Regional: Policy Coordination and Planning of Border Economic Zones of the People's Republic of China and Viet Nam
|Project Name||Policy Coordination and Planning of Border Economic Zones of the People's Republic of China and Viet Nam|
China, People's Republic of
|Project Type / Modality of Assistance||Technical Assistance
|Source of Funding / Amount||
|Strategic Agendas||Inclusive economic growth
|Drivers of Change||Partnerships
|Sector / Subsector||
Industry and trade / Trade and services
|Gender Equity and Mainstreaming||No gender elements|
|Project Rationale and Linkage to Country/Regional Strategy|
|Impact||Integration along the GMS North South Economic Corridor improved (Strategy and Action Plan for the Greater Mekong Subregion North South Economic Corridor)a|
|Description of Outcome||Capacity to develop, manage, negotiate, and promote BEZs in the border areas of the PRC and Viet Nam enhanced|
|Progress Toward Outcome||
The TA impact will be improved integration along the GMS North South Economic
Corridor, in line with the Strategy and Action Plan for the Greater Mekong Subregion North South Economic Corridor. The outcome will be enhanced capacity to develop,manage, negotiate, and promote BEZs in the border areas of the PRC and Viet Nam.
The TA will deliver three outputs.Output 1: Policy recommendations for coordinated border economic zone development formulated. The TA will support BEZ implementation by formulating a medium term BEZ development strategy and action plans for each country and area identified for BEZ development. The strategy and plans will provide guidance for policy, legal, and regulatory
improvements; and help target investment sources and export market opportunities to inform BEZ promotional activities. They will also incorporate monitoring tools to measure the BEZs' economic and social impact, and will be designed to reflect national development priorities.
Several studies will inform the BEZ development strategy and action plans, and are
expected to include(i) an assessment of existing policies, legal and regulatory frameworks, and institutional mechanisms for BEZ development and management;
(ii) a market feasibility study to determine the competitive advantages of BEZ designated areas and industries, and assess market potential, as well as market
surveys to forecast potential investment demand and identify investors;
(iii) an assessment of border clearance processes for key goods and services to
identify physical and nonphysical bottlenecks to trade, and gaps in border
infrastructure and bilateral coordination; and
(iv) an assessment of cross-border labor and employment policies including legal
safeguards and mechanisms to implement labor rights and working standards
as well as other factors of cross-border mobility, to formulate recommendations
to strengthen and coordinate cross-border labor protection mechanisms.
The scope of research may be adjusted, as needed, to respond to issues that emerge during bilateral negotiations and regional agreement implementation.
Output 2: Coordination mechanisms for the development and management of the
border economic zones and public private coordination strengthened. The TA will provide localized support for joint planning and coordination of provincial governments in the PRC and Viet Nam with linkages to national processes and, where required, will support ongoing bilateral negotiations to establish cross-border economic cooperation zones. The project team will work with government authorities to identify the preferred support modality, and will coordinate with
an ADB initiative working across six countries to facilitate urban planning and infrastructure development in GMS border areas.
In addition, the TA will finance public private forums to strengthen coordination and help assess the feasibility of the BEZ development plans based on investors' needs. Private sector participants may include the GMS Business Forum, GMS Freight Transport Association, research institutions, and other stakeholders. Consultations with the private sector will serve to prescribe policy options to attract domestic and foreign direct investment in priority industries, including fiscal incentives, hard and soft infrastructure facilities, access to finance and capital,
business facilitation, governance, and BEZ management structure. The frequency of the public private forums will be determined based on the needs identified during implementation.
Output 3: Capacity building of government stakeholders conducted. The TA will
include a capacity-building and training component on topics agreed at inception and that emerge during implementation and consultations, with the participation of resource persons (as required). Capacity building may include on-the-job training for staff members of relevant government agencies on BEZ development, management, and promotion; and on effective negotiation with potential investors. The TA will seek opportunities to promote knowledge exchange and international good practice learning. The GMS Economic Corridors Forum and
GMS Governors Forum may also be used as venues for knowledge-sharing activities.
The TA will help formulate BEZ operational guidelines to complement training and
knowledge-sharing activities. The guidelines will address capacity-building needs identified by the assessment and during consultations with both governments for BEZ development, management, negotiation, and promotion.
Stakeholders will be consulted through an inception workshop, two preliminary
consultations to present and discuss findings, and a final strategy dissemination and discussion workshop.
|Description of Project Outputs||
Policy recommendations for coordinated BEZ development formulated
Coordination mechanisms for the development and management of the BEZs and public private coordination strengthened
Capacity building of government stakeholders conducted
|Status of Implementation Progress (Outputs, Activities, and Issues)||
TA inception workshop was conducted on 30 January through 5 February 2018. The TA implementation was launched at two separate inception workshops in Dongxing, PRC and Ha Noi, Viet Nam, alongside field visits of Dongxing and Pingxiang BEZs. Altogether the workshops were attended by approximately 90 stakeholders from the PRC and Viet Nam (including private sector representatives).
