Project Number: 41087 June 2008

Proposed Grant Assistance Socialist Republic of Viet Nam: Demand-Driven Skills Training for Poverty Reduction in the Cuu Long (Mekong) River Delta (Financed by the Japan Fund for Poverty Reduction)

Grant Assistance Report

CURRENCY EQUIVALENTS (as of 16 June 2008)

Currency Unit – dong (D)

D1.00 = $0.0000602011 $1.00 = D16,611.00

ABBREVIATIONS ADB – Asian Development Bank CETC – community enterprise training committee DOLISA – department of labor, invalids, and social affairs GDVT – General Department of Vocational Training JFPR – Japan Fund for Poverty Reduction LPIU – local project implementation unit MOLISA – Ministry of Labor, Invalids, and Social Affairs NPIU – national project implementing unit NTPPR – National Targeted Program on Poverty Reduction PIU – project implementation unit PSC – project steering committee VTE – vocational and technical education VTEP – Vocational and Technical Education Project

NOTES

(i) The fiscal year of the Government of Viet Nam ends on 31 December. FY before a calendar year denotes the year in which the fiscal year ends, e.g., FY2008 ends on 31 December 2008.

(ii) In this report, "$" refers to US dollars.

Vice-President C. Lawrence Greenwood, Jr., Operations Group 2 Director General A. Thapan, Southeast Asia Department (SERD) Director S. Lateef, Social Sectors Division, SERD Team leader Y. Hirosato, Senior Education Specialist, SERD

Gulf of Thailand

Gulf of Tonkin

Hai Phong

HA NOI

Son La

Dien BienPhu

Lai Chau

Lao Cai

Ha Giang Cao Bang

Bac Kan

Lang Son

Yen Bai

Tuyen QuangThai Nguyen

Thai Binh

Ninh Binh

Thanh Hoa

Hoa Binh

Phu Ly

Hung Yen

Bac Giang

Ha Long

Vinh

Ha Tinh

Dien Chau

Thai Hoa

Dong Hoi

Dong Ha

Hue

Da Nang

Quang Ngai

Tam Ky

Hoi An

Pleiku

Bong Son

Kon Tum

Quy Nhon

Tuy HoaBuon MaThuot

Dak Song Ninh Hoa

Cam Ranh

Di Linh

Lien Huong

Da LatGia Nghia

Phan Thiet

Phan Rang-Thap Cham

Bien Hoa

Dong Xoai

Ho Chi Minh City

Vung TauMy Tho

Rach GiaPhu Quoc Island

LongXuyen

Can Tho

Vinh Long

Vi Thanh

Chau Doc

Ha Tien

Cao Lanh

Soc Trang

Tra Vinh

Ben Tre

Bac LieuCa Mau

Tan An

Thu Dau Mot

Tay Ninh

HaiDuong

Nha Trang

An Loc

Dat Do

Viet Tri

Ha Dong

Phu ThoMong Cai

Cam Pha

Trang Dinh

Vinh Yen

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1.2.3.4.5.6.7.8.9.

10.11.12.13.14.15.16.17.18.19.20.21.22.23.24.25.26.27.28.29.30.31.32.33.34.35.36.37.38.39.40.41.42.43.44.45.46.47.48.49.50.51.52.53.54.55.56.57.58.59.60.61.62.63.64.

PROVINCES

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535455

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LAO PEOPLE'SDEMOCRATIC REPUBLIC

CAMBODIA

PEOPLE'S REPUBLICOF CHINA

Project Province

National Capital

Provincial Capital

City/Town

National Road

Other Road

Railway

River

Provincial Boundary

International Boundary

Boundaries are not necessarily authoritative.

SOCIALIST REPUBLIC OFVIET NAM

DEMAND-DRIVEN SKILLS TRAINING FORPOVERTY REDUCTION IN THE

CUU LONG (MEKONG) RIVER DELTA

100

Kilometers

50 2000

N

08-0443 RM

103 00’Eo

103 00’Eo

108 00’Eo

108 00’Eo

12 00’No 12 00’No

20 00’No20 00’No

JAPAN FUND FOR POVERTY REDUCTION (JFPR)

JFPR Grant Proposal I. Basic Data Name of Proposed Activity Demand-Driven Skills Training for Poverty Reduction in the Cuu Long

(Mekong) River Delta

Country Socialist Republic of Viet Nam

Grant Amount Requested $1,300,000

Project Duration 3 years

Regional Grant Yes / No

Grant Type Project / Capacity building II. Grant Development Objective(s) and Expected Key Performance Indicators Grant Development Objectives: The goal of the Project is to improve the living standard of the poor and ethnic minorities by equipping them with relevant skills for employment and self-employment. The Project aims to pilot an innovative approach to poverty reduction through demand-driven skills training, so that methodologies and implementation arrangements tested under the Project will be incorporated and replicated in the Government’s National Targeted Program on Poverty Reduction, 2006–2010 and a follow-up program. The specific objectives of the Project are to (i) build capability for vocational training providers to effectively mobilize resources; and manage skills training, career guidance, placement services, business start-up assistance, and follow-up consultations; (ii) provide the beneficiaries selected from the poor with a comprehensive package of skills training for employment; and (iii) provide project management and coordination support. The Project will be implemented in Tra Vinh and Soc Trang provinces in Cuu Long (Mekong) River Delta, focusing on the poorest districts. Expected Key Performance Indicators: The performance and outputs of the Project will be monitored and evaluated with the following indicators:

(i) 4,000 poor individuals from the target districts, of whom at least 2,000 are ethnic minority females (50%), will be provided with skills training. (ii) 70%–90% of the preemployment trainees (at least 35%–45% female) will find jobs. (iii) 5%–10% of the trainees (at least 2.5%–5% female) will have access to preferential credit schemes for starting up small businesses. (iv) Two community enterprise training committees in two target provinces will be established and involved in the Project. (v) 100 core trainers (including at least 50 female trainers) and 150 personnel of the Department of Labor, Invalids, and Social Affairs, training providers, and other stakeholders (including at least 75 females) from Soc Trang and Tra Vinh will participate in training courses for capability building.

III. Grant Categories of Expenditure, Amounts, and Percentage of Expenditures Category

Amount of Grant Allocated ($)

Percentage of Expenditures

1. Civil Works 0 0.0 2. Equipment and Supplies

281,700 21.7

3. Training, Workshops, Seminars, and Public Campaigns

629,500 48.4

4. Consulting Services 216,000 16.6 5. Grant Management 102,800 7.9 6. Other Inputs 0 0.0 7. Contingencies 70,000 5.4 Total 1,300,000 100.0

Incremental Cost 65,000

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JAPAN FUND FOR POVERTY REDUCTION

JFPR Grant Proposal Background Information

A. Other Data Date of Submission of Application

3 March 2008

Project Officer Yasushi Hirosato, Senior Education Specialist Project Officer’s Division, E-mail, Phone

Social Sectors Division (SESS) yhirosato@adb.org, +632 632 5952 (6575 local)

Other Staff Who Will Need Access to Edit and/or Review the Report

Nguyen Nhat Tuyen, Social Development and Gender Officer, VRM Madeline Dizon, Administrative Assistant, SESS

Sector Education Subsector Technical education, vocational training, and skills development Themes Inclusive social development, gender and development, capacity

development Subthemes Human development; gender equity in capabilities; client relations,

network, and partnership development Targeting Classification Targeted intervention (TI-G) Name of Associated Asian Development Bank (ADB)-Financed Operation

Loan 1655-VIE (SF): Vocational and Technical Education Project (VTEP)

Executing Agency Ministry of Labor, Invalids, and Social Affairs (MOLISA) Grant Implementing Agency

General Department of Vocational Training (GDVT) Dr. Duong Duc Lan, Deputy Director General, GDVT/ Project Director, VTEP 37B Nguyen Binh Khiem Street, Hanoi Email: ddlan@fpt.vn Phone:+844 9740358/Facsimille: +844 9433525

B. Details of the Proposed Grant 1. Description of the Components, Monitorable Deliverables and/or

Outcomes, and Implementation Timetable Component A Component Name Capacity Building for Vocational Teachers, Managerial Staff, and

Other Stakeholders Cost ($) $228,500 (including contingencies) Component Description The component will strengthen capacity of various institutions and

personnel involved in the Project through hands-on and customizedtraining to effectively organize, mobilize stakeholders and resources,and manage demand-driven skills training; and provide career guidance and placement services. It will establish community enterprise and training committees (CETCs) to provide information and advice to the Project using a participatory and multisector approach. The key elements of this component will include (i) building capacity in managing, and business planning of selected training providers; and (ii) placement services and business start-up for qualified trainees and graduates. Key activities for capacity building will include

(i) training needs survey and a rapid local economic appraisal of target districts to determine occupational and local market needs as a basis for skills training;

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(ii) training of core trainers, to be identified from public and private training providers, on teaching methods for developing instructional skills in multicultural and multilingual contexts and teaching adult learners;

(iii) organization, management, and delivery of demand-driven skills training courses for school and center directors, business representatives, and community leaders;

(iv) skills development for preparation of business plans and start-up for schools and training centers for poor and ethnic groups;

(v) provision of skills on how to mobilize assistance from communities, governments, business, and other sources for qualified trainees who wish to set up small businesses; and

(vi) establishment of a CETC in each of two provinces, comprising groups of stakeholders from schools and training providers;business associations and employers; and community and special groups such as religious groups, associations of fisherfolk, craftspeople, and shop owners.

