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Japanese ODA to Vietnam

Inclusive and Dynamic Development

Japan International Cooperation Agency

Jan 2013

Table of Contents
Direction of Japanese ODA to Vietnam Schemes of Japanese ODA Records of Japanese ODA to Vietnam Activities by Sectors
4-1 Infrastructure Development 4-2 Industrial Development 4-3 Rural Development 4-4 Natural Resource and Environmental Conservation 4-5 Health 4-6 Climate Change 4-7 Governance 4-8 South-south Cooperation

1. Direction of Japanese ODA to Vietnam


National Target of Vietnam Basically Modern oriented Industrialized Nation by 2020 Economic growth and strengthening global competitiveness
Level up of infrastructure Strengthening Industrial Competitiveness Reform of SOEs and Financial Sector

Strengthening Governance

Coping Vulnerability

Legal and Judicial Reforms Civil Service Reform and human resource development Strengthening the legislature function

Poverty Alleviation Narrowing Urban-Rural Disparity Environmental Conservation Countermeasures against Climate Change

Socio-Economic Development Plan 2011-2015 Socio-Economic Development Strategy 2011-2020

2. Schemes of Japanese ODA


Technical Cooperation
Bilateral Cooperation

Loan Grant
Contribution to International Organizations

JICA

ODA
Official Development Assistance Multilateral Assistance

Technical Cooperation (T/C)


Policy advice through Experts Projects type T/C Technical
transfer through projects in areas like ARD, health, governance, financial & banking, environment, etc. Training for Vietnamese personnel in Japan, Vietnam or a third country

Financial Aid
Loan Provide long-term and low-interest loans to infrastructure development for transportation, energy, water environment, etc Terms and conditions of loans: Repayment Period: 30 Years Grace Period: 10 Years Standard Rate: 1.4% Grant General Projects
for health, education, environment, disaster management, climate change, etc

Volunteer
JOCV
Japan Overseas Cooperation Volunteers =Young volunteers -AreasRural development, health, environment, Japanese language, etc.

Grass-roots Human Security Projects


for small-scale projects by NGOs, municipalities and others

SV
Senior Volunteers -AreasHuman resource development for supporting industries, etc.

Grass-roots T/C
Support for cooperation activities of NGOs, universities and municipalities.

3. Records of Japanese ODA to Vietnam


Financial Aid
Commitment

Technical Cooperation (Nov.2012)


77 Technical Cooperation Projects; 103 training courses in Japan for Vietnamese personnel Areas of Cooperation Health, Transportation, Agriculture Development, Afforestation, Monetary Policy, Investment promotion, Industrial Development, SMEs, Environmental, Climate Change, etc.

BillionYen

2009 2010 2011

Loan 145.6 86.6 270.0

Grant 3.5 3.5 5.4


Accumulated Commitment from FY1992- 2011: 1,836 billion yen

Distribution by Sector (Loan Aid)

Others 13% Social Service Drainage 17% System, etc

Energy 29%

Volunteers (Nov.2012)
Number of Volunteers: 66 persons (JOCV 42, SV 24) Areas of cooperation Health, Rural Development, Environment,, Supporting Industries, Japanese Language, etc.

Telecommunication 4% Transportation 39%

4. Activities
4-1 Infrastructure Development
Background In Socio-Economic Development Plan (2011-15), the Government of Vietnam prioritizes infrastructure development in addition to institutional reform and human resource development as driving forces for sustainable development under the progress of economic integration and liberalization in ASEAN Region after 2015. Activities Formulating and smoothly implementing projects for infrastructure development such as transportation network improvement and sustainable energy supply, the key issues for investment promotion. In addition to ODA, mobilizing private funds and their operation and management know-how to upgrade the scale and skill of projects such as urban railways, expressways and international gateways. Promotion of Public-Private Partnership (PPP)
Nhat Tan Bridge

Noi Bai International Airport

Integrated software and hardware support applying Japanese know how and technology

Packaged Support for Infrastructure Development

4. Activities
4-1 Infrastructure Development

(1) Urban Transportation


Financial and technical support for constructing urban railways and subways in Hanoi City and Ho Chi Minh City Activities Formulating master plans for urban development and transportation Financial assistance to construct prioritized railways (Line 1 and 2 in Hanoi City, Line 1 in Ho Chi Minh City) Technical Cooperation to establish railway operation and maintenance companies and toll collection system (transferring experiences and know-how of Tokyo Metro and Osaka City Subway)

