139 CHAPTER 5: ENERGY AND ELECTRICITY 5.1 20-year Partnership at a Glance in Energy and Electricity The 20-year partnership for the growth and development in the energy and electricity sector in Vietnam can be summarized according to historical background and priority development issues as shown in Table 5-1. Sector priority in Vietnamese side is expansion of power generation and transmission line based on Power Development Plan, and features of Japan’s assistance are "comprehensive cooperation" consisted of not only structural measures of power plant and transmission construction projects, but also non-structural measures of technical guidance and assistance for formulation of PDP. Table 5-1: Summary of Partnership for Energy and Electricity Sector Development 5th SEDP (1991-1995) 6th SEDP (1996-2000) 7th SEDP (2001-2005) 8th SEDP (2006-2010) 9th SEDP (2011-2015) Background Topics - Paris Peace Agreements on Cambodia Conflict (1991) - Resumption of Japan’s ODA (1992) - Restoration of Vietnam-US diplomatic relations (1995) - Formal entry into ASEAN (1995) - Asian Currency Crisis (1997) - Vietnam-US Bilateral Trade Agreement (2000) - Signing of Japan-Vietnam Investment Agreement; Japan-Vietnam Joint Initiative (2003) - Formal entry into WTO (2007) - Lehman Crisis (2008) - Prime Minister Dung visits Japan (2011) Sector Situation The state of electric power shortage due to degraded facilities was very poor. Under the “Doi Moi” (renovation) policy adopted, Vietnam continued to experience economic growth, and electricity demand had increased rapidly. With completion of transmission line connecting the northern and southern regions, power shortage in the southern area was improved temporarily. Large-scale projects of power plant (Phu My and Pha Lai, etc) began to be constructed, due to the emphasis on economic base infrastructure Improvement of investment environment has been required to facilitate the investment in energy sector. The possibility of investment by Japanese private fund was expanded. Development of power demand was required to ensure stable power supply. Thanks to the completion of power generation projects from the 90s, the capacity has been greatly improved but remains insufficient. Therefore, to ensure stable power supply is an on-going task. BOT (Build Operate and Transfer) projects and IPP (Independent Power Producers) are expected to increase. But with increasing power demand, Vietnam will become an energy- importing country from its neighboring countries in around 2015. Sector Priorities in Expansion of power Expansion of power Expansion of power Expansion of power Expansion of power generation
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CHAPTER 5: ENERGY AND ELECTRICITY
5.1 20-year Partnership at a Glance in Energy and Electricity
The 20-year partnership for the growth and development in the energy and electricity sector in
Vietnam can be summarized according to historical background and priority development issues
as shown in Table 5-1.
Sector priority in Vietnamese side is expansion of power generation and transmission line based
on Power Development Plan, and features of Japan’s assistance are "comprehensive cooperation"
consisted of not only structural measures of power plant and transmission construction projects,
but also non-structural measures of technical guidance and assistance for formulation of PDP.
Table 5-1: Summary of Partnership for Energy and Electricity Sector Development
5th SEDP (1991-1995)
6th SEDP(1996-2000)
7th SEDP(2001-2005)
8th SEDP (2006-2010)
9th SEDP(2011-2015)
Background Topics
- Paris Peace Agreements on Cambodia Conflict (1991) - Resumption of Japan’s ODA (1992)
- Restoration of Vietnam-US diplomatic relations (1995) - Formal entry into ASEAN (1995) - Asian Currency Crisis (1997)
- Formal entry into WTO (2007) - Lehman Crisis (2008)
- Prime Minister Dung visits Japan (2011)
Sector Situation
The state of electric power shortage due to degraded facilities was very poor. Under the “Doi Moi” (renovation) policy adopted, Vietnam continued to experience economic growth, and electricity demand had increased rapidly.
With completion of transmission line connecting the northern and southern regions, power shortage in the southern area was improved temporarily. Large-scale projects of power plant (Phu My and Pha Lai, etc) began to be constructed, due to the emphasis on economic base infrastructure
Improvement of investment environment has been required to facilitate the investment in energy sector. The possibility of investment by Japanese private fund was expanded. Development of power demand was required to ensure stable power supply.
Thanks to the completion of power generation projects from the 90s, the capacity has been greatly improved but remains insufficient. Therefore, to ensure stable power supply is an on-going task.
BOT (Build Operate and Transfer) projects and IPP (Independent Power Producers) are expected to increase. But with increasing power demand, Vietnam will become an energy- importing country from its neighboring countries in around 2015.
Sector Priorities in
Expansion of power
Expansion of power
Expansion of power
Expansion of power
Expansion of power generation
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5th SEDP (1991-1995)
6th SEDP(1996-2000)
7th SEDP(2001-2005)
8th SEDP (2006-2010)
9th SEDP(2011-2015)
SEDP generation was required based on PDP4
generation was required based on PDP4
generation was required based on PDP5 (Decision No. 40/2003/QD-TTg dated March 21, 2003)
generation was required based on PDP6 (Decision No. 110/2007/QD-TTg dated July 18, 2007)
is required based on PDP7 (Decision No. 1208/2011/QD-TTg dated July 21, 2011)
Direction of Japan’s ODA
When ODA is resumed, the top priority was to cooperate in energy and electricity sector.
Construction, and Rehabilitation of power plants, transmission and distribution network byODA continue to be promoted.
Follow Japan-Vietnam Investment Agreement and Japan-Vietnam Joint Initiative in 2003.
Energy and electricity were continuously defined as the important sector. Support the construction of power generation and transmission lines.
Activities of sustainable energy supply continue to be supported, in order to respond to increasing power demand to support economic growth.
Priority Issues of Japan’s ODA
1) Construction and expansion of power plant by yen loan, and development of electric distribution and transmission facilities, and rehabilitation of degraded power generation facilities.
1) Construction and expansion of power plant by yen loan, and development of electric distribution and transmission facilities, and rehabilitation of degraded power generation facilities.
1) Improvement of conditions of energy and telecommunication for the development of economic infrastructure. Construction and expansion of power plant and development of electric distribution and transmission facilities, and rehabilitation of degraded power generation facilities. 2) Sustainable human resource development for technical engineer in energy and electrical sector.
1) Construction and expansion of power plant and distribution and transmission lines, and rehabilitation of degraded power generation facilities. 2) Assistance of law on electric power, formulation of master plan, institution -building and technical standards, due to promotion of efficiency of electric power supply and demand system
1) Secure sustainable primary energy by financial assistance 2) Construction and expansion of power plant and distribution and transmission lines 3) Development of technical infrastructure in the surrounding areas to promote the investment of private sector 4) Strengthening the capacity of electric power supply by formulating safety technology and standards 5) Implementation and promotion of policies encouraging energy conservation
(Source: JICA Study Team)
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5.2 Historical Review of Development and Growth in Energy and Electricity
In “Chapter 2: Comprehensive Analysis,” improving power shortage was the priority issue since
the resumption of Japan’s ODA in 1990s. Construction and expansion of power plants continued
to be priority projects to ensure a stable power supply in Vietnam.
Total input amount in this sector was over JPY 400 billion provided by yen loan, and over US$10
billion (around JPY1,000 billion) provided collectively by the World Bank (WB), Asian
Development Bank (ADB) and other donors. As a result, power generation capacity and power
consumption over the past 10 years recorded a high growth of 13-14% per year, and the
electrification rate reached over 97%.
In the history of growth and development, Da Nhim Project has played a significant role; and it
is one example of comprehensive cooperation in the energy and electricity sector. The historical
review in this section, Da Nhim Hydroelectric Power Project was focused in terms of technical
aspects, due to detail description on “Chapter 2: Comprehensive Analysis”. Therefore, this
section consists of 1) development and growth since Japan’s ODA resumption from 1990s to
2000, and 2) development and growth from 2000, and 3) the future direction in Vietnam,
considering to latest Power Development Plan (PDP).
5.2.1 Da Nhim Hydroelectric Power Project (1955-1964)
Da Nhim Hydroelectric Power Project located in Lam Dong Province of Southern Vietnam was
proposed to the Republic of Vietnam in the 1950s. Table 5.2 and Figure 5.1 show the outline of
Da Nhim Hydroelectric Power Project.
Table 5-2: Outline of Da Nhim Hydroelectric Power Project
Contents Specification
Earth Dam Length of dam: 1,450m, Volume of dam: 3,420,000m3
Reservoir Capacity: 150,000,000m3
Tunnel Inside diameter: 4m, Length: 4,880m
Penstock line Inside diameter: 1-2m, Length: 2,340ｍ
Power Plant Generator: 45MW, nos 4
(Source: Library of Nippon Koei)
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(Source: Library of Nippon Koei)
Figure 5-1: Outline of Da Nhim Hydroelectric Power Project
The Project was completed in January 15th 1964 in less than three years, in contrast to the
original construction plan of four years and that the difficulties caused by the Vietnam War. This
power plant and transmission line provided electric power to Saigon for a while. And the water
(14m3/s) released from the hydroelectric power plants were proposed for irrigation purposes
under Nippon Koei’s comprehensive plan, and the implementation of the Phan Rang irrigation
projects actually had a large impact.
5.2.2 Development and Growth since Japan’s ODA Resumption from the 1990s to 2000
In Vietnam, under the “Doi Moi” policy adopted at in 1986, Vietnam continued to experience
economic growth, and electricity demand increased rapidly in the 1990s. Meanwhile, power
plants including the Da Nhim hydroelectric power plant had become much degraded, leading to
serious power shortage. With the completion of the 500 kV transmission line connecting the
northern and southern regions in 1994, power shortage in the southern region improved
temporarily. However, power shortage was also a concern in the northern region and power
demand in the southern region was expected to rise. Therefore, it was necessary to meet the
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increasing power demand and to ensure a stable power supply in the southern region.
Following the 5th and 6th SEDP, Vietnam aimed to strengthen its international competitiveness
by means of industrialization and modernization. According to the 4th Power Development
Master Plan (1996–2000, hereinafter referred to as “PDP4”), the power demand was estimated
to have doubled from 14,640 GWh to 30,105 GWh between 1995 and 2000. At present, power
energy generated from hydropower plants accounts for a high rate throughout Vietnam; however,
they are characterized by their instability in the dry season. To avoid this situation, Vietnam
Electricity (EVN) has also comprehensively developed thermal and hydroelectric power plants.
Against this background, a number of large-scale power plant projects such as "Phu My
Thermal Power Plant Project (1994-2002)", "Pha Lai Thermal Power Plant Project
(1995-2003)", and "Ham Thuan-Da Mi Hydropower Plant Project (1995-2001)" were
implemented to emphasize the development of an economic-based infrastructure. At the same
time, “Da Nhim Power System Rehabilitation Project (1997-2007)” was also implemented to
renovate the Da Nhim hydroelectric power plant, transmission and substation facilities. “Dai
Ninh Hydropower Project (1999-2008)” was carried out to meet the demand by the
development of large-scale power plant in South Vietnam.
5.2.3 Development and Growth from 2000
Large-scale power generation projects started from the 1990s by Japan’s ODA and WB
assistance were completed step-by-step and contributed greatly to economic growth in 2000. This
basic infrastructure development led to the expansion of direct foreign investments in Vietnam.
Investments by Japanese private funds were expanded based on the Japan-Vietnam Investment
Agreement and Japan-Vietnam Joint Initiative in 2003. In this context, expansion of power
demand was required to ensure stable power supply. “O Mon Thermal Power Plant and Mekong
Delta Transmission Network Project (2001-2009)” was one of the main projects in this period.
