Viet Nam : GMS: Mekong Tourism Development Project

Project Name

GMS: Mekong Tourism Development Project

Project Number

35345-013

Country / Economy

• Viet Nam

Project Status

Closed

Project Type / Modality of Assistance

• Loan

Source of Funding / Amount

Loan 1971-VIE: GMS: Mekong Tourism Development Project

Source	Amount
Asian Development Fund	US$ 8.50 million

Strategic Agendas

• Environmentally sustainable growth
• Regional integration

Drivers of Change

• Gender Equity and Mainstreaming
• Governance and capacity development
• Private sector development

Sector / Subsector

• Industry and trade / Trade and services

Gender

Effective gender mainstreaming

Description

The Project aims to reduce poverty, contribute to economic growth, increase employment, and promote the conservation of the natural and cultural heritage. The specific objective of the Project is to promote sustainable tourism in the lower Mekong basin through infrastructure improvements, community and private sector participation, and sub-regional cooperation. The Project will comprise four parts: Part A, tourism-related infrastructure improvements; Part B, pro-poor, community-based tourism development; Part C, sub-regional cooperation for sustainable tourism; and Part D, implementation assistance and institutional strengthening.

Project Rationale and Linkage to Country/Regional Strategy

The GMS is the fastest growing tourism destination in the world. This is bringing in much-needed foreign exchange, creating jobs, and contributing to economic growth. However, growth in tourism is constrained by difficulties in access, the lack of investment in tourist infrastructure, the absence of new products to attract visitors, and weaknesses in policy and institutional capacities. The GMS countries have a strong comparative advantage in tourism, demonstrated by the high growth rates, but need to exploit it more effectively to use it as an instrument of poverty reduction, and broad-based economic growth.

GMS Economic Cooperation Program

GMS Program Strategic Framework

Impact

(i) To increase foreign exchange earnings from tourism in the three Greater Mekong Subregion (GMS)

participating countries; (ii) To reduce poverty through increased and economic growth and employment

opportunities; (iii) To promote the conservation of natural and cultural heritage

Project Outcome

Description of Outcome

To promote sustainable tourism development in the lower basin of the Mekong River through infrastructure improvements, increased community and private sector participation, and subregional cooperation

Progress Toward Outcome

Outcome is likely to be achieved.

Implementation Progress

Description of Project Outputs

A.1. Urban environmental improvement

A.2. Small airports extension and rehabilitation

A.3. Access road improvement

A.4. River tourism piers development

B. Pro-poor, community based tourism development including:

1. Community participation in tourism development

2. Community awareness of tourism benefits and environmental and cultural conservation

3. Pro-poor tourism products identification

4. Small-scale tourism community-related infrastructure

5. Capacity building for tourism-related local microenterprises and communities

6. Gender development strategy

7. Ethnic minority participation strategy

8. Marketing and promotion plan

9. Community-based tourism networks

10. Project performance monitoring system

C. Subregional cooperation for sustainable tourism

1. GMS facility for tourism cooperation

2. Improvement of tourism facilities at border posts

3. Establishment of a GMS network of tourism marketing and promotion boards

4. GMS hotel classification system

5. GMS tourism plan

6. GMS tourism statistics improvement and harmonization

7. Diversification of AMTA human resources

8. GMS tourism human resource development

D. Implementation assistance and institutional strengthening

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

The project is physically completed. The Original project outputs have been or will be achieved.

Geographical Location

Safeguard Categories

Environment

B

Involuntary Resettlement

Indigenous Peoples

Summary of Environmental and Social Aspects

Environmental Aspects

The Project is classified as environment category B. Several of the proposed infrastructure subprojects (i.e., waste treatment, boat jetty, and road rehabilitation) may have some negative environmental impacts arising from construction and operation. However, the potential negative impacts can be mitigated to acceptable levels through appropriate design and implementation of mitigation measures included in the subprojects in line with ADBs environmental requirements and those applicable at the national and provincial levels in each GMSPCs.

Involuntary Resettlement

A social impact assessment identified subprojects that would involve land acquisition and resettlement.

Indigenous Peoples

Stakeholder Communication, Participation, and Consultation

During Project Design

Participatory community consultations and consultations with NGOs, civil society, private sector operators, government tourism agencies, and regional tourism agencies have been held. The community-based participatory consultations have helped to identify the social and economic needs of the communities, their views, related to project interventions, expected benefits, modalites for community participation and participation of women and youth in tourism-related skills building and employment opportunities. As a result, the project design reflects the strategies for building partnerships with (i) poor rural communities (particularly ethnic minorities) NGOs, and civil society, and (ii) government agencies involved in tourism developmepnt, agriculture, and forestry.

During Project Implementation

The Project will promote private sector participation in market research, planning, and tourism marketing and promotion through initial support for the establishment of tourism marketing and promotion board (TMPB). TMPB will have leadership from the private sector and will mainly be financed from contributions from the private sector. TMPB will promote dialogue between the private and public sectors, expand opportunities for coordination in the development of plans, strategies, legislation, and marketing; and increase the efficiency and international cmopetitiveness of the tourism sector in Viet Nam and in the subregion. The Project will also promote the establishment of micro and small tourist enterprises in rural areas, through the pro-poor community-based component. Capacity building for communiteis and small entrepreneurs involved in the tourism industry, will be provided under the Project.

Business Opportunities

Consulting Services

To support the implementation of the Project, a total of 169 person-months of consulting services (63 person-months international and 106 person-months domestic) will be required. The Consultants will be engaged in accordance with the ADB's Guidelines on the Use of Consultants and other arrangements satisfactory to ADB on the engagement of domestic consultants. Separate consulting services packages will be rocured to provide assistance to the PCUs in the NTOs, and the PMUs in charge of infrastructure improvements. The consultants for PMUs will be firms and will focus on Part A. The consultants for the PCUs will be firms and will focus on overall project management and part C of the Project. Individual consultants will be engaged for Part B and will be recruited by PCU. Consulting firms will be selected and engaged following the quality and cost-based selection method. Consultants will provide on-the-job training to national and provincial govenrment officials involveed in implementation.

Procurement

Goods and works to be financed by ADB will be procured in accordance with ADB Guidelines for Procurement. International competitive bidding (ICB) procedure will be used for major civil works contracts estimated to cost over $1.0 million and supply contracts valued over $500,000. Procurement of minor civil works will be undertaken through local competitive bidding (LCB) in accordance with procedures acceptable to the ADB. International shopping (IS) will be followed for materials and equipment packages estimated to cost more than $100,000 equivalent but less than $500,000 equivalent. Equipment items that are locally available, and cost less than $100,000 equivalent, may be procured through direct purchase in accordance with procedures satisfactory to ADB. For the pro-poor, community-based tourism component, where the proposed subprojects will be relatively small, and scattered throughout the provinces, the Project may fund NGOs to work in a collaborative and participatory manner with local communities.

Contact

Responsible ADB Officer

Do, Hoang Nhat

Responsible ADB Department

Southeast Asia Department

Responsible ADB Division

Viet Nam Resident Mission (VRM)

Executing Agencies

Provincial People's Committee of An Giang

Provincial People's Committee of Tien Giang

Vietnam National Adminstration of Tourism

Timetable

Concept Clearance

08 Mar 2001

Fact Finding

09 Mar 2001 to 22 Mar 2001

MRM

26 Aug 2002

Approval

12 Dec 2002

Last Review Mission

-

PDS Creation Date

01 Dec 2006

Last PDS Update

22 Mar 2011

Funding

Loan 1971-VIE