Urban railway line 1 in Hanoi

Subway line 1 in Ho Chi Minh City

4. Activities
4-1 Infrastructure Development

(2) Urban Sewer and Drainage System


Background Water environment in many cities in Vietnam has been deteriorating due to the lack of sewage treatment facilities. In many industrial zones, insufficient wastewater treatment capacity causes more serious pollution from industrial waste water. Major cities suffer from floods, which cause extensive damage to the areas, due to the lack of drainage and treatment facilities. Activities Supporting the improvement of urban water environment through establishment of drainage and wastewater treatment system in Hanoi, Ho Chi Minh, Hai Phong, Hue and Binh Duong. Know-how and technology of Japanese municipalities and enterprises are made fully utilized.
Binh Hung Waste Water Treatment Plant

Tau Hu and Ben Nghe Canal

4. Activities
4-1 Infrastructure Development

(3) PPP for Infrastructure Development


Support F/S based on proposals from Japanese investors to formulate BOT/PPP projects
Typical F/S (PPP) Projects
Duong River Water Supply System Project Phap Van - Cau Gie Expressway Project Wastewater and Solid Waste Management Project for Da Nang City Utility Management Project of Environmental Friendly Industrial Parks Long Thanh International Airport Development Project Song Hau 1 Coal Fired Power Plant Project Can Tho City Water Supply Improvement Project Water Supply and Sewerage System Development Project in Phu Quoc

4. Activities
4-2 Industrial Development

(1) SMEs and Promotion of Supporting Industries


Background 97.2% of Vietnamese enterprises are SMEs Percentage of local procurement of parts/ingredients by Japanese manufacturing enterprises in Vietnam is 24% Thailand56%, Indonesia/Malaysiamore than 40% Development of SMEs/supporting industries is indispensable for strengthening industrial competitiveness and development of domestic manufacturing industries.
Source: White paper on small and medium sized enterprises in Vietnam 2009

Activities Strengthening support measures for SME and supporting industry Senior Volunteer supports Vietnamese SME Providing ODA Loans to enhance financial access for SMEs Capacity development of managers and engineers for SMEs Formulating and implementing training courses in industrial university in collaboration with industrial sector Support development of SMEs/supporting industries through harmonization of loans, technical cooperation and volunteers Provide information about Vietnam to encourage foreign SMEs to do business in Vietnam

4. Activities
4-2 Industrial Development

(2) Human Resource Development for Industries


Background Development of SMEs/supporting industries requires increase in skilled engineers. Assembling enterprises also need skilled engineers for maintaining facilities and others. Training of engineers in vocational training schools is a key (especially training quality) Activities Applying know-how of Japanese vocational training, strengthening industry-university collaboration, settingup pilot skill testing, and facilitating employment matching, at Hanoi University of Industry (from 2000 to present) Supporting establishment of national skill testing system through dispatching an advisor to MOLISA (from 2010 to present) Future Direction
GDVT & HaUI & JICA Strengthening software

Existing VTS

Existing VTS
Strengthening hardware GDVT & JICA

Existing VTS

Cooperation for software Dissemination of the achievements from past technical transfers Strengthening the system of TOT Establishing a system to certify instructors Matching the needs from industries Expansion of national skill testing system

Training in Hanoi University of Industry

GDVT: General Department of Vocational Training HaUI: Hanoi Univ. of Industry VTS: vocational training school

Cooperation for hardware Extension and renovation of facilities by ODA Loans Balanced development between software and hardware

4. Activities
4-2 Industrial Development

(3) Human Resource Development for Industries


Background Strengthening core leading universities to achieve industrialization by 2020. Development of education curriculum to respond to market needs and industry-academic collaboration. Assembling enterprises also need skilled engineers for maintaining facilities and others.

