Viet Nam: Support to Border Areas Development Project

Sovereign (Public) Project | 48189-002 Status: Active

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 Details

Project Officer
Nguyen, Cuong Dinh Southeast Asia Department Request for information
Country
  • Viet Nam
Sector
  • Transport
 
Project Name Support to Border Areas Development Project
Project Number 48189-002
Country Viet Nam
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3499-VIE: Support to Border Areas Development
concessional ordinary capital resources lending / Asian Development Fund US$ 106.51 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Governance and capacity development
Knowledge solutions
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.
Project Outcome
Description of Outcome Movement of goods, vehicles, and people among the five VDTA provinces increased
Progress Toward Outcome
Implementation Progress
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)
Geographical Location
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples B
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
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
Executing Agencies
Provincial People's Committee of Binh Phuoc
[email protected]
Road 6/1, Tan Phu Ward, Dong Xoai Town
Provincial People's Committee of Dak Lak
[email protected]
09 Le Duan, Buon Ma Thuot City,
Dak Lak Province, Viet Nam
Provincial People's Committee of Gia Lai
[email protected]
No. 2, Tran Phu Road
Provincial People's Committee of Kon Tum Province
[email protected]
492 Tran Phu, Kon Tum City, Kon Tum
Province
Provincial People's Committee, Dak Nong
[email protected]
23/3 Street, Nghia Duc Ward, Gia Nghia
Town, Dak Nong Province
Timetable
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

Loan 3499-VIE

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
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%
Counterpart 15.60 Cumulative Disbursements
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.

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.

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.

Title Document Type Document Date
Support to Border Areas Development Project: Provincial Road 675A (Kon Tum) Initial Environmental Examination Initial Environmental Examination Jul 2016
Support to Border Areas Development Project: Provincial Road 756 (Binh Phuoc) Initial Environmental Examination Initial Environmental Examination Jul 2016
Support to Border Areas Development Project: National Road 29 (Dak Lak) Initial Environmental Examination Initial Environmental Examination Jul 2016
Support to Border Areas Development Project: Provincial Roads 686 and 681 (Dak Nong) Initial Environmental Examination Initial Environmental Examination Jul 2016
Support to Border Areas Development Project: Provincial Road 665 (Gia Lai) Initial Environmental Examination Initial Environmental Examination Jul 2016
Support to Border Areas Development Project: Provincial Road 665 (Gia Lai) Resettlement and Ethnic Minorities Development Plan Combined Resettlement Plan and Indigenous Peoples Plans Jul 2016
Support to Border Areas Development Project: National Highway 29 (Dak Lak) Resettlement and Ethnic Minorities Development Plan Combined Resettlement Plan and Indigenous Peoples Plans Jul 2016
Support to Border Areas Development Project: Provincial Road 675A (Kon Tum) Resettlement and Ethnic Minorities Development Plan Combined Resettlement Plan and Indigenous Peoples Plans Jul 2016
Support to Border Areas Development Project: Road to Bu Prang Border Gate (Dak Nong) Resettlement and Ethnic Minorities Development Plan Combined Resettlement Plan and Indigenous Peoples Plans Jul 2016
Support to Border Areas Development Project: Provincial Road 756 (Binh Phuoc) Resettlement and Ethnic Minorities Development Plan Combined Resettlement Plan and Indigenous Peoples Plans Jul 2016

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.