The proposed project supports the Cambodia Laos Viet Nam (CLV) Development Triangle Area (DTA) objectives of facilitating the flow of goods, people, and investment capital and exploring agriculture, forestry, and tourism potential by accelerating economic growth within Viet Nam's Development Triangle Area (VDTA) consisting of Kon Tum, Gia Lai, Dak Lak, Dak Nong, and Binh Phuoc provinces. The CLV-DTA is characterized by a high concentration of ethnic minority population, low gross domestic product (GDP), and persisting poverty pockets. The key impediments to more inclusive growth are insufficient transport and other basic infrastructure, including irrigation, water supply and wastewater treatment, and rural roads as well as limited institutional capacity.
|Project Name||Support to Border Areas Development Project|
|Project Type / Modality of Assistance||Loan
|Source of Funding / Amount||
|Strategic Agendas||Environmentally sustainable growth
Inclusive economic growth
|Drivers of Change||Governance and capacity development
Private sector development
|Sector / Subsector||
Industry and trade - Trade and services
Transport - Road transport (non-urban)
|Gender Equity and Mainstreaming||Effective gender mainstreaming|
|Description||The proposed project supports the Cambodia Laos Viet Nam (CLV) Development Triangle Area (DTA) objectives of facilitating the flow of goods, people, and investment capital and exploring agriculture, forestry, and tourism potential by accelerating economic growth within Viet Nam's Development Triangle Area (VDTA) consisting of Kon Tum, Gia Lai, Dak Lak, Dak Nong, and Binh Phuoc provinces. The CLV-DTA is characterized by a high concentration of ethnic minority population, low gross domestic product (GDP), and persisting poverty pockets. The key impediments to more inclusive growth are insufficient transport and other basic infrastructure, including irrigation, water supply and wastewater treatment, and rural roads as well as limited institutional capacity. To improve the efficiency in public investment and benefit from economies of scale and synergies with ongoing or planned projects, the Government is increasingly advocating for the integrated area approach under which neighboring localities work toward common development goals and jointly enhance their competitiveness. The integrated area development approach was also recommended by the Viet Nam Country Partnership Strategy (CPS) Final Review Validation, 2012 2015, conducted by ADB's Independent Evaluation Department, as a means to ensure synergies among and maximize inclusion and other development impacts of projects. The proposed project supports this area development scheme in the VDTA.|
|Project Rationale and Linkage to Country/Regional Strategy||
Despite the steady increase in agricultural production and export as well as overall poverty reduction over the recent years, VDTA provinces are still faced with development challenges, particularly slow growth, persisting income and non-income inequality of vulnerable and disadvantaged groups, and low competitiveness primarily due to inadequate physical infrastructure, untapped business and livelihood development opportunities, and weak institutional capacity for investment planning and resource management. The VDTA has a population of 5,114,780, of whom 33% belong to ethnic minorities, spread over 51,552 km2. Approximately 77% of the population is rural and agriculture is the main livelihood. The GDP per capita in the VDTA stood at $1,683 in 2014, about 80% of the national average. In 2014, the project provinces' average poverty rate at 9% based on the national poverty line was higher than the national average of 6%, but for ethnic minorities the average was 19%. In all VDTA provinces, the share of the ethnic minority poor among the total provincial poor is disproportionally high compared to the ethnic minority population share of the total provincial population, representing 47% in Binh Phuoc, 63% in Dak Lak, 62% in Dak Nong, 85% in Gia Lai, and 93% in Kon Tum, which suggest that the ethnic minorities are not benefiting as much from the development process. VDTA's ethnic minorities also have limited access to economic assets and opportunities as well as social services. The VDTA is the largest agricultural producer in the CLV-DTA, with the five main industrial crops being coffee, rubber, pepper, cassava and cashew kernels, which are traded on international commodity markets, but the low quality has prevented farmers and local traders from fully capturing existing and potential demand. The majority of exports are transported through Ho Chi Minh City (HCMC) port via arterial National Highway 14, to which some production areas in the VDTA are not connected and agricultural producers thereby miss a critical income opportunity. The VDTA has three major international border gates with facilities only adequate to handle the current level of trade. Although the VDTA has many interesting tourism features, visitor numbers are modest with limited growth due to underdeveloped basic infrastructure and tourism value chains.
The project will help VDTA overcome these constraints by (i) building greater and safer transport connectivity by upgrading critical roads linking producers to markets, and rural communes to commercial and administrative centres; (ii) improving access to schools and healthcare services; (iii) supporting transport and trade facilitation; (iv) promoting inclusive community based tourism to improve the livelihoods of rural people, especially ethnic minorities marginalized by recent economic development ; and (v) strengthening provincial capacity for more strategic investment planning and efficient project management. This integrated area approach will help rural communes to diversify economic and employment opportunities by connecting them to increasing trade and passenger flows.
