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Viet Nam: Skills and Knowledge for Inclusive Economic Growth Project

Sovereign (Public) Project | 49122-004 Status: Approved

Building on lessons from the Skills Enhancement Project financed by the Asian Development Bank, the proposed project will continue efforts to realign Viet Nam''s technical and vocational education and training (TVET) system with current and future labor market needs. The project will upgrade the teaching and learning environments of national high-quality TVET institutes with up-to-date technology. These upgrades will enhance the quality of training programs for advanced skills in close collaboration with business communities. The grant will complement these activities by strengthening the quality of soft skills training and developing demand-driven short-term skills programs for women and youth in disadvantaged communities.

Project Details

Project Officer
Tanaka, Sakiko Southeast Asia Department Request for information
Country
  • Viet Nam
Sector
  • Education
 
Project Name Skills and Knowledge for Inclusive Economic Growth Project
Project Number 49122-004
Country Viet Nam
Project Status Approved
Project Type / Modality of Assistance Grant
Loan
Source of Funding / Amount
Grant 9199-VIE: Skills and Knowledge for Inclusive Economic Growth for Disadvantaged Communities Project
Japan Fund for Poverty Reduction US$ 3.00 million
Loan 3761-VIE: Skills and Knowledge for Inclusive Economic Growth Project
concessional ordinary capital resources lending / Asian Development Fund US$ 75.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Knowledge solutions
Partnerships
Sector / Subsector

Education / Technical and vocational education and training

Gender Equity and Mainstreaming Effective gender mainstreaming
Description Building on lessons from the Skills Enhancement Project financed by the Asian Development Bank, the proposed project will continue efforts to realign Viet Nam''s technical and vocational education and training (TVET) system with current and future labor market needs. The project will upgrade the teaching and learning environments of national high-quality TVET institutes with up-to-date technology. These upgrades will enhance the quality of training programs for advanced skills in close collaboration with business communities. The grant will complement these activities by strengthening the quality of soft skills training and developing demand-driven short-term skills programs for women and youth in disadvantaged communities.
Project Rationale and Linkage to Country/Regional Strategy

Viet Nam reached lower middle-income status in 2010. Its economy is one of the fastest growing in Southeast Asia, with all sectors growing faster in 2018 than in 2017. In the 3rd quarter of 2018, (i) industry and construction grew by 8.9%, compared with 7.2% in 2017; (ii) manufacturing output expanded by 12.7%, similar to 12.8% in 2017, boosted by strong global export demand and continued foreign investment; (iii) services grew by 6.9%, up from 6.4% in 2017; and (iv) agriculture grew by 3.7%, up from 2.9% in 2017. The labor market structure has also changed from 2006 2016. Each year about 1 million workers shift from agriculture to industry and services, contributing to increases in overall productivity. About 40% remain engaged in agriculture, although the sector's share of gross domestic product is relatively low at 14%. More than half of the labor force is engaged in informal sector activities. Demographic trends suggest that Viet Nam''s labor force will continue to grow by about 1 million people per year until 2020.

Growing competition in global markets and the shift toward a knowledge- and technology-based economy have increased pressure on the government of Viet Nam to improve productivity and overall competitiveness. It is continuing to improve transport infrastructure and energy supply to strengthen the overall business environment, but business communities consider the lack of personnel with advanced skills to be a major challenge. Viet Nam ranks 77th out of 140 countries on the Global Competitiveness Index. Labor productivity in Viet Nam is low compared to that of other countries in the region; in 2015, it was 7.5% of Singapore's, 17% of Malaysia's, and 36% of Thailand's productivity. A survey by Viet Nam's Chamber of Commerce and Industry revealed that TVET graduates lack industry-relevant occupational skills and other fundamental soft skills such as industrial work ethics, teamwork, problem solving, and analytical skills. To sustain growth and increase competitiveness and productivity, Viet Nam needs to transform low-skilled, labor-intensive activities into higher value-added industries by upgrading the skills of its youth.

Impact Labor productivity and competitiveness of the economy enhanced
Project Outcome
Description of Outcome Selected high-quality TVET institutes strengthened and aligned to evolving labor market needs
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Teaching and learning environments in 16 TVET institutions improved

Skills training opportunities for disadvantaged communities and soft skills of students in selected TVET institutions enhanced

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Nation-wide
Safeguard Categories
Environment C
Involuntary Resettlement C
Indigenous Peoples B
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services The project will follow ADB's Procurement Guidelines (2015) and Guidelines on the Use of Consultants (2013).
Procurement The project will follow ADB's Procurement Guidelines (2015) and Guidelines on the Use of Consultants (2013).
Responsible ADB Officer Tanaka, Sakiko
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Human and Social Development Division, SERD
Executing Agencies
Ministry of Labor, Invalids and Social Welfare
2 Dinh Le Street
Hanoi, Vietnam
Timetable
Concept Clearance 08 Dec 2015
Fact Finding 21 May 2018 to 01 Jun 2018
MRM 19 Sep 2018
Approval 11 Dec 2018
Last Review Mission -
Last PDS Update 27 Mar 2019

Grant 9199-VIE

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
11 Dec 2018 - - 30 Jun 2023 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 3.00 Cumulative Contract Awards
ADB 0.00 11 Dec 2018 0.00 0.00 0%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 3.00 11 Dec 2018 0.00 0.00 0%

Loan 3761-VIE

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
11 Dec 2018 - - 31 Dec 2024 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 95.20 Cumulative Contract Awards
ADB 75.00 11 Dec 2018 0.00 0.00 0%
Counterpart 20.20 Cumulative Disbursements
Cofinancing 0.00 11 Dec 2018 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.

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Related Publications

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Tenders

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Contracts Awarded

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