There remained a large gap between electric supply and demand for the entire country when
PDP5 and PDP6 were formulated by Japan’s ODA “The Study on National Power Development
Plan for the period of 2006-2015 (2005-2006)”. The reason is that the country terrain from the
north to south is very long, making power distribution throughout the entire country extremely
difficult. In the south, increasing power demand in the urban areas was much higher than that in
the suburban areas. For this reason, it was crucial to combine the construction and expansion of
generation projects and power transmission line projects to evenly distribute surplus power. In
terms of efficient development, power generation projects in each area were required to ensure a
stable power supply. In this field, “Phu My - Ho Chi Minh City 500kV Transmission Line
Project (2001-2007)” and “Power Transmission and Distribution Network Development Project
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(2004-2009)” were implemented to support improvement of transmission and distribution lines
by Japan’s ODA.
The latest projection of power demand was 329,400 GWh by 2020, and was estimated to grow
at a rate of 14% per year. According to the actual results of PDP6, power generation was only
70% of the projected amount, and power transmission and distribution was only 44-60% of the
installation rate, and only 41-59% of the total substation capacity was used.
The movement toward electricity deregulation has been activated since 2003. Law on electric
power was enforced in July 2005 and the policy to introduce competition was established. In
addition, EVN’s structural reform has also been carried out in parallel with legal system reforms,
and the Regulatory Agency on Electric Utilities was created in October 2005. Moreover, EVN
developed a restructuring plan, which, will be comprised of the parent company, EVN, 3 power
generation corporations, national power transmission corporation and 5 power distribution
corporations. In this field, “The Project on Technical Electricity Engineer Training
(JFY2003-2005)” and “Study on Technical and Safety Standards for Electric Power Industry
(2006-2007)” were implemented to support improvement of EVN organization by Japan’s ODA.
In the future, BOT (Build Operate
and Transfer) projects and IPP
(Independent Power Producers) are
expected to increase. In case of IPP,
Vietnamese state-owned enterprises
except for EVN and foreign
companies can proceed with the
construction in position of owner,
and as of 2010, excluding EVN, the
IPP owners’ accounted for
approximately 40% of the total
power generation. Due to further
expansion of the investment in IPP
and BOT projects, it is important to
raise electricity tariffs, improve the
tendering process, and to ensure the
profitability and transparency of
power generation projects based on
the power liberalization road map.
Source: Ministry of Industry (MOI) and Institute of
Energy (IE)
Figure 5-2: Trend of Development of Power
Generation until 2010
Though surplus rate was guaranteed at about 27% in 2010, power failures occurred frequently
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Figure 5-2 shows the development trend of power generation until 2010. In 2010, the total
capacity of power generation was about 20,000 MW of the entire country (latest data: 26,836
MW as of 2012). Though surplus rate was guaranteed at about 27% in 2010, unfortunately,
power failures occurred frequently. Main reasons of power failures in Vietnam are 1) chronic
power supply shortage, 2) Extreme difficulties to make power distribution throughout the entire
country, though increasing power demand in the urban areas was much higher than that in the
suburban areas, and 3) Low awareness of energy conservation, due to cheap electrical tariff.
5.2.4 Development and Growth from 2011 Based on the 7th Power Master Plan in
Vietnam
Power demand is expected to increase continuously due to the recent rapid economic
development. According to "Power Master Plan VII” (2011-2030, hereinafter referred to as
“PDP7”), approved in July 2011, the annual power demand is expected to increase three-fold by
2020.
Figure 5-3 shows the trend in power generation from 2011 based on PDP7, and Table 5-3 shows
the outline of PDP7. Power development after 2010 is expected to shift from hydropower to the
coal-fired power plant, and coal-fired power plant will account for approximately half of the
power supply in 2030. Installed capacity of hydroelectric power plants in 2010 accounted for
38% of the total capacity, but it was only 27% of the total amount of power generated. In fact,
the main power supply was an oil & gas-fired power plant, which accounted for 44% of the total
power generating capacity.
(Source: PDP7)
Figure 5-3: Trend of Power Generation from 2011
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Table 5-3: Outline of 7th PDP
Items Current Situation Plan in 2020 Plan in 2030
1) Total installed generation capacity (MW)
26,836 (as of 2012) 75,000 146,800
2) Total power consumption (GWh)
120,210 (as of 2012) 330,000 – 362,000 695,000 – 834,000
3) 500kV Substation: (MVA) 7,050 (as of 2008)43,850
(From 2010 – 2020)44,800
(From 2021 – 2030)500kV Transmission and distribution line (km)
3,286 (as of 2008)15,942
(From 2010 – 2020)10,572
(From 2021 – 2030)4) Investment amount (VND)
9,297 trillion 14,293 trillion
(Source: PDP7, JETRO homepage)
The urgent issue that must be resolved by the energy sector is to meet the increasing power
demand, which is seen as a continuing priority in the PDP7. Particularly, the issue of power
shortage is becoming more serious due to the delay of power generation, transmission and
distribution line projects and rising electricity demand in the southern area from 2013 to 2015. In
addition, some issues remain in PDP 4, 5 and 6. Thus, the following countermeasures and needs
are summarized in Table 5-4 based on PDP7 amendments.
Table 5-4: Current Situations and Countermeasures in Latest 7th PDP
Item Current Situation Countermeasures
1) Demand Projection
Due to underestimation which does not reflect the reality, the development of power generation and transmission and distribution network is delayed.
Institute of Energy (IE), which is in charge of formulating the PDP was transferred from EVN to MOIT during the preparation of PDP7, making it possible to forecast a more realistic demand (Refer to section 5.4.2).
2) Power Generation
According to the actual results of PDP6, the total power generation was projected at 14,581 MW during FYI 2006 - 10. However, actual power generation was only 70% of the projection, which was 9,657 MW.
Progress is expected to improve in 1) above (PDP6 power generation was 69.1% of the projected amount, and PDP7 was 82.6% from 2011 to 2012). Until now, many hydropower plants in Vietnam are known for their instability due to drought in the dry season. To avoid this situation, EVN has carried out a policy to transfer the emphasis to diesel, coal fired and oil fired power plants.
Vietnam Competitive Generation Market (VCGM) was started from July 2012. All IPPs of more than 30MW except for the BOT and some power plants are bidding tender to EVN EPTC (Electric Power Trading Company) for electric power selling.
All power plants do not participant VCGM until now. Implementation rate of bidding tender is 5-10% of all. The remaining contracts are based on the Contract for Difference (CFD). The main reasons for this are the uncertainty of the bidding process and methods for tariff negotiation. These issues are requested to be solved.
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Item Current Situation Countermeasures
3) Transmission and Distribution line
The actual results of PDP6 were 44-60% of the installation rate, and 41-59% of the total substation capacity. This cannot ensure stable power supply. The planning for transmission loss was carried out in PDP7. As a result, it was necessary to install high voltage power transmission of 500 and 1000 kV as well as transmission and distribution facilities from northern and central areas to transmit the power surplus to the southern area.
Progress is expected to improve in 1) above (PDP6 power generation was 69.1% of the projected amount, and PDP7 was 82.6% from 2011 to 2012). It was necessary to install high voltage power transmission of 500 and 1000 kV, and transmission and distribution facilities in the southern area.
4) EVN
The movement toward electricity deregulation has been implemented since 2003. Law on electric power was enforced in July 2005 and it has established a policy to introduce competition. In addition, reform of the organization has also been carried out in conjunction with the legal system. The market of power generation, wholesale and retail selling are step-by-step liberalization of trade.
The following issues and countermeasures have grown, making it necessary to review institutional system and human resources development. - Lack of coordination with stakeholders in the implementation of administrative procedures and land acquisition, - Optimization of power charges (power tariff is lower than any other country around Vietnam and improvement of power charge is necessary to promote investment into power generation market by IPP and BOT), - Optimization of power demand and supply balance (energy conservation, power demand system, and regional balance)
(Source: JICA Study Team）
Main strategies of Japan’s ODA in the energy sector and electricity are 1) construction and
expansion of power plants, transmission and distribution networks by yen loan, and 2)
institutional and human resources development assistance, such as drafting laws on electric power
and related development plans. The Vietnamese side has shown high interest in both of the above
ideas. “O Mon Thermal Power Plant Unit No. 2 Construction Project (2004- )”, “Nghi Son
Thermal Power Plant Construction Project (2006-), and “Master plan for energy conservation
and effective use (2008-2009)” are implemented to follow the recent strategies of Japan’s ODA.
It is also anticipated that Vietnam will become an energy importing country around 2015, if power
demand continues to grow in the future. Recently, energy conservation is emphasized in order to
suppress power consumption.
5.3 Japan’s ODA in the Energy and Electricity Sector
5.3.1 Power Generation and Transmission and Distribution Networks
The number of Japan’s ODA completed projects in the energy and electricity sector until July
2013 is categorized as below. Power generation capacity of 2,925 MW by Japan ODA-funded
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power plants accounts for 10.9% of the total power generation of 26,836 MW in Vietnam as of the
end of 2012, and it will reach 4,500 MW if the power plants to be completed in the future are also
included.
Table 5-5: Number of Projects by Category
Items Total Quantity 1) Formulation of Master Plan, 7 (Development survey) 2) Power Generation 12 (Thermal Plant: 5, and Hydropower Plant
including Da Nhim Project: 6), Da Nhim Project: Reparation, Other projects: Yen loans
3) Transmission & Distribution line 3:2 projects are Yen loans, and 1 survey 4) Safety Management 4: 3 projects are technical cooperation projects,
and 1 survey 5) Energy Conservation 4: 2 projects are technical cooperation projects,
and 2 surveys 5) Other Surveys 3: All projects are technical cooperation projects. Total 33
(Source: JICA Study Team)
Table 5-6 shows the main outputs of the energy and electricity sector in the 1990s, which were
the construction and extension of power generation facilities.
Table 5-6: List of Main Projects in 1990s
Project Name Period Outline Amount
(million JPY)
Phu My Thermal Power Plant Project
1994-2002
To build a gas combined cycle power plant with a total output of 1,090 MW, and a substation facility at Phu My area to the southeast of Ho Chi Minh City.
69,498 (Yen loan 59,434)
Pha Lai Thermal Power Plant Project
1995-2003
To build anthracite coal fired power plant with a total output of 600 MW, a substation facility and transmission lines next to Pha Lai thermal power plant (built by former Soviet Union) in the northeast area of Ha Noi City.
70,551 (Yen loan 65,118)
Ham Thuan – Da Mi Hydropower Project
1995-2001
To build Ham Thuan and Da Mi hydroelectric power plants with an output of 300 MW and 175 MW, respectively, and the substation facility connected to transmission along the Dong Nai River to the northeast of Ho Chi Minh City.
41,738 (Yen loan 35,795)
Da Nhim Power System Rehabilitation Project
1996-2006
Da Nhim hydroelectric power plant was built in 1964 with a total output of 160MW. Renovation work of the equipment of the substation and power plant has been carried out.
4,679 (Yen loan 3,935)
Dai Ninh Hydropower Project
1998-2008
To build a hydroelectric power plant with an output of 300 MW and a substation facility connected to the transmission along the Dong Nai River, to the northeast of Ho Chi Minh City.
49,271 (Yen loan 33,172)
(Source: JICA Study Team)
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Table 5-7 shows the main outputs of the energy sector in the 2000s. They are the construction
and extension of power generation facilities (the same as in the 1990s), and the construction of
transmission lines.
