Better Investment Outcomes in Viet Nam through Increased Public Investment Management Efficiency

Better Investment Outcomes inVietNamthroughIncreasedPublicInvestmentManagementEfficiency October2024 ©2024The World Bank1818 H Street NW, Washington DC 20433Telephone: 202-473-1000; Internet:www.worldbank.org Some rights reserved. This work is a product of The World Bank. The findings, interpretations, and conclusions expressed in this work do notnecessarily reflect the views of the Executive Directors of The World Bank or the governments they represent. The World Bank does not guarantee the accuracy, completeness, or currency of the data included in this work and doesnot assume responsibility for any errors, omissions, or discrepancies in the information, or liability with respect to the useof or failure to use the information, methods, processes, or conclusions set forth. The boundaries, colors, denominations,links/footnotes and other information shown in this work do not imply any judgment on the part of The World Bankconcerning the legal status of any territory or the endorsement or acceptance of such boundaries. The citation of worksauthored by others does not mean the World Bank endorses the views expressed by those authors or the content of theirworks. Nothing herein shall constitute or be construed or considered to be a limitation upon or waiver of the privileges and immunitiesof The World Bank, all of which are specifically reserved. Rights and Permissions The material in this work is subject to copyright. Because The World Bank encourages dissemination of its knowledge, thiswork may be reproduced, in whole or in part, for noncommercial purposes as long as full attribution to this work is given. Attribution—Please cite the work as follows: “World Bank.2024.Better Investment Outcomes inViet NamthroughIncreasedPublic InvestmentManagementEfficiency.© World Bank.” Any queries on rights and licenses, including subsidiary rights, should be addressed to World Bank Publications, TheWorld Bank, 1818 H Street NW,Washington, DC 20433, USA; fax: 202-522-2625; e-mail:pubrights@worldbank.org. ACRONYMS AND ABBREVIATIONS AIPAnnual Investment PlanCEACost-Effectiveness AnalysisCLConstruction LawCPOCentral Project OfficeDARDDepartment of Agriculture and Rural DevelopmentDOFDepartment of FinanceDONREDepartment of Natural Resources and EnvironmentDPIDepartment of Planning andInvestmentENPVEconomic Net Present ValueFSFeasibilityStudyHCMCHo Chi Minh CityIMFInternational Monetary FundIPInvestment PlanLFDCLand Fund Development CentersMARDMinistry of Agriculture and Rural DevelopmentMCAMulti-Criteria AnalysisMOFMinistry of FinanceMPIMinistry of Planning and InvestmentMTEFMedium-term Expenditure FrameworkMTIPMedium-term Investment PlanO&MOperations& MaintenanceODAOfficial Development AssistanceOECDOrganisation for Economic Co-Operation and DevelopmentPFSPre-FeasibilityStudyPILPublic Investment LawPIMPublic Investment ManagementPIMAPublic Investment Management AssessmentPIMISPublicInvestment Management Information SystemPLPlanning Law PMPrime MinisterPMUProject Management UnitPOMProject Operational ManualPPCProvincial People’s CommitteePPCcProvincial People’s CouncilPPPPublic Private PartnershipPSDUPublic Service Delivery UnitSBLState Budget LawSCBASocial Cost-Benefit AnalysisSMESmall and Medium EnterpriseSUUPScaling up Urban Upgrading ProjectTATechnical AssistanceTORTerms of ReferenceWBWorld Bank Contents ACRONYMS AND ABBREVIATIONS...................................................................................................2Acknowledgement...........................................................................................................................5Executive Summary.........................................................................................................................61.Introduction............................................................................................................................131.1.Background and Purpose of the Technical Report..........................................................131.2.Approach and Structure................................................................................................142.Analysis of the Legal Framework for PIM.................................................................................172.1.Legal Framework Governing Government-Funded Projects............................................172.2.Special Features of the Legal Framework for ODA Projects............................................252.3.Inefficiencies and Inconveniences of the Existing Legal Framework................................253.Assessment of Evidence from Medium-Term Investment Plans and Projects........................353.1Analysis of MTIP Portfolio Management.........................................................................353.2Assessment of Evidence from Specific Projects.............................................................523.3Assessment of Evidence from a Sample of ODA Projects.............................................