Vietnam Poverty Reduction Support Credit 10

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The objective of the Tenth Poverty Reduction Support Credit (PRSC) Program is to maintain the momentum for the reforms needed to transform Vietnam from a transition to a middle-income country. Through policy dialogues it aims to share the knowledge the World Bank and participating development partners collectively possess with the Vietnamese authorities, and to improve coherence and coordination among government agencies. The credit is the last in a five-year cycle aimed at supporting the implementation of the Socio-Economic Development Plan (SEDP). This series follows the first cycle of five operations. The cross-cutting nature of the policy dialogue supported by PRSCs was well-suited to the circumstances when PRSC 6 was developed. It was the only development policy operation, and it helped strengthen coordination among line ministries and government agencies. The annual programming is demanding, but provided the government with predictability for planning purposes, and also helps maintain the reform momentum. The PRSC operations have also served as an effective platform for aid coordination. Developing a single policy matrix on which all participating partners can agree was time-consuming for the task team, but reduced the transaction costs on the government side. The process of debating which policy reforms should be pursued also imposed a certain amount of discipline among participants, as the reforms were to be based on analytical work, government-owned, feasible and monitor able.