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Viet Nam Country Programme Evaluation

National Roundtable Workshop Hanoi, 17 November 2011 Independent Office of Evaluation

Country context
Major structural economic reforms led to sustained and broad-based economic growth
Recently classified as lower middle-income economy Strong performance of agriculture sector; has been a solid contributor to overall growth; market-oriented policies create economic opportunities for the majority of the poor However, progress in poverty reduction is lagging in some regions of rural areas and among ethnic minorities
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Country Programme
Three country strategic opportunities programmes (COSOPs): 1996, 2003 and 2008 Area-based multicomponent programme with the following main features: decentralization, small-scale infrastructure, market integration, microfinance, natural resources management, and social development Eleven projects/programmes approved since 1993; six ongoing Total IFAD loans: US$257 million; government counterpart funding: US$48 million; total project/programme costs US$350 million IFAD Country Office established in 2005. Country programme manager out-posted to Hanoi in 2008

Evaluation objectives
Assess the performance and impact of IFADsupported activities in Viet Nam; and

Generate a series of findings and recommendations to serve as building blocks for formulation of the forthcoming resultsbased COSOP for Viet Nam.

Evaluation methodology & process


Methodology
Three building blocks: (i) project portfolio; (ii) non-lending activities; and (iii) COSOP performance (relevance and effectiveness) Use of internationally-recognized evaluation criteria and a six-point rating scale

The CPE covers a period of about 17 years (since 1993)

Process: Main steps


Inception workshop: 15 December 2010

Desk review report: May 2011


Main mission: March 2011 Preparation of report: April-October 2011 Report finalized and national round-table workshop held in November 2011 Agreement at completion point: December 2011

Main findings: Portfolio Performance


Overall performance is satisfactory, including in comparison with other countries/regions Relevance: high level of ownership; timely interventions; priority areas relevant to IFADs comparative advantage and to rural poverty reduction; value chain development still at piloting stage Effectiveness: good achievements in agriculture production, gender equality and womens empowerment and support to ethnic communities; weaker performance in microfinance and microenterprise components. Multi province projects also limits effectiveness Efficiency is satisfactory, investment projects having been completed in a timely and cost-effective manner

Main findings: Portfolio performance (cont.)


Overall rural poverty impact is satisfactory. However, lack of systematic and strategic approach to natural resources/environment and sustainability; Performance of partners (IFAD and Government) is satisfactory:
IFAD: Direct supervision and implementation support positive, and out-posted CPM leading to good results; Government: Solid commitment of provincial governments and promotion of effective participation of line ministries; good support by central government, but there are opportunities for the provision of more counterpart funds.

Main findings: Performance of Non Lending Activities


Overall moderately satisfactory; Good evidence of policy impact. However, policy dialogue has been mainly limited to the provincial level;

Knowledge management is still work in progress, but with valuable learning resources/themes for project staff;
Success in partnering with provincial and local governments for implementation, but more systematic and strategic approach needed for partnerships with other stakeholders (in particular IFIs, and the private sector).

Main findings: COSOP performance


The relevance of the COSOPs is satisfactory. Design in line with evolving context and COSOP of 2008, which emphasized the importance of smallholders links to the market, partnerships with the private sector, and strengthened policy dialogue and knowledge management; and Effectiveness is moderately satisfactory. Objectives substantially achieved but lagged in terms of livelihoods promotion for ethnic minorities; the approach to natural resources management lacks strategic coherence.

Five main conclusions


Government of Viet Nam/IFAD partnership positive overall; New shift to a greater market-oriented focus has been effective, although a number of important challenges remain such as participation of the private sector and access to rural finance; Sustainability of benefits needs improvement; Pathways for scaling up successful innovations need to be more strategically defined and pursued; Non-lending activities need to be more strategic and adequately resourced and followed up: in particular, more policy dialogue at the central level; and grants to fill specific knowledge gaps.
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Main Recommendations
A strengthened pro-poor market-oriented approach More realistic geographic coverage A more favourable credit environment for smallholders Closer partnerships with multilateral organisations and private sector

Increased counterpart funding from the Government


A strategic approach to the conservation of natural resources
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