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ADB and Viet Nam Sign a US$34 Million Loan to Improve Upper and Professional Secondary Education

Hanoi, Viet Nam (16 April 2007) – The Asian Development Bank (ADB) and the Government of Viet Nam today signed a loan of $34 million to help Viet Nam achieve universal quality secondary education and further inclusive social development.

Governor Le Duc Thuy of the State Bank of Viet Nam represented the Government, while Ayumi Konishi, ADB’s Country Director for Viet Nam signed the document for ADB.

In Viet Nam, education is regarded a paramount investment option for the country’s long term economic growth and equitable social development. The country’s accession to WTO necessitated Viet Nam to accelerate strengthening of secondary education in developing human resources required for greater integration in the global economy. ADB has long been supporting the Government’s commitment to universal secondary education with quality, efficiency, and sustainability. With the increase in the enrolment rate to over 90%, lower secondary education has made commendable progress but expansion of upper secondary and professional secondary education and improvement of their quality remain to be key challenges for Viet Nam’s education system.

“For Viet Nam’s sustainable growth in the globalizing economic context, rapid expansion and quality improvement of upper secondary and professional secondary education are essential” said Mr. Konishi. “In order to compete and seize opportunities to be created by globalization, Viet Nam needs to foster a competitive labor force, and upper and professional secondary education has an important role to play.”

The $34 million loan for the Upper Secondary and Professional Teacher Development Project (USPTDP) will help the Ministry of Education and Training (MOET) upgrade in-service and pre-service teacher training to be more relevant and responsive to the demands from the growing market economy. The Project will also improve physical facilities of selected teacher training institutes in ethnic minority areas to expand access to the disadvantaged groups. Management and planning capacity for teacher development will be strengthened by establishment of new quality assurance frameworks. Under the project, 31 teacher training institutes (TTIs) will benefit from the curriculum development and training, 12 TTIs will be better equipped, and 5 TTIs will be developed as lead universities as core pedagogical resource centers.

ADB has been successfully supporting a series of secondary education projects in Viet Nam focusing on the development of lower secondary schooling. With the Government’s strong leadership in ensuring effective implementation of the loan with full and active participation of all the key stakeholders, this new project is expected to have strong synergy with these ongoing secondary education projects.

ADB’s loan, which covers 78.7% of the total project cost of $43.18 million, comes from its concessional Asian Development Fund. It carries a 32-year term, including a grace period of 8 years. Interest of 1.0% per annum is charged during the grace period and 1.5% per annum thereafter.

The Government will contribute $9.18 million toward the Project. MOET is the executing agency of the project, due for completion in June 2012.

ADB, based in Manila, is dedicated to reducing poverty in the Asia and Pacific region through pro-poor sustainable economic growth, social development, and good governance. Established in 1966, it is owned by 67 members – 48 from the region. In 2006, it approved loans and grants for projects totaling $8.5 billion, and technical assistance amounting to almost $242 million.

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