The Asian Development Bank was conceived in the early 1960s as a financial institution that would be Asian in character and foster economic growth and cooperation in one of the poorest regions in the world. ADB assists its members, and partners, by providing loans, technical assistance, grants, and equity investments to promote social and economic development. The Asian Development Bank aims for an Asia and Pacific free from poverty. ADB in partnership with member governments, independent specialists and other financial institutions is focused on delivering projects in developing member countries that create economic and development impact. ADB is composed of 67 members, 48 of which are from the Asia and Pacific region.
The Ministry of Planning and Investment (MPI) is evaluating the need to for a Law in support of SMEs, which could play an important role in the regulatory framework for private sector development in Vietnam. Such laws have been traditionally used as strategy to enrich the government policies in support of SME development, increasingly moving towards market-led support approaches. In line with international experience, the draft proposal on the law may be structured along three main objectives: i) Align government policies in support to SME development from different agencies and improve inter-agency coordination; ii) Improve the role of the MPI-EDA as facilitator on SME development and re-engineer public-private consultation processes with a view towards improved orientation to SMEs needs; and iii) Upgrade SME support policy instruments, with a focus on technical and research support and with the implementation of innovative channels of SME support based on international practices. ADB, in the context of TA-8184, has agreed to provide technical assistance to the drafting of the proposal on the law.
MCG was involved in to conducting a mass survey of approximately 300 Small and Medium Enterprises in 6 provinces of Viet Nam which will contribute to the study of SMEs’ status to draft the Law. The survey aims to gather information on: (i) Current performance and status of operations of SMEs; (ii) Evaluation of Government support policies for SMEs; and (iii) SME development and operations challenges.
The Asian Development Bank (ADB) was preparing an updated governance assessment to inform the forthcoming Country Partnership Strategy (CPS) 2016 – 2020 following the standard GACAP II approach that focuses on anti-corruption, public financial management and procurement. This national level governance diagnostic has highlighted significant and growing fiscal risks associated with contingent liabilities of state-owned enterprises (SOEs). ADB’s country portfolio is also directly exposed to SOEs that take up dominant positions in the infrastructure sectors where ADB is most active (transport, water/urban). Its country operation is exposed to governance risks because of inadequate regulatory environments and weak corporate governance standards of SOEs that ADB is engaged with – both at the national and subnational level. Overall objective is to extract operational knowledge that informs risk mitigation measures for future operations. Potentially this knowledge will also inform the design of long-term programmatic policy-based loans (PBL) – both at the national and sector level. Possible risk mitigation measures include (i) support for the implementation of plans and regulations that strengthen SOE management and oversight, (ii) improving the financial sustainability of selected SOEs that ADB is restructuring, and (iii) mitigation of governance risks for sectors with significant SOE presence and where ADB has an existing large sovereign investment portfolio. It is envisaged that successful governance PBL operations will increase opportunities in the long-term for results-based lending (RBL).
MCG’s consultant was involved in the assignment as a National Corporate Governance Specialist – Transport Sector providing the following tasks: (i) Developing a work plan for field work, detailed questionnaires and other conditions for and conduct qualitative and quantitative assessment of agreed selected SOEs, or their subsidiaries, across ADB’s portfolio in the Transport Sector using the above said diagostic methodology and toolsets; and (ii) Drafting a sector report capturing the above said diagnostic work, its findings and recommendations.
In December 1999, the Asian Development Bank (ADB) approved Loans 1733/1734-VIE for the State-Owned Enterprise (SOE) Reform and Corporate Governance Program to the Government of the Socialist Republic of Viet Nam (GoV). The loans aim to promote industrial growth by restructuring the industrial sector to (i) facilitate foreign direct investment (FDI) inflows, (ii) support the development of private enterprises, and (iii) accelerate industrial SOE reform and improve corporate governance of enterprises. The program completion report has provided an overview and a preliminary evaluation of initial impact and benefits. MCG delivered consulting services including program description, evaluation of design and implementation, evaluation of performance, and overall assessment and recommendations.