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    Japanese ODA to VietnamInclusive and Dynamic Development

    Japan International Cooperation Agency

    Jan 2013

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    Table of Contents

    Direction of Japanese ODA to VietnamSchemes of Japanese ODARecords of Japanese ODA to VietnamActivitiesby Sectors

    4-1 Infrastructure Development

    4-2 Industrial Development4-3 Rural Development4-4 Natural Resource and Environmental Conservation4-5 Health4-6

    Climate Change

    4-7 Governance4-8 South-south Cooperation

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    1. Direction of Japanese ODA to VietnamNational Target of VietnamBasically Modern oriented

    Industrialized Nation by 2020

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

    Strengthening Governance

    Legal and Judicial Reforms

    Civil Service Reform andhuman resource development

    Strengthening the legislature

    function

    Economic growth and

    strengthening global

    competitiveness

    Level up of infrastructure

    Strengthening Industrial

    Competitiveness

    Reform of SOEs and

    Financial Sector

    Coping Vulnerability

    Poverty AlleviationNarrowing Urban-Rural

    Disparity

    Environmental

    ConservationCountermeasuresagainst Climate Change

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    2. Schemes of Japanese ODA

    Loan

    Provide long-term andlow-interest loans to

    infrastructure development

    for transportation, energy,

    water environment, etc

    Terms and conditions of

    loans:

    Repayment Period: 30Years

    Grace Period: 10 YearsStandard Rate: 1.4%

    Grant

    General Projectsfor health, education,

    environment, disaster

    management, climate change,

    etc

    Grass-roots HumanSecurity Projects

    for small-scale projects by

    NGOs, municipalities and

    others

    Financial AidTechnical Cooperation (T/C)

    Policy advice throughExpertsProjects type T/C Technicaltransfer through projects in areas

    like ARD, health, governance,

    financial & banking, environment,

    etc.Training for Vietnamese

    personnel in Japan, Vietnam or a

    third country

    Grass-roots T/CSupport for cooperation activities of

    NGOs, universities and

    municipalities.

    Volunteer

    JOCVJapan Overseas Cooperation

    Volunteers

    =Young volunteers

    -Areas-

    Rural development, health,

    environment, Japaneselanguage, etc.

    SVSenior Volunteers

    -Areas-Human resource development

    for supporting industries, etc.

    ODAOfficial

    Development

    Assistance

    Bilateral

    Cooperation

    Multilateral

    Assistance

    JICA

    Technical

    Cooperation

    Loan

    Grant

    Contribution to

    International

    Organizations

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    3. Records of Japanese ODA to Vietnam

    Financial Aid

    Telecommunication

    4%

    Social Service

    DrainageSystem, etc

    17%

    Others 13% Energy 29%

    Transportation

    39%

    Technical Cooperation (Nov.2012)

    77 Technical Cooperation Projects; 103 training coursesin Japan for Vietnamese personnel

    Areas of CooperationHealth, Transportation, Agriculture Development,

    Afforestation, Monetary Policy, Investment promotion,

    Industrial Development, SMEs, Environmental,

    Climate Change, etc.

    Volunteers (Nov.2012)

    Number of Volunteers:

    66 persons (JOCV 42, SV 24)Areas of cooperationHealth, Rural Development, Environment,, Supporting

    Industries, Japanese Language, etc.

    Commitment

    Distribution by Sector (Loan Aid)

    BillionYenLoan Grant

    2009 145.6 3.5

    2010 86.6 3.5

    2011 270.0 5.4

    Accumulated Commitment fromFY1992 2011: 1,836 billion yen

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    4. Activities

    Background

    In Socio-Economic Development Plan (2011-15), the Governmentof 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 forinfrastructure 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 operationand 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)

    Integrated software and hardware support applying Japanese know how and technologyPackaged Support for Infrastructure Development

    Nhat Tan Bridge

    Noi Bai International Airport

    4-1 Infrastructure Development

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    (1) Urban Transportation

    Financial and technical support for constructing urban

    railways and subways in Hanoi City and Ho Chi Minh

    City

    ActivitiesFormulating master plans for urban development and

    transportationFinancial assistance to construct prioritized railways (Line1 and 2 in Hanoi City, Line 1 in Ho Chi Minh City)

    Technical Cooperation to establish railway operation andmaintenance 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

    4-1 Infrastructure Development

    4. Activities

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    4. Activities

    (2) Urban Sewer and Drainage System

    Background

    Water environment in many cities in Vietnam has beendeteriorating due to the lack of sewage treatment facilities.

    In many industrial zones, insufficient wastewatertreatment capacity causes more serious pollution from

    industrial waste water.

