Vietnam: Improving Capacity of Statistics for MfDR Nguyen Thi Lien Vietnam Statistical Association MfDR has become very popular all over the world with the initial objective of measuring the performance of sponsored projects in order to improve the effectiveness of international aid programs. Major principles of MfDR include: - defining developing action plans in which desired outcomes were identified clearly monitoring, evaluating actual outcomes against targets utilizing a results reporting system that is simple, realistic and effective, userfriendly managing for results by identifying what inputs are needed to achieve targeted outcomes using result information for decision making, reporting and accountability. With these core principles, MfDR is not only well-applicable in managing Aid Programs but also useful in the management of investment projects as well as managing the effectiveness of strategic development programs, policies and plans made by different administrative levels In recent years, MfDR has been introduced to and applied in Vietnam. The Vietnam General Statistical Office (GSO) has applied MfDR in managing the Project “Improving Capacity of Economic Statistics” sponsored by Swedish International Development Cooperation Agency (Sida). This 10 year project (1995-2006) was implemented in three phases. It has helped to build the GSO’s statistical capacity in various areas, contributing significantly to the development of the Statistical Law in Vietnam, improving the organizational structure of statistical system, statistical subject matters as well as the capacity to apply information technology within the profession. According to Sida’s evaluation, this is the most effective project in the public administration sector implemented in this period. Following are a few lessons from the management of this project: - GSO, the project manager and Sida’s advisor coordinated to develop a master plan for the project, which specified outcomes for each phase and each year. Each of the outcomes flows from a set of specific actions. For each action, we then specified a timeline for it, identified opportunities and threats, define human resource inputs (responsible authority) and financial inputs needed to achieve the target outcomes. The project was monitored closely, quarterly and yearly reports were produced, and problems were immediately addressed by the project manager. Adjustments to the outcomes were performed but on a very rare basis. - A very important factor contributing to the success of the project is the definition of the project outcomes, which were based on corresponding requirements of the strategic development plan of GSO during the period. Each task in the project is implemented in parallel with the actual working plans of GSO. However, outcomes of the project and outcomes of GSO’s working plans are not the same. Rather, outcomes of the project provided GSO with the necessary technical support and impetus. As a result, outcomes of the project become achievements of the general development program of GSO. - From our experience, it is very important that we clearly define a set of realistic objectives for the project, upon which outcomes are specified and actions are monitored. MfDR is an effective management tool. Hence, if each of the management steps is well-prepared and closely adhered to, the projects will be managed well and efficiently. In order to achieve the above mentioned success, members of the project management board had attended a training course on MfDR. MfDR has been limitedly applied in Vietnam, due to the following main reasons: 1. Other management methods are in prevalent use by administrators/managers in Vietnam (e.g. in central state agencies, ministries, local governments, and businesses). These include management methods that are based on a general plan, past experience and custom, or assignment of tasks within certain budget, time constraints … 2. Knowledge of MfDR is not widely spread. 3. MfDR involves thorough consideration of specific outcomes from the very early development of the project as well as periodical evaluation and monitoring, which could be a hindering factor. 4. Many managers are not fully aware of the importance to ensure performance quality of any work in general, and of ODA and FDI projects in particular Below are some recommendations for MfDR to work well in a developing country like Vietnam: 1. Conduct Information, Education and Communication (IEC) about MfDR and its advantages as a management tool to offer users with informed choices. 2. Organize short training courses on MfDR for managers of different levels of the government, businesses, and project managers to convince them into using MfDR in their governing and/or managerial activities. 3. Encourage applying MfDR especially in managing Aid programs/projects, by conducting tailor-made training courses for project developers and managers. 4. Develop software programs to assist planning, monitoring and reporting that would facilitate utilizing MfDR 5. Enhance capacity in accurate and timely gathering and processing of data to evaluate outcomes and progresses, identify necessary modifications, and make appropriate follow-up decisions As mentioned above, when utilizing the MfDR management tool, realistically defining outcomes and periodically evaluating performance of the project are the most important tasks. Hence, if the statistical capacity (including developing key performance indicators, improving data collection and analysis capacity …) is enhanced, MfDR will be utilized successfully. At final, I would like to take this opportunity to briefly introduce VSA and how VSA can contribute to the development of MfDR in Vietnam. The Vietnam Statistics Association (VSA) is a Non-Government Organization. The goal of the Association is to contribute to the cause of maintaining and developing the statistical occupation; improving the professional skills and ethics, contributing to the implementation of basic statistical principles of assuring transparency, objectiveness, accuracy, adequacy, timeliness and compatibility to International standards. It also aims to provide the best statistical services for all end-users and contribute to the power for extending of the statistical activities. VSA is able to provide the wide range of products and services including: 1. Doing opponent duty and consulting services on statistical field; 2. Training on Statistics ; 3.Conducting package surveys or participating in the conduction of some parts of a survey such as writing outlines and questionnaires of survey, analyzing results of survey or census, designing indicator results of projects… based on the requirements of customers 4.Other services such as disseminating or propagating statistical activities or the result of a survey or a census; providing specialist services introducing clients to other field experts With the above mentioned objectives and capacity, VSA can participate in the following services to help develop MfDR: - Conduct Information, Education and Communication about MfDR by delivering seminars and short trainning courses. Conduct survey and develop a system of outcomes evaluation for various projects and programs. For doing that, we appreciate all forms of co-operation and support. The attempts of VSA will hopefully contribute to the development of MfDR in Vietnam.