The workshops highlighted the strong commitment of both governments for the TA. Stakeholders in Viet Nam identified the opportunity to understand the Chinese perspective, its markets, policies and trends to better leverage opportunities for improving market access of Vietnamese enterprises and traders in the PRC. Common across the PRC and Viet Nam was the lack of top-level institutional direction to move forward with BEZ development plans in a coordinated way. Although the political commitment for BEZ development was demonstrable at the highest levels of government, key policy actions were clearly needed in both the PRC and Viet Nam to translate the political commitment into actions related to border and customs procedures.
Consequently, the TA was set out to (i) focus on identifying key inhibitors of cross-border trade and border area market development to improve cross-border trade flows and local value addition, expand market access, and create an inclusive investment climate that is compatible with small-holder investors; (ii) identify priority investment needs for potential ADB funding, in recognition of the fact that soft infrastructure alone will not suffice to accelerate BEZ development and therefore needs to be supported by investments in trade-related infrastructure, particularly in Viet Nam; and (iii) provide capacity building support tailored to the respective needs in the PRC and Viet Nam by helping raise awareness and agree on common definitions of BEZs, sharing international best practices and lessons learned, and providing technical support for cross-border planning and harmonization, and development of enabling policies. The TA inception report is attached.
The ADB project team partnered with UN ESCAP to develop a concept paper for a _Business Process Analysis Plus_ study to assess trade transactions for import and export of key goods and services, and develop recommendations for prioritization of trade facilitation measures, investment in infrastructure at the border, and bilateral coordination.
In May 2018, minor change of the implementation arrangement was made to (i) increase the international consultant from 2 months to 3 months; (ii) engage four local consultants to help on data collection and analytical works.
One international and two national consultants in Viet Nam were recruited; the recruitment of two national consultants in the PRC was not completed due to lack of competitive submissions and operational uncertainties.
The Ministry of Industry and Trade (MOIT) of Viet Nam submitted a formal request on 4 July 2018 to put TA activities on hold until conclusion of the bilateral Framework Agreement on building Viet Nam PRC cross-border economic cooperation zones (under negotiation at the mail sending time). Further to this request, TA activities have been put on hold. We have since sought to identify a way forward; however, it doesn't work out. So we have to close the TA as scheduled by end of March 2019.
|Geographical Location||China - Nation-wide; Viet Nam - Nation-wide|
|Summary of Environmental and Social Aspects|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design||Extensive consultations were conducted during project preparation with key stakeholders, including central and provincial-level government agencies in both countries, research institutions and development partners.|
|During Project Implementation|
|Consulting Services||A total of 7.5 person-months of international consultant and 12 person-months of national consultant inputs will be required to provide technical services. The consultants will be engaged on as individual consultants by ADB in accordance with the Guidelines on the Use of Consultants (2013, as amended from time to time).|
|Responsible ADB Officer||Karimova, Zulfia K.|
|Responsible ADB Department||East Asia Department|
|Responsible ADB Division||Public Mgt, Financial Sector and Regional Coop Division, EARD|
Asian Development Bank
6 ADB Avenue,
Mandaluyong City 1550, Philippines
|Concept Clearance||07 Apr 2016|
|Fact Finding||25 Apr 2016 to 29 Apr 2016|
|Approval||10 Jan 2017|
|Last Review Mission||-|
|Last PDS Update||21 Mar 2019|
|Approval||Signing Date||Effectivity Date||Closing|
|10 Jan 2017||-||10 Jan 2017||29 Mar 2019||-||-|
|Financing Plan/TA Utilization||Cumulative Disbursements|
|0.00||400,000.00||0.00||0.00||0.00||0.00||400,000.00||07 Sep 2021||79,353.32|
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|Title||Document Type||Document Date|
|Policy Coordination and Planning of Border Economic Zones of the People's Republic of China and Viet Nam: Technical Assistance Completion Report||TA Completion Reports||May 2020|
|Policy Coordination and Planning of Border Economic Zones of the People's Republic of China and Viet Nam: Technical Assistance Report||Technical Assistance Reports||Jan 2017|
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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|Tender Title||Type||Status||Posting Date||Deadline|
|Trade and Transport Facilitaton Specialist (PRC-2)||Individual - Consulting||Closed||28 Jun 2018||03 Jul 2018|
|Trade and transport Facilitation Specialist (PRC-1)||Individual - Consulting||Closed||28 Jun 2018||03 Jul 2018|
|Trade and Transport Facilitation Specialist 9VIE-1)||Individual - Consulting||Closed||31 May 2018||06 Jun 2018|
|Trade and Transport Facilitation Specialists (VIE-2)||Individual - Consulting||Closed||23 May 2018||29 May 2018|
|National Economist and Deputy Team Leader||Individual - Consulting||Closed||18 Jan 2018||24 Jan 2018|
|Economist and Deputy Team Leader for PRC - National||Individual - Consulting||Closed||01 Dec 2017||07 Dec 2017|
|National Economist and Deputy Team Leader - VIE||Individual - Consulting||Closed||07 Oct 2017||13 Oct 2017|
No contracts awarded for this project were found
None currently available.