UN Resident Coordinator John Hendra with representatives of MPI and the EU at the cost norms signing ceremony
Ha Noi, June 3, 2009 – The UN, European Union and Government of Viet Nam agreed to new guidelines today for applying a single set of standardized rates for the local costs of development cooperation projects in Viet Nam. The revised "UN-EU cost norms" for 2009 will provide a clear and transparent basis for the management of official development assistance in Viet Nam and represent a tangible contribution to aid effectiveness in the context of the Hanoi Core Statement. The unified UN-EU rates are to be used by all national implementing partners and other counterparts in Viet Nam for the local costs of projects funded by UN agencies and EU Member States' missions in the country.
The adoption of the new cost norms are part of efforts to harmonize procedures of UN agencies in Viet Nam and reduce transaction costs for implementing partners.
The rates are based on market prices: "These guidelines have improved from the previous version of 2007 that did not have the expected impact in Viet Nam", says Rafael Ramirez, Head of Operations for UNICEF in Viet Nam. "The new rates are market oriented and will be reviewed at least annually to ensure we attract high quality human resources, services and collaboration."
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The One UN Initiative is bringing greater coherence and effectiveness to the UN’s work in Viet Nam. This update begins with a few examples of this increased effectiveness, particularly in responding to the needs of the Government for high quality policy support as Viet Nam transitions to a middle income country. The update also reviews progress made on the five pillars for reform, or ‘Five Ones’ - One Plan, One Budget, One Leader, One Set of Management Practices and the Green One UN House – and outlines the priorities for the coming year.