Table 5-7: List of Main Projects in 2000s
Project Name Period Outline Amount
(million JPY)Phu My - Ho Chi Minh City 500kV Transmission Line Project
2001-2007To build the 500kV substation and transmission line from Phu My area (Ba Ria - Vung Tau Province) to Ho Chi Minh City.
15,443 (Yen loan 131.27)
Power Transmission and Distribution Network Development Project
2004-2009
To build an Environment Management System (EMS) and implement the development of a rural distribution network and installation of environmental equipment.
3,543 (Yen loan 28.12)
O Mon Thermal Power Plant and Mekong Delta Transmission Network Project
2001-2009
To build a thermal power plant with a total output of 300 MW, and transmission line to the suburb at O Mon area, to the east of Can Tho City.
(Yen loan 51,380)
O Mon Thermal Power Plant Unit No. 2 Construction Project
2004- To build a thermal power plant Unit No. 2 with a total output of 300 MW (the same as Unit No. 1).
(Yen loan 33,770)
Nghi Son Thermal Power Plant Construction Project
2006-
To build a coal fired power plant with a total output of 600 MW using coal from the northern Nghi Son area in the north of Vietnam.
(Yen loan 91,130)
(Source: JICA Study Team)
5.3.2 Formulation of Master Plan, Institutional-Building and Human Resources
Development
The most significant achievement in the 1990s was development studies including the "Power
Development Master Plan (1995-1996)." Since the beginning of 2000, the focus has been on
human resources and institutional development. Major achievements are shown in Table 5-8:
Table 5-8: List of Major Achievements in 2000s
Acheivement Period Outline Amount
(million JPY)
The Project on Technical Electricity Engineer Training
JFY2003-2005
Electrical Power College (EPC) can Provide on-site training for electrical engineers based on systematic knowledge related to operations and maintenance in five electrical fields (thermal power, distribution line, substations, hydroelectric power plant, and transmission line)
12.54
The study on National Power Development Plan for the period of 2006-2015, Perspective up to 2025
2005-2006
To support the formulation of the 6th PDP by the end of 2005, and perform technical transfer so that the Vietnamese side can develop their own plan in future.
1.1
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Period Period Outline Amount
(million JPY) in Vietnam
Study on Technical and Safety Standards for Electric Power Industry
2006-2007
To formulate safety standards and united technology standards that define the minimum quality level of the electric power industry. In addition, to promote the privatization of the electricity market.
1.8
Master plan for energy conservation and effective use
2008-2009
MOIT (Ministry of Industry and Trade) can formulate the "Master Plan on Energy Conservation", and strengthen the implementation capacity and planning capacity of official agencies.
2.5
Electric Power Technical Standards Promotion in Vietnam
JFY2009-2012
Promotion of electric power technical standards in Vietnam was implemented by technical corporation. It is included in the development of electrical facilities, operation and management.
3.02
(Source: JICA Study Team)
5.4 Contribution of Japan’s ODA to Energy and Electricity Development
Japan has continuously and intensively cooperated with Vietnam to develop its energy and
electricity sector. The impacts of this are pervasive, which involves not only increasing power
capacity generation in Vietnam, but also the continuous use of power generation facilities.
Japanese companies have participated in ODA-funded power plant projects from the very
beginning, and they have continued their work in a number of the following projects, ranging
from power generation projects, transmission networks by BOT form to substation and
transmission line projects around industrial parks where many Japanese enterprises are
concentrated.
Another facet of Japan’s ODA contribution are the non-structural measurements such as
technical transfer through OJT (On the Job Training), formulation of master plans through
technical cooperation, institution building such as energy conservation and human resource
development.
5.4.1 Power Generation and Transmission and Distribution Networks
(1) Expanding the Capacity of Power Generation
The impacts of Japan’s ODA are focused on major energy facilities constructed in the 1990s,
namely Phu My Thermal Power Plant, Pha Lai Thermal Power Plant, the Ham Thuan - Da Mi
hydropower project and the Dai Ninh hydropower project. Table 5-9 shows an outline of
indicators for power plant projects. These projects have supplied power for socio-economic
development, and contributed to the industrialization and modernization process in Vietnam.
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Table 5-9: Outline of Indicators in the Power Plant Project
Pha Lai Phu My Ham Thuan
Da Mi Dai Ninh
Type Thermal power Thermal power Hydropower Hydropower Installed generation capacity
600 MW 1,092 MW 470 MW 300 MW
Rate of capacity 7.0% 11.0% 3.6% 2.4%Power consumption 3,680 GWh 5,450 GWh 1,555 GWh 1,178GWhService population 6.47 million 10.34 million 3.00 million 2.25millionOther benefits N/A N/A Improvement of
these measures were intended to contribute to mitigating the environmental impacts of the power
sector and supporting stable power supply in Vietnam.
Especially the “Improvement of the regional power distribution network” was identified as
operation and effect indicators as shown in Table 5-17. The pilot provinces for implementation
were Bac Ninh (where the implementing agency was NPC, a subsidiary of the forerunner of the
present EVN), Quang Ninh (there, the NPC), and Quang Nam province (there, the CPC).
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Table 5-17: Operation and Effect Indicators in Bac Ninh, Quang Ninh, and Quang Nam
Province Indicator Base Value (2003)
Target Value (2008)
Actual Value (2008)
Bac Ninh Electricity consumption per household (MWh/household)
0.62 1.24 1.04
Annual power outage hours per user household (minutes/year per household)
7,200 5,400 5,133
Quang Ninh Electricity consumption per household (MWh/household)
0.25 0.35 2.40
Annual power outage hours per user household (minutes/year per household)
800 600 575
Quang Nam Electricity consumption per household (MWh/household)
0.74 1.37 N/A
Annual power outage hours per user household (minutes/year per household)
N/A N/A N/A
Distribution loss (%) 8.5 6.65 7.05 Distribution loss reduction rate (%) N/A 22 23
(Source: Evaluation Report from JICA Homepage)
From the actual data of Bac Ninh province obtained at the time of the ex-post evaluation study,
it can be seen that the fulfillment rate for electricity consumption per household reached 84%. In
Quang Ninh and Quang Nam province, concerning power outages per user household, the
length of the outages was below the target figure, so the power outage target was reached.
Moreover, the data from Quang Nam shows improvement in the efficiency of power distribution,
in the form of reduced distribution loss based on actual longitudinal data for the annual failure
rates, even though the target figure itself was not reached. Data for the annual failure rates of
low voltage transformers show that the annual number of failed transformers per 100
transformers was 0.024 in 2007 and 0.016 in 2008, a point of concern in this project, shows
almost no failure. It can be said that the project accomplished a certain degree of effectiveness.
Judging from the power sector reform being implemented by GOV, the direction of EVN
restructuring on the whole has confirmed including the environmental consideration. Also there
is a high degree of usage of facilities for distribution of electricity and regular check-ups for
operation and maintenance is systematically carried out. In light of the above, this project is
evaluated to be satisfactory.
5.4.2 Formulation of Master Plan, Institution Building and Human Resources
Development
(1) Formulation of Master Plan
JICA implemented the projects supporting the formulation of Master Plan, such as "The study on
National Power Development Plan for the period of 2006-2015, Perspective up to 2025 in
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Vietnam" from 2006 to 2007. Capacity development for formulation of master plan of GOV was
strengthened accordingly. Based on the above experience, GOV tried to establish the 7th
National Power Development Plan by August 2010 (PDP7, target year from 2010 to 2030).
However, the Institute of Energy (IE) - the implementing agency of PDP7 in Vietnam, requested
the Japanese side to support with technical assistance focused on demand projection and
planning for transmission and distribution lines. In this situation, “The project for assistance of
the establishment of the 7th National Power Development Plan” was implemented to support the
formulation of PDP7 in Vietnam. Table 5-18 shows the list of lessons learned and
recommendations to the Vietnamese side (details are in the report.
Table 5-18: List of Learned and Recommendations to the Vietnamese Side
Field Lessons learned and Recommendations Demand Projection on energy and electricity
1. Demand on energy and electricity 2. Electricity demand rate from 2010 to 2015 3. Adjustment value in industrial sector including GDP 4. Energy demand on households sector 5. Economic projection 6. Energy mixing and resource development for new power generation
Planning for Transmission and Distribution lines
1. Measures for fault current 2. Study of stability 3. Energy loss on transmission and distribution lines 4. Study on over voltage of transmission and distribution lines in the underground 5. Study on maintenance and stability on voltage 6. Planning formulation and Implementation study on power transmission from Southeast Vietnam area to Ho Chi Minh City 7. Study on smart grid
(Source: JICA Study Team)
Past study on PDP6 received full support in the demand projection, planning on transmission
and distribution lines, environmental and social considerations and economic financial analysis
fields from JICA expert team. in this PDP7 preparation, JICA expert team provided a partial
support to IE that focused on demand projection, planning on transmission and distribution lines,
environmental and social considerations.
From PDP7 technical cooperation, the capacities of the Vietnamese staff have been greatly
improved through policy planning. Main outputs are improvement of the rate for actual power
generation from PDP6 to PDP7 projection. Rate of PDP 6 was only 70% of the projection, and
PDP7 is 82.6 % from 2011 to 2012.
However, there was a limit to the implementation of information collection for the
comprehensive and overall planning in short period, and occurred to some constraints for the
support. On the other hand, there were positive impacts to implement the study in short period
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and limit the Vietnamese side’s burdens.
(2) Institution building in energy conservation
In addition to the energy and electricity sector, it also focuses on non-structural institution
building and human resource development measures. "Master plan for energy conservation and
effective use” is seen as a representative example for institution building. Table 5-19 shows the
targets of this project.
Table 5-19: Purposes of "Master Plan for Energy Conservation and Effective Use" Project
Project Purpose 1) Formulation of implementation map and action plan to promote “Program on National Energy Conversation program” 2) Support for formulation of “Master Plan for Energy Conversation” 3) Capacity Development throughout the cooperation activity
(Source: Prior Evaluation Report from JICA Homepage)
This project carried out 3) capacity development in the table by the technical cooperation to build
a master plan proposal relating to 1) and 2). In this section, the impact of the current state was
summarized including the trends and then the results. The awareness of energy conservation in
the country is evaluated to improve little by little.
1) Formulation and Enforcement of "Law on Energy Conservation" in 2011
MOIT developed the "Law on Energy Conservation" based on the action plan that was
recommended after the Project and it largely reflects the content of the action plan. It can be seen
that the impact of this project is very large. The hidden factors for formulation of the same
legislation were that the JICA Study Team in accordance with the master plan could continue
the consultations to hold the C/P, and the experts dispatched from the Ministry of Economy,
Trade and Industry (METI) assisted their consultations for the C/P.
2) Establishment of the Training Center for Human Resources Development and Institution
Building
The project “Establishment of Energy Management Training Center (Phase I, JFY2011-2012)”
was implemented to develop human resources and institution building after the enforcement of
"Law on Energy Conservation" in 2011. Main output was the human resource development, and
formulated the Law on Energy Conservation “energy management system" in 2012.
Next, “Establishment of Energy Management Training Center (Phase II, JFY2013-2015)”
focuses on the management of equipment procurement in accordance with the energy
conservation business, and human resource development throughout the dispatch of JICA
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experts. Based on this project, a support system of ongoing human resource development in the
power sector is expected.
By the way, review of power tariff in Vietnam is a very serious issue to be solved for the
promotion of energy conservation. For this reason, stakeholder of the Ministry of Finance
(MOF) and Ministry of Planning and Investment (MPI) plan to participate in the study tour after
the establishment of the training center. This trend is expected to lead to several impacts in the
future, especially funding of power plants and reviewing of power tariff.
