Viet Nam: Skills Enhancement Project

Sovereign Project | 41339-013 Status: Active

Summary

ADB is helping Viet Nam improve vocational training to address a worsening shortage of skilled workers in priority industries. The project will offer quality training programs in automotive technology, electrical manufacturing, hospitality and tourism, information and communication technology, mechanical manufacturing, and navigation and shipping in 15 public and 5 private vocational colleges.

Latest Project Documents

Consulting Notices See also: CMS

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Procurement Documents

Title Date
Skills Enhancement Project May 2014

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Project Name Skills Enhancement Project
Project Number 41339-013
Country Viet Nam
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2652-VIE: Skills Enhancement Project
Asian Development Fund US$ 50.00 million
Loan 2653-VIE: Skills Enhancement Project
Asian Development Fund US$ 20.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector

Education - Technical and vocational education and training

Gender Equity and Mainstreaming Gender equity
Description

The Project will produce a more competitive and highly skilled workforce in priority industries by developing higher level training programs at a new college level, while also establishing and strengthening system governance and quality assurance frameworks for vocational training. Studies will also strengthen the policy foundation for future development.

The project will improve the quality and management of vocational education and training (VET) programs in 15 public and 5 private vocational colleges (VCs) in economic zones

offering programs for occupations in high demand in priority industries. The programs cover automotive technology, electrical manufacturing, hospitality and tourism, information and

communication technology (ICT), mechanical manufacturing, and navigation and shipping. The project will consist of two loans, the first to strengthen the public vocational training system and VCs, and the second to provide private VCs with additional resources through an onlending facility. The direct beneficiaries of the project will be students in certificate and diploma vocational training courses, most of whom come from the rural lower middle class.

Project Rationale and Linkage to Country/Regional Strategy

The VET system is being transformed by a new focus on higher level skills, through the recent establishment of a college level. There are currently 90 public VCs and 20 private VCs.

In response to the demand for a more highly skilled workforce, the government has developed an excellent set of policies to strengthen the VET system, through the new Law on Vocational Training, 2006, effective in 2008. The major provisions of this law are (i) expansion of a more advanced level of training; (ii) improved VET quality and relevance; (iii) greater involvement of a range of partners, particularly from the private sector; and (iv) strengthened VET sector management under one central agency, the Ministry of Labor, Invalids and Social Affairs (MOLISA). Most of the groundwork for this law was laid under the Asian Development Bank (ADB)-supported Vocational and Technical Education Project (VTEP). Implementation of the major provisions of the law forms the foundation of the proposed project.

Many VET graduates lack appropriate technical and general work skills. The immediate causes are poor training quality and management capacity, weak sector management, and

limited private sector collaboration and partnerships. This is underpinned by inadequate financing of the VET sector and vocational training institutions. In addition, the VET system is

largely supply-driven, reinforced by input-focused financing and the absence of skills standards that link specific competencies to labor market needs. Limited collaboration with industry has reinforced this tendency. However, this is now changing and there is a strong desire within the government to build a better training system that is more relevant to industry.

The VTEP initiated significant reform in VET quality assurance systems, and modernized vocational training curricula in line with new production techniques and technologies, while

substantially upgrading vocational secondary schools. Other donor initiatives include system reforms and strengthening of vocational training institutions by Agence Fran aise de

D veloppement, the European Union, German development cooperation through GTZ and KfW, the Government of the Republic of Korea, and the Government of Luxembourg. These projects have all been successful in strengthening the lower levels of the vocational training system and have expanded training opportunities for primary school and junior secondary school leavers.

The VTEP illustrated the value of experimenting with new approaches within a circumscribed context before system-wide implementation. It focused upon improving the

technical skills of students and teachers, but weak management at the school and central levels undermined these efforts.4 Similarly, the absence of a training system to periodically update teachers' skills in response to new technologies and changing job markets hampered efforts to improve teacher quality. The proposed project will address both of these weaknesses.

