1 The context

The governmental restructuring at the end of 1995 has brought together several former ministries, and created the Ministry of Agriculture and Rural Development (MARD), one of the major and multi-sectoral ministries in Vietnam.

Based on the co-ordination needs of MARD’s external support and the experiences gained from the coordination work of the forestry sector, MARD launched the initiative of establishing an International Support Group (ISG) in January 1997. The ISG has the objectives of achieving more integration, co-ordination and harmonisation in the areas of development concepts and approaches in agriculture and rural development. With strong support from donors, ISG was created. MARD Minister issued the Decision No 541 NN/TCCB-QD on 9 April 1997, establishing ISG with advisory function in the effective use and mobilisation of ODA resources. With the first Vice-Minister as chairman, the hierarchical composition of the four ISG bodies was: ISG Plenary, ISG Core, Technical Working Groups (TWG) and ISG Secretariat. Sweden was the main donor. Germany and Netherlands also contributed to the process.

During its existence over little more than two years, ISG Plenary has conducted useful periodic meetings, established four TWGs, out of which one has functioned and provided valuable inputs to land use policy. The Secretariat has also been operational.

1.1 Coordination of ODA

According to the Government Decree No 87-CP dated 5 August 1997, setting forth the Regulation on ODA Management and Utilisation, the Ministry of Planning and Investment (MPI) is the focal point in co-ordinating and managing ODA sources, with the Ministry of Finance (MOF) managing financial aspects. Ministries such as MARD are responsible in the formulation of large and medium projects/programmes and submit them to the Government through MPI for approval. However, Ministers and Chairmen of Provincial People Committee (PPC) are entitled to approve small ODA projects up-to USD 500,000 and report to MPI for recording.

Since 1993, Vietnam has participated in the annual Consultative Group meetings and MPI is the governmental agency supporting these national level meetings. MARD being one of the largest recipients of ODA among the ministries, and with a diversified programme, should also be represented in co-ordination process at ministerial level. The co-ordination mechanism at ministerial level is especially important in the formulation of programmes and projects and analysis of more specific and practical matters.

MARD has to deal with a number of sectors such as agriculture, forestry, irrigation and drainage, flood control, rural water supply, processing industry, agricultural product export, etc. Furthermore, there is a number of inter-ministerial matters such as rural development, water resources management, integrated agriculture (cultivation, livestock and aqua-culture) as well as dual functions of water resources management and some water use/services. In this context, coordination among sector policies and strategies seems quite complicated and need to be clarified. The same is true for the formulation of multi-purpose programme/project into fundable projects that reflect the purpose of social, economic and environmental development.

Recently, MARD Minister has issued Decision No 132-1999/QD-BNN-HTQT dated 22 September 1999, promulgating the Regulation on the Management of External Fund Sources that MARD has direct responsibilities for. The ministerial regulation states that the Department for International Cooperation (ICD) has the co-ordination role in the formulation, negotiation, agreement, monitoring and information of all external support projects/programmes related to MARD responsibilities.

In general terms, MARD programmes are well suited to donors priorities. However, donors require that MARD incorporate related national policies such as poverty alleviation, support to remote minority groups, basin-based water management, efficient use of resources etc. into its sector policies, and to reflect these sector policies within its coordinated development programmes. An exchange of views among donors concerned is needed to avoid duplication or contradiction and help MARD to improve external resource utilisation.

1.2 Experiences gained from prior and ongoing initiatives

There are several lessons to be learnt from the ongoing ISG-process, which have been highlighted by the recently completed evaluation.

They are follows:

The ISG-process has played its role in increasing the awareness of the need for a forum/mechanism where government agencies and donors can meet and discuss priorities, policies, strategies and experiences gained in agriculture and rural development.

The formulation of the ISG-process was not properly thought out. One of the major weaknesses was the lack of a proper problem analysis system. Proper problem analysis and project planning are essential for the formulation of a relevant project with precise and achievable objectives and feasible outputs. Consequently, the objectives and outputs were vague and encompass too many areas of development. Further more, all stakeholders concerned must be involved in the formulation phase.

The ISG-process has not focused on specific topics, but rather on presentation of new projects and information on donors’ interest and approaches. Some activities undertaken by ISG Technical Working Groups were of a technical nature. Future ISG-process needs to be changed in order that they become effective and result oriented. They should also focus on certain specific areas in the policy, strategy and priority framework of formulation of programmes/projects. By making these changes the future ISG will promote a programme and partnership approach.

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