Activities Higher Education Development Support Program on ICT


To support Hanoi University of Science andTechnology to develop ICT model curriculum for producing bridge system engineers between Vietnam and Japan. More than 60 companies support internship and job seeking. <Technical Support> Curriculum development Industry-academic collaboration <Financial Support> Scholarship Japanese education Equipment provision

Capacity Building to Strengthen University-Community Linkage


To strengthen Ho Chi Minh City University of Technology as a leading research university to conduct research with close linkage with communities, companies and universities. Research examples Riverbank stabilization in the Mekong Delta to respond to climate change Measures for water contamination caused by aquafarming

4. Activities
4-3 Rural Development
Background Rural/agricultural development and improving food safety for better living standards in rural areas where large amount of population reside and for reducing gap between urban and rural areas. Providing financial aid to construct rural/agricultural infrastructure. Dispatching Japanese experts to support participatory irrigation management and safe production. Activities Financial assistance to improve transportation network connecting rural and urban areas and small scale infrastructure in rural areas. Rehabilitation of National highway No.1, national/provincial roads and bridges in Mekong Delta and other regions Small scale infrastructure improvement in provinces Financial assistance and Technical Cooperation Vegetable growing in Quang Ninh province to improve irrigation system and enhance utilization of water resource Development of large scale irrigation system in Binh Thuan Province and Nghe An Province Supporting water management system in hilly and mountainous areas (disseminating experiences of pilot projects in Hai Duong Province and others to north-west region) Technical Cooperation for rural development in provinces facing poverty Participatory rural development in communes of Gia Lai Province, central highlands Rural development and afforestation project in Dien Bien Province, north west region Technical Cooperation to improve safety of agricultural and fishery products Growing safe products through disseminating appropriate usage of agricultural chemicals Improving examination system for agricultural and fishery products, and improving capacity of inspectors

4. Activities
4-4 Natural Resource and Environmental Conservation

(1) Natural Resource (Forest) Management


Background Vietnam is unique in its steep landscape and long coastline. Population and industries concentrates in flat coastal areas, making the country more vulnerable to climate change impacts. Effective management of forest is inevitable to preserve the land and sustain the socio-economic foundation of the country. Vietnam is well-known for its rich biodiversity. However, the negative impacts to the ecosystem, such as disturbance and loss of habitats, infrastructure development, illegal hunting/gathering, are causing the rapid decrease of biodiversity. Nearly 25 million people are depending partly or largely on the forest for their livelihood. Sustainable use of the natural resources are the key for the development of rural socio-economy. Activities Enhance multi-functional role of natural resources and maximize benefits for the people: Sustainable forest management, co-management of natural resource by the Government and the community Linking natural resource management with climate change (REDD+, protection forests and disaster risk management) Development of information system for biodiversity conservation, support to the national parks

Coastal forest developed in Phu Yen Province

4. Activities
4-4 Natural Resource and Environment conservation

(2) Environmental Management in Ha Long Bay


Background Ha Long bay located in Quang Ninh Province, North Vietnam, is a popular sightseeing spot registered in the World Heritage List. Meanwhile, tourism and industrial development cause serious pollution to natural heritage in the bay. JICA supports achieving sustainable development of the area as well as preserving its environment through improvement in transportation infrastructure and management of water environment.

Activities Capacity development for environment monitoring, inspection, and management of the source of pollution; Planning of land use management in the coastal corridor area for environmental conservation; Capacity development in policy making for sustainable tourism in Ha Long Bay; Promotion of environment education and PR to relevant agencies, and dissemination of project achievements

Reclaimed land in Ha Long bay

Training of water collection and water quality monitoring at Ha Long bay

4. Activities
4-5 Health

(1) Improvement of health care services


Background Improvement in basic health service is important for reducing gap and supporting socially disadvantaged people. Insufficiency in human resource and facilities for medical treatment and concentration of patients in hospitals in large cities are issues to be tackled urgently. Activities Facility improvement and human resource development by grant aid and technical cooperation in provincial hospitals in rural areas. Improving medical equipment of provincial hospitals in prioritized areas by financial aid (ODA Loans) in order to disseminate achievements of provincial hospitals to rural areas. Dispatching volunteers (nurses and midwives) to provincial hospitals. MOH
Hue Central Hospital

Bach Mai Hospital North

Cho Ray Hospital South

Technical Cooperation Grant

Central

Hoa Binh

Provincial hospitals

ODA Loan Volunteers

District hospitals
Commune health centers
Other donors Vietnamese budget

Bach Mai Hospital 1998 Construction of a ward and provision of medical equipment (grant), Support for human resource development and training Hue Central Hospital 2004 Construction of a ward and provision of medical equipment (grant), Support for human resource development and training Cho Ray Hospital 1970 Construction/repair of a ward and provision of equipment (grant), Support for human resource development and training