Impact

Project Outcome

Description of Outcome Higher-level skills training in 15 key occupations established for males and females.
Progress Toward Outcome The PMU has made significant efforts in improving the Project's performance. An 18-month extension was approved for L2652 while the credit facility (Loan 2653) project closing was on 29 February 2016.
Implementation Progress
Description of Project Outputs

1. Quality and management of vocational training improved.

2. VCs upgraded to deliver priority occupational training programs.

3. Partnerships with the private sector strengthened.

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

Output 1: Improve quality and management of vocational training

Package DT01: Management Training - aims to deliver modular management program in results based management, information management and reporting, strategic planning and monitoring program. The PMU has submitted its procurement document to MOLISA for approval, which was prepared as indicated in the Procurement Plan approved by ADB and MOLISA. However, MOLISA has not approved it and instead suggested PMU conduct the training using the existing GDVT's training material. Based on MOLISA's suggestion, PMU and consultants have customized the training materials of GDVT by adding specific training contents such as Strategic Management and Leadership, school industry partnership, PPP, ODA Project Management, Procurement, Contract Negotiation, International Integration. PMU proposed to use available resources to save time and speed up progress of training activities (instead of engaging consultants). The DIP will be submitted for ADB's review and approval by 31 August 2015. Target implementation of the training is on the 4th Quarter of 2015.

Package DT02: Regional study tours - 3 study tours to Australia, Malaysia and Taiwan completed in September 2014.

Package TV02: PMU hired an individual international consultant for 9 person-months to develop the specifications of the products. However, MOLISA had planned to build an IT system for the nationwide vocational training sector, covering similar content of the VTIS. In 2012, GDVT received financial support from MOLISA to complete the on-going development of the software, through the national training fund. Therefore, GDVT/PMU proposed and ADB approved to cancel this activity. Thus, Vocational Training Information System VTIS package (TB13) was also cancelled. The product of the Consultants work has been integrated into the GDVT process design.

(i) Package TV07, VET Financing/ Program Cost Norm Studies: The objectives of the assignment are to outline the effectiveness of both grant and performance based funding models on the development of demand driven TVET institutions, to determine an effective balance of beneficiary input into TVET funding, to develop a formula to calculate unit cost norms at the program level of vocational training at the college and senior secondary level and to propose a funding model based on the output of the study. The contract with Nexia STT Company Limited/Mekong Development Research Institute is expected to be completed by 31 August 2015.

Package DT04 - Vocational teachers' training for materials development: PMU proposed to split the package into two: (i) DT04A - to be implemented through a training and (ii) DT04B to be conducted by PMU.

GDVT developed and issued the accreditation procedures, standards and assessment tools. SEP consultants' outputs provided inputs. The Project was designed to:(i) accredit 15 public VCs and 5 private VCs based on the issued procedures and tools; and (ii) conduct the program accreditation. This will now be done as part of the GDVT program. So far, GDVT has accredited all public VCs and 3 private VCs listed in the Project's beneficiary vocational colleges. It is requested that SEP assist with program accreditation, which will be conducted for 20 programs (reduced from 40 programs), after the SEP training equipment has been installed in the VCs. Activities (i) 1.2.3. Program Accreditation - Assessor Training and (ii) 1.2.4. Self-Assessment for Accreditation were delayed due to the new guidelines of accreditation in accordance with the regulation of VET Law which takes effect from 1st July 2015. It is expected that these activities will be conducted by Q4 2015.

In accordance with Decision number 371/QD-TTg dated 28/02/2013 of the Prime Minister, regarding the approval of a plan titled The Transfer of Sets of Programs; Training and Upgrading for Teachers and Management Staff in TVET and The Pilot Training for Key Occupations at the ASEAN Regional and International Levels , for the period between 2012 and 2015 and Decision number 1474/QD-LDTBXH dated 30/9/2013 of the Minister of Labor, Invalids and Social Affairs regarding the approval of Plan for Implementing Decision Number 371/QD-TTg, dated 28/02/2013 from the Office of the Prime Minister , GDVT will procure standards, programs and curricula and learning resources for a number of occupations from international sources and organize management and teacher training utilizing the budget of the National Target Program for Employment and Vocational Training for Period 2012-2015 . GDVT assured that the new program will not replace SEP. SEP will focus on curriculum and learning materials development of the newly procured equipment: after completing their equipment inputs, Industrial Sector Specialists will complete their deployments by concentrating on equipment based learning materials and manuals and assessment tools.

