DESCRIPTION ADB will use a programmatic, policy-based lending modality to support the government's reform agenda. This approach, which combines extensive policy dialogue with technical assistance (TA), recognizes the long-term time horizon required for financial sector development, the need to sequence reforms, and the catalytic role played by ADB. PROJECT RATIONALE AND LINKAGE TO COUNTRY/REGIONAL STRATEGY To achieve middle-income country status and further reduce poverty by 2020, Viet Nam will need to continue reforms under the Socio-Economic Development Strategy (SEDS) 2011 2020, including efforts to develop its financial sector and broaden access to finance. The Financial Sector Development and Inclusion Program will continue ADB's support to financial sector development and will: (i) enhance financial sector stability, (ii) continue developing and deepening the domestic capital markets, and (iii) promote financial inclusion. The program is consistent with ADB's interim country partnership strategy and is included in the country operations business plan, 2016 2018, approved in 2015. IMPACT The program is aligned with the Socio-Economic Development Strategy (SEDS) 2011 2020 and will support the government's efforts to increase the role of the nonbank financial sector and deepen the financial markets in Viet Nam. OUTCOME A deeper, more inclusive financial sector. CONSULTING SERVICES International consultants (19 person-months) and national consultants (16 person-months) will be recruited as individual consultants, except that expertise relating to mobile banking and payments (5 person-months) will be recruited through a firm. The firm will be recruited using quality and cost-based selection (QCBS) using a quality cost ratio of 80:20 and biodata technical proposals. ADB will select and engage consultants in accordance with its Guidelines on the Use of Consultants (2013, as amended from time to time). Supervision expert financial stability (international, 4 person-months, individual). The expert will support the government's efforts to establish a Committee for Financial Stability by providing inputs regarding the committee's composition, responsibilities, logistics and administrative arrangements. The expert will prepare draft decrees and circulars to strengthen the government's efforts to promote financial stability and macro-prudential policies, and will provide recommendations to the State Bank of Viet Nam (SBV) to strengthen its early-warning system. The expert will have an advanced degree in economics with financial sector supervisory experience. Supervision expert systemically important banking organizations (international, 3 person-months, individual). The expert will provide assistance to establish a regulatory framework to identify and supervise systemically important credit institutions, as well as shadow banking. The expert will have an advanced degree in finance with relevant financial sector supervisory experience. Problem asset resolution expert (international, 2 person-months, individual). To begin a more rational and efficient resolution effort, the expert will assist the VAMC in designing and implementing a methodology to screen NPLs and categorize them according to severity. In addition, the expert will provide training to strengthen the technical skills of VAMC's staff to conduct problem borrower rehabilitation. The expert should have an advanced degree in economics or finance, or a master's degree in business administration, and significant experience in problem asset resolution. Securities lending, repurchase market, money market expert (international 1 person-month, individual). The expert will assist the government's efforts to launch a primary dealer system by supporting the development of a securities lending facility and repo market. In addition, the expert will develop a framework to reduce systemic risk in the inter-bank lending market. The expert will have an advanced degree in a relevant field with significant experience in money market activities. Payment systems expert automated clearing house (international, 1 person-month, individual). The expert will develop a legal framework and regulatory guidelines for the governance and oversight of an automated clearing house. The expert should have an advanced degree in a related field and significant experience in the establishment and operation of payments systems either from a regulatory or commercial perspective. Capital markets expert contractual savings (international, 2 person-months, individual). The expert will provide TA to support the development of the insurance sector road map for 2016 2020, which will provide an enabling environment for the insurance sector to participate in the development of the government bond market. The expert should have an advanced degree in economics or finance and significant experience in market development, with a focus on contractual savings. Payments system expert mobile banking and payments (international, 5 person-months, firm). The firm will support the SBV as it develops a master plan for the promotion of non-cash payments during 2016 2020. In conjunction with this effort, the firm will develop an overall regulatory framework for emerging payment instruments (e.g., mobile and internet payments), especially by non-bank payment service providers. In addition, the firm will draft a legal framework and regulatory guidance for agent banking. The firm should have significant experience working with alternative payment systems in developing markets. Financial inclusion expert (international, 3 person-months, individual). In close consultation with concerned government agencies, the expert will draft a status report on the Viet Nam Microfinance Development Strategy, 2011 2020. In addition, the expert will update the sector road map and identify sequenced development priorities to broaden financial inclusion by addressing binding constraints in institutional and policy and regulatory environments The expert will have an advanced degree in a related field, with significant professional experience in financial inclusion, including microfinance. Inclusive finance expert (national, 6 person-months, individual). The expert will assist the international financial inclusion expert and provide analytical inputs to the status report on the Viet Nam Microfinance Development Strategy, 2011 2020 and the sector road map. The expert will also provide administrative and logistical support to ADB missions, including arranging meetings with government agencies and stockholders and attending meetings, as required. The expert will have a degree in relevant field with recognized professional experience in financial inclusion and microfinance. Bond market researcher (national, 10 person-months, individual). The expert will support the government's efforts to develop the corporate bond market. Research will be combined with surveys focused on potential issuers to identify impediments to development. The expert will support consensus building and identify solutions. The expert will also support ADB's overall engagement in support of capital market development by completing ad hoc research, surveys, and market outreach. The expert should have an advanced degree in economics or finance, or an master's degree in business administration, with experience in a global bank or international financial institution.

ACCOUNTABILITY MECHANISM OF ADB The Accountability Mechanism is an independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an Asian Development Bank-financed project. If you submit a complaint to the Accountability Mechanism, they may investigate to assess whether the Asian Development Bank is following its own policies and procedures for preventing harm to people or the environment. You can learn more about the Accountability Mechanism and how to file a complaint at: http://www.adb.org/site/accountability-mechanism/main