3) Promotion of "Energy conservation labeling"
Among Law on Energy Conservation "Energy conservation labeling" with a delay of six months
from the original schedule, its labeling from was mandatory July 2013. The system was the
same as Japan, and it consists of the ratings (To indicate the degree of energy conservation), and
the institution (To show the energy minimum efficiency level).
However the states of appliances in Vietnam are disarray, due to the national products from all
over the world, including China and South Korea. In this situation, along the constructed system,
it is essential to carry out the human resource development and procurement with reliability to
perform appropriate evaluation and energy efficiency of each product. In this part, a new impact
and improvement can be expected the implementation of institution-building by "Project on
Strengthening the System and Operation on Standards and Conformance for Energy Efficiency
and Labeling (2013-2016)".
This is the system in which energy conservation standards for various types of equipment by the
Top Runner Program are set to rank the best products that are commercialized (13 items as of
April 2005). This Law will become an additional support for Japanese companies that wish to
expand their business in Vietnam.
(3) The Project on Technical Electricity Engineer Training (JFY2003-2006)
In the future, electrical engineers need to operate many electrical facilities and manage the
maintenance of advanced facilities as generation capacity is expanded. Hence, training is
required to improve the operation, maintenance and management skills of the engineers. In May
1999, a training course was carried out for technology transfer focused on electrical engineering.
This project was carried out from 2003. The overall goal and main achievements of the project
are summarized in Table 5-20.
1) Implementation of the training course developed by this project,
2) Capacity building for electricity engineer on modern operation and maintenance.
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Table 5-20: Main Achievements of the Project
Dept Contents Whole The contents that trainees learn were utilized on site Thermal plant
1) Three in-house training courses were carried out in Can Tho thermal power plant, and group study sessions was carried out in Thu Duc thermal power plant.
2) Training course on-site has been implemented. EES2 Part of "Electrical maintenance course" materials have been used for the class of EES2
(Power technology school of southern region jurisdiction). Transmission 1) 55-75% of the participants refer the training contents of the project into their training
course. 2) One course to be implemented was carried out transmitted education out of three
course (5% student) 3) Participants who reflect training content to the daily activity are 45-83%, and
confirmed to make the use of on-site.
(Source: Evaluation Report from JICA Homepage)
The achievement of the overall goal of the implemented training course developed by this
project was essential to organize the systematic framework of education and training problems
according to the level of each engineer. In addition, capacity building of electricity engineers in
modern operation and maintenance required the combination of training on site and On-the-Job
Training (OJT).
In the end, training courses implemented in this project were extended to groups other than
EVN. Through the two activities of the Standing Working Group, which was established in the
course of the project, engineers at one site were able to exchange information effectively with
those at other sites.
(4) Capacity Building on Project Management
Throughout the energy and electricity project, the capacity management of the People's
Committee in cities/provinces (major counterparts) and the ability of local staff have been
significantly improved according to interviews with stakeholders, compared to the situation back
in the 1990s when ODA projects were not familiar. It is difficult to present concrete evidence
about this matter. However improvement in project management capacity was highly evaluated
for future project implementation and it will certainly help in various situations.
- Improvement of safety awareness at the construction site
- Paperwork during ODA project implementation
- Many local staff members gain experience working with foreign experts through ODA
projects.
From interviews with stakeholders, issues related to project implementation that needed to be
solved are as follows. These are difficult issues to resolve, but will be improved gradually in
close cooperation with the Vietnamese side.
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Column 5-2: Constrains of Power Plant on Site
In order to show the immense impact on the energy and electricity sector, JICA Study team
used information and comments from interviews with stakeholders as well as from field
surveys. The results of the field surveys have been mentioned above. This section deals with
comments by stakeholders. It is possible to catch a glimpse of the painful struggle at the
power plant construction site dealing with "facility commissioning" or trial operations of the
facilities, which was mentioned a number of times.
Sample Cases
Contents
A
In order to perform the commissioned testing of each device, blackouts were necessary.
However, due to water shortages and the decrease in the hydropower plant load in
northern Vietnam, notification to increase the usage rate of thermal power plants was
issued. For this reason, commissioned testing was no longer carried out and it was
delayed significantly.
B
Trial operations after construction require that the operations of the facility be stopped
according to the normal process. But, due to the orders of the upper management, a
security guard with a handgun was assigned at the front of the power plant and no one
was permitted inside the facility. For this reason, commissioning plan was completely
disrupted.
C
Usually, dry test and wet test are carried out over a period of two months after the
completion of the Project. The former is to see whether the facility operates properly,
and the latter is performed to fill the water. However, it was difficult for the Vietnamese
side to understand the importance of this process at that time, and it took much time to
explain this process to the counterpart, who commented, “This is not a necessary
process because of the high cost.”
In the end, commissioning was successfully completed though it took a long time to address
various problems, and JICA Study team could only verify the proper operation recently. One
person had comments that the power plant which had spent on hard time with me was "like
my child". It is filial piety of the best for the children what Vietnamese uses it carefully.
1) Problems related to the position of consultants
2) Delayed progress due to the prolonged bidding process of the both Government sides
3) Land acquisition issues (obscured lines of authority, and compensation issues)
4) Reduction and delay in the payment process from the client
5) Complex paperwork
6) Obscure and inadequate laws, legal documents and decision-making process
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5.5 Features of Japan’s ODA and Lessons Learned from the Past Collaboration in Energy
and Electricity
Japan’s ODA in the energy and electricity sector are characterized by construction and
rehabilitation projects of large-scale facilities, and non-structural measures such as assistance to
formulate PDP, which is an essential plan over the long term, the creation of standards and
engineer training to promote efficient electrical usage, and recently, institutional building in
energy conservation. In other words, the energy and electricity sector, as well as the water
supply and sewerage sector promoted "comprehensive cooperation" consisting of not only
structural measures of construction projects, but also non-structural measures in technical
guidance. In addition, it should be kept in mind that there are fundamental problems as described
below.
1) Power Generation: Vietnam is dependent on the high water level of the hydropower dam,
and power supply is unstable during a drought or the dry season.
2) Transmission and distribution lines: The country terrain from the north to the south is
very long, making power distribution throughout the whole country extremely
difficult.
3) EVN is required to reform the legislative system and its organization.
As explained in the “Comprehensive Analysis of Chapter 2”, the Japanese government, World
Bank (WB), and Asia Development Bank (ADB) were the main donors in the energy and
electricity sector in Vietnam. WB has mainly supported power generation and transmission in
the rural areas. However, major donors have been shifting their emphasis on development of
power generation to improve the chronic power supply shortage.
Among the main donors in the energy and electricity sector in Vietnam, each institution has
steadily built up a track record. As of September 2013, Japanese staff members are employed at
all major donors, thus information and opinion exchange is facilitated. This is believed to help
financing in the future.
The future direction of ODA is focused on improvement measures in energy efficiency, though
main donors have shifted to the development of power generation such as improvements for an
efficient transmission and distribution network, and energy conservation measures like eco –
labeling. This is a field where the advantages in the strengths and merits of Japan will expand in
the future.
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Technical Cooperation in the Whole Country:
Project on Technical Electricity Engineer Training (03-06)Project on Development Plan of Training Center for Electric Power Sector (07-09) Electric Power Technical Standards Promotion in Vietnam (10-13) Establishment of Energy Management Training Center (11-12)
Da Nhim Hydro electric Power Project (61-64)
Da Nhim Power System Rehabilitation Project (9７-06)
Phu My Thermal Power Plant Project (94-02)
Pha Lai Thermal Power Plant Project (95-03)
Dai Ninh Hydropower Project (99-08)
Omon Thermal Power Plant and Mekong Delta Transmission Network Project (01-09) O Mon Thermal Power Plant Unit No.2 Construction Project (03-on going)
Ham Thuan – Da Mi Hydropower Project (95-01)
Phu My-Ho Chi Minh City 500kV Transmission Line Project (01-07)
Nghi Son Thermal Power Plant Construction Project (06-on going)
Thai Binh Thermal Power Plant and Transmission Lines Construction Project (09-on going)
Loan in the Whole County: Power Transmission and Distribution Network Development Project: Sector Loan (04-09) Power Transmission and Distribution Network Development Project (07-on going) Energy Efficiency and Renewable Energy Promoting Project (09-on going)
Development Study in the whole country
Master Plan Study on the Electric Power Development (93-95) The study on National Power Development Plan (05-06) Study on Technical and Safety Standards for Electric Power Industry (06-08) Study on Technical and Safety Standards for Electric Power Industry (06-07) Master plan for energy conservation and effective use (08-09) The Study on National Energy Master Plan in Vietnam (10-11)
Development Study
Technical Cooperation
Loan
Grant
Figure 5-5: Project Sites in the Energy and Electricity Sector in Vietnam
167
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169
CHAPTER 6: WATER SUPPLY AND SEWERAGE SYSTEM
6.1 20-year Partnership at a Glance in Water Supply and Sewerage System
The 20-year partnership for growth and development in the area of the water supply and sewerage
system in Vietnam can be summarized according to historical background and priority
development issues as shown in Table 6-1 below.
Sector priority in Vietnamese side is development of water and sewerage facilities based on SEDP,
and features of Japan’s assistance are "comprehensive cooperation" consisted of not only
structural measures of facilities construction projects but also non-structural measures of
technical guidance of maintenance and management.
Table 6-1: Summary of Partnership for Water Supply and Sewerage System Sector
Development
5th SEDP (1991-1995)
6th SEDP (1996-2000)
7th SEDP (2001-2005)
8th SEDP (2006-2010)
9th SEDP (2011-2015)
Background Topics
・ Paris Peace Agreements on Cambodia Conflict(1991) ・Resumption of Japan’s ODA（1992）
・Restoration of Vietnam-US diplomatic relations（1995）・ Formal entry into ASEAN (1995) ・Asian Currency Crisis（1997）
・ Formal entry into WTO（2007） ・Lehman Crisis（2008）
・ Prime Minister Dung visits Japan（2011）
Sector Situation
Water supply and sewerage, and drainage facilities in urban area are not sufficient. Flood damage during rainy season is particularly serious.
Large scale development in basic infrastructure system, including water and sewerage sector is required.
Improvement of investment environment is required to facilitate the investment in water and sewerage sector.
Water pollution in urban areas is brought to light, but treatment facility, such as wastewater treatment plant is insufficient.
Development of water supply is in progress. On the other hand, while wastewater pollution in urban areas is remarkable, wastewater and drainage facilities are insufficient.
Sector Priorities in SEDP
Formulation of“Master Plan on Urban Drainage and Wastewater Disposal System in Hanoi City” in 1995
1)Formulation of Water Supply Development Strategy to 2020 2) Implementation of the “Hanoi Drainage Project for Environmental Improvement” using Japan’s ODA.
National Strategy for Environmental Protection was formulated in 2003. Development and rehabilitation of drainage systems in urban and industrial area was emphasized
1) Clean water coverage at urban area shall reach 95% and at suburb area 75% until 2010. 2)Formulation of Decree No. 88/2007/ND-CP
1) Clean water coverage at urban areas shall reach 100% with average water supply standard of 120L/day /person with regulated standard quality (Target 2025). 2)Review of Decree No. 88/2007/ND-CP
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5th SEDP (1991-1995)
6th SEDP (1996-2000)
7th SEDP (2001-2005)
8th SEDP (2006-2010)
9th SEDP (2011-2015)
Direction of Japan’s ODA
Energy, Transportation and environment field is priority sector since resumption of ODA. In order to improve the living environment, the development of water supply, sewerage and drainage system in urban area is of highest priority.