Key activities of job placement services and business start-up for qualified trainees will include

(i) development of competencies of core trainers, vocational guidance counselors, and other training providers, so that they can provide career guidance and placement assistance to trainees on finding jobs and setting up small businesses; and

(ii) provision of opportunities and preference for women teachersto serve as role models for poor women and ethic women beneficiaries.

The various training components will be distinctly identified and delivered in a closely integrated manner, which will be in the sequence of: (i) year 1: (a) institutional planning; (b) training planning, includingtraining needs survey, rapid local economic appraisal, and training design; (c) selection of trainees and trainers; and (d) instructor training, and management training; and (ii) years 2 and 3: (a) training delivery; (b) posttraining activities, including career guidance and job placement; and (c) monitoring and evaluation.

Monitorable Deliverables/Outputs (all data will be disaggregated by gender and ethnic group)

(i) Training needs survey and rapid local economic appraisal methodology developed and conducted

(ii) Two CETCs established comprising stakeholders from schoolsand training providers, business and employers, community, and special groups

(iii) 100 core trainers (including at least 50 female trainers) developed to design and deliver demand-driven skills training courses

(iv) 150 personnel of the department of labor, invalids, and social affairs, training providers, and other community stakeholders (including at least 75 females) participated in training courses for capacity building on career guidance, business development, and placement assistance

Implementation of Major Activities: Number of months for grant activities

36 months

Component B Component Name Provision of Skills Training Relevant to the Poor and the Local Labor

Market Cost ($) $883,700 (including contingencies)

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Component Description Component B will focus on providing the selected poor individuals with comprehensive packages for employment, which cover primary and intermediate skills training, career guidance and identification of placement opportunities, support for business start-up, and follow-up consultations. Skills training will be organized into short-term courses(including basic hands-on skills training) that involves skills required onthe job and the necessary knowledge to perform the job function properly in terms of time, safety, and working with others, leading to employment or self-employment. The trainees will be from poor families and will not be required to pay for training or other related expenses. Other stakeholders, particularly communities and business establishments, will be encouraged to contribute their share in the Project in kind (i.e., services, and time involvement in project activities).

The Project will be implemented in Tran Vinh and Soc Trang provinces in the Cuu Long River Delta, focusing on the poorest districts: including Tra Cu and Cau Ke in Tran Vinh, and My Xuyen and Vinh Chau in Soc Trang.1

The selection criteria of trainees qualified for skills training will be inclusive since the Project aims to reduce poverty through a pilot model of demand-driven skills training, and will be formulated and adopted by the CETCs. Trainees must be (i) poor individuals (a maximum of two individuals per household) as defined by the MOLISA poverty index), or (ii) out-of-school youths and unemployed or underemployed adults belonging to the economically active age group;no minimum education is required. Priority for selection will be given to women, ethnic minorities, poor disabled people, and poor youth under special circumstances (out-of-school and unemployed). As a mechanism to ascertain transparency, representatives of ethnic minorities will be members of the CETCs, and will take part in the decision-making process to formulate and adopt the selection criteria.

The Project will have linkages with VTEP’s extensive outputs and experiences, which include skills standards in 48 occupations and corresponding training programs, availability of trainers with updated skills and knowledge, and public–private linkage models introduced by school–industry advisory committees set up in 15 VTEP key schools; of which two are located near the target provinces of Tra Vinh (Vinh Long Technical Teacher Training College) and Soc Trang (Can Tho Vocational College). The key activities of this component comprise (i) provision of skillstraining programs, where (a) some courses will be referenced from programs developed for occupations under the VTEP and other projects of GDVT and MOLISA, (b) training content will be modified forthe local context, and (c) training modules for small business start-up will be developed; (ii) provision of career guidance for trainees and placement assistance to graduates; and (iii) provision of training venues and equipment, teaching tools, and training supplies for

1 The selection of two provinces is based on the poverty rate and areas with large ethnic minorities as indicated in the

MOLISA poverty index. The selection of the districts will be made by the departments of labor, invalids, and social affairs, following selection criteria to be developed by the national project implementation unit and endorsed by ADB that will include (i) index of poverty (of the poorest), (ii) number of ethnic minorities in the district, (iii) access to training providers, and (iv) availability of employment and/or business opportunities.

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selected occupations including for mobile training courses. Monitorable Deliverables/Outputs (all data will be disaggregated by gender and ethnic group)

(i) 4,000 poor individuals from the target districts, of whom at least 50% are ethnic minority females, will be provided with skills training(3,600 trainees for primary skills training and 400 trainees for intermediate skills training).

(ii) 70%–90% of the preemployment trainees (including at least 35%–45% females) will find jobs.

(iii) 5%–10% trainees (at least 2.5%–5.0% female) will be provided with government preferential credit for starting up small-scale local business.

(iv) Training contents will be modified to the local context. (v) Training modules for small business start-up will be developed. (vi) Training facilities and equipment (including vehicles for mobile

training), tools, and supplies will be procured and delivered. Implementation of Major Activities: Number of months for grant activities

36 months

Component C Component Name Project Management and Coordination Cost ($) $187,800 (including contingencies) Component Description Component C will provide organizational and technical support to

effectively manage and coordinate the Project. The VTEP project implementation unit will act as national project implementing unit (NPIU) drawing from its staff and experiences in implementing and managing the VTEP. Two provincial local project implementing units(LPIUs) will be established in the departments of labor, invalids, and social affairs. The Project will have regular monitoring and evaluation of the implementation process and project outputs, and annual auditing of project activities for the duration of the project life.

Monitorable Deliverables/Outputs

(i) Guidelines and manual for effective organization and management of demand-driven skills training for poverty reduction developed, and 64 master copies printed for nationwide replication

(ii) Quarterly progress reports and review mission reports (iii) Semiannual and annual progress report; (iv) Consultant reports (v) Impact assessment survey report (vi) Implementation completion report (vii) Three external audit reports

Implementation of Major Activities: Number of months for grant activities

36 months

2. Financing Plan for Proposed Grant to be Supported by JFPR

Funding Source Amount ($) JFPR 1,300,000 Government 300,000 (in-kind contributions and preferential credit schemes from

the Vietnam Bank for Social Policies) Other Sources (Communities) 50,000 (in-kind contributions for assistance/facilitation in job

placement and credit schemes) Total 1,650,000

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3. Background

1. Over the past few years, Viet Nam has made significant achievements in poverty reduction. About 340,000 households have been lifted from poverty on average each year with a poverty rate of 22% up to December 2005, 17.1% by the end of 2006, and 14.8% by the end of 2007. However, despite the national achievements, the provincial or social group results are not even. The poverty rate in remote areas is about 1.7 times the average of the country, and in some villages in these areas, poor households account for up to 80%–90%. Overall 36% of the poor are ethnic minorities compared with 21% in 1992. Economic growth has delivered unequal benefits and sometimes exacerbated gaps in income and living conditions between the poor and the rich. 2. The Vocational Training Law took effect 1 June 2007. It prescribes that support be made available to ethnic minorities, the poor, and the disabled to provide them with skills/vocational training so they can obtain gainful employment including self-employment. The Government recently approved the National Targeted Program on Poverty Reduction (NTPPR), 2006–2010, on 5 February 2007, and designated the Ministry of Labor, Invalids, and Social Affairs (MOLISA) as the focal point of the program. The program includes vocational training and preferential credit for the poor, and replication of good practices on poverty reduction for implementation by individual local communities. MOLISA is seeking funds to support a pilot model on poverty reduction through vocational training with preferential provincial and district microcredit. The pilot program is expected to (i) equip the poor with skills and knowledge for better employment opportunities or job-changing opportunities, especially for better-paid jobs, or for starting up small businesses with preferential credit support; and (ii) develop capacity of provincial and district administrators to design, plan, and implement a skills development program customized to individual local needs.