MOLISA issued Circular 30/2010/TT-BL TBXH dated 29 September 2010 on professional standards for teachers. International and national consultants were fielded to assist the PMU and GDVT in reviewing and updating this legal document. The study was designed based on the issued Circular to explore the long-term problem of how to attract and retain vocational instructors.

Package TV09 Teacher Incentives Study - designed to explore the long-term problem of how to attract and retain vocational instructor. The contract with the consultant firm was signed on 02 April 2014 and was completed in January 2015.

TV10B Engagement of Individual consultants (or firm) to Develop Career Guidance Materials for the VCs and to prepare a program and train VC staff in the use of Transition-to Work materials for VC Students. Contract implementation completed in June 2015. Output included

- Package DT03 Training on Skill Testing and Certification - training materials and programs were approved by GDVT and are already available. Recruitment of service provider for cancellation; to be conducted by PMU following MOLISA's regulations on Skills Testing and Certification (training activities expected to be conducted by Q4 2015 and assessment to be done by Q2 2016).

- Activity 1.3.1. Introduction to Skills Standards comprised three workshops which were conducted in November 2013. This was combined with 1.3.2.

- Activity 1.3.2. Seminar on promotion of skills testing and certification was conducted in November 2013; Training on test center management is proposed to be conducted in Q4 2015.

The social marketing campaign package was divided into 2:

(i) TV10A Engagement of a Firm or Institution to Design and Implement a Social Marketing Campaign and Train VET Staff in Marketing. Contract was signed on 29 April 2014 and expected to be completed by August 2015.

(ii) TV10B: Engagement of Individual consultants (or firm) to Develop Career Guidance Materials for the VCs and to prepare a program and Train VC staff in the use of Transition-to Work materials for VC Students - Contract implementation completed in June 2015. Output included training ERUs to build linkages with employers for job placement equipment, delivery and assessment of training, career counseling which were organized in Ha Noi, Da Nang and Ho Chi Minh City from March to May 2015.

Package TV07: In order to avoid duplication between content of this package with some activities under the National Target Programme for Employment and Vocational Training 2013 which are carried out by GDVT, PMU has been required to coordinate with the professional departments of GDVT to revise the TOR. In addition, MOLISA requested PMU to clarify the output of the package. Contract with firm is expected to be completed by August 2015 (ii) Package DT04: Vocational teachers' training for materials development package will be conducted in 2014 and 2015 depending on installation of the new equipment.

TV10A, engagement of a firm or institution to design and implement a social marketing campaign and train VET staffs in marketing: Contract was signed on 29 April 2014. The consultant is implementing activities as per the contract signed with PMU. The contract will be completed by the end of August 2015. PMU has completed activities in this category: (i). Workshops in integrated planning and marketing to develop a strategy to strengthen linkages between VCs and enterprises and (ii). Workshop to support VC staff to market skills certification and promote revised training programs to communities is conducted in November 2014; and

(ii) TV10B. Engagement of individual consultants to develop career guidance materials for the VCs and prepare a program and train VC staff in the use of transition-to work materials for VC students for TV10A: Contracts were signed and implementation will be finished by June 2015. As an output of TV10B contract is training ERUs to build linkages with employers for job placement equipment, delivery and assessment of training, career counseling. The Mission has suggested PMU to submit DIP for this activity for review.

OUtput 2: Upgrade VCs to deliver priority occupational training programs.

Six international Industry Specialists and an equal number of National Specialist counterparts have been fielded and their assignments are to develop the equipment procurement lists and the sample learning materials and course outlines for 15 occupations based on 15 skills standards issued.