Not only development of sewerage and drainage system in urban area, but Development of basic infrastructure that leads to the promotion of industrial development and investment is conducted.
It follows Japan-Vietnam Investment Agreement; Japan-Vietnam Joint Initiative in 2003. Development of sewerage and drainage system in urban area in continued.
Urban development (water supply and sewerage) is defined on important sector as improvement of daily life. Therefore, these project is high priority.
Environmental protection is one of main direction of ODA. Development and water supply, sewerage and drainage system including in urban environmental management is priority assistance
Priority Issues of Japan’s ODA
1) Development of sewerage and drainage system in urban area 2) Development of water supply by grant
1) Development and sewerage and drainage system in urban area 2) Development of water supply by grant and yen loan
1) Development and sewerage and drainage system in urban area 2) Development of water supply by yen loan 3) Technical cooperation project related to operation and maintenance
1) Development and sewerage and drainage system in urban and suburb area 2) Promotion of Technical cooperation project related to operation and maintenance
1) Development and water supply, sewerage and drainage system in urban and suburb area, including the PPP project funded by private 2) Promotion of Technical cooperation project related to operation and maintenance
(Source: Prepared by the Study Team)
6.2 Historical Review of Development and Growth of the Water Supply and
Sewerage System
6.2.1 Overview
As described in Chapter 2 on “Comprehensive Analysis,” assistance for rehabilitation and
development of infrastructure was the priority issue for postwar recovery since the resumption
of Japan’s ODA in 1990s. For that reason, master plans were not formulated for each field, and
there were continuous discussions about the current condition of facilities and specific needs
with the counterpart in each sector.
In the field of sewerage and drainage, “Hanoi Drainage Project for Environmental
Improvement,” was selected as a priority ODA project in 1995, which was implemented in
Hanoi City – the capital of Vietnam after the resumption of Japan’s ODA. The project in Ho Chi
Minh City was started in 2001, and similar projects in regional cities such as Hai Phong and
Hue City are still being implemented now. In the field of water supply, the following projects
have continuously been implemented: 1) grant projects in Hanoi and Hai Duong City from
1990s, 2) loan projects in southern Vietnam (Around Nhon Trach City), and 3) technical
171
corporation projects for human resources and development in central Vietnam.
This historical review is classified into (1) development and growth after the resumption of
Japan’s ODA from the 1990s to 2000, (2) development and growth from 2000 to 2005, and (3)
development and growth from 2005 onwards. Additionally, the future direction will also be
analyzed based on the development plan prepared by the Vietnamese side.
6.2.2 Development and Growth after the Resumption of Japan’s ODA from 1990s to
2000
When Japan’s ODA was resumed in the 1990s, the development of water supply, sewerage and
drainage in the urban area of Hanoi City was obviously insufficient as can be seen from the
following pictures. Though part of the sewer networks was developed during the France
colonial period, they did not receive enough maintenance after the independence, and
inundation in the rainy season was especially very serious. Therefore, large-scale projects for
the basic infrastructure system were required to improve and rehabilitate the existing facilities.
(Source: JICA Study Team)
Photo 6-1: Inundation Situation in Hanoi City on 1990s
The “Master Plan on Urban Drainage and Wastewater Disposal System in Hanoi City”
formulated in 1995 and the 6th SEDP (1995 – 2000) provided the basis for implementing the
“Hanoi Drainage Project for Environmental Improvement (1995-2005)” in Hanoi City in 1995
using Japan’s ODA.
In the same period, the project for the Thang Long industrial park was started by private funds,
and a wastewater treatment plant (WWTP) was also constructed under a Japanese yen loan.
From this output, the environmental improvement in the areas around the industrial park
facilitated foreign investment. In the area of water supply, the grant projects in “The project for
water supply system in Gia Lam Area, Ha Noi City (1993-1995)” and “The project for
expansion of water supply system in Hai Duong City (1999-2002)” were implemented in
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parallel with the above large-scale projects.
6.2.3 Development and Growth from 2000 to 2005
After the completion of the construction and installation of the Yen So Pumping Station was
completed in 2000, the positive impact of flood mitigation in the urban area of Hanoi was
recognized by many people. In Ho Chi Minh City, “Ho Chi Minh City water environment
improvement project (2001-)” was also implemented from 2001.
Picture 6-2 shows the water pollution conditions in the urban area (Bien Hoa City), which has
gradually become more serious in contrast to the positive impact of flood mitigation. The major
cause of water pollution is the direct discharge of domestic wastewater to public area without
appropriate treatment. In the urban area, the construction of a wastewater treatment plant would
be required to improve water quality. However, there has been little progress on WWTP
construction and development and water pollution remains a serious issue for Hanoi City.
(Source: JICA Study Team)
Photo 6-2: Water Pollution in Dong Nai River (Bien Hoa City)
In the area of water supply, the loan project in Nhon Trach City in southern Vietnam was
implemented from 1997. Technical cooperation projects for human resources development in
the central region were implemented under the JICA Partnership Program, in cooperation with
HueWACO in FY 2003, and HueWACO and HCMC Water Corporation in FY 2004 and
FY2005.
The “National Strategy for Environmental Protection to 2010 and Vision to 2020” was
formulated in 2003, and its goals are the gradual improvement of the deteriorated water, and
WWTP installation in 40% of the urban areas and 70% of industrial clusters by 2020.
Improvements in the investment environment is required to facilitate the investment efficiently
in the water supply and sewerage sector, considering the signing of the Japan-Vietnam
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Investment Agreement and the Japan-Vietnam Joint Initiative in 2003. At that time, the main
issue of in the “Hanoi Drainage Project for Environmental Improvement” was lack of standard
guidelines in the sewerage and drainage sector to efficiently implement the project.
6.2.4 Development and Growth from 2005 Onwards
The outcomes, experience and lessons learnt from Hanoi and Ho Chi Minh City led to the Phase
II-project in both cities from 2006. Thanks to their outcomes and experience, multiple projects
had spread in various cities, namely the Investment Project for Environmental Improvement in
Vinh Phuc City, the Sewerage and Drainage Improvement Project in Hai Phong and Hue City
(Drainage and wastewater treatment project of Hue City, 2007-), and the Sewerage Project in
Binh Duong Province (Southern Binh Duong Province water environment improvement project,
JFY2006-2013). The trend of these projects was the change in purpose to environmental
improvement and from flood mitigation to water quality improvement. For example, the
Sewerage Project - Phase II in Binh Duong Province only focused on improving water quality
without flood mitigation. Additionally, Technical cooperation project “The Project for capacity
development on sewerage management in Ho Chi Minh City (JFY2009-2010)” was
implemented to focus the maintenance and operation of wastewater treatment.
The reason for this trend is the Government’s Decree No. 88/2007/ND-CP enforced in 2007.
This Decree provides basic “guidelines” for sewerage and drainage projects, and has been
applied in some preparation surveys in Japan, such as the “Feasibility Study for the
Construction Project of Central Large-scaled Wastewater Treatment Plants” and “Dong Nai
Water Environment Improvement Project (Sewerage and Drainage Sector)”.
In the water supply sector, a technical cooperation project “The Project on human resources
development for water sector in the middle region of Vietnam (JFY2007-2008)” between the
Yokohama Waterworks Bureau and HueWACO was started in 2006, thanks to the JICA
Partnership Program from 2003 to 2005. This project was then developed into the Project for
Human Resources Development for Urban Water Supply Utilities in the Central Region in FY
2010 (2010-2013)“.
6.2.5 Overview of the Development Plan in the Water Supply Sector in Vietnam
The water business is within the jurisdiction of the local government and managed by public
enterprises. In recent years, privatization of public enterprises due to decentralization has been
promoted for efficient management. Though development of water supply is in progress, it is
insufficient to meet the increasing water demand for further industrialization. The investment into
the pipeline system remains an issue as this system is installed underground and is quite old and
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degraded. However, if replacement work is not carried out, water supply will remain unstable, and
non-revenue and unaccounted-for-water will persist and increase.
Table 6.2 shows the outline of the development plan and Table 6.3 shows the list of regulations for
the development plan in the water sector. Main content of the development plan is given below.
- Clean water coverage in urban areas will reach 100% with an average water supply of
120L/day/person of regulated standard quality water.
- Water supply in urban areas will be stable and continuous for 24 hours in a day.
- The rate of non-revenue water (NRW) in urban areas will be under 15%.
Table 6-2: Outline of the Development Plan in Vietnam (Water Supply)
Target year Coverage Ratio Rate of NRW Water SupplyFYI 2015 Level III (100–250 thousands) 90%
Unit volume: 120L/day/person Level IV (50–100 thousands)70% Unit volume: 110L/day/person Level V (4–50 thousands) 50%
Below 25%(until Level IV) Below 30% (Level V)
24 hours in a day
FYI 2020 Level IV 90% Unit volume: 120L/day/person Level V 70% Unit volume: 110L/day/person
18-25% (Level IV, V)
24 hours in a day
FYI 2025 100% Unit volume: 120L/day/person
Below 15% 24 hours in a day
（Source: Decision No. 1929/QD-TTg）
Table 6-3: List of Regulations for Development Plan in Vietnam (Water Supply)
Type Name/Regulation Remarks Water Supply development plan
The Government’s Decree on production, supply and consumption of clean water (Decree No. 124/2011/ND-CP)
It is the first legal document regulating activities in water supply for urban areas
The Prime Minister’s Decision on Water Supply Development Strategy to 2025, vision to 2050 (Decision No. 1929/QD-TTg)
It is the legal document orientating the development of water supply and drainage in Vietnam in the short term and long term, and formulating specific targets to be achieved in the field of water supply.
The Prime Minister’s Decision on the National Program on the Unaccounted-for Water (UFW), Non-Revenue Water (NRW) to 2025 (Decision No. 2147/QD-TTg)
It is a large program, implemented for a long period nationwide, has a great impact on the development of water supply field in Vietnam, in order to reduce UFW and NRW and enhance the performance of water supply companies.
The Circular guiding the implementation of safe water supply (Circular No. 08/2012/TT-BXD)
Guidelines of water supply
（Source: JICA Study Team）
The national policies and targets related to water supply in rural areas are mentioned in the
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“Improvement Program for Water Supply and Sewerage in Rural Areas (Decision No.
277/2006/QD-TTg)”. The main targets of this program are given below.
- To ensure access to clean water for 85% of the population in rural areas
- To ensure access to water that meets the water quality standard (Decision No.
09/2005/QD-BYT) for 50% of the population, and to ensure a water supply of 60L/day per
capita.
The water supply enterprise operating the water business is planning to promote an improved
water supply in the main cities, which are the basis of economic growth in Vietnam. The projects
will be implemented with the following priorities: 1) Providing safe drinking water directly from
the faucet, 2) improve the mechanism of an appropriate tariff system, and 3) reduce non-revenue
water.
In 1) above on “provide safe drinking water directly from the faucet,” drinking water directly
from a faucet is not a common practice in Vietnam. However, the target of the Ministry of
Construction (MOC) is to implement this kind of project.
As for 2) above on “mechanism of an appropriate tariff system,” the implementation of a PPP
project mainly using private funds is recommended. One of the main objectives of the fund is to
manage water business and generate profit from water distribution network.