3. The Cuu Long (Mekong) River Delta region comprises 13 provinces with an area of 3.96 million hectares, equivalent to 12% of the area of the country, with total population of 19 million, or 22% of the national population. The region’s ample labor force of more than 10 million accounts for 22.3% of the national labor force. However, in this region, more than 80% of the population lives in poor remote areas. The proportion with technical or university training is quite low at 2.2%—the lowest in the country. Furthermore, the majority of poor people cannot afford provincial and district nonagricultural skills and vocational training courses.1 4. The gap in socioeconomic conditions between the region and the key southern economic zone is increasing without opportunities for the poor to improve their standard of living. Lack of skills, knowledge, and business experience among the labor force in Cuu Long River Delta, especially the poor and ethnic minorities, precludes the poor from participating in local socioeconomic growth, hunger eradication, and poverty reduction to mitigate gaps between regions and social groups. The provision of skills and vocational training for the poor and ethnic minorities is important to equip them with skills and knowledge for employment, changing job opportunities, or for starting up small businesses. 5. MOLISA statistics indicate that 15.58% of households in the Cuu Long River Delta region were poor in 2006. According to the field survey in September 2007 conducted by the GDVT and MOLISA, Tra Vinh and Soc Trang, where most of the ethnic minorities live, are the two poorest provinces in the region; 27.52% of households in Tra Vinh are poor and 24.13% in

1 The Poverty Task Force. 2004. The Regional Poverty Assessment, Mekong River Region. Hanoi.

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Soc Trang. The rate of poor households is higher than the provincial average in the following districts in Tra Vinh: Tra Cu with 41.19%, and Cau Ke with 29.85%; and in Soc Trang: My Xuyen with 30.24% and Vinh Chau with 29.13%. The 2005 survey of poor households, conducted by MOLISA, identified three main reasons for chronic poverty as lack of (i) capital (79%), (ii) knowledge (70%), and (iii) market information (35%). The Project will address these issues by providing preemployment skills training or self-employment training for setting up small businesses, and providing assistance to enable the poor and ethnic minorities in targeted provinces/districts access to preferential microcredit schemes. 6. Approximately 1 million Khmer live in the provinces of An Giang, Can Tho, Kien Giang, Soc Trang, Tra Vinh, and Vinh Long. The Khmer have lived in the Cuu Long River Delta for a very long time and have preserved their language and writing. They have a long tradition in wet rice cultivation, are experts in traditional irrigation techniques, and know how to take advantage of tides to clean alum soil and reform the land. Animal husbandry is associated with agriculture; chicken, ducks, and fish supplement the family diet. Handicrafts include weaving, pottery, and sugar-making. The Khmer in the Cuu Long River Delta try to preserve many of their unique customs, arts, and practices. However, they do not have the relevant skills to take advantage of employment or self-employment opportunities. 7. The Government intends to promote local industries and businesses such as the food and canning industries that plan to locate in the area and are expected to generate about 12,000 jobs for local residents. In particular, it wants to target coastal provinces such as Tran Vinh and Soc Trang, so that employment or self-employment opportunities will be generated. A field survey conducted by MOLISA’s General Department of Vocational Training (GDVT) in September 2007 identified existing profiles of vocational training providers and their present training capacity for designing the Project, taking into consideration the poverty index and ethnic minorities in the target provinces. The survey also identified a long list potential training areas with strong demand, including aquatic product processing, metal cutting, civil construction, industrial and domestic electricity, computer programming, consumer/industrial sewing, fishing boat repair, motorbike repair, hair-dressing and cosmetology, handicrafts, welding, and electronics assembling. During project implementation, specific training areas will be determined on a demand-driven basis, and the industry and enterprises in target and nearby provinces will employ trainees upon completion of the Project’s skills training program. Approximately 70%–90% of the preemployment trainees are expected to be employed by local enterprises, and 5%–10% of trainees will be self-employed with preferential credit support from the Vietnam Bank for Social Policies and other sources.

4. Innovation 8. The Project is designed to help the poor and ethnic minorities access employment opportunities or establish small enterprises to improve their income-earning opportunities, and participate in and benefit from economic growth in the surrounding areas. Project beneficiaries will be provided with skills training but not charged any training-related fees while undertaking training in the Project. The project design is a departure from the usual supply-oriented and certificate-based school training. The crucial feature of this methodology is to identify opportunities for sustainable employment before training courses are organized and delivered. The methodology aims to link skills training directly to employment and income-generation. The main distinctive characteristic of the methodology for demand-driven skills training is that it does not offer prepackaged training programs. Given that many trainees will be from ethnic minority communities, bilingual training modules will be used. Aiming at employment, emphasis is

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placed upon posttraining support (e.g., career guidance and placement services; entrepreneurial development; and links with organizations providing credit, marketing, and other assistance). Career guidance given to target trainees will help them select their prospective training fields, salaries, and career and promotion prospects in various occupations for making rational decisions on career entry. After training, the graduates will be provided with placement services to link them with employment prospects including job vacancies, referrals, interviews, and access to credit schemes. 9. To ensure relevance of training, the Project will conduct a community training needs survey to identify characteristics of target beneficiaries, assess their capacity to absorb training, establish the availability of training providers, and confirm specific skills training areas in demand in the growing local economy. The Project will also conduct a rapid local economic appraisal of local communities to identify employment opportunities at the pretraining stage and determine training design. Rural employment is often a combination and succession of seasonal and casual jobs, both in agriculture and nonfarm activities, which poses special challenges for employment promotion in general, and skills training in particular. The changing nature of rural employment makes identification of standard skill requirements more difficult, and skills training delivery needs to be flexible and be adapted to characteristics of special target groups. In particular, since the majority of expected target trainees are Khmer, the Project will assess Khmer silk weaving as a potential area for self-employment and identify necessary training needs for silk weavers. In addition, a community enterprise training committee (CETC) will be established in each of two provinces, comprising groups of stakeholders from schools and training providers; business and employers; and community and special groups such as religious groups, associations of fisherfolk, craftspeople, shop owners, as the multisector committee. The CETCs will provide information and advice for matching training with employment, including training contents, training methodology, guidance on careers and placement services, and credit information.

10. The Project will pilot different modes of training delivery at schools, within enterprises as work-based training; schools and center-based skills training; apprenticeships; and mobile training with primary, intermediate, and skills upgrading training programs. The primary skills training, mainly delivered by enterprise-based training such as apprenticeship and mobile training, aims to promote informal or self-employment; while the intermediate skills training, delivered mainly by school and center-based training, will lead to formal employment. Approximately, 50 enterprises including private training providers will participate in the Project and provide apprenticeships (informal training within the workplace) as an alternative mode of skills training. The organization of skills training, in particular, should be mobile in the sense that the access of the rural poor needs to be improved by bringing training activities within or near the communities where they live. Thus, the training courses will be brought to the trainees, making use of local venues, and providing flexible training schedules. The Project will enhance the mobility of training providers by providing vehicles (small pick-up trucks) that are able to negotiate and penetrate rural and difficult terrains where poor clients reside.

5. Sustainability 11. A major feature of the Project is to develop community ownership of the Project and its activities so that the community can sustain the demand-driven skills training even when the Project exits its pilot phase. The partnership among the stakeholders including the local business associations and employers structured in the CETC will provide for a long-term relationship favorable to a market-driven system. The processes involved in the pilot activities will be documented into guidelines for effective organization and implementation of demand-

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driven skills training for poverty reduction, and be replicated under the NTPPR, 2006–2010, and a follow up national program. 12. The Project will build the capacity of 100 core trainers (including at least 50 female trainers) to design and deliver demand-driven skills training courses; and 150 personnel of the departments of labor, invalids, and social affairs (DOLISA), training providers, and other community stakeholders (including at least 75 females) will participate in training courses for capacity building on career guidance and placement assistance. In particular, under the Government’s NTPPR, MOLISA will provide preferential microcredit schemes in cooperation with local banks (e.g., provincial and district branches of Vietnam Bank for Social Policies). These credit schemes will be available during and beyond the project period to the trainers and graduates of the skills training programs as part of job placement assistance. MOLISA will also provide financial support to local enterprises that deliver vocational/skills training for the poor and recruit them for stable jobs for 2 years. It will guarantee access to preferential credit schemes for an additional 2 years after households reach the status of nonpoor. 6. Participatory Approach 13. The Project is designed and will be implemented through a participatory process by and among all the stakeholders, including the national project steering committee (PSC), MOLISA and GDVT, national project implementing unit (NPIU), provincial and district people’s committees, DOLISAs, LPIUs, Bureau of Internal Affairs, local enterprises, Social Protection Agency, key schools of the Vocational And Technical Education Project (VTEP), training providers, other relevant special provincial and district groups; and the poor and ethnic minorities in the communities. 14. The national PSC will provide (i) policy advice to the Project and (ii) a forum for networking with other government agencies and the private sector with programs involving skills training for employment promotion and poverty reduction. MOLISA and GDVT will participate in the Project by undertaking national administrative and supervisory tasks, communication and financial transactions with ADB for the Project, annual auditing, benefit monitoring and evaluation, and formal reporting. The Project will establish LPIUs in the DOLISAs for provincial and district project implementation. It will mobilize and manage participation of local communities and business firms, and key VTEP schools in the nearby provinces. The CETCs will provide relevant labor market information and advice for matching training with employment. CETC membership will comprise groups of stakeholders from schools and training providers, business associations and employers, community and special groups, and representatives of the target and primary beneficiaries. In the communities, the poor and ethnic minorities will be involved in the training needs survey and rapid local economic appraisal processes as key informants; their representatives will be CETC members who will take part in the decision-making process for demand-based skills training. During project inception and implementation, seminars/workshops will be conducted with active participation of community and representatives of target and primary beneficiaries. They will be consulted in the preparation process of the guidelines for effective organization and implementation of demand-driven skills training for poverty reduction.” Primary Beneficiaries and Other Affected Groups and Relevant Description

Other Key Stakeholders and Brief Description

4,000 poor individuals from the poorest districts in Tra Vinh and Soc Trang provinces, of whom at least 2,000 are ethnic minority females (50%), will

The Project will strengthen cooperation and coordination among key national stakeholders including MOLISA, GDVT, PSC, and NPIU; and

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benefit from provision of a comprehensive package of skills training in occupational areas in demand and job placement assistance for employment or self-employment. 150 DOLISA personnel, core trainers, training providers, and other stakeholders from Tra Vinh and Soc Trang (including at least 75 females) will participate in training courses for capacity building in career guidance, business development, and placement assistance.

provincial and district stakeholders including people’s committees, DOLISAs, LPIUs, CETCs, Bureau of Internal Affairs, local enterprises, Social Protection Agency, key VTEP schools, training providers, special groups (such as religious groups, fisherfolk association, shop owners).

