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It was unclear who is ultimately responsible for the ISG-process. Vietnamese ownership is a prerequisite for increasing the co-ordination of external support. The plenary meetings have been important for the exchange of information between the Government and donors regarding policy, project proposals, experiences gained, and trends in donors’ activities. But the main role and  the coordination aspect of the ISG should be centred in MARD, more specifically in MARD-ICD. The co-ordination within MARD and through ICD with a focal role is a prerequisite for successful implementation of policy and priority dialogue, and thus a more effective use of external resources. It is further evident that an effective mechanism for inter-ministerial coordination is largely missing in Vietnam. Consequently, the ISG mechanism can contribute to fill that gap.

2 Justification

The overall justification for the process is based on the problem of inadequate coordination of external support. There is a common realisation that foreign supported projects do not achieve the desired effects initially hoped for. One reason was that communication and the exchange of information among the various projects is limited. This is not limited Vietnam, but is more a general problem  that all donors have experienced..

There is a great need to integrate official foreign financed development projects at the national level. Development projects outside the national policy and priorities become ineffective, inefficient and unsustainable. The required integration can be achieved through coordination. An important aspect is that the coordination mechanism is essential at the early stage of the project formulation, thus focusing on policies, priorities and strategies.

It is recognised that co-ordination is complex, involving many varied sectors within MARD, and large number of donors, other ministries and provinces. MARD perception about this complexity is shown in ICD main function of external-support co-ordination. Lessons and experiences drawn from the evaluation of ISG show clearly that there is a need of ICD role in managing a forum, mechanism or process that increases the effectiveness and efficiency of ODA projects in Vietnam.

The evaluation also made positive recommendations in views of a continuation of ISG process. Since it is important not to lose momentum regarding the coordination and dialogue process that ISG has initiated, the Evaluation Mission recommended a three-year new phase of the ISG. It is however recognised, that a proper planning has not been done for this new phase, therefore a two-year first step of the new phase shall be closely monitored and experiences and knowledge systematically collected. This information will be used as vital input in  proper planning of the new phase starting end 2001.

2.1 Problems to be addressed

To be effective and produce results, the ISG-process shall focus on policies, priorities and strategies in agriculture and rural development and centre its activities and dialogues to the formulation phase. Firstly, MARD line agencies have their responsibilities regarding technical planning, policy set-up, formulation, implementation, monitoring and evaluation. Secondly, matters regarding dialogue concerning co-ordination, communication, policy and programme integration, priority analysis and gender streamlining are marginal aspects of the existing agencies work and responsibilities. Here ICD together with ISG mechanism has a role to play.

Through the ISG process, the formulation of external support programmes - instead of separate projects so far - influenced by programme and partnership approach, has great potentials to be properly implemented. That needs to be started with good co-operation within ICD, and under the overall co-ordination of ICD, that will involve technical departments and agencies concerned in MARD and other relevant ministries involved in rural development and water management, which are the two typical inter-ministerial areas of MARD. Policy dialogue involvement should not be limited to donors and governmental agencies, but rather open to other interested parties, including NGOs, mass organisations and community representatives. In such a way, ISG-process will make contribution to the improvement and the quality of external support programme.

Another issue refers to the stakeholders’ readiness to establish a partnership and how close such a partnership may become regarding communication and information sharing. There was evidence that stakeholders - Vietnamese as well as international donors - do not share information on pipeline projects/programmes. There seems to be a situation of competition between donors as well as between government agencies. The former is competing over good projects, the latter over funds.

The information sharing is also subjected to the implementation of Decree 87 and Decision 132. According to Decision 132, ICD has the function of collecting and disseminating information of projects/programmes which fall under the administration of MARD, including those implemented in both central and provincial levels. However according to Decree 87, MARD has difficulty in collecting data from ODA small projects which are approved by PPCs. In this context, a coordination and partnership within ISG process could help ICD with access to provincial data which must be reported to and therefore available at MPI, MOF and donor offices. It has been noted that information sharing is needed not only at central level, but also at local level. Central level proposals need information to avoid overlaps among multiple projects, and local initiatives need information for ensuring a close link to national and donor policies. In handling the ISG process during which MPI and MOF and donors are promoting an open exchange of information, ICD could be in the position to manage the collection and dissemination of data at central and local levels. A good mechanism together with a good data base design would meet the needs of all parties.

2.2 Expected end of the new phase process

By the end of the two-year period of the ISG new phase, the Vietnamese components, MARD and ICD will have further developed the co-ordination functions. It is also expected that policy and strategies central toMARD’ activities in the area of agriculture and rural development in a broad sense will have been developed. Additional experiences from the Vietnamese deparrtments and the donor community, including NGOs, is expected to have been acquired. Expecially regarding the importance of a programming and partnership approach and a constructive open dialogue on policies and priorities in areas where MARD is responsible. Systematic monitoring of ICD through  ISG-process will take place. The information and input from monitoring will serve as vital inputs into the planning of a new phase of ISG if a continuation is deemed needed.

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