The equipment lists are completed. The Specialists will prepare sample learning materials and assessment tools. Once these materials are translated into Vietnamese and assessed by GDVT, procurement of a Teacher training provider can proceed. However based on the ADB's recommendation, this package needs adjustment to conform with the progress of VET equipment procurements and with Skills Standards agreements with Australia

Further work is now very limited as GDVT has its own project in this area and has been directed to ensure no overlap between the Victoria (Australia) Skills Standards project and SEP especially in the equipment and teacher training areas.

Package DT01 Management Training includes some duplicated elements with sub-component 1.a.1. Training elements will be covered in sub component 3-C planned outputs.

The project supported supported VCs to conduct 2 rounds of tracer study of their graduates. The implementation agreements of the 1st tracer study between PMU and the 15 VCs were signed on July 2014. This 1st round tracer study was completed by end of June 2015. The Project includes 5 workshops on tracer studies to train VC Directors and ERU staff in developing and implementing institutional, operational and marketing plans targeting industrial training and community based part-time programming focused on income generation for the institution. The first three workshops for tracer study were conducted by the PMU (National Institute of Vocational Training)/GDVT to finalize the questionnaires and provide surveyors training on data entry. The last 2 workshops will be merged into one consecutive workshop and will be conducted in August 2015. As the 2nd tracer study is difficult to be organized within the project implementation period, the next 4th workshop should be prepared to fully cover the findings of the 1st tracer study and prepare the 2nd tracer study which will be conducted in 2016.

Package TV10B is included in sub component 1.c. as a separate package within the social marketing initiative and the activity is linked to sub component 2-c-1.

Two individual national consultants will be hired to develop training materials and deliver training content. As individual consultant selection method does not require submission of the technical proposal, PMU was requested to carefully consider the consultants' qualification and closely manage the consultants' inputs.

The consultant finalized the TORs and has developed a cost estimate for the package divided into the 2 components: the uncompetitive section and the competitive section. However, the Mission and PMU recognized that due to the difference in nature of the two training activities and training periods contained in this package and in order to create favorable conditions for implementation and the quick selection of training providers with qualified technical proposal, further discussion on splitting the package was required. The two packages will be: (i) Pilot Vocational Teacher Development Program for 13 technical teachers from each SEP occupational program in each of the 20 SEP VCs; and (ii) Pilot Vocational Teacher Development Program for 500 vocational teachers from other VCs to be upgraded in pedagogy.

20 SEP VCs accredited in 2012

Output 3: Strengthened partnerships with the private sector

Approved subloans for VCs:

- Bac Nam VC: Post-review of Bac Nam VC NCB documents for the construction of multifunctional building has been approved in July 2014.

- An Nhat Vinh VC: Post-review of An Nhat Vinh VC NCB documents for its construction, expansion, and improvement has been approved in June 2014.

- Dong An VC: ADB approved the subloan application of Dong An on 8 April 2014 in the amount of $4.959 million. Dong An VC has to submit its procurement plan.

- Deadline for submission of subloan application to ADB expired on 30 June 2014. Proposed extension was not approved.

Increase in revenue of VCs who borrowed and institution-specific gender strategy to be assessed later.

Package TV08 Enterprise-Based Training/Training Levy Study has been awarded in February 2014. The Package TV08 Enterprise-Based Training/Training Levy Study was signed with the research firm on 25 January 2014 and was completed end- 2014. Agreement between the Mission and the PMU has been reached on the cancellation of package DT06: Training Enterprise Trainers due to its relevance to overall project outcome.

TV10A Engagement of a Firm or Institution to Design and Implement a Social Marketing Campaign and Train VET Staff in Marketing. ADB have approved the results of the technical and financial evaluation (Submission 2-3) on 18 February 2014, PMU have approved on 19 February 2014. Contract was signed in April 2014.

A study on Enterprise-based training/ training levy-grant (TV08): Contract was signed on 21st January 2014.

A policy paper on a National Skills Development Fund has been completed as an effective alternative to a levy grant system. The fund would support industry initiated training, on-the-job training for VC students and a scholarship program to improve TVET recruitment and improve financial flows to the VCs.

