Regional: Developing Cross-Border Economic Zones between the People's Republic of China and Viet Nam

Sovereign Project | 43077-012

Summary

The Regional Policy and Advisory Technical Assistance (PATA) project is designed to support the implementation of the Noth-South Economic Corridor Startegy and Action Plan by developing cross-border economic zones (CBEZs) along selected border areas between PRC and Viet Nam. The project aims at promoting cross-border trade and investment activities and contributing to the development of North-South Economic Corridor (NSEC) under the Greater Mekong Subregion (GMS) Economic Cooperation Program.

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Project Name Developing Cross-Border Economic Zones between the People's Republic of China and Viet Nam
Project Number 43077-012
Country Regional
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 7356-REG: Developing Cross-Border Economic Zones between the People's Republic of China and Viet Nam
Regional Cooperation and Integration Fund US$ 800,000.00
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Governance and capacity development
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector Industry and trade - Trade and services
Gender Equity and Mainstreaming Some gender elements
Description The Regional Policy and Advisory Technical Assistance (PATA) project is designed to support the implementation of the Noth-South Economic Corridor Startegy and Action Plan by developing cross-border economic zones (CBEZs) along selected border areas between PRC and Viet Nam. The project aims at promoting cross-border trade and investment activities and contributing to the development of North-South Economic Corridor (NSEC) under the Greater Mekong Subregion (GMS) Economic Cooperation Program.
Project Rationale and Linkage to Country/Regional Strategy

Regional cooperation and integration (RCI) is highlighted as one of five core operational areas in ADB's Long-Term Strategic Framework (Strategy 2020). Both the PRC and Viet Nam are active participants in various RCI initiatives, including the ADB-led GMS Program. Both countries have embraced the principles of regional cooperation, and have over the years demonstrated strong ownership of regional cooperation activities. The PRC Country Partnership Strategy 2008-2010 identified regional cooperation as one of the four key thrusts of ADB assistance, whereby ADB's RCI programs will be used to enhance infrastructure connectivity, facilitate cross-border trade and investment, and promote regional public goods. Regional cooperation is also a cross-cutting theme in the Viet Nam Country Strategy and Program 2007-2010 , and is regarded as an important means of reducing poverty and sustaining economic growth by promoting competition and encouraging cross-border trade and investment among others.

The Regional Cooperation Strategy for GMS and the Midterm Review of the GMS Strategic Framework all endorse an economic corridor approach to subregional development. The Third GMS Summit called for more efforts to promote economic corridor development in the GMS. The NSEC was identified as a priority. One of the key recommendations from the NSEC Strategy and Action Plan is the development of CBEZs between the PRC and Viet Nam.

The PATA will help operationalize the GMS strategy with regard to economic corridor development. It will contribute to the development of NSEC by supporting the establishment of the CBEZs along the PRC-Viet Nam border. It will also contribute to the implementation of the ADB's country strategies for the two countries, and strengthen the PRC-Viet Nam partnership for regional cooperation.

Impact The impact of this TA is the establishment and effective management of the CBEZs in the border provinces of the PRC and Viet Nam, contributing to the development of the NSEC under the GMS Economic Cooperation Program.
Project Outcome
Description of Outcome

PRC-Viet Nam CBEZs will be established and managed well, contributing to the development of the

NSEC.

Progress Toward Outcome The two governments have strengthened coordination with regard to cross-border economic zone development. A Joint Working Group of Viet Nam and PRC has been created and they regularly discuss the development of CBEZs. They are in the process of developing a Joint CBEZ Program (JCP) for implementing the MOU. The JCP will include formulation of a joint master plan for, and strengthening communications on, the establishment and development of CBEZs.
Implementation Progress
Description of Project Outputs

Establishment of the PRC-Viet Nam joint committee, and subcommittees if necessary, for developing and

managing the CBEZs at Hekou-Lao Kai and Pingxiang-Dong Dang

Formulation of CBEZ master plan and key investment plans in priority sectors

Improvements in the environment for cross-border business development

Enhanced capacity for the PRC and Viet Nam government agencies with regard to CBEZ development and

management

Enhanced private sector participation and strengthened PPP in the development of CBEZs

Lessons learned about CBEZ development

Status of Implementation Progress (Outputs, Activities, and Issues) ADB arranged an informal tripartite meeting on 24 May 2013 in Beijing to facilitate negotiations on the MOU that lead to its signing on 13 October 2013. A preliminary draft Joint CBEZ Program (JCP) has been developed by both countries which include among other aspects; specific locations, management approach and mechanisms, investment promotion preferential policies and investment needs to develop infrastructure.
Geographical Location PRC and Viet Nam
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design Extensive consultations took place with relevant stakeholders from Viet Nam as weel as China during project design and formulation.
During Project Implementation Missions to the Border Crossing Points between Viet Nam and China have been fielded in order to discuss implementation issues. Several workshops have been organized in order to facilitate negotiations and raising awareness about the initiative.
Business Opportunities
Consulting Services A total of 12 person-months of international and 14 person-months of national consultant sevices will be hired through individual basis.
Responsible ADB Officer Cristina Lozano
Responsible ADB Department East Asia Department
Responsible ADB Division Public Mgt, Financial Sector and Regional Coop Division, EARD
Executing Agencies
Asian Development Bank Yuebin Zhangyuebinzhang@adb.org6 ADB Avenue, Mandaluyong
Metro Manila, Philippines
P.O. Box 789, 1099 Manila,
Philippines
Timetable
Concept Clearance 26 Mar 2009
Fact Finding 30 Jul 2009 to 01 Aug 2009
MRM -
Approval 30 Sep 2009
Last Review Mission -
PDS Creation Date 05 May 2009
Last PDS Update 28 Mar 2014

TA 7356-REG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
30 Sep 2009 - 30 Sep 2009 31 Dec 2011 31 Dec 2014 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
800,000.00 0.00 100,000.00 0.00 0.00 0.00 900,000.00 30 Sep 2009 532,259.72

Safeguard Documents

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Evaluation Documents

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