7. Coordination

15. Prior coordination was conducted with MOLISA and GDVT leadership, the VTEP PIU, and VTEP project consultants for project design to avoid duplication, and ensure the Project complements the VTEP’s benefits. ADB fielded its Appraisal Mission from 14 to 25 January 2008 to confirm early understanding of the project design. The Mission conducted a consultative workshop with about 70 stakeholders and beneficiaries in the Tra Vinh and Soc Trang provinces; and received feedback from stakeholders on the Project’s objectives, targets, proposed activities, timetables, and community responsibilities. MOLISA’s Social Protection Department and other departments responsible for the NTPPR were involved in the project design to ensure project benefits derived are institutionalized in the NTPPR. The Mission consulted with the Viet Nam Resident Mission; the outcome was incorporated into the project design in terms of the methodology for demand-driven skills training. 16. The Appraisal Mission held consultations on 18 January 2008 with staff of the Embassy of Japan in Hanoi to gather feedback on the project design. MOLISA is undertaking active consultations with the Hanoi Office of the Japan International Cooperation Agency on the possibility of fielding senior volunteers of retired Japanese business executives to act as business advisors to strengthen posttraining activities and ensure success in the business start-up activities of graduates. These experienced senior volunteers will provide new insights and technology necessary for the new business ventures. Further consultations will be made with the Embassy of Japan and the Hanoi Office of the Japan International Cooperation Agency in preparing and submitting a formal request to the authorities of the Government of Japan.

8. Detailed Cost Table 17. Appendix 2 provides a summary of the project costs, Appendix 3 provides detailed cost estimates, and Appendix 4 outlines the fund flow arrangements. C. Link to ADB Strategy and ADB-Financed Operations

1. Link to ADB Strategy 18. ADB’s country partnership strategy (country strategy and program, 2007–2010) 2 supports the NTPPR initiative by emphasizing renewed efforts toward socially inclusive growth, and focusing improvements in the delivery of education and vocational training on individual provinces or communities that are isolated from the growth process. Investments in priority sectors listed in the country strategy and program all require skilled human resources or will offer more jobs in various occupations and provinces during and after the relevant investment. 2 ADB. 2006. Country Strategy and Program 2007–2010: Socialist Republic of Viet Nam. Manila.

11

Document Documen

t Number Date of Last Discussion

Objective(s)

Viet Nam Country Strategy and Program 2007–2010

SEC 8606 28 August 2006 The strategic focuses are business-led, pro-poor, economic growth, social equity and balanced development, and the environment.

2. Link to Specific ADB-Financed Operation

Project Name Vocational and Technical Education Project Project Number 25033 Date of Board Approval 11 December 1998 Loan Amount ($ million) 54 million

3. Development Objective of the Associated ADB-Financed Operation

19. The Project’s aim is to reform the vocational and technical education (VTE) system so that it can better support the Government’s market-oriented industrialization policy. The more immediate objective is to improve the quality of VTE in 15 key vocational and technical schools and colleges. These key schools will serve as demonstration schools to promote nationwide education reforms in the VTE subsector. The Project has three components:

(i) improve market orientation of the VTEP; (ii) upgrade key schools by developing curricula and instructional materials, and

improving equipment and facilities;, and (iii) introduce policy reforms in the VTEP system through institutional capacity

building.

4. Main Components of the Associated ADB-Financed Operation No. Component Name Brief Description 1. Introduction of Market Orientation 1.1 Develop labor market information system

1.2 Introduce annual labor market surveys 1.3 Develop new training programs 1.4 Introduce career guidance and placement services 1.5 Introduce school advisory committees in each key school in collaboration with local business firms

2. Key Schools Development 2.1 Construct buildings and workshops in 15 key schools 2.2 Introduce new training equipment 2.3 Develop training curriculum and instructional materials 2.4 Train teachers 2.5 Introduce preemployment training and supplementary

training for in-service workers with new curriculum and facilities

3. Policy and Institutional Reform 3.1 Introduce a program accreditation system 3.2 Introduce a set of skill standards 3.3 Introduce a technical certification system 3.4 Introduce public–private partnership 3.5 Develop a policy and legal framework for vocational

training

12

5. Rationale for Grant Funding versus ADB Lending 20. The Project will directly contribute to the improved livelihood of the poor and ethnic minorities through skills training relevant to the socioeconomic conditions in two target provinces. It will develop competencies of core trainers, vocational teachers, and other relevant personnel, to plan, organize, mobilize, and manage demand-driven skills training for poverty reduction. The Project is deliberately designed to benefit the poorest districts in Tra Vinh and Soc Trang provinces in the Cuu Long River Delta. 21. ADB has been supporting the VTE subsector through the VTEP to develop a new vocational training system in the formal sector. While VTEP implementation has been led by MOLISA and GDVT with a focus on developing a national system of formal training using national standards, grant funding is appropriate for the Project as it will be implemented in the poorest districts in target provinces with a focus on providing selected individuals with a comprehensive package for employment, which covers skills training, career guidance and placement opportunities, support to business start-up, and follow-up consultations. Upon completion of the training program, 70%–90% of the preemployment trainees will find jobs, and 5%–10% of the trainees will be provided with access to government preferential credit for starting up small-scale local businesses. The Project supports the training fees for the primary beneficiaries; cost recovery from the poor and ethnic minorities would not be sufficient to justify ADB lending. D. Implementation of the Proposed Grant 1. Provide the Name of the Implementing Agency

MOLISA is the Executing Agency, GDVT is the Implementing Agency, and the PIU of the VTEP will the NPIU

22. MOLISA will be the Executing Agency for the JFPR Project on Demand-Driven Skills Training for Poverty Reduction in the Cuu Long (Mekong) River Delta. GDVT will serve as the Implementing Agency. The VTEP’s PIU will be the NPIU and will directly manage project activities. The DOLISAs of the two target provinces will have LPIUs responsible for procurement of equipment, conduct of training courses, career guidance, setting up businesses, and other project activities in the provinces. The VTEP will be the project director and will facilitate coordination with and between national, provincial, and district units. 23. Nationally, the VTEP PSC will act as the PSC for the Project to provide strategic direction and overall guidance on project implementation. The LPIU will be supported by at least two fulltime staff in each province; and two staff in each district, including administrative and finance personnel who will be part of the counterpart share of the local government. CETCs, composed of groups from stakeholders, will be established in the two target provinces of Soc Trang and Tran Vinh to facilitate local ownership, provide labor market information, and advise the Project on ensuring the match between skills training and market demands. 24. The Project will provide a total of 44 person-months of consulting services (6 person-months of two international consultants and 38 person-months of seven national consultants. International consultants will be recruited for project management and coordination (4 person-months) and Khmer silk weaving and marketing (2 person-months). National consultants will be recruited for consulting on training including teaching methodology and curriculum development (10 person-months); career guidance and job placement (8 person-months); management, monitoring, and evaluation (10 person-months); local economic development and business planning (6 person-months); and preparation and monitoring of implementation of a gender

13

action plan (4 person-months). All nine consultants will be recruited on an individual basis. ADB, in consultation with MOLISA, will recruit the international consultants in accordance with ADB’s Guidelines on the Use of Consultants (2007, as amended from time to time). The NPIU will recruit the national consultants in consultation with the LPIUs and in accordance with ADB’s Guidelines on the Use of Consultants. The national consultants will be recruited based on no-objection from ADB. An external auditor firm will be recruited using consultants qualification selection in accordance with ADB’s Guidelines on the Use of Consultants (2007, as amended from time to time). The outline terms of reference for consulting services are in Supplementary Appendix B. 25. All procurement under the JFPR grant will be conducted in accordance with ADB’s Procurement Guidelines (2007, as amended from time to time). Goods (vehicles, and training equipment and supplies) and services estimated at $100,000 or less will be procured using shopping procedures. Minor items costing less than $10,000 equivalent may be procured by direct contracting. None of the procurement packages will exceed the threshold of $100,000, and none of the training program (to be organized per training batch) will exceed $10,000. Upon completion of the Project, goods procured will be turned over to the DOLISAs in Tra Vinh and Soc Trang provinces and training providers under the Project through the LPIUs according to a standard guideline. 26. The NPIU will open an imprest account in the commercial bank appointed as serving bank to receive funds from the JFPR. The NPIU will transfer funds from the imprest account to subaccounts opened and maintained at DOLISA accounts in the state treasury of the two provinces. The direct payment procedure or commitment procedure may be used for the procurement of equipment and consulting services. All payments will be in accordance with the current regulations of the Ministry of Finance and ADB’s Loan Disbursement Handbook (2007, as amended from time to time). Local state treasury units will supervise the expenditures in their respective areas.

