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Loan Signed to Improve Health Services in Viet Nam's Poor Central Highlands

HANOI, VIET NAM (8 April 2004) - The Asian Development Bank (ADB) and the State Bank of Viet Nam today signed a US$20 million loan to support improvements to health care services for rural populations in the country's poor Central Highlands area.

Governor Le Duc Thuy represented the State Bank of Viet Nam at the signing, while Bradford Philips, Country Director at ADB's Resident Mission in Viet Nam signed for ADB.

The project aims to improve the health status of the poor and disadvantaged in five provinces - Dak Lak, Dac Nong, Gia Lai, Kon Tum, and Lam Dong - bring down disease levels in line with national averages, and support the Government's health sector targets toward the attainment of the Millennium Development Goals.

This will be achieved through upgrading health care provision and service delivery at the district level, and improve planning and management procedures at provincial, district, and commune levels. The project will also provide training to ensure the sustainability of the planned improvements.

The Central Highlands is home to about 4.4 million people, including a number of ethnic minorities scattered around remote communities. Low population density, lack of adequate infrastructure, high poverty levels, and inhibiting cultural beliefs and practices have all contributed to the poor health status of the provinces, which also lack qualified health personnel and access to affordable services.

Recognizing the critical need to improve the skills of health care providers in the region, training activities form a significant part of the project. These range from strengthening secondary medical schools in the four provinces, to providing clinical training for doctors and nurses as well as primary health care training. In addition, the project will support p a new Government initiative, Prime Minister Decision 139, to provide health cards to poor families. This will lower the financial barriers faced by the poor in seeking health care services.

"A healthier and more productive population will make inroads into lowering the central region's high poverty rates, which have consistently hovered around 50% over the last five years compared to national figures, which have declined from 37% to 27% in that time", said Mr. Philips.

The project aims to reduce infant mortality rate from 64 per 1,000 live births to around 40 by 2008, while the maternal mortality rate is expected to drop from 190 per 100,000 live births to approximately 110, while coverage of prenatal care will increase from 70% to 90%.

The Government of Sweden has in principle made a commitment to cofinance the project. The Government is meeting $5.6 million of the project cost. The Ministry of Health is the executing agency for the project, which is due for completion by the end of 2009.

ADB 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 63 members - 45 from the region. In 2003, it approved loans and technical assistance worth US$6.1 billion and US$177 million, respectively, of which $179 million in loans and $8.6 million in technical assistance were for Viet Nam.

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