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| Loan Name | Central Region Livelihood Improvement | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Country | Viet Nam,Soc Rep of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Loan Number | 1883 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Project Number | 33301- 01 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Type/Modality of Assistance[Approved] |
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| Thematic Classification |
Sustainable Economic Growth
Inclusive Social Development |
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| Project Outcome | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Description of Outcome | 1. Improved household food security.
2. Improved household incomes. 3. Developed Communities. 4. Strengthened Institutions. 5. Established Project Management System [Taken from the Project Framework] |
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| Progress Toward Outcome | 1. Improved household food security
- Women's Union participated - Household food security promoters selected and trained, and household food security groups established - Home garden demonstrations and training provided - Poultry and subsidized vaccination program for Newcastle¿s disease developed - Fish production developed - Clean water supplied - Training in nutrition education and improved hygienic practices for target households provided 2. Improved household incomes. - Savings/ credit packages provided - District-based DARD extension centers participated - Training in agricultural production provided - Demonstrations focused on the opportunities and problems identified by farmers - Training for village and commune animal health workers and district livestock specialists provided - Demonstrations for nurseries and forestation provided - Market studies consultants engaged - Small-scale infratructure projects implemented. 3. Developed Communities. - NGO engaged - District support team mobilized - Commune facilitators selected and trained - Common interest groups established - Procedural manual for CIGs developed - Commune socioeconomic development plans (CDPs) prepared - Community training in key elements of planning and administration provided - Consultant engaged for GIS-based surveys and development of management plans for common resources - Non-credit support provided to local microenterprises 4. Strengthened Institutions. - Training in implementing the CDP provided to CPMU members responsible for the CDP process and concerned district and provincial staff - Training in PRA and FFS techniques and communication skills provided to provincial, district staff, DST members, WU and commune staff - Training in microenterprise facilitation provided to provincial, district staff, DST members, WU and commune staff - Technical training in subject matter identified as important by communities provided 5. Established Project Management System - Provincial Project Management Units established - Commune Project Management Units established |
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| Implementation Progress | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Description of Project Outputs | 1. Household Food Security Improved
2. Household Incomes Improved 3. Communities Developed 4. Institutions Strengthened 5. Project management system established. |
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| Status of Implementation Progress (Outputs, Activities and Issues) | 1. Household Food Security Improved
- 590 HFSPs have been selected and trained, 372 HFS groups have been established with 6,885 members in TTH and QT. There is still no HFSP selected and no HFS group established in KT and QB. - 281 demonstrations were implemented with 1,678 beneficiary households. 84 training courses were provided to 2,165 persons. - 12,131 households have been supported with technical design/ vegetable seeds/ seedlings/ farming tools/ sprinkles/ rice threshers/ fertilizer. - Development of poultry and subsidized vaccination program for Newcastle¿s disease: No activity is undertaken yet because of the outbreak of Avian Flu. Only five training courses were provided to 100 persons in reproductive rabbit raising technique as alternative development in KT. - Development of fish production: 162 demonstrations were implemented with 951 beneficiary households. 80 households have been supported with 16,000 fish fingerlings. 106 training courses were provided to 2,672 persons in fish production technique. - Water supply schemes and wells have been or are being constructed for 6,252 beneficiary households in total. - 77 nutrition models were implemented with 2,300 beneficial children. 50 training courses were provided to 1,000 persons in nutrition improvement. However, local food/materials should be used for nutrition models/training to increase their effectiveness. Six training courses were provided to 180 persons in hygienic practices and family planning. 14 communes have been supplied with scales for weighing and measuring children. 2. Household Incomes Improved 2.1. Microfinance Services Sub-component: Although the poorest villagers prefer lower interest rates available through the Policy Bank, there is still substantial demand for the credit provided at market interest rates by VBARD. As of 31 January 2007, 31% of project funds allocated for this sub-component have been disbursed to VBARD. In total, $1.48 million was provided by VBARD to 4,747 households including 17 micro-enterprises through 256 credit groups to finance agricultural inputs, livestock and fishpond development, agricultural tools, equipment for small-scale agro-processing, weaving and tailoring, and small machinery maintenance facilities. About 68% and 45% of the borrowers are women and ethnic minorities respectively. 