2. Risks Affecting Grant Implementation

Type of Risk Brief Description Measure to Mitigate the Risk Governance Problems of corruption The Project will reduce administrative

procedures, and ensure strict financial control.

Limited project ownership and sustainability

Local stakeholders including the poor and ethnic minorities might not be actively involved in project preparation and implementation.

A participatory approach will be adopted. Regular stakeholder meetings and consultations will be conducted during project preparation and implementation.

Matching supply and demand

Too much focus on training delivery per se and not on training outputs

A multisector group will advise the Project on training decisions to ensure the match between training and employment

Limited capacity of local stakeholders in delivering the comprehensive package of skills training program

Selection of target districts and beneficiaries, and preparation of the comprehensive package of skills training programs might be delayed

Project implementation workshops, training needs survey, and rapid local economic appraisal will be conducted by consultants upon project inception. Close monitoring and consultations will be provided by the NPIU and LPIUs.

Infrastructure Bad road conditions, difficult transport, difficult for conducting courses

Select suitable training venue and type. Provide mobile training.

14

3. Incremental ADB Costs

Component Incremental ADB Cost Amount requested $65,000 Justification

The incremental cost will be mainly used for editing and final production and publication of the guidelines and manual for demand-based skills training for poverty reduction. For activities required for inception, midterm, final, and grant completion review missions (including the workshops/seminars with local stakeholders), consultants with various technical expertise will be needed to assist ADB staff in conducting thorough reviews from time to time.

Type of work to be rendered by ADB

Specialist/consultants will be engaged to assist ADB staff in conducting workshops and seminars with local stakeholders during project inception; and regular, midterm, and final reviews. At the midterm review and if necessary other review missions, a full-scale external review will be carried out on poverty and ethnic minority issues in improving living conditions through skills training.

4. Monitoring and Evaluation

27. Appendix 1 provides the design and monitoring framework. Key Performance Indicator Reporting Mechanism Plan and Timetable for M&E 4,000 poor individuals from the target districts, of whom at least 2,000 are ethnic minority females (50%), will be provided with skills training (3,600 trainees for primary skills training and 400 trainees for intermediate skills training).

- GDVT statistics - On-site survey reports during

regular and midterm review missions

- Impact assessment survey report

(Years 2 and 3) - Semiannual and annual

progress reports - ADB mission reports - Implementation completion

report

70%–90% of the preemployment trainees (including at least 35%–45% females) will find jobs.

- Annual reports on employment of DOLISA

- GDVT statistics - Impact assessment survey

report

(Years 2 and 3) - Semiannual and annual progress reports - Implementation completion

report

5%–10% of trainees (including at least 2.5%–5.0% females) will be provided with government preferential credit for starting up small-scale local business.

- Annual reports on employment by DOLISA

- GDVT statistics - Impact assessment survey

report

(Years 2 and 3) - Semiannual and annual

progress reports - Implementation completion

report

Two CETCs will be established comprising stakeholders from schools and training providers, business/employers, and community and special groups.

- On-site survey reports during regular and midterm review missions

(Years 1, 2, and 3) - Semiannual and annual

progress reports - ADB mission reports

15

100 core trainers (including at least 50 female trainers) and 150 DOLISA personnel, training providers, and other stakeholders (including at least 75 females) from Soc Trang and Tra Vinh will participate in training courses for capability building.

- Training needs survey report - Rapid local economic

appraisal report

(Years 1 and 2) - Semiannual and annual

progress reports - Implementation completion

report

5. Estimated Disbursement Schedule

Fiscal Year (FY) Amount ($) Fiscal year 1 300,000 Fiscal year 2 500,000 Fiscal year 3 500,000 Total Disbursements 1,300,000

-------------------------------------------------------------------------- Appendixes

1. Design and Monitoring Framework 2. Summary Cost Table 3. Detailed Cost Estimates 4. Fund Flow Arrangement 5. Implementation Arrangements 6. Summary Poverty Reduction and Social Strategy

Supplementary Appendixes (available on request) A. Status of Poor Households in the Cuu Long River Delta B. Outline Terms of Reference for Consulting Services

16 Appendix 1

DESIGN AND MONITORING FRAMEWORK

Design Summary

Performance Targets and/or Indicators

Data Sources and/or Reporting Mechanisms

Assumptions and Risks

Impact Improved living standard of the poor and ethnic minorities through demand-driven skills training for employment

Increased rural productivity and nonfarm employment Increased dairy consumption by poor households

Annual DOLISA reports on employment NTPPR progress reports VLSS reports Impact assessment survey report

Assumption Government commitment to inclusive social development and economic growth through human resource development is sustained.

Outcome Demand-driven approaches in delivering the relevant skills training programs for the poor and ethnic minorities are pilot-tested in Tra Vinh and Soc Trang provinces in the Cuu Long (Mekong) River Delta and ready for replication in the NTPPR

70%–90% of the preemployment trainees (at least 35%–35% female) will find jobs by 2011 5%–10% trainees (at least 2.5%–5.0% female) will be provided with the government preferential credit for starting-up small-scale local business by 2011

Annual DOLISA reports on employment GDVT statistics Impact assessment survey report

Assumptions MOLISA continues to allocate sufficient budget for preferential credits for small business Job opportunities continue to grow

Outputs 1. Capacity of designing and delivering demand-driven skills training programs for the poor and ethnic minorities is developed

2. Access to demand-driven skills training by the poor and ethnic minorities in targeted districts in Tra Vinh and Soc Trang provinces is increased

Training needs survey identifies capacity-building areas in 2008 Rapid local economic appraisal identifies employment opportunities and determines training design in 2008 CETCs established in Tra Vinh and Soc Trang provinces to provide labor market information, advise on project planning and implementation, and ensure the link between skills training and employment in 2008 100 core trainers (including at least 50 female trainers) developed to design and deliver demand-driven skills training courses in 2008–2009 150 DOLISA personnel, training providers, and other community stakeholders (at least 75 females) participate in training course for capacity building on career guidance, business plans, and placement assistance in 2008–2009 4,000 poor individuals from the target districts in Tra Vinh and Soc Trang provinces, of whom at least 2,000 are ethnic minority females, are provided with demand-driven skills training by 2010

GDVT statistics Training need survey report Rapid local economic appraisal report On-site survey report during the regular and midterm review missions List of core trainers disaggregated by gender List of DOLISA personnel, training providers, and other community stakeholders disaggregated by gender

GDVT statistics On-site survey report during the regular and midterm review missions

Assumptions New approaches to demand-driven skills training will be accepted. Private sector involvement will be effective. Risk Local governments, training providers, and other community stakeholders may not accept new approaches in delivering demand-driven skills training

Assumptions MOLISA continues to allocate sufficient budget for preferential credits for small business

Appendix 1

17

Design Summary

Performance Targets and/or Indicators

Data Sources and/or Reporting Mechanisms

Assumptions and Risks

50 enterprises, including private training providers, provide apprenticeships (informal training within the workplace) Four supplementary mobile training units reach out to poor individuals from the target districts

Impact assessment survey report

Local governments have sufficient budgets for operation and maintenance of training equipment and vehicles to be procured by the Project.

3. Efficiency and effectiveness of project management and coordination are improved

PSC established and functioning NPIU and LPIUs established NPIU and LPIUs procure the consulting services, training equipment, and supplies in a timely manner Guidelines and manual on effective organization and management of demand-driven skills training for poverty reduction developed and ready for replication in the NTPPR

Quarterly progress reports Semiannual and annual progress reports Guidelines and manual on effective organization and management of demand-driven skills training for poverty reduction Impact assessment survey report Implementation completion report

Assumption The NPIU and LPIUs have qualified staff to carry out the project activities.

Activities with Milestones 1. Capacity Building for Vocational Teachers, Managerial Staff, and Other Stakeholders 1.1 Conduct training needs survey and rapid local economic appraisal of target districts to

determine occupational and local market needs in 2008. 1.2 Establish CETCs in the two provinces comprising stakeholders from training providers,

business/employers, and community and special groups in 2008. 1.3 Develop core trainers to be identified from public and private training providers on skills

training approaches and methods in 2008–2009. 1.4 Develop skills for preparation of career guidance, business plans, and start-up for

DOLISA personnel, vocational schools and training centers, and other community stakeholders through capacity-building workshops and seminars to be organized by consultants in 2008–2009.

2. Provision of Skills Training for the Poor and Relevant to Local Labor Market 2.1 Identify and select trainees for demand-driven skills training in 2008. 2.2 Organize demand-driven skills training programs including the procurement of necessary

training equipment and supplies in 2008–2009. 2.3 Deploy and organize mobile training units in 2008–2009. 2.4 Deliver demand-driven skills training (3,600 trainees for primary skills training and 400

trainees for intermediate skills training) including career guidance and job placement assistance in 2009–2010.

3. Project Management and Coordination 3.1 Appoint relevant personnel for the NPIU in 2008. 3.2 Establish an LPIUs at each DOLISA in the target provinces in 2008 3.3 Establish a project administration and financial management system in 200. 3.4 Prepare quarterly, semiannual, annual, and midterm project reports. 3.5 Prepare 64 master copies of the guidelines and manual on organization and

implementation of demand-based skills training for poverty reduction in 2010. 3.6 Conduct impact assessment survey in 2011. 3.7 Draft implementation completion report in 2011.

