41339-013: Skills Enhancement Project | Asian Development Bank

Viet Nam: Skills Enhancement Project

Sovereign (Public) Project | 41339-013 Status: Active

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.

Project Details

Project Officer
Thomas, Elaine C. Southeast Asia Department Request for information
Country
  • Viet Nam
Modality
  • Loan
Sector
  • Education
 
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
concessional ordinary capital resources lending / Asian Development Fund US$ 50.00 million
Loan 2653-VIE: Skills Enhancement Project
concessional ordinary capital resources lending / Asian Development Fund US$ 20.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
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 Reduction in skills shortages in 15 key occupations.
Project Outcome
Description of Outcome Higher-level skills training in 15 key occupations established for males and females.
Progress Toward Outcome All planned outcomes are likely to be achieved. The EA is preparing a project completion report. The project is currently in the winding up period, making all payments for completed contracts as of 31 August 2017.
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)

Only 3 subloans approved:

1. Bac Nam VC: subloan includes construction of multi-function workshop, supply of vocational equipment, and supply and installation of equipment for fire protection and firefighting. Post-review of Bac Nam VC bidding documents for the construction of multifunctional building were approved in July 2014. Bidding documents for the supply of vocational equipment were submitted for post review. The VC has fully utilized the subloan.

2. An Nhat Vinh VC: subloan includes construction, expansion and improvement (including supply and installation of equipment/furniture). Post-review of An Nhat Vinh VC NCB documents for its construction, expansion, and improvement were approved in June 2014. Civil works component completed but large packages of equipment were not procured due to a change in the equipment list.

3. Dong An VC: subloan includes the construction and purchase of equipment. Civil works were completed but the procurement of equipment was not completed due to delays in construction.

Total enrollment in 3 private VCs, 2011-12 = 1471 (55% female). In 2016, enrollment increased by 36%, 43% female

NOT ACHIEVED. No private VC-participant with an institution-specific gender strategy

Increased by 58% in 2016

64% of VCs with more than 2 formal partnership agreements signed per year. Three out of 18 VCs with 1 enterprise with mostly women employed

This activity was approved for cancellation in the mid term review in Jan 2014. The basis of effective industry involvement in TVET is a national framework for industry to contribute to and endorse national skills standards and then a plan at the VC/province level to implement a strategy to provide cost recovery skills development to industry based on the industry approved standards. Each target VC requires and operational plan including a marketing strategy targeting industry and communities in its own province. Funds are no longer required ifor either teacher training or management training for this activity. Consultants engaged will concentrate on strengthening each target VC in this area to improve the responsiveness of VCs to the demand for training and the need for non-government based revenue.

See output 2 (PMU has been working with the remaining VCs without a marketing plan for clear guidance and implementation. It is targeted that by 20 August 2017, 15 public VC will have marketing plans.

Study completed in Oct 2014 under contract TV08

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.

COMPLETED. Three study tours [Taiwan, 15-19 July 2014; Australia, 21-25 July 2014; Malaysia 7-13 September 2014] attended by 38 participants, 21% female.

COMPLETED: Management training: Training courses for principals, vice principals and managers completed in 2016 and attended by 75 participants, 27% female. System level training courses for MOLISA, GDVT and DOLISA officers completed in 2017 and attended by 31 participants, 39% female

Improved program accreditation system: Completed. MOLISA issued Circular No. 15/2017/TT-BLDTBXH on VT accreditation dated 8 June 2017. In line with this, PMU conducted 2 training courses.

20 programs accredited by end of 2015: Very likely to be achieved by July 2017.

COMPLETED: MOLISA Circular No. 08/2017/TT-BLDTBXH dated 10 March 2017 on standards for vocational teachers, which superseded Circular No. 30/2010/TT-BLDTBXH dated 29 September 2010.

Very likely to be achieved. Included in teacher training activities under ongoing contracts (DT04 and DT05).