48 training courses were provided to 1,279 persons in savings and credit methodologies. WUs in QT and KT have actively facilitated implementation of this component while involvement of WUs of QB is still limited. Total amount of savings is only $24,437, as most of the beneficiaries are still too poor to have savings. Details are given in Appendix 5 for each of the project provinces. In 2007, a more systematic and thorough approach should be applied to help potential borrowers prepare simple business plans. Much more should be done to link borrowers with agricultural development and common interest groups (CIGs), and to make credit available to villagers interested in adopting profitable models established by the Project. The CRRO informed the Mission that VBARD would like to discontinue its participation in the Project beyond 2007, as this component is not profitable. Withdrawal of VBARD will not significantly affect achievement of original objective set for this subcomponent, as the Project will continue to facilitate poor households to have access to other credit resources available in the project area. 2.2. Agricultural Technical Support Sub-component: The Project has worked with 12 provincial and district-based extension centers under the departments of agriculture and rural development (DARDs) and contracted 40 other central local service providers to implement this sub-component. A variety of agricultural models have been established, and a number of them are being widely adopted by villagers. In total, 1,220 demonstrations were implemented with 4,233 beneficiary households. These demonstrations focused on high production crops, livestock development, afforestation and nurseries to address the opportunities and problems identified by farmers. 3,635 households have been supported with seeds/ fertilizer/ rice threshers/ manual tools for shelling corn/ seedlings for forestation. 917 training courses were provided to 27,332 persons in various techniques of cultivation, livestock development, nursery and forestation. 927 village animal health workers and district livestock specialists have been trained to improve their ability to identify key diseases and provide an effective vaccination service. However, there seems to lack a clear strategy for building on success in agricultural development, and for shifting farmers to sustainable improvements in livelihood activities that are well-linked to input and output markets. Only TTH and QT have engaged local organizations to carry out detailed market studies of on-farm and off-farm products as well as non-timber forest products, while recruitment of similar consultants in KT and QB is still on-going. Details are given in Appendix 6 for each of the project provinces. 2.3. Rural Infrastructure Development Sub-component: The Project has funded roads, water supply and irrigation schemes, and other rural infrastructure, which are yielding benefits. In total, 511 rural infrastructure works prioritized by the local communities have been supported. They include (i) construction of 37 water supply schemes and 183 wells; (ii) implementation of 80 rural roads; (iii) building of 21 bridges, two fords and 13 culverts; (iv) rehabilitation of 31 small-scale irrigation schemes; (v) construction of 29 new small-scale irrigation schemes; and (vi) building of 114 community houses and one rural market. Details are given in Appendix 7 for each of the project provinces. A large amount of survey and design work is currently underway, for which contracts will be awarded in 2007. However, supervision and monitoring to assure quality in design and construction need to be strengthened. Though various efforts are being made under the Project to improve operation and maintenance (O&M), including training, recommendations for policy reform, planning for O&M during design, formation of O&M teams, and interim O&M funding from project funds, the funding for routine and periodic maintenance is still not available on a sustainable basis for most of infrastructure works. 3. Community Development Component - Six NGOs have been engaged. - 106 district support team (DST) members have been mobilized for 12 districts of four project provinces. - 338 commune facilitators (CFs) have been selected and trained for 153 project communes. - 1,020 common interest groups (CIGs) were established. - The NGOs developed and handed the procedural manuals for CIGs over to all project provinces, these manuals consist of templates that can be rapidly adapted by CIGs to fit their management and administrative needs. - Preparation of village and commune development plans (VDPs and CDPs) and commune subprojects was completed for 1,172 villages and 153 communes in August and October 2006 respectively. - The Project has provided community training in key elements of planning and administration to 7,939 persons in total. - Only TTH has already engaged the consultants to undertake geographical information system (GIS)-based surveys of the project area and develop management plans for common resources. - Only three microenterprises have been supported in preparing their investment proposals in TTH. 4. Institutional Strengthening Component - In total, 850 commune level staff and 106 officials at district and provincial levels, who are responsible for CDP processing, have been trained in CDP implementing. - 1,260 provincial and district staff, DST members and commune staff have been trained in participatory rural appraisal (PRA) and farmer field school (FFS) technique and communication skills. - only three training courses in micro-enterprise facilitation were provided to 58 provincial and district staff in TTH, QB and KT. - 137 training courses were provided to 2,851 persons in various subject matters identified as important by communities. 5. Project Support Component: - All four Provincial Project Management Units (PPMUs) have been established. - All 153 Commune Project Management Units have been established. |
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| Linkage to Country/Regional Strategy | The Government and other stakeholders have agreed that ADB will support the Government's vision of economic modernization and poverty reduction through a focus on making growth and the structural transition pro-poor and sustainable. This will entail emphasis on rural areas and smaller urban centers, particularly in the central region of Viet Nam, combined with national interventions in pro-poor sustainable economic growth, social development, and good governance. Accordingly, ADB will increasingly focus on the investment and policy conditions that will promote rural development, agricultural diversification, and off-farm employment in rural areas, with emphasis on small and medium enterprise development. Continuation of policy reforms in agriculture will be supported to enhance rural standards of living and a vibrant and competitive agriculture sector. ADB operations will continue to support the role of the private sector in marketing and trade, land tenure reforms and issuance of land titles in agriculture and forestry, commercialization and reform of state-owned enterprises, and promotion of domestic small-scale enterprises. In the area of agricultural and rural finance, ADB' focus could include rural finance for private agro-industries and microfinance for small and poor farmers, and the related legal and regulatory framework for microfinance.
