1. Delays in the DFAT Hanoi raised Aid Management Steering Committee Moderate Yes Government of Vietnam concerns with Ministry reviews the timeline for concept and approval process of four of Planning and design approvals on a monthly and pipeline Investment about the Counsellor (Economic and Development investments hinder the new Government Cooperation) provides an update on achievement of AIP Decree on ODA that progress. 2015 -2020 strategic added Prime Ministerial objectives. approval at concept DFAT sector teams to intensify efforts with level for all group A and counterparts to develop a shared B ODA projects. understanding about the benefits of the proposed designs and next steps in the DFAT Hanoi is engaging approval process. with MPI and line agencies at working and Options for how to absorb/reprogram management level to potential underspends to be developed ensure the design and submitted to the Aid Management proposals are approved. Steering Committee to mitigate the impacts delayed implementation has on disbursement. Yes 2. Slow Government of All teams ensured this Sector teams continue active engagement Moderate Vietnam progress of issue is accounted for in with a range of different institutions to institutional reform in the design and identify and support other potential the AIP focus areas implementation of new reform champions. (private sector investments. development, gender DFAT has developed new PAF indicators to equality and human measure the impact of policy dialogue and resource development) influence. and the reliance on few individual champions to drive the change process may lead to inability to sustain investment results and AIP strategic objectives. Yes 3. Relationships with HOM maintained a Sector actively engage with a range of Low Government of Vietnam schedule of different institutions and support other weaken due to the calls and advocacy with potential reform champions. changes of political key political and line context. agency counterparts. Sector teams consider alternative mechanisms to support a champion All teams worked closely network. with counterpart agencies to identify opportunities for building new and strong relationships. Yes 4. Insufficient fraud and Sector teams included Corporate section conducts fraud and Low corruption detection fraud and corruption anti-corruption training for staff and and control mechanisms detection as an agenda partners. at investment level may and reporting item for cause reputational monitoring visits. New investments use managing damage for DFAT. contractor models to increase Corporate section transparency and reduce corruption risk. identified high-risk investments for Program specific risk registers reviewed procurement / routinely by sector teams and risk performance audits and treatments applied. compliance spot-checks.
1. Delays in the Government of Vietnam approval process of four pipeline investments hinder the achievement of AIP 2015 -2020 strategic objectives. DFAT Hanoi raised concerns with Ministry of Planning and Investment about the new Government Decree on ODA that added Prime Ministerial approval at concept level for all group A and B ODA projects. DFAT Hanoi is engaging with MPI and line agencies at working and management level to ensure the design proposals are approved. Aid Management Steering Committee reviews the timeline for concept and design approvals on a monthly and Counsellor (Economic and Development Cooperation) provides an update on progress. DFAT sector teams to intensify efforts with counterparts to develop a shared understanding about the benefits of the proposed designs and next steps in the approval process. Options for how to absorb/reprogram potential underspends to be developed and submitted to the Aid Management Steering Committee to mitigate the impacts delayed implementation has on disbursement. Moderate Yes 2. Slow Government of Vietnam progress of institutional reform in the AIP focus areas (private sector development, gender equality and human resource development) and the reliance on few individual champions to drive the change process may lead to inability to sustain investment results and AIP strategic objectives. All teams ensured this issue is accounted for in the design and implementation of new investments. Sector teams continue active engagement with a range of different institutions to identify and support other potential reform champions. DFAT has developed new PAF indicators to measure the impact of policy dialogue and influence. Moderate Yes 3. Relationships with Government of Vietnam weaken due to the changes of political context. HOM maintained a schedule of calls and advocacy with key political and line agency counterparts. All teams worked closely with counterpart agencies to identify opportunities for building new and strong relationships. Sector actively engage with a range of different institutions and support other potential reform champions. Sector teams consider alternative mechanisms to support a champion network. Low Yes 4. Insufficient fraud and corruption detection and control mechanisms at investment level may cause reputational damage for DFAT. Sector teams included fraud and corruption detection as an agenda and reporting item for monitoring visits. Corporate section identified high-risk investments for procurement / performance audits and compliance spot-checks. Corporate section conducts fraud and anti-corruption training for staff and partners. New investments use managing contractor models to increase transparency and reduce corruption risk. Program specific risk registers reviewed routinely by sector teams and risk treatments applied. Low Yes
vietnam-appr-2016-17.docx