Inputs JFPR: $1.3 million • Equipment and

supplies: $281,700 • Training, workshops,

seminars, public campaigns: $629,500

• Consulting services: $216,000

• Grant management: $102,800

• Contingencies: $70,000

Government: $300,000 • Preferential

loans/credits: $150,000 • Project management

and staff: $150,000 Communities: $50,000 • Preferential

loans/credits: $50,000 Incremental ADB Cost: $65,000

ADB = Asian Development Bank; CETC = community enterprise and training committee; DOLISA = department of labor, invalids, and social affairs; GDVT = General Department of Vocational Training; JFPR = Japan Fund for Poverty Reduction; LPIU = local project implementation unit; MOLISA = Ministry of Labour, Invalids, and Social Affairs; NPIU = national project implementation unit; NTPPR = national target program on poverty reduction; PSC = project steering committee; VLSS = Viet Nam living standard survey.

SUMMARY COST TABLE ($)

A: Capacity Building for

Vocational Teachers, Managerial Staff, and Other

Stakeholders

B: Provision of Skills Training Relevant to the

Poor and the Local Labor Market

C: Project Management and Coordination

Total (Input) Percent

1. Civil Works 0 0 0 0 0.0

2. Equipment and Supplies 0 281,700 0 281,700 21.7

3. Training, Workshops, Seminars, and Public Campaigns 72,500 552,000 5,000 629,500 48.4

4. Consulting Services 112,000 0 104,000 216,000 16.6

5. Grant Management 24,000 20,000 58,800 102,800 7.9

6. Other Inputs 0 0 0 0 0.0

7. Contingencies (0–10% of total estimated grant fund): 20,000 30,000 20,000 70,000 5.4

Subtotal JFPR grant financed 228,500 883,700 187,800 1,300,000 100.0

Government Contribution 0 150,000 150,000 300,000

Other Donor(s) Contributions 0 0 0

Community's Contributions (mostly in kind) 0 50,000 0 50,000

Total Estimated Costs 228,500 1,083,700 337,800 1,650,000

Incremental Costs65,000 65,000

Source: Asian Development Bank estimates.

Inputs / Expenditure category

Grant Components

18 � A

ppendix 2

DETAILED COST ESTIMATES ($)

Code Supplies and Services Rendered Unit Quantity Cost TotalUnits Per Unit ($)

AmountMethod of Procure-

ment

Component A: Capacity Building for Vocational Teachers, Managerial Staff, and Other Stakeholders Subtotal 208,500 208,500 0 0 0

1.1 Training, Workshops, and Seminars 62,500 62,500 0 0 01.1.1 Career Guidance and Job Placement Per Trainee 50 250 12,500 12,5001.1.2 Seminar/Workshops on Rapid Local Economic Appraisal and Business Planning,

TNA Per Trainee 100 250 25,000 25,0001.1.3 Capacity Building for Vocational Training Teachers Per Trainee 100 250 25,000 25,000

1.2 Training Needs and Rapid Local Economic Appraisal 10,000 10,000 0 0 01.2.1 Training Needs Survey Survey Lot 5,000 5,000 5,0001.2.2 Rapid Local Economic Appraisal Survey Lot 5,000 5,000 5,000

1.3 Consulting Services 112,000 112,000 0 0 01.3.1 International Consultant on Silk Weaving and Marketing Person month 2 18,000 36,000 36,000 Individual1.3.2 National Consultants for Capacity Building Person month 38 2,000 76,000 76,000 Individual1.3.2.1National Consultant on Training (Teching Methodology/Curriculum) Person month 10 2,000 20,000 20,000 Individual1.3.2.2National consultant on Career Guidance Placement Services Person month 8 2,000 16,000 16,000 Individual1.3.2.3National Consultant on Management, Planning, M&E and Project Implementation Person month 10 2,000 20,000 20,000 Individual1.3.2.4National Consultant on Local Economic Development, Business Planning/Start-Up Person month 6 2,000 12,000 12,000 Individual1.3.2.5National Consultant on Gender Action Plan Person month 4 2,000 8,000 8,000 Individual

1.4 Management and Coordination of this Component 24,000 24,000 0 0 01.4.1 Travel and Per Diem of Training Staff Lot Lot 10,000 10,0001.4.2 Operational Costs (LPIUs, Districts, and Community EnterpriseTraining Committee) Lot Lot 14,000 14,000

Component B: Provision of Skills Training Relevant for the Poor and the Local Labor Market Subtotal 1,053,700 853,700 150,000 0 50,000

2.1 Equipment and Supplies 281,700 281,700 0 0 02.1.1 Training Equipment Lot Lot/Course 221,700 221,700 Shopping2.1.1.1 Primary Level Skills Training Equipment Lot Lot/Course 80,716 80,7162.1.1.2 Intermediate Level Skills Training Equipment Lot Lot/Course 50,428 50,4282.1.1.3 Training Equipment for Handicrafts/Industrial Sewing Lot Lot/Course 50,556 50,5562.1.1.4 Training Equipment for Aquatic Product Processing Lot Lot/Course 40,000 40,0002.1.2 Mobile Van for Mobile Training Unitsa Each 4 units 15,000 60,000 60,000 Shopping

(pick-up, 2.7cc with 4-wheel drive for mobile van - 4 units 1 per disrtict)

2.2 Training, Workshops, and Seminars 552,000 552,000 0 0 02.2.1 Intermediate Level Skills/Vocational Training Per Trainee 400 300 120,000 120,0002.2.2 Primary Level of Skills Training Per Trainee 3,600 120 432,000 432,000

2.3 Management and Coordination of this Component 20,000 20,000 0 0 02.3.1 Travel and Per Diem of Training Staff Lot Lot 10,000 10,000 10,0002.3.2 Operational Costs (LPIUs and Districts) Lot Lot 10,000 10,000 10,000

2.4 Other Project Inputs 200,000 0 150,000 0 50,0002.4.1 Assistance/Soft Loans and Preferential Credits for Post Training Activities Lot Lot Lot 200,000 0 150,000 0 50,000

Costs Contributions

CommunitiesGovernment Other DonorsJFPR

Appendix 3

� 19

Code Supplies and Services Rendered Unit Quantity Cost TotalUnits Per Unit ($)

AmountMethod of Procure-

ment

Component C: Project Management and Coordination Subtotal 317,800 167,800 150,000 0 0

3.1 Training, Workshops, and Seminars 5,000 5,000 0 0 03.1.1 Training Supplies Lot Lot 5,000 5,000

3.2 Consulting Services 104,000 104,000 0 0 03.2.1 International Consultant on Project Management and Coordination Person month 4 18,000 72,000 72,000 Individual3.2.2 Interpreter Person month 4 500 2,000 2,000 Individual3.2.3 External Audit Year 3 10,000 30,000 30,000

3.3 Management and Coordination of this Component 203,800 53,800 150,000 0 03.3.1 Counterpart Staff in Two Provinces Person month 4 x 36 266 38,400 38,4003.3.2 Counterpart Staff in Four Districts Person month 4 x 36 200 28,800 28,8003.3.3 Office Support Staff (finance, administrative) Person month 4 x 36 200 28,800 28,8003.3.4 Cost of Use/Maintenance of Training Venues Lot Lot 25,200 25,200 25,2003.3.5 Local Travel Lot Lot 10,000 10,000 10,0003.3.6 Vehicle Operation/Maintenanace (including drivers) months 4 x 36 400 57,600 57,6003.3.7 Operational Costs (NPIU) Lot Lot 15,000 15,000 15,000

3.4 Benefit Monitoring and Evaluation 5,000 5,0003.4.1 Impact Assessment Survey Survey 1 5,000 5,000 5,000

Components A to C = Subtotal Subtotal 1,580,000 1,230,000 300,000 0 50,000

4.1 Contingency (maximum 10% of total JFPR contribution) 70,000 70,000

TOTAL Grant Costs Total 1,650,000 1,300,000 300,000 0 50,000

5.1 Incremental Cost Details 65,000 65,0005.1.1 Review, Editing, and Publication/Printing of "Guideline and Manual for Organization Lot Lot 30,000 30,000 30,000

and Implementation of Demand Driven Skills Training for Poverty Reduction"5.1.2 Cost inception, Midterm and Final Reviews, and Grant Completion Mission Lot Lot 35,000 35,000 35,000

TOTAL Incremental Costs 65,000 65,000 0 0 0

LPIU = local project implementation unit, M&E = monitoring and evaluation, NPIU = national project implementing unit, TNA = training needs assessment.a Cost of pick-up utility vehicles for mobile training vans had been included to reach out to the poor and ethnic minorities in their areas of residence. Cost of vehicles rental for the duration of the project life would be higher than cost of vehicles

Source: Asian Development Bank estimates.

