ALIGNMENT

1. ALIGNMENT • Capacity building objectives are clearly set out in the SEDP and related national, regional, provincial and sector strategies, and PAR. GOV lead comprehensive capacity building programmes with co-ordinated donor support –Percent of aid for capacity building delivered through GoV-led and coordinated programmes Indicative Targets to 2010 100% GoV led and coordinated programmes

2. ALIGNMENT • Public procurement systems are reformed and strengthened and CPAR recommendations implemented –Percent of aid flow and percent of donors using GoV procurement systems. Indicative Targets to 2010 50% of aid flows and at least 50% of donors channelling at least 50% of their funds through country systems

3. ALIGNMENT • a) Public financial management systems are reformed and strengthened and PER / CFAA recommendations are implemented (b) GoV publishes timely, transparent and reliable reporting on budget execution, audited by State Audit of Vietnam in accordance with INTOSAI Percent of aid flows and percent of donorsthat use the national budgeting, financial reporting, and auditing system. Indicative Targets to 2010 50% of aid flows and at least 50% of donors channelling at least 50% of their funds through country systems

4. ALIGNMENT • More predictable aid –Percent of aid disbursement released according to agreed schedules in annual or multi-year frameworks Indicative Targets to 2010 75 % of aid released on schedule

5. ALIGNMENT • GoV and donors improve environmental and social safeguards -Percent of EIAs and SIAs implemented to international standards Indicative Targets to 2010 100% of EIAs and SIAs under donor funded projects implemented to international standards and 30% of these carried out using Government systems

6. HAMONIZATION AND SIMPLIFICATION • Fewer, better, core diagnostic and country analytical reviews of Vietnam’s development needs - Percent of country/sector diagnostic reviews and studies used by two or more donors. Indicative Targets to 2010 Core diagnostic reviews used by all donors; 75% of country analytical reviews used by two or more donors

7. HAMONIZATION AND SIMPLIFICATION • Common arrangements agreed and used throughout the project/programme cycle (planning, design, implementation, management reporting etc.) - Percent of donors using common project/programme cycle tools Indicative Targets to 2010 At least 50% of donors

8. HAMONIZATION AND SIMPLIFICATION • Donor interventions are co-ordinated within GoV-led policy and sector frameworks, including general / sector budget support and project modalities. The percentage use of different aid modalities (by volume) will be monitored each year Indicative Targets to 2010 75% of aid is national or sector programme based

9. HAMONIZATION AND SIMPLIFICATION • Donors enhance capacity of country offices and delegate authority to them -Percent of donors and aid interventions that are managed at the country level Indicative Targets to 2010 75% of aid interventions

10. MANAGEMENT FOR RESULTS • Results framework developed and used to assess the performance of the SEDP and sector programmes - Composite score based on 4 characteristics of a results-oriented framework (objectives, availability of indicators, M&E capacity and information use in decision making) Indicative Targets to 2010 Score of 3 based on DAC criteria and continuous monitoring

11. MUTUAL ACCOUNTABILITY • Periodic mutual assessment of progress in implementing agreed commitments on aid effectiveness Indicative Targets to 2010 Annual Assessment

12. PART V. HANOI CORE STATEMENT ON AID EFFECTIVENESS (HCS) IMPLEMETATION EFFORTS

13. AREAS WHERE IMPLEMENTATION EFFORTS HAVING BEEN MADE 1. Communication 2. Realization 3. Monitoring and Evaluation

14. COMMUNICATION • Implementing the instruction of the Prime Minister, MPI has disseminate the spirit and contents of HCS to the Line Ministries and Provinces (including the publication of HCS – Questions and Answers Book). • Meeting with all Partnership Groups. • Develop the HCS Communication Strategy. • Holding workshops on HCS Communication

15. REALIZATION • Establishing 7 thematic Groups (TGs) to dicuss on How to implement HCS on “partnership spirit": • Procurement • PFM • EIA and SIA • ODA-on-budget • Cost Norms • HCS Communication • Independent Monitoring Đấu thầu The outcomes of TGs’ activities are regularly updated at the meetings of PGAE and reflected in the PGAE Report at the Mid-term and Annual CGs.

16. REALIZATION • The spirit and principles of HCS have been reflected in the policy and institutional framework of the Government: • ODA Strategic Framework for the period 2006 – 2010 and its implementation action plan. • Decree No. 131/2006/NĐ-CP on 09 Nov., 2006. • Other legal documents: Circular 03/2007/TT-BKH and Circular 04/2007/TT-BKH issued by MPI; Decision 803/2007/QD-BKH issued by the Minister of MPI. • Result-based Monitoring and Evaluation Framework on the Implementation of SEDP 2006-2010.

17. REALIZATION • The spirit and principles of HCS have been reflected in the varieties of Government and Donors’ initiatives: • Harmonization and Simplification Initiatives: Developing common guidelines on pre-F/S and F/S, aligned reporting formats, procurement regulations, social safeguard and environment policies, etc. between Vietnam and 5 Development Banks (WB, ADB, JBIC, KfW, AFD). • Joint Portfolio Performance Review between the Government and 5 Development Banks (WB, ADB, JBIC, KfW, AFD). • “One UN Reform” initiative among UN agencies. • Initiatives of Code of Conduct and Division of Labor by EC.

18. REALIZATION • A number of donors have a long-term commitments (5 years) instead of year-on-year commitment (i.e.: DFID as typically). • A number of donors develop Harmonization and Alignment Action Plans (Belgium as the latest). • Strengthening Program-based and Sector-wide Approaches (Education for All, Forest Program, Program 135, Rural water supply Program, etc.). • A number of joint programs, joint studies have been conducted between the Government and donors and among donors. • ODA database have been developed (i.e.: DAD, National M&E System for ODA).

19. MONITORING AND EVALUATION OF HCS • Conduct baseline survey to define the current status and the gaps to the indicative targets in HCS. • Organizing HCS Independence Team with a number of voluntary donors (WB, Denmark, DfID (UK), Belgium). • In cooperation with OECD-DAC to carry out survey on the implementation of Paris Declaration (1st Survey (2005), 2nd Survey (2006) and the forthcoming 3rd Survey (1st Quarter, 2007 to report to HLF 3 in Ghana (Sep., 2008).

20. PAR VI. NEW FINDING AND RECOMMENDATIONS

21. AT GLOBAL AND REGIONAL LEVELS 1. Increase in number of donors and partner countries commit to endorse the Paris Declaration 2. Stakeholders and areas for implementation of Paris Declaration have been continuously broadened (i.e.: Civil Society Organizations (CSOs)), Gender and Aid Effectiveness, Aid for Trade under framework of WTO, etc.) 3. The issues addressed in the Paris Declaration have been exploited more in-depth in process of implementation

22. AT COUNTRY LEVEL 1. To achieve the inicative targets set out in HCS, both the Donors and the Government should have stronger commitment, be more pro-active and make greater efforts in the forthcoming time 2. The communication for HCS should be more effective to have full engagement of society in process of implementing HCS 3. Great attention should be given to development capacity and to mutual accountability between the Government and Donors

23. THANK YOU FOR YOUR ATTENTION