Countries and Regions

	Table of Contents
p. 4 of 10 BACK | NEXT I. Current Development Trends and Issues II. Implementation of the Country Strategy and Program A. Progress in Poverty Reduction B. Progress in the Country Strategy and Program Focus Areas C. Highlights in Coordination of External Funding and Partnership Arrangements III. Portfolio Management Issues IV. Country Performance and Assistance Levels

Country Strategy and Program Update 2006-2008: Viet Nam, Socialist Republic of : II. Implementation of the Country Strategy and Program

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B. Progress in the Country Strategy and Program Focus Areas

8. ADB, working with other development partners, supported provincial incorporation of the CPRGS into the annual planning process in the central highlands.⁷ ADB is supporting

1. preparation of a results framework for the SEDP
2. preparation of a planning handbook for socioeconomic development planning
3. consultation on the SEDP in the central region
4. implementation of the SEDP in three provinces

9. Progress has been made in implementing the 2002–2004 CSP's five strategic priorities:⁸

1. Sustainable growth. The economy has grown steadily, with increased agricultural diversification and solid increase in the number of private enterprises. The May 2005 Viet Nam Business Forum reported acceleration in the resolution of policy issues hindering private sector development. Implementation of ADB’s Financial Sector Program loan II proceeded on schedule, a project preparatory technical assistance (TA) for the Financial Sector Program loan III is being processed in 2005. The 2004 program loan for small and medium enterprise (SME) development addresses reforms in accounting, access to land and finance, licensing and regulation simplification, industrial and technical standards, and dissemination of information on government regulations. The $120 million OCR loan for the Northern Power Transmission Sector Project in 2004 will assist the Government in meeting financing and technical requirements.
2. Inclusive social development. Coverage of education and health services continues to improve. Net enrollment rates increased from 96% in 2000–2001 to 96.8% in 2002–2003 for primary school; from 71.2% to 78.1% for lower secondary school; and from 33.6% to 37.9% for upper secondary school, with graduation rates above 90% for all three. Infant mortality and malnutrition rates continue to decline, although the decrease is uneven between regions. Health insurance coverage was significantly increased, while the avian flu reoccurrence is being effectively contained. In 2004 ADB approved the Second Lower Secondary Education Development Project loan in line with the primary role that ADB plays in support of universal high-quality, lower secondary education, and expansion of upper secondary education by 2010. The Health Care in the Central Highlands Project, approved in January 2004, will help improve the level of health care and implement the health insurance scheme for the poor in one of the poorest regions of Viet Nam. ADB also helped the Government, by reallocating loan and TA funds, to deal with the prevention and consequences of severe acute respiratory syndrome and avian flu, including procurement of 15,000 sets of personal protection equipment for workers involved in the culling of infected chickens, and is preparing follow-up interventions addressing crossborder preventive health within the GMS. ADB is in the process of assisting the Government draft a Gender Equality Law.
3. Good governance. Implementation of the PAR continued, with assistance by the ADB program loan to Support Implementation of the PAR Master Program, Subprogram I, along with support from other partners, including the United Nations Development Programme-led multi-aid agency-funded program. Viet Nam completed most of the first generation PAR activities and will commence preparation of the second cycle of the PAR Master Program for 2006–2010. ADB, working with other development partners, will assist the Government in formulating action programs for the second cycle; and is supporting the Government Inspectorate with anticorruption activities by providing TA funded from the Governance Cooperation Fund.
4. Geographic focus on the central region. The recent poverty assessment notes that poverty reduction has been slower in the central region. A joint review of the policies, progress, and opportunities in the region reveals that provinces are still very state and ODA dependent with slow progress in poverty reduction. The provinces are resource poor and seem to be weak in strategic planning and resource mobilization—abilities needed to be more self-reliant and progressive. Implementation of ADB’s Central Region Livelihood Improvement Project has progressed slowly. Additional loans were approved for the Central Region Urban Environmental Improvement Project and Health Care in the Central Highlands Project. Preparation is progressing steadily for three additional projects for Forests for Livelihood Improvement in the Central Highlands, Central Region Transport Network, and Central Region Water Resources. They will contribute to addressing the multiple dimensions of poverty and development in the region and contribute to the MDGs.
5. Regional cooperation in the GMS. Viet Nam has contributed significantly to enhancing connectivity, increasing competitiveness, and promoting a greater sense of community in the GMS. It will continue to be actively involved in the development of economic corridors in the GMS (i.e., north–south, east–west, and southern economic corridors). Viet Nam opened the Hai Van Tunnel in June 2005, and is pioneering with the Lao People’s Democratic Republic the early and initial implementation of the GMS Cross-Border Transport Agreement at the Lao Bao–Dansavanh border crossing points along the East-West Economic Corridor, and will soon finalize similar arrangements with Cambodia for the Moc Bai–Bavet border crossing points along the Southern Economic Corridor. Other planned GMS projects in Viet Nam will support the holistic development of economic corridors, including addressing negative externalities associated with economic corridor development, such as communicable disease control, promotion of biodiversity corridors, and strengthening of institutional capacities in the country.

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