As for “3) Reduction of non-revenue water”, the main cause of poor water quality is due to the
water distribution network rather than the purification process. Therefore, the appropriate
technology for leakage reduction is required to reduce non-revenue water.
According to the development policy in Vietnam, water supply projects in major cities - the core
of economic growth will be actively developed in order to promote the introduction of private
sector techniques. However, there remains a big gap between major cities and the rural areas in
terms of water development.
6.2.6 Overview of the Development Plan in the Sewerage Sector in Vietnam
The sewerage and drainage sector is under the jurisdiction of the Ministry of Construction
(MOC). The main issues in this sector are flood prevention by improving the urban drainage and
sewerage system, and improvement of public health. These have been major problems in the
urban areas in both Hanoi and Ho Chi Minh City since the 1990s (year of Japan's ODA
resumption). Thus, drainage projects began in the late 1990s.
Drainage and sewerage projects are subject to development plans in Vietnam as shown in the
Table 6-4. It is especially the step to set up directions and goals. The current situation of drainage
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and sewerage projects is examined based on information from advanced cases, on-site training,
and training in law.
Table 6-4: List of Drainage and Sewerage Development Plans in Vietnam
Type Name/Regulation Remarks Sewerage & drainage development plan
The Government’s Decree on urban wastewater collection and treatment (Decree No. 88/2007/ND-CP)
It is the first legal document regulating the activities of urban wastewater collection and treatment in Vietnam.
The Prime Minister’s Decision on the strategy for urban drainage and wastewater treatment in Vietnam up to 2025 and vision to 2050 (Decision No. 1930/QD-TTg)
It is the legal document that provides the direction of mid-term and long-term drainage and wastewater treatment development, and sets up specific targets to be achieved in the field of drainage.
（Source: JICA Study Team）
The Hanoi Capital Drainage Master Plan to 2030 and vision to 2050 have been approved under
the Prime Minister’s Decision No. 725/QD-TTg on May 10th, 2013 (See Table 6-5). The scope
of this Plan includes the entire drainage system within the administrative boundary of Hanoi
City. According to the Plan, 3 drainage regions will be developed and 39 WWTPs will be
constructed.
Table 6-5: Summary of Hanoi Drainage Master Plan up to 2030 and Vision to 2050
Type Outline Remarks Sewerage Central urban area to the South of Red River
(belonging to To Lich basin and part of Left Nhue basin): 5 major basins for wastewater collection and treatment. Central urban area to South of Red River (belonging to the area from Right Nhue, etc.): 11 basins Urban area to the North of Red River: 13 basins Satellite urban and Quoc Oai urban area: 10 basins
The total capacity of 39 major centralized WWTPs is 1,808,300 m3/day up to 2030 and 2,482,300 m3/day up to 2050. The required cost is estimated at around VND 53,350 billion up to 2030 (price of 2012) and around VND 116,500 billion for up to 2020.
Drainage Left Day region drains by pumping: Total area is approximately 47,350 ha. The Right Day Region drains by gravity combined with urban drainage pumping and irrigation pumping: Total area is approximately 31,310 ha. Northern Hanoi, drainage is by gravity combined with urban drainage pumping and irrigation pumping: Total area is approximately 46,740 ha.
(Source: Decision No. 725/QD-TTg)
The formulation of Decree No. 88/2007/ND-CP summarized in Table 6-3 reflected Japanese
advice that was provided in some areas of policy making and discussions. At first, a survey on
sewerage sector policy was conducted from February to April 2006. The purpose of this survey
was to summarize the impacts on current sewerage projects in Hanoi, Ho Chi Minh and Hai
Phong City, and to gain useful data for efficient maintenance and management in the sewerage
sector. However, the issues that needed to be resolved were the unclear division of roles between
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the ministries and the government and the lack of a national management system for the entire
sector.
Following comments by Japanese experts, the Ministry of Construction (MOC) took the lead in
preparing the Wastewater Decree to submit to the government. On the Japanese side, two
surveys (September-November and December 2006) were conducted using the same financial
support to draft and compose the Wastewater Decree.
The National Wastewater Decree No. 88/2007/ND-CP was promulgated on 28th May 2007. The
key contents of the decree were (1) each ministry’s role was made clear through the
management system of the whole sector, (2) sewer charges and collection method were set, (3)
the ownership in land use was made clear, and asset management of the property became
mandatory, and (4) maintenance contract was required between the maintenance organization
and the owner, and the maintenance procurement was to comply with the procurement rules. As
a result, private sector participation became possible.
From this process, the positive impact of the established draft scheme was evaluated for
sustainable development of facilities and management in the sewerage and drainage sector. The
sewerage sector of Ho Chi Minh City tried to improve a three-tier management system which
consisted of 1) a policy designer, 2) asset manager, and 3) service supplier. However, this
three-tier management is being re-reviewed due to issues that have surfaced in case of Ho Chi
Minh City.
6.3 Japan’s ODA in the Water Supply and Sewerage Sector
Overview of each category is described as Table 6-6. The number of Japan’s ODA projects in this
sector is nine (9) dealing with the water supply, five (5) related to sewerage, five (5) in drainage,
eight (8) dealing with wells and two (2) water resource projects. In addition, the category of
Japan’s ODA funds are six (6) grants, three (3) yen loans, sixteen (16) survey studies and four (4)
Table 6.7 shows the list of main projects in the water supply sector. A number of projects have
been implemented using Japan’s grant aid such as the water supply projects in Gia Lam District in
Hanoi (1993-1995) and Hai Duong City (1998-2000). Examples of yen loan projects are those
implemented in the southern region (Nhon Trach City in 2003). A technical cooperation project
focused on human resources was implemented in the Central Region. Recently, the feasibility
study of a PPP (Public Private Partnership) infrastructure project has also been attempted.
Table 6-7: List of Main Projects in Water Supply Sector
Name Period (JFY) Outline
Amount(million
JPY) The project for water supply system in Gia Lam Area, Ha Noi City
1993- 1995
Capacity of the water treatment plant in Gia Lam area, Hanoi City is expanded to 32,100m3/day. 3,815
The project for expansion of water supply system in Hai Duong City
1998- 2000
Capacity of water treatment plant in Hai Duong City is expanded to 10,200m3/day, and it leads to improvement of urban area.
2,826
Dong Nai and Ba Ria - Vung Tau water supply project
1997-
The facilities of water supply in Dong Nai and Ba Ria – Vung Tau Province are constructed. Main objectives are stable water supply for domestic and industrial purposes, improvement of living environment and facilitation of foreign investment promotion
Yen loan 9,079
The Project on human resources development for water sector in the middle region of Vietnam
2007- 2009
Overall goal: The capacity of HueWACO in terms of management and operation of water treatment plant, distribution pipe and service water pipe is improved. Project purpose: The capacity of HueWACO is improved for declaration of safe drinking water.
150
The Project on capacity development for urban water supply utilities in the Central Region
2010- 2013
Overall goal: The capacity of WSCs for provision of safe water in the Central Region is strengthened. Project purpose: Capacity development of the WSCs in the Central Region, oriented to Water Safety Plan (WSP) is initiated through strengthened collaboration of the relevant organizations
300
PPP Duong River Water Supply System Project
2010- 2012
This is the first PPP project between Japan and Vietnam. VIWASEEN (state own enterprise in Vietnam) proposed the water business project for water supply and WTP.
N/A
（Source：JICA Study Team）
6.3.2 Outline of the Sewerage and Drainage Sector
In the sewerage sector, yen loan projects and technical cooperation projects have been conducted
to strengthen the management capacity of Ho Chi Minh City in Southern Vietnam. Recently, a
feasibility study of a PPP infrastructure project has been attempted, as in the field of water supply.
It should be noted that urban drainage projects will be included in the construction of a
wastewater treatment plant.
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In the drainage sector, a grant aid project to improve rural drainage in the Tan Chi District
(1994-2000) and other yen loan projects are shown in Table 6-8.
Table 6-8: List of Main Projects in the Sewerage and Drainage Sector
Name Period (JFY) Outline
Amount(million
JPY)
Hanoi drainage project for environmental improvement
1995- 2005
Drainage channel, River and Lake improvement, Pumping station and Wastewater treatment plant are constructed in To Lich River basin in Hanoi City. Main objectives are flood mitigation, improvement of water quality in lake, river and pond in Hanoi.
Total 21,227
Yen loan 15,287
Ho Chi Minh City water environment improvement project
2000-
This project aims to reduce flood damage and enhance sewage treatment capacity by improving the sewerage and drainage systems in Ho Chi Minh City, and thereby contribute to the improvement of water environment.
Yen loan 23,994
Second Hanoi drainage project for environment improvement
2007-
This project aims to reduce flood damage in Hanoi City as a whole (78km2), and to construct sewage treatment plant (13,300m3/day) in Hanoi City where water pollution is very serious.
Yen loan 32,330
Second Ho Chi Minh City water environment improvement project
2005-
This project aims to construct a sewage treatment plant (470,000m3/day) in the center of Ho Chi Minh City, and to reduce flood damage in target area by improvement of urban drainage, expansion of drainage pumping station and distribution pipe.
Yen loan 14,726
Drainage and wastewater treatment project of Hue City
2007-
This project aims to enhance Hue City sewage treatment capacity and reduce flood damage by improving the sewerage and drainage systems in the urban area on the south side of Huong River in Hue City.
Yen loan 20,783
Southern Binh Duong Province water environment improvement project
2006- 2013
The Project aims to increase the sewerage coverage in southern Binh Duong Province to prevent the deterioration of the water quality in the Saigon River, thereby contributing to the improvement of living conditions and preservation of the water source in Ho Chi Minh and its surrounding areas.
Yen loan 7,770
The Project for capacity development on sewerage management in Ho Chi Minh City
2009- 2010
Through the management of a wastewater treatment plant, the capacity for sewerage management during floods is developed, thereby contributing to the improving the water source in the Ho Chi Minh areas.
N/A
（Source：JICA Study Team）
Regarding the “Hanoi Drainage Project for Environmental Improvement”, the following
opinions/comments are noted during an interview with relevant persons:
- The serious flood damage in the center of Hanoi City in 1992 - 1993 when Japan's ODA
was resumed has made both Japanese and Vietnamese officials realize the need to improve
the poor sanitation conditions and they considered this as the highest priority.
- Back when Japan's ODA was resumed in the early 90s, transportation and energy were
considered for the northern area in Vietnam. However, the people depend first and
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foremost on the surrounding environment. If the drainage and sewerage system is weak and
downgraded, the impact on the people will be direct and obvious. Understanding this,
Hanoi City decided to give priority to the Hanoi Drainage Project before other road or
energy projects.
6.4 Contribution of Japan’s ODA to Water Supply and Sewerage System
Development
6.4.1 Water Supply Sector
(1) Impacts on Water Purification Plant near Thang Long Industrial Park
In this section, the focus is on water purification in Thang Long Industrial Park. The water
purification plant has been operating without any trouble, and the amount of water supply has
been increasing (See Table 6-9). The reason for the increase is the expanded supply to the
central part of Hanoi City across the Red River, in addition to supplying areas surrounding
Thang Long industrial park. The following Table shows the operation rate as 57.6% in 2010. To
increase this rate, Hanoi City plans to supply water to the city area across the Red River. The
leakage rate and water quality are complaints related to Hanoi City’s water standards and they
do not pose a problem in terms of operation and maintenance.