4. Activities
4-5 Health

(2) Prevention of infectious diseases


Background Traditional communicable diseases are decreasing, but there is a still a threat of occurrence of emerging and re-emerging diseases such as SARS and human influenza. Activities Support to the National of Hygiene and Epidemiology (NIHE) established biosafety laboratory level 3 (BSL 3)- the first and sole BSL-3 in the country technical transfer on the examination of highly hazardous pathogens such as HIV, SARS, Influenza, Turberculosis, anthrax, rekettia, rabies is conducted. Capacity Development for Laboratory Network in Vietnam of Biosafety and Examination of Highly Hazardous Infectious Pathogens Support to establish a measles vaccine production plant Conducted technical transfer to produce measles vaccine successfully. Domestically produced measles vaccine has been circulated to the National Expanded Immunization Program (NEPI) since 2009. Conduct technical transfer to produce combined measles and rubella vaccine (April 2013 for five years)

4. Activities
4-6 Climate Change
Background Vietnam is said to be one of the weakest affected by climate change. There are serious concerns about the potential negative impacts on economic and social activities such as the decrease in agricultural products, ecological changes, the increase in damages by typhoons and floods, and the increase in the negative impacts on human health. Due to the rapid economic growth, energy consumption and the GHG emissions also have been increasing. The Government of Vietnam formulated the "National Strategy of Climate Change" in December 2011 as a comprehensive measure to respond to climate change, and the "Green Growth Strategy" in September 2012 to transform its society to the low-carbon economy and society.
Activities Policy dialogues between donors and MONRE/other related ministries Formulation of policy actions to respond to climate change, and their monitoring (2010 - 2012) Budgetary support by ODA Loan (in total of 35billion yens for the above period) Enhancement of donor coordination related to the assistance and activities to support the Vietnam's responses to climate change

4. Activities
4-7 Governance
Background The Government of Vietnam promotes legal and judicial reform to achieve its goal of establishing a lawabiding country by 2020. An important issue is to construct a national management and operating system which meets the environment such as rapid globalization and the shift to market economy. Civil Service Reform and human resource development for administrative officers are urgent needs. Efforts to eliminate corruption further modernization of legal system, strengthening administrative function and capacity development of administrative officers become more important issues. Activities More than 15 years support from 1996 for legal reform e.g. Technical cooperation for drafting civil and commercial laws. Dialogue with Japanese experts was promoted to contribute to constitutional reform. Supporting capacity development of policy makers in collaboration with the Commission on Central Party Committee, Office of Government, etc. Strengthening the legislative function of National Assembly through capacity development of Office of National Assembly. Supporting capacity development of senior executives through improving training programs of Ho Chi Minh National Academy of Politics and Public Administration.

4. Activities
4-8 South-South Cooperation Strengthening Network Triangular Cooperation between Japan, Vietnam and Africa Share Vietnams experiences of development with Africa Support to Increase Rice Production, International Economic Corridor and Industrial Development
Background TICAD IV (the fourth Tokyo International Conference for African Development) (May 2008) resulted in the target forward twofold increase in rice production in Africa. Vietnam, as one of the biggest rice production countries, shares its experiences and technology of irrigated rice cultivation with African countries.

Activities Dispatching Japanese and Vietnamese experts to Mozambique (Zambezia) to advise agricultural technicians and farmers for improving irrigated rice cultivation (20112014). Supporting friendship building among related agencies to apply Vietnams experiences about Indochina international economic corridor and special economic zones to Nacala Corridor Plan (Mozambique, Malawi, Zambia). (in November 2012, a mission from the Government of Mozambique was dispatched to Vietnam under the technical cooperation for Nacala Corridor Economic Development Strategies).

NH XUT BN VN HA THNG TIN In 100 cun theo GPXB s 97-2012/CXB/101/01-01/VHTT. In xong v np lu chiu 2013.

JICA Viet Nam Office 16th Fl., Daeha Business Center, 360 Kim Ma Str., Ba Dinh Dist., Hanoi, Vietnam Tel:(84-4)38315005~8 /Fax: (84-4)38315009, 37716561 http://www.jica.go.jp/vietnam/index.html

JICA Liaison Office No.905, 9th Fl., Saigon Riverside Office Center, 2A-4A Ton Duc Thang Str., Ben Nghe Ward, Dist. 1, Ho Chi Minh City, Vietnam Tel: (84-8) 38274942 / Fax: (84-8) 38274943