    Major cities suffer from floods, which cause extensivedamage to the areas, due to the lack of drainage and

    treatment facilities.

    ActivitiesSupporting 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 Japanesemunicipalities and enterprises are made fully utilized.

    4-1 Infrastructure Development

    Tau Hu and Ben Nghe Canal

    Binh Hung Waste Water Treatment Plant

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    4. Activities

    Typical F/S (PPP) Projects

    (3) PPP for Infrastructure Development

    Support F/S based on proposals from Japanese investors to formulate BOT/PPP projects

    Water Supply and Sewerage System Development Project

    in Phu Quoc

    Duong River Water Supply System Project

    Wastewater and Solid Waste Management Project

    for Da Nang City

    Utility Management Project of Environmental Friendly

    Industrial Parks

    Can Tho City Water Supply Improvement Project

    Phap Van - Cau Gie Expressway Project

    Song Hau 1 Coal Fired Power Plant Project

    Long Thanh International Airport Development Project

    4-1 Infrastructure Development

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    4. Activities

    (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 inVietnam is 24%

    Thailand56%, Indonesia/Malaysiamore than 40%Development of SMEs/supporting industries is indispensable

    for strengthening industrial competitiveness and development ofdomestic manufacturing industries.Source: White paper on small and medium sized enterprises in Vietnam 2009

    ActivitiesStrengthening support measures for SME and supporting industry

    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 withindustrial 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

    4-2 Industrial Development

    Senior Volunteer supports Vietnamese SME

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    4. Activities

    (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)ActivitiesApplying know-how of Japanese vocational training, strengthening industry-university collaboration, setting-up 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 (from2010 to present)

    Cooperation for softwareDissemination of the achievements from past

    technical transfers

    Strengthening the system of TOT

    Establishing a system to certify instructors

    Matching the needs from industriesExpansion of national skill testing system

    Cooperation for hardwareExtension and renovation of facilities by ODA Loans

    Balanced development between software and

    hardware

    Training in Hanoi University of Industry

    GDVT

    & JICA

    GDVT

    & HaUI

    & JICA

    Existing

    VTS

    Existing

    VTS

    Existing

    VTS

    Strengthening software

    GDVT: General Department of Vocational Training

    HaUI: Hanoi Univ. of Industry

    VTS: vocational training school

    4-2 IndustrialDevelopment

    Future Direction

    Strengthening hardware

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    4. Activities

    BackgroundStrengthening 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.

    ActivitiesHigher Education Development Support Program on ICT

    Capacity Building to Strengthen University-Community Linkage

    (3) Human Resource Development for Industries

    4-2 IndustrialDevelopment

    To support Hanoi University of Science andTechnology to develop ICTmodel curriculum for producing bridge system engineers between Vietnam

    and Japan. More than 60 companies support internship and job seeking.

    Curriculum developmentIndustry-academic collaboration

    ScholarshipJapanese educationEquipment provision

    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 examplesRiverbank stabilization in the Mekong Delta to respond to climate changeMeasures for water contamination caused by aquafarming

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    4. Activities

    Background

    Rural/agricultural development and improving food safety for better living standards in rural areas where largeamount of population reside and for reducing gap between urban and rural areas.

    Providing financial aid to construct rural/agricultural infrastructure. Dispatching Japanese experts to supportparticipatory irrigation management and safe production.

    ActivitiesFinancial 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 roadsand bridges in Mekong Delta and other regionsSmall scale infrastructure improvement in provinces

    Financial assistance and Technical Cooperation

    to improve irrigation system and enhance utilization of water resource

    Development of large scale irrigation system in Binh Thuan Province and Nghe An ProvinceSupporting water management system in hilly and mountainous areas (disseminating experiences of pilot projects inHai Duong Province and others to north-west region)Technical Cooperation for rural development in provinces facing povertyParticipatory rural development in communes of Gia Lai Province, central highlandsRural development and afforestation project in Dien Bien Province, north west regionTechnical Cooperation to improve safety of agricultural and fishery productsGrowing safe products through disseminating appropriate usage of agricultural chemicalsImproving examination system for agricultural and fishery products, and improving capacity of

    inspectors

    4-3 Rural Development

    Vegetable growing in Quang Ninh province

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    4. Activities

    (1) Natural Resource (Forest) Management

    BackgroundVietnam is unique in its steep landscape and long coastline. Population and industries concentrates in flatcoastal 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 asdisturbance 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 useof the natural resources are the key for the development of rural socio-economy.

