)Expenditure Frameworks (MTEF)

Change management and communication of the newChange management and communication of the newpracticepractice

Design and implementation of a budget preparationDesign and implementation of a budget preparationsystemsystem


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Component 3: StrengtheningComponent 3: StrengtheningManagement of Public Debt andManagement of Public Debt and

Monitoring ofSOE Fiscal RisksMonitoring ofSOE Fiscal Risks

Technical assistance and capacity building to supportTechnical assistance and capacity building to support

strengthening of recording and management ofstrengthening of recording and management ofdomestic debtdomestic debt

Procurement of systems for recording, consolidationProcurement of systems for recording, consolidation

and management of public debtand management of public debt

Inventory ofSOE Fiscal RisksInventory ofSOE Fiscal Risks


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Sustainability & risk considerationsSustainability & risk considerations

Sustainability: an emphasis on training and learning bySustainability: an emphasis on training and learning bydoing, a strong legal framework, making a platform fordoing, a strong legal framework, making a platform forfurther development as committed.further development as committed.

Risks:Risks: System risks: costs of supporting and upgrading; DifficultiesSystem risks: costs of supporting and upgrading; Difficulties

in the integration of different accounting structures; Networkin the integration of different accounting structures; Networkinfrastructure preparedness.infrastructure preparedness.

Organizational risks: Procurement and implementationOrganizational risks: Procurement and implementationcapacities; Substantial organizational changes; Acceptance ofcapacities; Substantial organizational changes; Acceptance ofnew technologies, practicesnew technologies, practices


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Project progressProject progress

Successfully completed the procurement ofTABMISSuccessfully completed the procurement ofTABMIS

Reviewing of policies and business processes,Reviewing of policies and business processes,organizational preparednessorganizational preparedness

Developing Unified Chart of AccountsDeveloping Unified Chart of Accounts StudyingTSAStudyingTSA

Produced MTF&EF documents of good quality for theProduced MTF&EF documents of good quality for thefirst timefirst time

Established Middle Office, developing Public DebtEstablished Middle Office, developing Public DebtManagement and Mobilization Plan, domestic marketsManagement and Mobilization Plan, domestic markets

Training and building capacityTraining and building capacity


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Lessons so farLessons so far

The flexible project design allows additional interventions andThe flexible project design allows additional interventions andadjustments to be discussed and agreed if necessaryadjustments to be discussed and agreed if necessary

Independent Verification and Validation (IV&V) and otherIndependent Verification and Validation (IV&V) and other

independent consulting services are neededindependent consulting services are needed

Leadership oversight is reinforced by regular reports andLeadership oversight is reinforced by regular reports andmeetings and an empowered Project Management Unit (PMU)meetings and an empowered Project Management Unit (PMU)

Change management and wellChange management and well--targeted training activities are eventargeted training activities are evenmore emphasized during the process.more emphasized during the process.

Early participation of project beneficiaries and all otherEarly participation of project beneficiaries and all otherstakeholders is a prerequisitestakeholders is a prerequisite


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Thank you!Thank you!

&&The Ministry of Finance looks forward toThe Ministry of Finance looks forward to

your cooperation and assistanceyour cooperation and assistance

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