Management training will include special provision for training institutions to work with enterprise and tailor training as requested, to enhance revenue of the institutions.

Models of Training center / Industry collaboration in Vietnam are being documented.

A policy options paper has been completed on for a National Skills Development Fund (NSDF) to draw industry further into TVET. Recommendations for decentralizing this program to the VCs are part of this paper.

A draft industry linkage strategy will be completed after getting result from levy grant study and the review of the NSDF.

A study on Enterprise-based training/ training levy-grant (TV08): Contract was signed on 21st January 2014.

A policy paper on a National Skills Development Fund has been completed as an effective alternative to a levy grant system. The fund would support industry initiated training, on-the-job training for VC students and a scholarship program to improve TVET recruitment and improve financial flows to the VCs.

Management training will include special provision for training institutions to work with enterprise and tailor training as requested, to enhance revenue of the institutions.

Models of Training center / Industry collaboration in Vietnam are being documented.

A policy options paper has been completed on for a National Skills Development Fund (NSDF) to draw industry further into TVET. Recommendations for decentralizing this program to the VCs are part of this paper.

A draft industry linkage strategy will be completed after getting result from levy grant study and the review of the NSDF.

A study on Enterprise-based training/ training levy-grant (TV08): Contract was signed on 21st January 2014.

A policy paper on a National Skills Development Fund has been completed as an effective alternative to a levy grant system. The fund would support industry initiated training, on-the-job training for VC students and a scholarship program to improve TVET recruitment and improve financial flows to the VCs.

Management training will include special provision for training institutions to work with enterprise and tailor training as requested, to enhance revenue of the institutions.

Models of Training center / Industry collaboration in Vietnam are being documented.

A policy options paper has been completed on for a National Skills Development Fund (NSDF) to draw industry further into TVET. Recommendations for decentralizing this program to the VCs are part of this paper.

A draft industry linkage strategy will be completed after getting result from levy grant study and the review of the NSDF.

Many activities under Subcomponent 3-c in the RRP were duplicated with activities included in Output 1 and 2. Additional consultant time has been allocated to train VC Directors in developing and implementing operational and marketing planning in the 15 GDVT target institutions. A budget for training is also available. As activities for this sub component have been integrated into other subcomponents, the Mission has agreed with PMU to eliminate Subcomponent 3-c during future review as a separate sub-component and will review sustainability of the Colleges under 2-C-1.

Geographical Location

Safeguard Categories

Environment C
Involuntary Resettlement C
Indigenous Peoples B

Summary of Environmental and Social Aspects

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design A stakeholder and problem analysis was conducted to identify key project stakeholders including those agencies and organizations promoting women and ethnic minorities. Consultations were held with stakeholders including officials from Ministry of Labor, Invalids and Social Affairs (MOLISA), Ministry of Education and Training (MOET), Ministry of Finance (MOF), State Bank of Viet Nam (SBV), Ministry of Planning and Investment (MPI), vocational college managers, teachers and students. Additional consultations were held with the Department of Gender Equality in MOLISA and other departments concerned.
During Project Implementation Being monitored during project implementation

Business Opportunities

Consulting Services

All consultants will be recruited according to Guidelines on the Use of Consultants by ADB and its Borrowers (2007, as amended from time to time). The terms of reference for all consulting services are detailed in Section D.

All consultants to be financed from the loan proceeds will be selected in accordance with ADB's Guidelines on the Use of Consultants (2007, as amended from time to time). Individual national consultants will be engaged to provide preparatory training and support and guide start-up activities. A consulting firm will be engaged through QCBS (80:20) using a full technical proposal to provide qualified consultants to provide technical support for implementation, quality assurance, monitoring and evaluation, and teacher upgrading. The Project will provide 116 person months of international consultant inputs, and 174 person-months of national consultant inputs. MOLISA, through GDVT, will be responsible for selecting and hiring consultants. All consultants will be selected in accordance with ADB's Guidelines on the Use of Consultants (2007, as amended from time to time). The Project will also recruit institutions or firms to carry out the baseline, midterm and final impact studies; the social marketing campaign; and various training programs and studies using the consultant's qualification selection method for contracts under $200,000. An individual international consultant will be engaged for 9 months to support the development and piloting of a vocational training information system. Individual national consultants from VET institutions, industry and elsewhere may also be engaged to assist the PMU and the PIUs as needed. All consulting assignments will be advertised by the EA on the Consulting Services Recruitment Notice (http://csrn.adb.org). The online collection of Expressions of Interest (EOIs) is preferred to assure comparability of the EOIs and transparency of the selection process.