COMPLETED: Refer to Teacher Incentives Study, Final Assessment Report, January 2015 (contract package TV09)

MOLISA issued Circular No. 14/2017/TT-BLDTBXH dated 25 May 2017 on technical cost norm for VT

CANCELLED: The consultant completed the system design specifications in November 2011. In 2012, GDVT received financial support from MOLISA to complete an on-going development of a software. Thus, PMU proposed the cancellation of this activity in This was approved by ADB in its letter dated 20 Sep 2013. The Loan Review Mission, 1-4 Dec 2014, also noted the cancellation.

COMPLETED. National skills standards for 15 occupational programs had been issued as follows: Decision No. 1305 issued by MOT, 21 Jun 2011, for automotive technology, exploitation of marine machinery and ship control; Decision No. 4837 issued by MoIT, 22 Sep 2011, for computer network administration, computer programming, database administration, industrial electronics, electrical installation techniques and industrial control, industrial electricity, mechatronics, operation repair of refrigeration equipment and welding; Circular No. 01/2014/TT issued by the Ministry of Culture, Sports and Tourism, 15 Jan 2014, for food processing and hotel management [culinary]; Decision No. 3316 issued by MIT, 14 June 2012, for metal cutting.

CANCELLED: Pre-service training activities has been canceled according to the MOU of ADB Mission on Jan 2015.

Achieved. GDVT working on national standards based on ASEAN standards.

Baseline:

2012 = 6 VCs offering e 3 OPs, 12 VCs offering 2 OPs, and 1 VC offering 1 OP

Achievement (2016):

13 VCs offering e 3 OPs, 2 VCs offering 2 OPs and none offering 1 OP.

Target: 15 public VCs and 3 private VCs with operational ERU by 2012

Achievement: 2012, 7 public VCs and 1 private VC with operational ERU; by 2016, 13 public VCs and 3 private VCs. By 2016, 8 public VCs and 2 private VCs with ERUs have marketing plans

Target: Skills testing centers operational in 15 public VCs and 3 private VCs

Achievement: IN PROGRESS. Five out of 6 skill testing centers (5 public, 1 private) are operational.

Target: 1500 workers/graduates tested by 2015, 35% female

Achievement: Very likely to be achieved. PMU has engaged 5 public VCs to undertake skills testing.

Target: Implementation of management training package completed, 40% female participation

Achievement:

Training courses for principals, vice principals and managers conducted in 3rd and 4th quarter of 2016 attended by 75 participants, 27% female.

Target: 20 institutional business plans by 2015

Achievement: 9 out of targeted 20 VCs (45%) with institutional business plans

Target: 260 teachers from 20 VCs issued teacher competency certificates by 2015

Achievement: Very likely to be achieved. Training for public VC teachers in progress.

Target: 500 teachers from other VCs issued teacher competency certificates by 2015

Achievement: Very likely to be achieved. Training for public VC teachers in progress.

17 of 18 SEP VCs (94%) accredited by GDVT

Number of VCs with Level 2 accreditation by GDVT=1

Number of VCs with Level 3 accreditation by GDVT=16

Number of VCs without any GDVT accreditation=1

IN PROGRESS. 3 out of 18 VCs (17%) have initiated work

Geographical Location Nation-wide, Buon Ma Thuot, Da Nang, Di An, Haiphong, Hanoi, Ho Chi Minh City, Nha Trang, Phuong Hung Vuong, Thanh Pho Can Tho, Thanh Pho Da Nang, Thanh Pho Hai Duong, Tinh Binh Duong, Tinh Dak Lak, Tinh Kien Giang, Tinh Nam Dinh, Tinh Nghe An, Tinh Ninh Binh, Tinh Soc Trang, Vung Tau, Yen Bai
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 ADB Officer Thomas, Elaine C.
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
[email protected]
Hanoi
Timetable
Concept Clearance 16 Nov 2009
Fact Finding 09 Nov 2009 to 24 Nov 2009
MRM 08 Dec 2009
Approval 15 Jul 2010
Last Review Mission -
PDS Creation Date 03 Apr 2008
Last PDS Update 26 Sep 2017

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 42.97 0.00 88%
Counterpart 8.00 Cumulative Disbursements
Cofinancing 0.00 15 Jul 2010 41.85 0.00 86%
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 - 24 Feb 2017
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 0.00 0.00 0%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 15 Jul 2010 5.98 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - - - Satisfactory

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.