    ActivitiesEnhance 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

    4-4 NaturalResourceandEnvironmentalConservation

    4 A i i i

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    4. Activities (2) Environmental Managementin Ha Long Bay

    BackgroundHa Long bay located in Quang Ninh Province, North Vietnam,is a popular sightseeing spot registered inthe 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 environmentthrough improvement in transportation infrastructure and management of water environment.

    ActivitiesCapacity development for environment monitoring, inspection,and management of the source of pollution;

    Planning of land use management in the coastal corridor area forenvironmental conservation;

    Capacity development in policy making for sustainable tourism

    in Ha Long Bay;Promotion of environment education and PR to relevantagencies, and dissemination of project achievements

    Reclaimed land in Ha Long bay

    Training of water collection and water

    quality monitoring at Ha Long bay

    4-4 NaturalResource and Environment conservation

    4 A ti iti

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    4. Activities

    Background

    Improvement in basic health service is important for reducing gap and supporting socially disadvantaged people. Insufficiency in humanresource and facilities for medical treatment and concentration of patients in hospitals in large cities are issues to be tackled urgently.ActivitiesFacility improvement and human resource development by grant aid andtechnical 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.

    Technical

    Cooperation

    Grant

    ODA Loan

    Volunteers

    Other donors

    Vietnamese budget

    MOH

    Bach Mai

    Hospital

    Hue

    Central

    Hospital

    Cho Ray

    Hospital

    North Central South

    Hoa

    Binh

    District

    hospitals

    Commune

    health centers

    Provincialhospitals

    Bach Mai Hospital 1998Construction of a ward and provision of

    medical equipment (grant),

    Support for human resource development

    and trainingHue Central Hospital 2004Construction of a ward and provision ofmedical equipment (grant),

    Support for human resource development

    and trainingCho Ray Hospital 1970Construction/repair of a ward and provision

    of equipment (grant),

    Support for human resource development

    and training

    4-5 Health

    (1) Improvement of health care services

    4 A ti iti

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    4. Activities

    BackgroundTraditional 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.

    ActivitiesSupport to the National of Hygiene and Epidemiology (NIHE)

    established biosafety laboratory level 3 (BSL 3)- the first and soleBSL-3 in the country

    technical transfer on the examination of highly hazardous pathogenssuch as HIV, SARS, Influenza, Turberculosis, anthrax, rekettia, rabies

    is conducted.

    Capacity Development for Laboratory Network in Vietnam of Biosafetyand 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)

    4-5 Health

    (2) Prevention of infectious diseases

    4 A ti iti

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    4. Activities

    Vietnam is said to be one of the weakest affected by climate change. There are serious concerns aboutthe 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 beenincreasing.

    The Government of Vietnam formulated the "National Strategy of Climate Change" in December 2011as 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.

    ActivitiesPolicy dialogues between donors and MONRE/other relatedministries

    Formulation of policy actions to respond to climate change,and their monitoring (2010 - 2012)

    Budgetary support by ODA Loan (in total of 35billion yens forthe above period)

    Enhancement of donor coordination related to the assistanceand activities to support the Vietnam's responses to climate

    change

    4-6 Climate Change

    Background

    4 Acti ities

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    4. Activities4-7 GovernanceBackground

    The Government of Vietnam promotes legal and judicial reform to achieve its goal of establishing a law-abiding country by 2020.

    An important issue is to construct a national management and operating system which meets the environmentsuch 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 developmentof administrative officers become more important issues.

    ActivitiesMore than 15 years support from 1996 for legal reform e.g. Technicalcooperation 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 withthe Commission on Central Party Committee, Office of Government, etc.

    Strengthening the legislative function of National Assembly throughcapacity development of Office of National Assembly.

    Supporting capacity development of senior executives through improvingtraining programs of Ho Chi Minh National Academy of Politics and Public

    Administration.

    4 Activities

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    4. Activities

    Background

    TICAD IV (the fourth Tokyo International Conference forAfrican Development) (May 2008) resulted in the target forward

    twofold increase in rice production in Africa. Vietnam, as one ofthe biggest rice production countries, shares its experiences and

    technology of irrigated rice cultivation with African countries.

    Strengthening Network Triangular Cooperation between Japan, Vietnam and Africa

    Share Vietnams experiences of development with Africa

    ActivitiesDispatching 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 Indochinainternational 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).

    4-8 South-South Cooperation

    Support to Increase Rice Production, International Economic Corridor and Industrial

    Development

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

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    JICA Viet Nam Office

    16thFl., 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-4ATon Duc Thang Str., Ben Nghe Ward, Dist. 1,

    Ho Chi Minh City, Vietnam

    Tel: (84-8) 38274942 / Fax: (84-8) 38274943