Other Donors Communities

Costs Contributions

JFPR Government

20 � A

ppendix 3�

Appendix 4

21

FUND FLOW ARRANGEMENT

1. The fund flow arrangement for the Japan Fund for Poverty Reduction (JFPR) Project is shown in Figure A4. The Asian Development Bank (ADB) will channel the JFPR funds directly to a JFPR imprest account, which will be opened and maintained by the national project implementation unit (NPIU), the project implementation unit of the Vocational and Technical Education Project. The account will be at a bank endorsed by the Executing Agency and acceptable to ADB. It will be used to cover day-to-day local expenditures of the JFPR Project. The NPIU will keep the Executing Agency, Ministry of Finance, and State Bank of Viet Nam informed of all transactions, and receive copies of all financial statements and audit reports. Subaccounts will be opened and maintained by local project implementation units (LPIUs) of the departments of labor, invalids, and social affairs in Tra Vinh and Soc Trang provinces at their provincial state treasury accounts, initially based on the first 6-month activity plan and related budget, and later based on the approved annual work plan and budget. The direct payment procedure or commitment procedure may be used to procure equipment and consulting services.

Figure A4: Fund Flow Arrangements for the JFPR Project

Source: ADB

Asian Development Bank

Grant Imprest Account held at

National Project Implementation Unit

$1,300,000

Consulting Services

$216,000

Contingencies

$70,000 Sub Account held at DOLISA Account

in the State Treasury $1,014,000

Component C

Project Management

$63,800

Component A

Delivery of Skills Training

$853,700

Component B

Capacity Building

$96,500

22 Appendix 4

2. ADB will channel funds to the imprest account equivalent to 10% of the JFPR amount or 6 months estimated expenditures to be funded from the imprest account, whichever is lower, as an advance for day-to-day project implementation during the inception period. It will replenish the imprest account funds every 3–6 months, based on the replenishment requests from the NPIU in accordance with ADB’s statement of expenditures (SOE) procedure. To ensure speedy project implementation, the SOE procedure will apply for all payments and transactions under $10,000. For payments in excess of $10,000 equivalent, supporting documents should be submitted, i.e., contract or purchase order, invoice, bill, or proof of payment. The imprest account will be established, managed, replenished, and liquidated in accordance with ADB’s Loan Disbursement Handbook (2007, as amended from time to time). Detailed implementation arrangements, such as the flow, replenishment, and administrative procedures will be detailed in the project administration memorandum, and be established between ADB and the Government through the JFPR Letter of Agreement. The audit report should provide an opinion on the imprest account and SOE operations.

Appendix 5

23IMPLEMENTATION ARRANGEMENTS

A. Agencies Responsible for Grant Implementation 1. The Ministry of Labor, Invalids, and Social Affairs (MOLISA) is the Executing Agency , and the General Department of Vocational Training (GDVT) will serve as the Implementing Agency for the Japan Fund for Poverty Reduction (JFPR) Project: Demand-Driven Skills Training for Poverty Reduction in the Cuu Long (Mekong) River Delta. The project implementation unit for the Vocational and Technical Education Project (VTEP) will be the national project implementation unit (NPIU). It will directly manage project activities. The departments of labor, invalids, and social affairs (DOLISAs) of two target provinces will have local project implementing units (LPIUs) that will be responsible for procurement of equipment, conduct of training courses, career guidance, setting up businesses, and other project activities in the provinces. VTEP will be the project director and facilitate coordination with and between national, provincial, and district units. 2. The Project will undertake design and implementation of project components in coordination with and with the full participation of all relevant agencies and community stakeholders. The international and national consultants for project management will facilitate the development of detailed implementation plans and timetables. Capacity building for community leaders is needed to facilitate participation and engagement of local communities in decisions for project activities and thereby project ownership. B. Consulting Services 3. The Project will provide 44 person-months of consulting services (two international consultants for 6 person-months and seven national consultants for 38 person-months. International consultants will be recruited for project management and coordination (4 person-months) and Khmer silk weaving and marketing (2 person-months). National consultants will be recruited for consulting on training including teaching methodology and curriculum development (10 person-months); career guidance and job placement (8 person-months); management, monitoring, and evaluation (10 person-months); local economic development and business planning (6 person-months); and preparation and monitoring of the implementation of a gender action plan (4 person-months). All nine consultants will be recruited on an individual basis. ADB, in consultation with MOLISA, will recruit the international consultants in accordance with ADB’s Guidelines on the Use of Consultants (2007, as amended from time to time). The NPIU will recruit the national consultants in consultation with the LPIUs and in accordance with ADB’s Guidelines on the Use of Consultants. The national consultants will be recruited based on no-objection from ADB. Consulting service requirements and outline terms of reference for the consultants are in Supplementary Appendix B. C. Steering/Advisory Services 4. The VTEP’s project steering committee (PSC) will act as national PSC for the JFPR Project to provide strategic direction and overall guidance on project implementation. Community enterprise training committees (CETCs), composed of composite groups of stakeholders, as defined in the Project, will be established in the two target provinces of Soc Trang and Tran Vinh to facilitate local ownership, provide labor market information, and advise the Project on ensuring the match between skills training and market demand.

24 Appendix 5

D. Procurement 5. All procurement under the JFPR grant will be conducted in accordance with ADB’s Procurement Guidelines (2007, as amended from time to time). Goods (vehicles, and training equipment and supplies) and services estimated at $100,000 or less will be procured using shopping procedures. Minor items costing less than $ 10,000 equivalent may be procured by direct contracting. None of the procurement packages will exceed the threshold of $100,000, and none of the training program (to be organized per training batch) will exceed $10,000. Upon completion of the Project, goods procured will be turned over to the DOLISAs in Tra Vinh and Soc Trang provinces and training providers under the Project though the NPIU and LPIUs according to a standard guideline.

E. Financial Arrangements 6. The NPIU will open an imprest account in the commercial bank appointed as serving bank to receive funds from the JFPR. Subaccounts will be opened and maintained at DOLISA accounts in the state treasury of the two provinces. The NPIU will transfer funds from the imprest account to the subaccounts. The direct payment procedure or commitment procedure may be used for the procurement of equipment and consulting services. All payments will be in accordance with current regulations of the Ministry of Finance and ADB’s Loan Disbursement Handbook (2007, as amended from time to time). Local state treasury units will supervise the expenditures in their respective areas. Any interest earned should be returned to the JFPR account maintained at ADB upon completion of the JFPR Project and before closing the JFPR account.

F. Reporting 7. The Project will require submission of the following reports: consultant reports, progress reports (quarterly progress reports, semiannual progress reports), annual progress reports, implementation completion report, external monitoring and evaluation reports, and audit reports. GDVT will maintain separate accounts for all project components financed by the JFPR and the Government, and have them audited by an independent auditor that has adequate knowledge and experience in international accounting process and is acceptable to ADB. GDVT will submit the audited project account and the auditor’s report to ADB within 6 months after the end of each fiscal year. ADB will finance, through the JFPR project, annual audits by an independent audit company acceptable to ADB. Audit reports will include an opinion on the use of the imprest fund, subaccounts, and statement of expenditure procedure. The NPIU will provide a project completion report to ADB with in 3 months of physical completion of the JFPR Project. All reports will comprise an assessment of the project impact, and outputs, project performance monitoring and evaluation, as well as suggestions for improving project implementation. G. Project Review 8. ADB and MOLISA will jointly undertake reviews of the Project at least twice a year. The reviews will assess progress, identify issues and constraints, and determine necessary remedial actions and adjustment. A midterm review will be conducted at the end of the second year of implementation. The midterm review will examine the scope, design, and implementation; identify any adjustments required; assess progress of project implementation against performance indicators; and recommend changes in the design or implementation arrangements, if warranted. H. Implementation Schedule 9. The Project is expected to be implemented over 3 years from 1 October 2008 to 30 September 2011.

Appendix 6 25

SUMMARY POVERTY REDUCTION AND SOCIAL STRATEGY

Country/Project Title: Viet Nam/Demand-Driven Skills Training for Poverty Reduction in the Cuu Long (Mekong) River Delta Lending/Financing Modality JFPR Grant Department/

