fbpx 54445-001: Public–Private Partnerships, Private Sector Development, and State-Owned Enterprise Reform | Asian Development Bank

Viet Nam: Public–Private Partnerships, Private Sector Development, and State-Owned Enterprise Reform

Sovereign (Public) Project | 54445-001 Status: Approved

1. The TA's impact will be that the private sector is transformed into a driver of economic growth. The outcome will be Viet Nam's private sector in terms of quantity, quality, efficiency and sustainability developed.

2. The TA will achieve this outcome through three outputs. First, it will focus on project development. This is particularly important for PPPs where the government is preparing the Medium-Term Investment Plan (MTIP) 2021-5. Projects in the MTIP will have already completed prefeasibility assessments, but the TA will help to screen for the most promising of these PPP and prepare at least one feasibility study. Contingent on the availability of additional funding, the TA is also expected to play a role in upstream transaction development in the sectors where ADB's non-sovereign operations are strategically focused.

Project Details

Project Officer
Dao Viet, Dung Southeast Asia Department Request for information
Country
  • Viet Nam
Sector
  • Public sector management
 
Project Name Public–Private Partnerships, Private Sector Development, and State-Owned Enterprise Reform
Project Number 54445-001
Country Viet Nam
Project Status Approved
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 6734-VIE: Public Private Partnerships, Private Sector Development, and State-Owned Enterprise Reform
Government of Canada US$ 2.70 million
Government of Australia US$ 1.90 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector

Industry and trade / Small and medium enterprise development

Public sector management / Public administration

Gender Equity and Mainstreaming Gender equity
Description

1. The TA's impact will be that the private sector is transformed into a driver of economic growth. The outcome will be Viet Nam's private sector in terms of quantity, quality, efficiency and sustainability developed.

2. The TA will achieve this outcome through three outputs. First, it will focus on project development. This is particularly important for PPPs where the government is preparing the Medium-Term Investment Plan (MTIP) 2021-5. Projects in the MTIP will have already completed prefeasibility assessments, but the TA will help to screen for the most promising of these PPP and prepare at least one feasibility study. Contingent on the availability of additional funding, the TA is also expected to play a role in upstream transaction development in the sectors where ADB's non-sovereign operations are strategically focused.

3. Second, the TA will provide gender-sensitive policy advice. Infrastructure is a significant governmental priority, but there is little research as how this infrastructure should be developed to meet the needs of women. The TA would fund a study to examine this question with the study expected to inform the operations of the government and development partners as they conceptualize solutions to Viet Nam's infrastructure needs. Policy advice will also extend to the implementation of the PPP law. Although the government is expected to have published most of the corresponding decrees and circulars before TA implementation, the Ministry of Planning and Investment is going to have ongoing needs for policy advice to adjust these documents as the first PPPs are implemented.

4. Finally, it will support the capacity development of both the government and the private sector. One focus will be on helping women to emerge in infrastructure and related technical fields through sponsoring a leadership program for promising managers and an internship program to encourage more young women to enter these fields. Another focus will be on provincial leadership. Viet Nam's expertise in PPPs is clustered in the central government. For PPPs to become viable at lower levels, capacity building is a precursor. The TA will select two provinces and/or municipalities to improve their (i) technical and managerial capacity for prioritizing, screening and early-stage development of municipal PPPs, and (ii) financial capacity to implement them.

5. A TA is merited over a grant-financed project because a TA (i) aligns with the Government of Canada's priorities on how the funding should be used and (ii) creates more opportunities to leverage ADB's considerable expertise in these areas.

Project Rationale and Linkage to Country/Regional Strategy

1. The private sector plays an increasingly important role in Viet Nam's economic development. For example, credit to the private sector was only 28% of gross domestic product (GDP) in 1999. For two decades, it increased by 7% per annum and reached 138% of GDP by 2019. Economic growth, employment, and export data all showcase a similar story of the ascending role of Viet Nam's private sector.

2. The government recognizes the private sector's role as a growth engine and is expected to prioritize its development in the upcoming Socio-Economic Development Strategy 2021-2030. Preparatory documents for this strategy target that the private sector will account for 60% to 65% of gross domestic product by 2030. This includes a larger role for the private sector in capital investment.