Title Document Type Document Date
Skills Enhancement Project: Procurement Plan Procurement Plans Oct 2017
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 Agreements 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 Reports and Recommendations of the President Jun 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
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.


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.

Tenders

Tender Title Type Status Posting Date Deadline
L2652 - VIE: Skills Enhancement Project [TB24] Invitation for Bids Closed 28 Apr 2017 29 May 2017

Contracts Awarded

Contract Title Approval Number Contract Date Contractor Contractor Address Executing Agency Contract Description Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
Final Impact Studies (Tv04) Loan 2652 16 Jun 2017 Institute of Sociology No. 1A Lieu Giai Street, Ba Dinh District, Hanoi, Viet Nam, Soc Rep of Ministry of Labor, Invalids and Social Affairs Consulting Services 141648 141430
Pilot Vocational Teacher Development Program (DT05A) Loan 2652 16 Jun 2017 Bach Khoa Consultancy and Technology Transfer 2nd flr. A17 Bldg, Hanoi Univ Of Science & Tech, 17 Ta Quang Buu St, Hai Ba Trung, Viet Nam, Soc Rep of Ministry of Labor, Invalids and Social Affairs Consulting Services 156298 156057
Supply and Delivery of Additional Equipment for Mechatronics Loan 2652 03 May 2017 Cong Ty Co Phan Tu Van Cong Nghe Cao Va Cong No. 7, Alley 49/87/25 Duc Giang St. Duc Giang Ward, Long Bien Dist. Hanoi, Viet Nam, Soc Rep of Ministry of Labor, Invalids and Social Affairs Supply of Goods 1804312 1804312
Supply and Delivery of Equipment for Ship Engine Operations and Repair (TB20 Lot 2) Loan 2652 22 Mar 2017 Hanoi Technology - Equipment JSC T1 House, Group 2, K1B St, Phu Dien Ward Bac Tu Liem District, Hanoi Viet Nam Ministry of Labor, Invalids and Social Affairs Supply of Goods 1189122.69 1140323.644
Supply and Delivery of Navigation Equipment (TB20 Lot1) Loan 2652 22 Mar 2017 Tumiki JSC and Tecotec Group JSC (JV) 9Th Floor, Cit Bldg, Lane 15 Duy Tan St Dich Vong Hau Ward, Cau Giay Dist, Hanoi Viet Nam Ministry of Labor, Invalids and Social Affairs Supply of Goods 1288790.79 1237648.61
Supply and Delivery of Additional Equipment for Industrial Electricity (TB22) Loan 2652 31 Jan 2017 Ving Quang Trading and Production JSC No. 25 Alley 127/123 Hao Nam, O Cho Dua Ward, Dong Da District, Hanoi Viet Nam Ministry of Labor, Invalids and Social Affairs Supply of Goods 2087070.27 2074290.147
Supply and Delivery of Additional Equipment for Metal Cutting (TB21) Loan 2652 31 Jan 2017 Hung Linhtechnical Consultancy Co., Ltd. 5Th Floor, Building 29 Huynh Thuc Khang Dong Da District, Hanoi Viet Nam Ministry of Labor, Invalids and Social Affairs Supply of Goods 2250000 2250000
Supply and Delivery of Additional Automotive Technology Equipment (TB19) Loan 2652 31 Jan 2017 Tan Phat Equipment Joint Stock Company 168 Phan Trong Tue St., Thanh Liet Commune, Thanh Tri District, Hanoi Viet Nam Ministry of Labor, Invalids and Social Affairs Supply of Goods 3027368.46 3005288.083
Various Training and Project Management Expenses for the Period Oct-Dec 2016 (WA 00072) Loan 2652 20 Jan 2017 Various Various Viet Nam Ministry of Labor, Invalids and Social Affairs Others 106591.44 94968.053

Procurement Plan

Title Document Type Document Date
Skills Enhancement Project: Procurement Plan Procurement Plans Oct 2017