Division: Southeast Asia Department/ Social Sectors Division

I. POVERTY ANALYSIS AND STRATEGY

A. Linkages to the National Poverty Reduction Strategy and Country Partnership Strategy The Government’s poverty reduction strategy is integrated in the Socio-Economic Development Plan (SEDP) 2006–2010, which views job growth as pivotal, but also recognizes the need for targeted interventions to reach isolated communities with high rates of entrenched poverty. As a socially inclusive growth effort, the Government launched the National Targeted Program on Poverty Reduction (NTPPR), 2006–2010, and designated the Ministry of Labor, Invalids, and Social Affairs (MOLISA) as a focal government agency responsible for implementation of the NTPPR. The country partnership strategy (country strategy and program, 2007–2010) of the Asian Development Bank (ADB)a supports the NTPPR initiative by emphasizing renewed efforts toward socially inclusive growth, and improvements in the delivery of education and vocational training to be focused on individual provinces or communities isolated from the growth process. In addition, the Vocational Training Law (June 2007) prescribes that supports are to be made to the poor, ethnic minorities, and disabled with the aim of providing them with relevant skills training so that they can find a job or be self-employed. More specifically, MOLISA is seeking funds to support a pilot model project on poverty reduction through skills/vocational training with preferential microcredit schemes at the Cuu Long (Mekong) River Delta and plans to replicate this under the NTPPR and its follow up program. B. Poverty Analysis Targeting Classification: Targeted intervention (TI-G) 1. Key Issues The Cuu Long River Delta region comprises 13 provinces with an area of 3.96 million hectares, equivalent to 12% of the country’s area. It has a population of 19 million or 22% of the national population. The region has an ample labor force of more than 10 million (accounting for 22.3% of the national labor force). However, in this region, more than 80% of the population lives in poor remote areas. The proportion of the population with technical or university training is quite low at 2.2%, which is the lowest in the country. Furthermore, the majority of poor people cannot afford provincial and district vocational training courses organized (The Regional Poverty Assessment, Mekong River Region, March 2004). The gap in socioeconomic conditions between the region and the key southern economic zone is increasing without opportunities for the poor to improve their standard of living. Lack of skills, knowledge, and business experience among the labor force in Cuu Long River Delta, especially the poor and ethnic minorities has precluded them from participating in local socioeconomic growth, hunger eradication, and poverty reduction to mitigate gaps between regions and social groups. Providing skills and vocational training to the poor and ethnic minorities is important, to equip them with skills and knowledge for employment or job-changing opportunities, or for starting up small businesses. MOLISA statistics indicate that the rate of poor households in 2006 in the Cuu Long River Delta region is 15.58%. According to the field survey in September 2007 conducted by the General Department of Vocational Training/MOLISA, Tra Vinh and Soc Trang are the two poorest provinces in the region and most of the ethnic minorities live there. The rate of poor households in Tra Vinh is 27.52% and in Soc Trang 24.13%. The rate of poor households is higher than the provincial average in the following districts: in Tra Vinh, Tra Cu (rate of poor households is 41.19%), Cau Ke (29.85%); and in Soc Trang, My Xuyen (30.24%), Vinh Chau (29.13%). The poor household survey 2004, conducted by MOLISA, identified three main reasons for chronic poverty as lack of (i) capital (79%), (ii) knowledge (70%), and (iii) market information (35%). The Project will address these issues by providing preemployment skills training or self-employment training for setting up small businesses, and provide assistance to increase access of the poor and ethnic minorities in targeted provinces/districts to preferential microcredit schemes. 2. Design Features The project design is a departure from the usual supply-oriented and certificate-based school training. The crucial feature of this methodology is to identify opportunities for sustainable employment before a training course is organized and delivered. The methodology aims to link skills training directly to employment and income generation. The main distinctive characteristic of the methodology for demand-driven skills training is, therefore, that it does not offer prepackaged training programs. It uses in a community training needs assessment to ensure that training is directly linked to employment or income-generating activities. The training delivery will take also into consideration the ethnic characteristics of the selected clientele to ensure effective learning processes, such as bilingual usage of training medium. Aiming at employment, emphasis is placed on posttraining support (e.g., career guidance and placement services, entrepreneurial development, and links with organizations providing credit, marketing, and other assistance). The Project will pilot different modes of training delivery at schools, within enterprises as work-based training, schools/center-

Appendix 6

26

based skills training, apprenticeship, and mobile training with primary, intermediate, and skills upgrading training programs. The organization of skills training should be mobile in the sense that the access of the rural poor needs to be improved by bringing training activities within or near the communities where they live. Thus, the training courses will be "brought to the trainees." The Project will enhance the training mobility selected by existing training providers by providing vehicles (small pick-up trucks) able to negotiate and penetrate rural and difficult terrains where poor clients reside. The Government intends to promote local industries and business (such as the food and canning industries that have planned to locate in the area and expect to generate about 12,000 jobs for local residents) in Cuu Long River Delta so that employment or self-employment opportunities will be generated. To ensure relevance of skills training in meeting the local labor market demand, a rapid local economic appraisal of the local communities will be conducted as a basis for assessing the training needs and absorptive capacity of trainees. A community enterprise training committee (CETC) will be established in each of two provinces, and comprise composite groups of stakeholders, as a multisector committee to provide information and advice for matching training with employment. C. Poverty Impact Analysis for Policy-Based Lending The Project is funded by the Japan Fund for Poverty Reduction; poverty impact analysis is not required for policy-based lending.

II. SOCIAL ANALYSIS AND STRATEGY

A. Findings of Social Analysis Approximately 1 million Khmer live in the provinces of An Giang, Can Tho, Kien Giang, Soc Trang, Tra Vinh, and Vinh Long. The Khmer have lived in the Cuu Long River Delta for a very long time and preserved their language and writing. They have a long tradition in wet-rice cultivation, are experts in traditional irrigation techniques, and know how to take advantage of tides to clean alum soil and reform the land. Animal husbandry is still associated with agriculture, oxen and buffaloes are kept as pulling; chicken, ducks, and fish supplement the family diet. Handicrafts include weaving, pottery, and sugar making. The Khmer in the Cuu Long River Delta try to preserve many of their unique customs, arts, and practices. However, they are not equipped with the relevant skills to take advantage of employment or self-employment opportunities. The Project will assess Khmer silk weaving as a potential area of self-employment and identify necessary training needs of silk weavers.

B. Consultation and Participation

1. Provide a summary of the consultation and participation process during the project preparation. According to the survey in September 2007, Tra Vinh and Soc Trang are the two poorest provinces in the region and most of the ethnic minorities live there. Consultations with two targeted provinces were conducted and survey questionnaires on vocational training capacity were completed and the results input in the project design. ADB’s Appraisal Mission was fielded from 14 to 25 January 2008 to confirm early understanding of the project design. It conducted a consultative workshop with about 70 stakeholders and beneficiaries in the two provinces, and received feedback from the stakeholders on the project objectives, targets, proposed activities, timetables, and local responsibilities of communities. MOLISA’s Social Protection Department and other departments responsible for the NTPPR were involved in the project design to ensure the institutionalization of the benefits derived from the Project. On 18 January 2008, the Appraisal Mission consulted with the staff of the Embassy of Japan in Hanoi on the project design. MOLISA is actively consulting with the Japan International Cooperation Agency on the possibility of fielding senior volunteers of retired Japanese business executives who will act as business advisors to strengthen posttraining activities and ensure success in the business start up activities of the graduates. The experienced senior volunteers will be able to lend new insights and technology necessary for the new business ventures. 2. What level of consultation and participation (C&P) is envisaged during the project implementation and monitoring?

Information sharing Consultation Collaborative decision making Empowermenti 3. Was a C&P plan prepared? Yes No The entire project design is anchored on continuous information sharing, consultation and consensus building to empower beneficiaries for project ownership. The structures for consultations are built in the CETC comprising multisector groupings to ensure a close link between business, communities, training providers, and the beneficiaries. The poor and ethnic minorities will be involved in the community training needs survey and rapid local economic appraisal processes as key informants. Their representatives will be CETC members, taking part in the decision-making process for demand-based skills training. During project inception and implementation, project inception and review seminars/workshops will be conducted with active participation by community leaders and representatives of target and primary beneficiaries. They will be consulted in the preparation process for the guidelines for effective organization and implementation of demand-driven skills training for poverty reduction.”

C. Gender and Development 1. Key Issues The Project encourages both genders to participate equally in the project activities. Training programs will encourage women beneficiaries to enter traditional male trades. Monitoring of project progress will be disaggregated by gender and ethnic group.

Appendix 6 27

2. Key Actions Gender plan Other actions/measures No action/measure A gender action plan will be prepared for the Project. Primary beneficiaries of the Project are ethnic minority females (at least 50% of the beneficiaries) who will be provided with skills training, and capacity-building training on teaching methodology, career guidance, and job placement. One of the reasons for poor participation of women in vocational training is the lack of women trainers to serve as role models, especially for the poor, ethic minorities, and young women. Capacity development of women as trainers and counselors has been targeted and will be monitored in this Project.

III. SOCIAL SAFEGUARD ISSUES AND OTHER SOCIAL RISKS Issue

Significant/Limited/ No Impact

Strategy to Address Issue

Plan or Other Measures Included in Design

Involuntary Resettlement

No impact

Not applicable: the Project involves no civil works.

Full Plan Short Plan Resettlement Framework No Action

Indigenous Peoples

Significant

The Project’s impact on the poor and ethnic minorities will be significantly positive as they will gain access to skills training linked with employment opportunities. Specific actions are incorporated in the design of the intervention and will be addressed as an integral part of a gender action plan.

Plan: The project design has

incorporated elements of the Indigenous Peoples Development Plan, and the project document serves as an Indigenous Peoples Development Plan.

Other Action Indigenous Peoples

Framework No Action

Labor

Employment opportunities Labor retrenchment Core labor standards

No (adverse) impact

No risks are associated with labor policy, law, or other labor issues.

Plan Other Action No Action

Affordability

No (adverse) impact

The Project will provide skills training with no fees for the poor and ethnic minorities, especially the Khmer people, and will help them access preferential microcredit schemes.

Action No Action

Other Risks and/or Vulnerabilities

HIV/AIDS Human trafficking

Others(conflict, political instability, etc), (please specify)

None

Not applicable

Plan Other Action No Action

IV. MONITORING AND EVALUATION

Are social indicators included in the design and monitoring framework to facilitate monitoring of social development activities and/or social impacts during project implementation? Yes No

a ADB. 2006. Country Strategy and Program 2007–2010: Socialist Republic of Viet Nam. Manila.