Vietnam started market reforms earlier than other countries in Southeast Asia and is used as a role model by the Asian Development Bank. Nevertheless, complicated bureaucracy and regional differences hinder improvements in financial management in education. The budgeting process, in particular, is cumbersome. This book presents a report of a detailed description of the challenges for educational finance and budgeting in Vietnam. Section I, "Budget Procedures," addresses the general framework of procedures; budgetary procedures and time frames; responsibilities of government agencies; preparation of the budget; and the budget approval process. Section II, "Implementation of the Budget," discusses distribution of the budget; allocation of the state budget and flows of money; implementation of the budget; and budgetary diversification, which includes payment of learners, mobilization of the business and industrial sectors, enlargement of private schools, international assistance, student loans, and designs of national target programs. Included in appendices are a discussion of the education sector in Vietnam in the process of economic transition, and budgetary education procedures, supplemented by tables and charts. (WFA)