Rural poverty reduction will also be pursued through projects targeted at a small number of contiguous provinces that face similar constraints and opportunities, and are in the central region of Viet Nam. Similar to the proposed project, other operations will be designed, with probable focus on coastal communes in the central region and separately for central highlands provinces. These projects will emphasize addressing the link between natural resource depletion and poverty. Such area-based approaches will need to be complemented by the appropriate infrastructure investment, planned and implemented in a subregional perspective with sector projects covering several provinces. ADB's poverty reduction strategy considers microfinance can increase the physical capital of the poor, while simultaneously building human and social capital. The goal of ADB's microfinance strategy is to ensure permanent access to institutional financial services for the majority of the poor and the purpose is to support microfinance system that can provide diverse services of high quality. The strategy focuses on (i) creating a policy environment conducive to microfinance, (ii) developing financial infrastructure, (iii) building viable institutions, (iv) supporting pro-poor innovations, and (v) supporting social intermediation. Emphasis is placed on designing projects in close consultation with stakeholders, including potential clients, to ensure that assistance is client-focused, demand-driven, and appropriately priced and delivered. Support to viable institutions that can set in motion such a process has been emphasized, along with reform of development finance institutions that continue to undermine the microfinance sector. |
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| Geographical Location | Quang Binh, Quang Tri, Thua Thien Hue, Kon Tum Provinces | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Safeguard Categories
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| Environment | B | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of Environmental and Social Issues |
The Project has been classified in ADB's Environment Category B, and an initial environmental examination (IEE) has been prepared in accordance with ADB's Environmental Assessment Requirements and Environmental Review Procedures. The IEE found that the Project will not create any significant changes in the social, physical, or biological environment and will conform to ADB's guidelines on environmental considerations. The potential impacts are primarily construction related. The type of road construction will be rehabilitation or improvement of existing alignments. Little if any land acquisition is expected and mitigation measures to address any potentially minor adverse impacts have been detailed in the monitoring plan of the IEE. Microenterprises developed by the Project through microfinance provision will also have no significant adverse impacts. Several enterprises (e.g., sloping land agriculture development, and horticultural development) should enhance watershed management and reduce soil erosion. A possible exception might arise in the case of any subproject areas that are within, or adjacent to, existing or planned protected areas. An in-depth study, including a rapid biodiversity assessment, to assess potential environmental impacts of the Project on the protected areas was completed and the results incorporated into the IEE and summary IEE reports. In view of the importance of these areas, an independent group such as International Union for the Conservation of Nature and Natural Resources or World Wide Fund for Nature will be contracted to review SDPs of all communes within or adjacent to existing or planned protected areas (para. 94, xi-xiii).
75 percent of the population can be defined as poor according to the General Statistics Office/World Bank overall poverty line in Viet Nam. 53-92 percent of households in represented communes were ranked by the residents as poor or very poor. Eighty seven percent of indigenous peoples' households and 81 percent of female-headed households fall below the World Bank's overall poverty line. They are marked by illiteracy, poor housing, low level of household assets and equipment, poor health and access to services, and no cash or savings. Indigenous peoples in the project area are facing an influx of better-educated and richer Kinh. Women play a crucial role in the household food economy, and it will be vitally important that women are consulted and included in all aspects of project implementation. The Project will address the needs and concerns of the rural poor. Approximately 70 percent of the Project's primary target beneficiaries will be indigenous peoples. Efforts will focus on improving farming systems and diversifying incomes, to enable indigenous peoples to participate more fully in the market economy. Diversification into perennial and industrial tree crops will be promoted as an area in which indigenous groups can achieve an advantage. The Project will employ participatory processes and institute a planning system based on community demand. A community organizing approach will be implemented to ensure the fullest participation by beneficiaries and that project activities address priority development issues identified by the community. |
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| Consultations Planned or Carried Out | Stakeholder Consultations Undertaken. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Responsible ADB Officer |
Ho Le Phong |
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| Responsible ADB Department |
Southeast Asia Department |
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| Responsible ADB Division |
Vietnam Resident Mission |
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| Executing Agencies |
Viet Nam Bank for Agriculture and Rural Dev't. Tran Ngoc Son Deputy Representative, VBARD Regional Rep. Office Provincial People's Committee of Kon Tum Province Tran Van Chi Project Director, Kon Tum PPMU dagnmtkt@dng.vnn.vn Provincial People's Committee of QuangBinhProvince Le Man Project Director, Quang Binh PPMU giamngheoqb@dng.vnn.vn Provincial People's Committee of Quang TriProvince Thai Xuan Lam Project Director, Quang Tri PPMU bqldagnqt@dng.vnn.vn Provincial People's Committee-Thua ThienHueProvinc Le Dinh Khanh Project Director, Thua Thien Hue PPMU dagntinhtthue@vnn.vn |
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| Timetable | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Appraisal | 23 May 2001 to 09 Jun 2001 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Board Approval | 17 Dec 2001 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Last Review Mission | 04 May 2008 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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