Viet Nam: Trade Facilitation: Improved Sanitary and Phytosanitary Handling in Greater Mekong Subregion Trade Project

Sovereign Project | 43120-025 Status: Active


ADB is helping Viet Nam enhance sanitary and phytosanitary systems and food safety management. The project will support the design and implementation of food safety surveillance, including a pilot project in four northern provinces. Improved import handling, grading of restaurants in tourist areas, and strengthening of food laboratories will help build a more rigorous food safety management system.

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Project Name Trade Facilitation: Improved Sanitary and Phytosanitary Handling in Greater Mekong Subregion Trade Project
Project Number 43120-025
Country Viet Nam
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2944-VIE: Trade Facilitation: Improved Sanitary and Phytosanitary Handling in Greater Mekong Subregion Trade Project
Concessional ordinary capital resources / Asian Development Fund US$ 11.00 million
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Governance and capacity development
Sector / Subsector

Agriculture, natural resources and rural development - Agro-industry, marketing, and trade

Industry and trade - Trade and services

Gender Equity and Mainstreaming Some gender elements
Description Compliance with global SPS requirements requires national specialists to undertake tasks related to surveillance, risk analysis, testing, diagnostics, pest identification, standards, and conformity assessment. Trading partners and private companies often require application of good agricultural practices, good manufacturing practices, and quality assurance management (such as hazard analysis critical control points). Cambodia and the Lao PDR lack specialists who can perform these tasks. These specialists need to come (in part at least) from graduates of national higher education systems that train SPS specialists. Strengthening capacities of SPS agencies is urgently needed to meet the increasing requirements for exports and trade facilitation, and to protect health.
Project Rationale and Linkage to Country/Regional Strategy

The project is in line with the GMS 10-year strategic framework, 2012'-2022 and supports the thrust to facilitate cross-border trade and investment. The project will contribute to pillar 4 (cooperation in regional public goods) of ADB's Regional Cooperation and Integration Strategy. The project is aligned with the targets of the National Strategic Development Plan Update, 2009-2013 of Cambodia and the National Socio Economic Development Plan VII, 2011-2015 of the Lao PDR. Improving SPS management is explicitly reflected in various Cambodia and Lao PDR sector strategies and plans, and in the GMS core agriculture support program.

Trade facilitation remains a challenging agenda in the GMS. Previous experience shows the need to adopt a phased approach to formulate well-targeted and sequenced projects to ensure implementation of bilateral and regional commitments on cooperation and harmonization. Inadequate capacities at the country level are major constraints for effective regional cooperation in SPS arrangements. Development partners, such as the United Nations agencies, the World Bank and bilateral agencies support various aspects of SPS capacity building in the GMS, but ongoing projects have not addressed SPS issues in a comprehensive manner. Preparatory work has been firmly anchored in the lessons of international experiences that stress the need for prevention rather than end-of-pipe controls, which have proven to be costly and frequently ineffective. Involvement of the private sector and civil society in SPS capacity building is necessary to ensure the right technical issues and challenges are addressed and for longer-term sustainability. During the project preparation phase, workshops to consult the private sector on SPS issues were held in Cambodia and the Lao PDR, which contributed to the overall project design. Likewise, coordination with the GMS working group on agriculture has been maintained.

Impact Food products become safer, more efficiently produced, and traded in greater quantities

Project Outcome

Description of Outcome Enhanced SPS food safety management system
Progress Toward Outcome Full implementation of the project started with the commencement of the services of technical and project management consultants in April 2015, which provides the Project Management Unit (PMU)/VFA with management, finance, procurement, and technical support. The consultants submitted the key technical report on national food safety surveillance system, food safety policy (risk-based import procedures for food products); and active participation in the regional and international alert system. These reports are generally in order, providing the appropriate technical analysis and are the results of joint efforts from the international, national consultants and VFA technical staff.
Implementation Progress
Description of Project Outputs

Strengthened food safety surveillance, handling and inspection system designed and implemented

Improved regional cooperation and harmonization

Effective project management

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

As of the last review mission in August 2016, good progress has been made in delivering core project outputs. This includes (i) development of the surveillance action plan for implementation in the four pilot Northern provinces. implementation is expected to start from this November. The Mission suggested VFA to incorporate a clearer description of food product sampling priorities into its surveillance action plan and recommends that the surveillance focus on testing high risk food products for the highest food hazard risks (such as testing meat, seafood and mushrooms for microbiological and toxin risks according to the data), to make sure the tasks are doable and deliver the most tangible results; (ii) surveillance system database design has been approved by MOH. VFA will proceed to procurement. The system is necessary to support operation of more effective surveillance; (iii) comprehensive work has been undertaken on food risk categorization methodology and its application to imports. A food categorization list is now being prepared for Viet Nam and this will be further developed into an implementation plan for introduction of risk based border management, setting out how the new inspection regime will be implemented over time and the resources needed; (iv) completion of the draft restaurant grading scorecard. The Mission was advised that the grading system will be implemented from Q1 2017; and (v) plans have been made to attend the international food safety authorities' network and ASEAN rapid alert system for food and feed training.

The loan is scheduled to be delegated to VRM on Q4 2016.

Geographical Location

Safeguard Categories

Environment C
Involuntary Resettlement C
Indigenous Peoples C

Summary of Environmental and Social Aspects

Environmental Aspects na
Involuntary Resettlement na
Indigenous Peoples na
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation

Business Opportunities

Consulting Services All procurement will be undertaken in accordance with ADB's Procurement Guidelines. No works are foreseen. No advance action was undertaken.
Procurement All procurement will be undertaken in accordance with ADB's Procurement Guidelines. No works are foreseen. No advance action was undertaken.

Responsible Staff

Responsible ADB Officer Ishenaliev, Rustam I.
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Viet Nam Resident Mission
Executing Agencies
Ministry of Health
138A Giang Vo Str.
Hanoi, Viet Nam


Concept Clearance 23 Nov 2010
Fact Finding 10 Oct 2011 to 14 Oct 2011
MRM 07 Aug 2012
Approval 20 Nov 2012
Last Review Mission -
Last PDS Update 28 Sep 2016

Loan 2944-VIE

Approval Signing Date Effectivity Date Closing
Original Revised Actual
20 Nov 2012 17 Jan 2013 16 May 2013 31 Dec 2018 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 11.72 Cumulative Contract Awards
ADB 11.00 20 Nov 2012 4.34 0.00 45%
Counterpart 0.72 Cumulative Disbursements
Cofinancing 0.00 20 Nov 2012 3.95 0.00 41%

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

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Related Publications

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