Table 6-9: Data of the Water Purification Plant in Thang Long Industrial Park
(2) Impact on Human Resources by Technical Cooperation projects
Two technical cooperation projects in the central region focus on the impact on human resources
development. Refer to the outputs of the JICA Partnership Program, through cooperation with
the HueWACO from JFY2003 to 2005, these projects were implemented due to TT-Hue
Province’s request for assistance to JICA. Chapter 15 of this report shows the process in detail
and this section summarizes the impacts of the projects.
1) The project on human resources development in the water sector in the central region of
Vietnam (JFY2006 – 2008)
The purpose of the project was to “improve the capacity of HueWACO to allow it to declare the
water safe for drinking,” and Hue City was the first city to declare the water in the city safe for
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drinking in June 2008, and safe drinking water throughout TT-Hue Province in August 2009.
Through the Project, the following impacts were seen. Table 6-10 shows the impacts of
indicators due to implementation of the project.
Table 6-10: Impacts on Indicators due to Implementation of the Project
Indicator Before the Project After the Project
Rate of water supply 75% Over 90% (Declaration of safe drinking water)
Rate of safe drinking water Below 70%
(Not satisfied with the declaration on safe drinking water)
73% (from the questionnaires)
（Source: JICA Study Team）
To meet the conditions behind the “declaration of safe drinking water,” a variety of technical
transfers through the technical cooperation project were conducted. For example, the staff in
HueWACO now know the methods to set the appropriate water pressure in the distribution pipe
network (urban area: over 1.0bar, rural area: over 0.5bar), to ensure safe residual chlorine (urban
area: 0.3mg/l, rural area: 0.1mg/l) and to analyze water quality. Through the response to the
questionnaires received from the people of Hue City in 2012, the residents (beneficiaries) of
Hue City were satisfied with water pressure control, customer service, and tariff.
2) The project on capacity development for urban water supply utilities in the central region
(JFY2010 -2013)
In response to the highly evaluated technical cooperation project in Hue City (declaration of
safe drinking water from 2006 to 2008), this project’s purpose was initiated through
strengthened collaboration between relevant organizations, and JICA targeted the capacity
development of water business staff, related organization and its collaboration. The main
scheme of the project was to provide lectures and on-site training, based on the Water Safety
Plan (WSP) through sharing experience and knowledge with HueWACO. Equipment was
provided to the training center in Hue (TC) to assist the collaboration with HueWACO and other
organizations, and to provide a training program for teachers and staff members in TC by JICA
experts. Additionally, the focus was to foster awareness of the top managerial level and to
prepare handbooks that were delivered to WSCs.
The MOC’s Circular No. 08/2012/TT-BXD dated November 21st, 2012 provides guidance on
implementing a safe water supply. Therefore, the relevant agencies were positively involved in
implementing the project in their areas. Table 6-11 shows the impact on the indicators due to
implementation of the Project.
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Table 6-11: Changes in the Indicators due to Implementation of the Project
Indicator Participants Organization Collaboration
More than 90% of the participants rate their satisfaction at 4 out of a 5-scale evaluation.
2 study tours and 3 workshops were organized. 349 participants from 18 WSCs joined, 113 staffs attended the workshop.
Collaboration with HueWACO (TC) and training center, and lectures that constructed a series of mechanisms are still ongoing. The training center (TC) was not only cooperating with TC in the North and South, but also Water Works Association and the MOC. Thua Thien – Hue province has established the Steering Committee on safe water supply, led by the Chairman of the People’s Committee of the province.
（Source：JICA Study Team）
After the project was completed, Vietnamese’s MOC prepared an outline of the human resources
development policy for urban water supply utilities in Vietnam; and Japanese experts followed up
accordingly. In this part, the MOC was unable to come up with a basic policy and measures by the
end of the Project. From the Japanese side, various options could be the introduced such as
non-revenue water measures, and asset management. However, there will be little chance for
cooperation between the two sides without more extensive effort on human resource development
from the Vietnamese side improvements to the WSC .
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Column 6-1：Consumer’s willingness-to-pay for water tariff
In Southeast Asia, including Vietnam, the water tariff structure has always been one of the
key reasons for conducting PPP projects in the water sector, and to understand the actual
situation of water service company (WSC). The following news article is for additional
information.
Based on the Decision No. 103/2009/QD-UBND issued by Ho Chi Minh City People's
Committee, water tariff increase has been implemented in Ho Chi Minh City for four
consecutive years, from 2010 up to now. The latest increase was in January 2013 when water
tariff was increased by about 10% as reported by Thanh Nien Newspaper (electronic version)
on January 2nd, 2013. The old and current water tariffs per month are compared in the
following table (unit: VND/m3):
Type Old Price (2012) New Price (2013) Domestic (m3/month/person) < 4 m3 4,800 5,300
・ More international competition among large cities
・ Mitigation measures against regional disparity
・ Efforts to sustainable urban development
・ Efforts to revitalize local economies
・ Border area development
Sector Priorities in SEDP
・ Improvement of national transport system
・ Obtaining minimum living standards
・ Poverty reduction and rural development
・ Further development of national transport system
・ Poverty reduction and rural development
・ Completion of fundamental infrastructure
・ Competitive large cities
・ Poverty reduction and mitigation of regional disparity
・ Shift to sustainable development
・ Expansion of rural economy
・ Response to global economy
・ Large infrastructure development
・ Upgrade of social infrastructure
Direction of Japan’s ODA
・ Infrastructure development support from rehabilitation to economic and trade development
・ Transport sector development to support economic growth and social justice
・ Introduction of mass and high-speed transport systems
Priority of Japan’s ODA
・ Rehabilitation and development of the north-south national spine (road and rail bridges and the Hai Van Pass Tunnel)
・ Development of the Northern Vietnam transport system
・ Modern urban transport development in Hanoi and Hochiminh City
・ Support to national gateways ・ Advocate for road traffic safety
・ Promotion of expressway and high-speed train systems with their capacity development
(Source: Prepared by the Study Team)
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7.2 Historical Review of Transport Sector Development
7.2.1 Overall Sector Review
(1) Transport Administration
Transport sector in Vietnam is divided into five subsectors, namely, roads and bridges, railways,
shipping and seaports, aviation and airports and inland waterway transport. Those subsectors
have external bureaus under the umbrella of MOT such as DRVN, VINAMARINE, CAAV,
VNRA and VIWA. Each external bureau regulates technical standards, safety requirements,
state-owned operators and business permits. They can implement a nationally significant
infrastructure project.
In the case of a Japan’s ODA loan project, an appointed implementation agency organizes a
project management unit (PMU). The most suitable organization is appointed as an
implementation agency among MOT, its external five bureaus and local governments.
（Source: Prepared by the JICA Team based on MOT organization map）
Figure 7-1: Organizational Structure of Vietnam MOT
MOT Minister
6 Vice Ministers
Directorate for Roads of Vietnam (DRVN)
Vietnam Maritime Administration
(VINAMARINE)
Civil Aviation Authority of Vietnam (CAAV)
Vietnam Railway Administration (VNRA)
Vietnam Inland Waterways
Administration (VIWA)
Minister’s Office Environment Department
Transport Infrastructure Dep.
International Cooperation Dep.
Occupational Health Dep.
Inspection Unit
Finance Department
Planning & Investment Dep.
Science & Technology Dept.
Personnel Department
Traffic Safety Department
Legal Department
Transport Construction
Quality Control & Management
Bureau
Vietnam Register Transport Department
Vietnam Expressway
Management Office
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(2) Growth Trend and Modal Share of Nationwide Traffic
According to the national traffic data from the General Statistical Office (GSO), both passengers
and freight have constantly increased since 1990. In the 2000s, traffic increase intensified and
accelerated. This is mainly due to Vietnam’s economic development and continuous efforts to
rehabilitate, improve and construct new transport infrastructure since the 1990s.
Road transport takes a dominant role, i.e. around 70% between 1990 and 2010. Civil aviation
has gained considerable passenger traffic in terms of modal share, from 5% in 1990 to 21% in
2010. On the other hand, railway and IWT show a tendency of decreased modal share although
they had more passengers during the same period.
（Source: GSO）
Figure 7-2: Change in Nationwide Passenger Traffic by Means of Transport (Unit: million passengers x km)
When analyzing national freight traffic in terms of ton x km, coastal shipping has been an
important and stable means of freight transport in Vietnam, carrying over 60% of domestic
cargo. IWT, having a share of around 15%, has played a historically stable role too. Road
transport and railways have retained a combined share of about 20%. In other words, historically,
road transport has increased its share while freight rail service has showed a decrease despite of
its steady increase in freight volume.
In terms of freight ton, however, road transport has had the largest share of 60 to 70%. IWT is the
second largest ranging from 20 to 30%, while there are minor modes of coastal shipping (7-8%)
0
20,000
40,000
60,000
80,000
100,000
120,000
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Roads Rails IWT Aviation
200
and railway (1-2%). Historically, IWT has gradually declined its share in contrast to an
incremental increase in road transport.
In regard to average haulage distance, road transport provides short-distance service of some
scores of kms, IWT for middle-distance of one to two hundred kms, and two long-distance service
modes of railway (300-500 km on the average) and coastal shipping (over 1,000 km on the
average). Such modal characteristics have remained the same historically.
Between 1990 and 2010, national passenger traffic increased by 8.3 times in terms of pax-km
while national freight traffic has rose by 17.3 times in terms of ton-km. Taking Vietnam’s GDP
increase during the same period or by 4.2 times into account, national traffic increased with a
GDP elasticity of 2 to 4 times, especially, with the introduction of long-distance and sizable
haulage in freight transport.
(Unit: Million Tons x KM) (Unit: Thousand Tons)
(Source: GSO)
Figure 7-3: Change in Nationwide Passenger Traffic by Transport Means
7.2.2 Roads and Bridges
As of 2012, the total road length in Vietnam was 258,106km, of which 7% is classified as
national roads. The longest road segment is a commune road, accounting for 58% of the total
road length.
Annual road development length can be analyzed from road inventory statistics. It was 4,950km
between 1999 and 2006 when all-weather roads accessible to settlement areas were developed
in order to address poverty reduction. However the pace of road development slowed to
1,053km annually between 2006 and 2012 when the focus shifted from network development to
road quality improvement.
0
50,000
100,000
150,000
200,000
250,000
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Roads Rails IWT Coastal Shipping
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Roads Rails IWT Coastal Shipping
201
High ranked national highways, which have more than two carriage lanes with daily road traffic
of over 3,000 vehicles account, only for 7% of the existing national roads. 22% of the national
roads are still in poor condition according to DRVN’s assessment. Therefore, Vietnam suffers
from not only the lack of new road construction, but also existing low-quality roads.
Many donor agencies have extended cooperation for Vietnam’s roads and bridges. Japan, ADB
and the World Bank are a major force that have supported the north-south trunk roads. Japan
and the World Bank have assisted major urban roads, while ADB has concentrated its resources
to border roads. Many donors participated in constructing rural roads and bridges. Japan
supported numerous bridges for reconstruction and new construction including urban bridges,
rural bridges and inter-city bridges by means of loan and grant aid.
（Source: Directorate for Roads of Vietnam）
Figure 7-4: Trend in Road Length Development by Road Type (Unit: km)
Despite slow development of a road network, the number of vehicles accelerated particularly in
the 2000s. As of 2011, the numbers of registered motorcycles and registered 4-wheel vehicles
were 33.9 million and 1.88 million, respectively. When comparing newly registered vehicles
with their accumulated vehicle fleets, the year 2007 was remarkable because both the numbers
of newly registered motorcycles and 4-wheel vehicles were more than 20% of the cumulative
vehicle fleets at that time. The latest 2011 data show that the cumulative vehicle fleets increased
by 10%. Motorcycles seem to have spread over the country as a daily transport means. But the
number of 4-wheel vehicles is still small at 21 per 1,000 inhabitants. Vietnam is anticipated to
enter into the era of an automobile society in the near future.
