Viet Nam: Making Markets Work Better for the Poor Phase 2

Sovereign Project | 41049-012 Status: Closed


Latest Project Documents

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Project Name Making Markets Work Better for the Poor Phase 2
Project Number 41049-012
Country Viet Nam
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 7064-VIE: Making Markets Work Better for the Poor Phase 2
Technical Assistance Special Fund US$ 400,000.00
Technical Assistance Grant Fund (UKG) US$ 8.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Private sector development
Sector / Subsector

Industry and trade - Small and medium enterprise development

Gender Equity and Mainstreaming No gender elements
Project Rationale and Linkage to Country/Regional Strategy

Project Outcome

Description of Outcome
Progress Toward Outcome

Through the Viet Nam Challenge Fund (VCF), 11 projects have been selected for funding and 7 project sucessfully implemented. These projects are expected to introduce new business models which can be scaled up and replicated. over 18,000 people have benefitted from improvements in their incomes. Furthermore an additional 2,160 new jobs have been created as a result of the VCF grantee interventions across the seven projects.

The Policy Action Research component of the M4P2 funded the studies that triggers the improvement of the policies, particularly in labor market, in agriculture value chain and in PPP for infrastructure network. A capacity building component was to help disseminate the new concept, approach and the new business models to Government officials, business people.

Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)

1. The Vietnam Challenge Fund (VCF)

VCF of around US$ 3 million fund is designed to challenge the private sector to propose innovative new business models that engage and benefit the poor, on a replicable and sustainable basis. The VCF focused on agro-processing linkages with the poor.

The VCF received a total of 210 submissions in the first call' window. The 210 concept notes spanned all three challenges, from across all of Viet Nam, and a wide spectrum of projects. All the 21 short-listed submissions were identified on their fundamental merits. The average size of funding requested by the 21 short-listed projects was US$135,000, ranging from a maximum of US$250,000 to a minimum of US$14,000. In total, the Independent Assessment Panel (IAP) jointly agreed to recommend 12 projects to be funded from VCF, and rejected the remaining 6 short-listed projects.

Except 1 project that failed during negotiation, 11 projects were finally selected for VCF funding. The 11 contracted projects were cumulatively seeking around US$1.7 m in VCF funding. The aggregate value of the 11 selected projects amounted to US$6.7m, with the average size of funding requested ranging from around US$160,000, to a maximum of US$289,700. The 11 contracted projects were cumulatively seeking around US$1.7 m in VCF funding. However, 4 VCF grant projects were halted in 2011, after careful consideration.

These projects are expected to introduce new business models which can be scaled up and replicated. Based on surveys undertaken by the VCF team the impact assessment was derived for all 7 projects within the VCF portfolio of projects. It is important to note that the figures for incomes improved are in addition to the jobs created. These improvements in incomes are largely derived from additional income that households / farmers attached to the grantee projects have attained, since the projects commenced, as a function of improved sales volumes and/or sales prices. The factors driving those rises vary from project to project, and include: training provided, improved inputs, certifications of various kinds (eg. organic, FairTrade, GAP, etc.), improved quality, etc.

The overall impact of the VCF portfolio is that over 18,000 people have benefitted from improvements in their incomes. Furthermore an additional 2,160 new jobs have been created as a result of the VCF grantee interventions across the seven projects.

The VCF element of the M4P2 website was up-loaded, containing all the key materials for interested parties (see:

2. Policy Action Research Component (PARU)

The PARU funded the studies that trigger the improvement of the policies, particularly in labor market, in agriculture value chain and in PPP for infrastructure network.

The PARU aims to fund research on a competitive basis, leading to the adoption of market-oriented and pro-poor policy change. Grants from the US$ 525,000 fund were to be awarded to nine research institutes and credible stakeholder groupings to support relevant research in the three key thematic areas of M4P2. It focuses on unblocking the constraints that communities and businesses face when seeking to move people out of poverty. It aimed to link policy design with practical pilot experimentation, so as to develop better, demand-driven and more informed policies.

PARU has adopted an ambitious approach to research in Viet Nam based on three self-reinforcing pillars of identifying potentially accessible windows of policy opportunity, development of clear evidence based research, and then piloting the findings through activities at District or Province level. Four contracts with research institutions were signed with the overall cost of USD187,000. Four PARU projects for the first round were selected and were being delivered. The first round PARU project focused on improving policies aimed at agricultural contracting and especially amendments to Decree 80 and improving the technical vocational and education system in Viet Nam.

The second round of PARU aimed to build on the solid foundation developed and using the experience that has been gathered thus far in the first round to drive more change in other important areas.