Procurement

All procurement of goods and works will be undertaken in accordance with ADB's Procurement Guidelines (2007, as amended from time to time).

1. Supply contracts for goods under the investment loan such as workshop equipment estimated at $500,000 equivalent or more will be awarded on the basis of international competitive bidding. Supply contracts for goods such as vehicles, computers and office equipment of more than $100,000 but less than $500,000 will follow national competitive bidding procedures. Items costing $100,000 or less will be procured through shopping.

2. Civil works will consist of classroom or workshop rehabilitation and possible extensions. Civil works under the investment loan will be implemented at school level, with contract values less than $350,000. As all civil works is financed by the Government, procurement will follow the Law on Procurement of Vietnam.

3. The private VCs will procure their own works and goods. Procurement undertaken by the VCs will be in accordance with established private sector or commercial practices (ADB Procurement Guidelines, para 3.12). ICB may be the most appropriate procurement method for the purchase of large single items or in cases where large quantities of similar goods can be grouped together for bulk purchasing. Each private VC will establish a project implementation unit (PIU) and procurement evaluation committees. The PIU will be responsible for the procurement of goods and civil works. Taxes will be paid by the training institutions and managing authorities.

4. Before the start of any procurement ADB and the Government will review the public procurement laws of the central and state governments to ensure consistency with ADB's Procurement Guidelines.

Responsible Staff

Responsible ADB Officer Eiko Izawa
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Human and Social Development Division, SERD
Executing Agencies
Ministry of Labor, Invalids and Social Affairs
Do Nang Khanh
donangkhanh@yahoo.com.vn
Hanoi

Timetable

Concept Clearance 16 Nov 2009
Fact Finding 09 Nov 2009 to 24 Nov 2009
MRM 08 Dec 2009
Approval -
Last Review Mission -
PDS Creation Date 03 Apr 2008
Last PDS Update 30 Mar 2016

Loan 2652-VIE

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
15 Jul 2010 05 Oct 2010 14 Feb 2011 29 Feb 2016 31 Aug 2017 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 58.00 Cumulative Contract Awards
ADB 50.00 15 Jul 2010 29.64 0.00 61%
Counterpart 8.00 Cumulative Disbursements
Cofinancing 0.00 15 Jul 2010 29.30 0.00 60%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - - - Satisfactory

Loan 2653-VIE

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
15 Jul 2010 05 Oct 2010 14 Feb 2011 29 Feb 2016 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 20.00 Cumulative Contract Awards
ADB 20.00 15 Jul 2010 6.40 0.00 33%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 15 Jul 2010 6.45 0.00 33%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - - - Satisfactory
Title Document Type Document Date
Skills Enhancement Project Procurement Plans May 2014
Skills Enhancement Project Project/Program Administration Manual May 2012
Project Agreement for Skills Enhancement Project between Asian Development Bank and Viet Nam Development Bank dated 5 October 2010 Project/Program Agreement Oct 2010
Loan Agreement for Skills Enhancement Project between Socialist Republic of Viet Nam and Asian Development Bank dated 5 October 2010 Loan Agreement (Special Operations) Oct 2010
Skills Enhancement Project Summary Poverty Reduction and Social Strategies Jun 2010
Skills Enhancement Project Consultants' Reports Jun 2010
Skills Enhancement Project Project/Program Administration Manual Jun 2010
Skills Enhancement Project Reports and Recommendations of the President Jun 2010
Privatization of DPWH Equipment and Workshops TA Completion Reports Jul 2003

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.


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