3. These changing circumstances are also changing the support that Viet Nam will need from ADB. Whereas traditional sovereign operations have historically dominated ADB's operations in Viet Nam, that balance is expected to shift toward nonsovereign operations, support for PPPs, and sovereign operations that incorporate private sector elements. Indeed, ADB's next country partnership strategy, which will cover 2021 through 2025, is expected to prioritize heavily private sector development.

4. In executing both the government and ADB's strategies, public-private partnerships (PPPs) will feature prominently. With the advisory support of ADB and other donors, Viet Nam passed its first PPP law in 2020. To support the implementation of this law, Viet Nam will require assistance for project preparation, policy advice, and capacity building.

5. Women must play an important role in these new developments. According to a McKinsey report, if gender gaps in the labour force were addressed in Asia Pacific, this could add $4.5 trillion to annual GDP by 2025 in the region. Increasingly gender diversity is being viewed as a source of competitive advantage, and even as an enabler of business strategy and growth. Studies have also found a correlation between the presence of women in leadership positions and key business performance indicators, promoting firms' profitability, reputation, and strategic advantage. The Viet Nam Constitution, the Law on Gender Equality (2006), and other measures create an enabling environment for women to play an active role in the development of the private sector in Viet Nam. Despite a strong business case and progress made, barriers remain for women to gain employment, especially in traditionally male-dominated sectors as witnessed within the construction and transport sectors in Viet Nam, where less than 10% of those employed are women.

6. This TA will support project development, gender-sensitive policy advice, and capacity building that will position ADB to partner with Viet Nam to address these areas of emerging need.

7. The TA firmly aligns with ADB's Strategy 2030. It not only focuses on the operational priorities of strengthening governance and institutional capacity, gender equality, and making cities more livable but also supports Strategy 2030's goals of (i) harnessing the private sector to achieve these operational priority and (ii) using a _One ADB_ approach to enhance ADB's value addition with the TA's implementation being co-led by the Southeast Asia Regional Department and the Office of Public-Private Partnerships.

Impact The private sector is transformed into a driver of economic growth
Project Outcome
Description of Outcome Private sector's role in Viet Nam's gender-responsive and environmentally sustainable development expanded
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Output 1: Policy advice on public-private partnerships and private sector development delivered

Output 2: Pilot projects embedding Quality Infrastructure Investment principles conceptualized

Output 3: Public-private partnerships and private sector development institutional capacities strengthened

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Nation-wide
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Responsible ADB Officer Dao Viet, Dung
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Viet Nam Resident Mission
Executing Agencies
Asian Development Bank
6 ADB Avenue,
Mandaluyong City 1550, Philippines
Ministry of Planning and Investment
6 B Hoang Dieu street, Ba Dinh district, Hanoi, Viet Nam
Timetable
Concept Clearance 13 Nov 2020
Fact Finding 12 Nov 2020 to 12 Nov 2020
MRM -
Approval 10 Jun 2021
Last Review Mission -
Last PDS Update 16 Jun 2021

TA 6734-VIE

Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
0.00 4,600,000.00 0.00 0.00 0.00 0.00 9,200,000.00 - 0.00

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 Access to Information Policy (AIP) 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.

None currently available.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


The Access to Information Policy (AIP) 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.

Tenders

Tender Title Type Status Posting Date Deadline
Women-focused Research and Capacity Building Firm - Consulting Active 07 Jul 2021 10 Aug 2021
Senior Liaison consultant Individual - Consulting Closed 06 Jul 2021 12 Jul 2021
Screening Medium-term Investment Plan component (individual international consultant) Individual - Consulting Closed 06 Jul 2021 12 Jul 2021
Junior Liaison consultant Individual - Consulting Closed 06 Jul 2021 12 Jul 2021
Support for Vietnam Oil and Gas Group’s Transition to Green Energy Firm - Consulting Active 06 Jul 2021 04 Aug 2021
PPP, PSD and State-Owned Enterprise Reform_National Screening Consultant Individual - Consulting Closed 06 Jul 2021 12 Jul 2021

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.