The second round aimed at focusing on two further areas: improving maintenance of the rural road network using public community based partnerships to ensure that the poor have better access to market their goods and services; and improving skills development in the informal sector which to date has had little work being carried out but remains crucially important for the poor.

3. Capacity Building

The Capacity Building Component sought to facilitate the exchange and application of lessons across the various market development interventions, both within Viet Nam and abroad.

A Training Needs Assessment (TNA) was developed to administered all Provincial Departments of Planning at the end 2009. It was agreed with PMU that the priority for capacity development will be within MPI at the headquarters and Provincial level, as well as other key government ministries such as MARD during the early phases of the project, as the success of the project and the longer term use of the approach ultimately depends upon this. Subsequently the training was envisaged to be identified for other stakeholders, particularly those in the private sector.

The purpose of the TNA includes two basic elements: (i) to provide a comprehensive analysis of the current capabilities of the managers and staff of MPI, and other relevant Ministries at the Provincial level to provide support to the various components; and (i) to define and meet the training needs that have been identified. The latter element involves developing a comprehensive training plan including a set of activities, identifying ready-made courses that staff could be enrolled for, or where necessary designing in-house training courses supporting project implementation, undertaking workshops and seminars, and monitoring and evaluating the outcomes from the training.

Solid improvement in Capacity building component had been made with refinement of training material which also integrates with the results of PARU component. 12 workshops to disseminate the M4P concept and its outcomes to relevant central and provincial government officials were conducted throughout the country. The refinement of the materials was based on the experience gained delivering the training course. It reflects experiences gained from the implementation of VCF and results emerging from the PARU components. The discussion of real-life issues at the training courses with participation of various provincial government officials and business associations help enrich the content of training courses as well as facilitate the discussion on the research findings. This initiative helps leverage the effectiveness of assistance and was highly appreciated the trainees.

4. Dissemination Activities

Dissemination Strategy has been developed and circulated to all parties for implementation.

A series of dissemination activities, as laid out in the dissemination strategy including workshops with participation of Government Officials, DPs and Business Associations to disseminate the business model for seven VCF projects and the policy changes proposed for improving "agriculture value chain" and "vocational training" under PARU studies were organized.

A press tour and a documentary film to disseminate the project outcomes, additional value, lessons learned, best practice models will be conducted.

TA was extended till 30 June 2012 to help deliver the VCF projects, and conduct the second round of PARU with studies focusing on improving PPP in rural road maintenance, and improving the relevance of the informal training/apprenticeship system.

The TA was physically completed on 30 June 2012 and financially closed on 30 October 2012.

The TA Completion Report is being finalised and will be circulated to the Board by end July 2013.

Geographical Location Viet Nam

Summary of Environmental and Social Aspects

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design Extensive Stakeholder consultation process focusing on partnerships has already established during phase one of the project. Stakeholders include: the Prime Ministers Research Commission, CIEM, VCCI, MPI, MARD, MOLISA, MOF in addition to the ten Vietnamese Research Institutes who participated in phase 1 of M4P. Amongst Donors consultations including the World Bank, GTZ, IFAD, UNDP, MPDF, AusAID. NGO consultations included Oxfam, CRP, IDE, SNV (Netherlands) and local business associations.
During Project Implementation Intensive Stakeholder consultation with the Government, research institutes, business associations, and donors. Stakeholders include: Vice Minister, MPI, MOF, MARD, MONRE, VCCI, provincial authorities, PPC, research institutions (ILSSA, CIEM, NEU, NIVT...), enterprises, DFID, NGOs etc.

Business Opportunities

Consulting Services A consultant team will be recruited on a firm basis. Additional individual consultants will also be recruited for running an interim project coordinating unit, conducting independent reviews, and conducting background work linking this project with the ADB Viet Nam portfolio.

Responsible Staff

Responsible ADB Officer Dao Viet Dung
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Viet Nam Resident Mission
Executing Agencies
Ministry of Planning and Investment
Mr. Hoang Viet Khang
No. 2 Hoang Van Thu St., Ha Noi, Viet Nam


Concept Clearance 27 Mar 2007
Fact Finding 23 Jan 2007 to 25 Jan 2007
Approval -
Last Review Mission -
PDS Creation Date 04 May 2007
Last PDS Update 22 Jul 2013

TA 7064-VIE

Approval Signing Date Effectivity Date Closing
Original Revised Actual
18 Feb 2008 12 Aug 2008 12 Aug 2008 31 Jan 2011 30 Jun 2012 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
400,000.00 8,000,000.00 1,700,000.00 0.00 0.00 0.00 10,100,000.00 18 Feb 2008 4,677,910.08

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.

The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.