Related policies and strategies. The project is aligned with Viet Nam's Socio-Economic Development Plan 2016 2020 , which includes the objective of expanding the domestic market, promoting export, and sustaining a trading surplus. More specifically, the SEDP proposes to strengthen domestic markets and promote exports through a closer linkage between production, processing and distribution; improving the quality and competitiveness of local products, especially those which can be considered as Viet Nam's _trademark_; and more fully utilizing existing and potential incentives under various trade agreements.
|Impact||Engine and gateway within the five VDTA provinces to wider regional and international markets established.|
|Description of Outcome||Movement of goods, vehicles, and people among the five VDTA provinces increased|
|Progress Toward Outcome|
|Description of Project Outputs||
Road infrastructure in five VDTA provinces rehabilitated
VDTA plans and facilities for transport and trade facilitation with a focus on inclusive growth developed
Institutional capacity for VDTA investment planning, project design and implementation, and resource management strengthened
|Status of Implementation Progress (Outputs, Activities, and Issues)|
|Summary of Environmental and Social Aspects|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design||The Project will be designed in a consultative and participatory manner. Views and suggestions from relevant stakeholders, particularly central and provincial governments (i.e. the Ministry of Planning and Investment, Ministry of Transport, Ministry of Culture, Sports and Tourism, Provincial Peoples Committees (PPC) of the five DTA provinces), and development partners will be duly considered under the proposed Project.|
|During Project Implementation||The Project will be implemented in a consultative and participatory manner. Views and suggestions from relevant stakeholders, particularly central and provincial governments (i.e. Ministry of Planning and Investment, Ministry of Transport, Ministry of Culture, Sports and Tourism, Provincial Peoples Committees (PPC) of the five DTA provinces), and development partners will be duly considered.|
|Responsible ADB Officer||Nguyen, Cuong Dinh|
|Responsible ADB Department||Southeast Asia Department|
|Responsible ADB Division||Viet Nam Resident Mission|
Provincial People's Committee of Binh Phuoc
Road 6/1, Tan Phu Ward, Dong Xoai Town Provincial People's Committee of Dak Lak
09 Le Duan, Buon Ma Thuot City,
Dak Lak Province, Viet Nam Provincial People's Committee of Gia Lai
No. 2, Tran Phu Road Provincial People's Committee of Kon Tum Province
492 Tran Phu, Kon Tum City, Kon Tum
Province Provincial People's Committee, Dak Nong
23/3 Street, Nghia Duc Ward, Gia Nghia
Town, Dak Nong Province
|Concept Clearance||19 Dec 2014|
|Fact Finding||30 May 2016 to 18 Jun 2016|
|MRM||25 Jul 2016|
|Approval||08 Dec 2016|
|Last Review Mission||-|
|Last PDS Update||08 Dec 2016|
|Approval||Signing Date||Effectivity Date||Closing|
|08 Dec 2016||04 May 2017||10 Aug 2017||30 Jun 2023||-||-|
|Financing Plan||Loan Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||122.11||Cumulative Contract Awards|
|ADB||106.51||08 Dec 2016||0.00||0.00||0%|
|Cofinancing||0.00||08 Dec 2016||0.00||0.00||0%|
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.
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|Title||Document Type||Document Date|
|Loan Agreement (Special Operations) for Loan 3499-VIE: Support to Border Areas Development Project||Loan Agreement (Special Operations)||May 2017|
|Project Agreement for Loan 3499-VIE: Support to Border Areas Development Project||Project/Program Agreements||May 2017|
|Dự án Hỗ trợ Phát triển các Khu vực Biên giới: Bảng Dữ liệu Dự án||Translated PDS||Dec 2016|
|Support to Border Areas Development Project: Project Administration Manual||Project/Program Administration Manual||Nov 2016|
|Support to Border Areas Development Project: Report and Recommendation of the President||Reports and Recommendations of the President||Nov 2016|
|Support to Border Areas Development Project: Gender Action Plan||Gender Action Plans||Nov 2016|
|Support to Border Areas Development Project: Procurement Plan||Procurement Plans||Jul 2016|
|Support to Border Areas Development Project: Initial Poverty and Social Analysis||Initial Poverty and Social Analysis||Jan 2015|
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.
Evaluation Documents See also: Independent Evaluation
None currently available.
None currently available.
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ADB to Support Development of 5 Border Provinces in Viet NamADB has approved a $106.51 million loan to support the development of the five VDTA provinces through road rehabilitation, imrovement of tourism and transport connectivity, as well as domestic and international trade.