Public Financial Management Reform Project

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The objective of Vietnam's Public Financial Management Reform Project (PFMRP) is to strengthen budget planning, execution, reporting and accountability. There is an urgent need for further, accelerated reform to strengthen and integrate core treasury and budget management information systems; to strengthen the links between budget management and the developmental goals set out in the Government's Comprehensive Poverty Reduction and Growth Strategy (CPRGS) within a medium-term expenditure framework; and to improve the management of public debt and other fiscal risks. There are 3 main components in addition to a project management component. The first and largest component of the P F M W will involve the implementation of an integrated Treasury and Budget Management Information System (TABMIS), specifically, the turn-key procurement of the new TABMIS, including hardware, software, implementation /integration services, training and change management services as well as other consulting and training costs. The second component of the PFMRP will involve the strengthening of state budget and investment planning, including the development of a Medium Term Fiscal Framework (MTFF) and of Medium Term Expenditure Frameworks (MTEFs) in four pilot sectors and four pilot provinces. The third component of the PFMRP will support the strengthening of the Government's ability to manage Vietnam's public debt and to begin monitoring fiscal risks that emanate from State-Owned Enterprise (SOE) liabilities. This will include TA, training and capacity building, as well as information and communications technology (ICT) systems implementation to support recording of domestic debt. In addition, it will provide TA, training and capacity building and associated ICT systems implementation to support procedures and processes for analyzing and managing domestic debt liabilities.