0
50,000
100,000
150,000
200,000
250,000
300,000
1999 2006 2012
Urban Commune District Provincial National
202
（Source：National Traffic Safety Committee）
Figure 7-5: Trend in Registered Vehicles (unit: thousand vehicles)
There was an increased tendency of road traffic accidents in the 1990s to 2002. Thereafter, the
number of traffic accidents sharply declined. The number of fatalities also showed a rising trend
and sharply increased in 2001 and 2002. Since 2003, however, the number of fatalities has been
somewhat controlled. In view of the sharp increase in road traffic and registered motor vehicles
even after 2003, the fatality data implies that the government successfully promoted road safety
policies and activities. Japan has extended various cooperation programs to address this road
traffic safety issue to relevant GOV agencies and institutions since the 2000s.14 In recent years,
however, serious traffic accidents with fatalities have accounted for a dominant share. There is
some doubt about the accuracy of road traffic accident statistics.15
Road and bridge development since the 1990s brought about some explicit impacts such as
reduction in travel time, year-round operation, greater resilience against disaster, promotion of
urbanization, industrialization and tourism development along the developed roads.16
14 The relevant governmental policies and activities are analyzed in the section “7.4. 3 Impact on Holistic
Approach to Road Traffic Safety.” 15 For instance, the number of fatalities per accident was recorded at 0.87 in Vietnam in 2006. The figure
is extremely high compared with neighboring countries in the same year such as Thailand (0.17) and Malaysia (0.02).
16 The impacts are particularly analyzed in the sections of “7.4.1 Impact on Transport System Development in the Red River Delta” and “Impact on the Formulation of the Vietnam’s North-South Spine”.
0
5000
10000
15000
20000
25000
30000
35000
40000
1990 2000 2011
Automobile Motorcycle
203
(Source: National Traffic Safety Committee）
Figure 7-6: Change in the Number of Road Traffic Accidents and Fatalities (Unit: persons)
7.2.3 Railways
Vietnam’s railway has history. It started rail construction in 1881 during the French era. The
Hanoi – Saigon Line was completed in 1936. Vietnam Railways (VNR) currently manages and
operates a railway network of 7 lines and 2,600km. All of the lines were constructed by 1936.
The longest and busiest Hanoi – Ho Chi Minh Line (1,726km) has improved transportation
capacity and travel speed through Japan’s ODA project, which reconstructed railway bridges.
The number of daily trains increased from 4 in 1993 to 12 in 2007. The travel time shortened
from 36 hours to 29 hours. As a result, the number of passengers transported by the line
increased from 5.15 million in 2000 to 6.88 million in 2011. In contrast, the freight rail traffic
has been stagnant.
VNR has a huge backlog of maintenance and repair works to keep the existing rail network in
good condition. For instance, two ODA loans were provided to improve bridges on the Hanoi –
Ho Chi Minh Line, but there are additionally 700 bridges to be repaired, of which 41 are large
bridges. VNR intends to request the third ODA loan to finance 41 bridge works.17 Although the
railway has gradually reduced its share since 1990 as reported earlier, this has been caused by
constraints in operation capacity due to single track and non-electric operation rather than
in 2011, 15.912 billion yen, construction period: 2011-16 as scheduled)
North-South Expressway Construction Project (Ben Luc – Long Thanh Section I), (L/A
in 2011, 14.093 billion yen, construction period: 2011-16 as scheduled)
The Project for Development of Traffic Control System for Expressway in Hanoi (grant
aid, 527 million yen, implementation period: 2012 – 14 as scheduled)
Support to Urban Transport
The support for urban railway continues to be high priority by both Hanoi and Ho Chi Minh
City. Lately, one ODA loan agreement was made for the Hanoi Urban Railway Construction
Project. In addition to the aforementioned ODA loan projects, two technical cooperation
projects were provided in order to assist public transport management to provide satisfactory
services.
Hanoi City Urban Railway Construction Project (Line 1: Ngoc Hoi Depot) (L/A in 2013,
16.588 billion yen)
The Support on Setup of Operation and Management Company of Urban Railways in
HCMC (technical cooperation, JFY2011-13);
The Technical Assistance Project to Strengthen the Capacity of Regulator and to
Establish Operation and Maintenance of Metropolitan Railway Lines in Hanoi City
(JFY2013-15)
Two of the following technical cooperation projects were provided to improve existing public
transport services.
The Project for Improving Public Transportation in Hanoi (Technical Cooperation,
JFY2011-14);
The Project on Improvement of Urban Transportation of Da Nang City (Technical
Cooperation, JFY2013-16)
New Support to the Transport System of North Vietnam
There is a growing need to develop a deep seaport in the Northern Vietnam where Japan’s ODA
was provided early on. In short, the existing ports were not suitable. The Haiphong Port had no
space to expand. The Cai Lan Port had a shallow access channel, which was not dredged as
initially planned due to environmental protection around Ha Long Bay. Consequently, the final
decision was made to construct a new deep seaport offshore from the port of Haiphong. The
217
relevant Japan’s ODA projects are listed as follows.
Lach Huyen Port Infrastructure Construction Project (Port) (L/A in 2011, 11.924
billion yen, Construction period: 2012-16 as scheduled)
Lach Huyen Port Infrastructure Construction Project (Road and Bridge) (L/A in 2011,
9.071 billion yen, Construction period: 2012-16 as scheduled)
Support to Transport Infrastructure Maintenance
Several ODA road projects completed around the year 2000 required large rehabilitation works
such as the National Road No.18 due to excessively loaded cargo on trucks and inadequate road
maintenance. To address such weaknesses, two capacity development projects were been
provided.
The Project for Capacity Enhancement in Construction Quality Assurance (technical
cooperation, 2010-13)
The Project for Improvement of the Road Management Capability (technical
cooperation, 2011-14)
Support to Aviation and Airport
For the aviation and airport subsector, the following technical assistance projects in operation
and management are ongoing in line with the Passenger Terminal 2 Construction Project in the
Noi Bai International Airport.
The Project for Support on Establishment of the Programs for Operation &
Maintenance in Noi Bai International Airport (2012-15)
The Expert Dispatch for New Terminal Management in Noi Bai International Airport
(2012-15)
In the field of aviation control, the following technical assistance project is currently under
implementation in Vietnam, Lao PDR and Cambodia.
The Project for the Capacity Development for Transition to the New CNS/ATM
Systems in Cambodia, Lao PDR and Vietnam (2011-16)
Support to Local Road Bridges
In the early 2010s, grant aid to local bridges still continues as shown below.
The Project for Reconstruction of Bridges in the Central District (749 million yen,
2012-15)
218
7.4 Contribution of Japan’s ODA to Vietnam’s Transport Development
As reported earlier, Japan’s ODA in the transport sector has extended huge inputs towards
diversified project target areas. This section assesses the role and contribution of Japan’s ODA
to the transport sector by analyzing a group of projects under one development theme rather
than individual projects directly.
7.4.1 Impact on Transport System Development in the Red River Delta (Projects to Be
Assessed)
There were 8 projects implemented immediately after the resumption of Japan’s ODA,
including Hai Phong Port Rehabilitation and National Highway No.5 Improvement both in the
Red River Delta. The remaining transport projects such as National Highway No.1
Rehabilitation and Hanoi-Hochiminh City Railway Bridge Rehabilitation also strengthened the
inter-city section between Hanoi and Ninh Binh in the Red River Delta.
Subsequent ODA loan projects included Cai Lan Port Extension, NH18 Improvement, NH10
Improvement, Binh Bridge Construction and Bai Chai Bridge Construction. These projects were
identified and planned in the Master Plan Study on Transport Development in the Northern Part
of Vietnam (1993-1994). This master plan study placed strategic importance on the triangle
zone consisting of Hanoi, Ha Long and Hai Phong, translating GOV’s idea into a transport plan.
Feasibility studies were conducted for Cai Lan Port and NH 18 to decide ODA loans after the
master plan study.
By implementing these projects, Japan’s ODA supported modernization of the regional transport
system in the Red River Delta. National roads and bridges were improved at the same time to
develop a regional national highway network. By connecting this road network with regional
major ports, the Red River Delta economy experienced improved connectivity with other
regional economies in Vietnam and more trade with overseas markets. The following section
analyzes the impact Japan’s ODA to the regional transport of the Red River Delta, excluding
urban transport in Hanoi.
219
(Source: Vietnam-Japan Joint Evaluation on the Japanese ODA Program for the Transport Infrastructure Development in the Red River Delta Area, 2006)
Figure 7-13：Red River Delta and Its Transport System
Role and Contribution of the Relevant Projects
Firstly, faster travel service was brought about by national highway improvements in northern
Vietnam. Travel time reduction is significant when comparing before and after the project. For
instance, the project for NH No.5 (106 km) reduced the travel time from 5 to 6 hours to 2 hours,
similarly the project for NH No.10 (150 km) reduced the travel time from 10 hours to 3 hours
and the project for NH No.18 (135 km) reduced the travel time from 6-7 hours to 3 hours. The
improved NH No.5 service enables a same-day round trip for Hanoi residents to visit Hai Phong.
The most significant effect on reducing travel time was improved NH No.10 service since four
(4) river crossing ferry services were replaced with new bridges.
Faster road design speed and larger road design capacity after project increased traffic demand.
Road traffic on the three national roads substantially increased after project. In the case of NH
No.5, road traffic increased 6.8 times from 1993 (before the project) to 2006 (after the project).
In the case of NH No.18, road traffic increased 4.1 times from 1995 (before the project) and
2008 (after the project). Although there was no pre-project traffic data for NH No.10, road
traffic increased 2.7 times between 2003 (during the project) and 2009 (after the project).
Nowadays, daily traffic congestion occurs at the both ends of NH No.5.
NH1
NH18
Cal Lan Port
NH10
NH5
Haiphong Port
220
(Source: Respective Project Evaluation Reports) (Note 1: Hanoi – Hung Yen section on NH No.5, PCU conversion figure, exclusive of motorcycles) (Note 2: Quy Cao Bridge on NH No.10, exclusive of motorcycles) (Note 3: Biu Nghi – Bai Chai section on NH No.18, exclusive of motorcycles)
Figure 7-14：Trend in Road Traffic on National Roads in Northern Vietnam (Unit:
vehicles)
Hai Phong Port received two ODA loans for container terminal development at Chua Ve and
dredging an access channel (7.0 meters in depth). Cai Lan Port extended its container handling
capable wharf and dredged its access channel. Due to preservation of inherent tourism resources
at Ha Long Bay, the access channel was eventually made shallower in contrast to the initial plan,
i.e., by implementing 30% of the initial dredging plan.
At the beginning of 1990s, Hai Phong Port suffered from siltation in the access channel, which
constrained port-of-calls, thus depressing cargo landing in the port. Japan’s first urgent
rehabilitation project helped the port to handle various types of cargo of about 10 million tons in
the early 2000s. The second port rehabilitation project made additional container berths
operational to the users in 2007 at Chua Ve. It has allowed further cargo handling at the port.
Meanwhile in Cai Lan Port, cargo volume steadily increased after 2004 when the Japan’s ODA
project was completed, except for port traffic in 2007 when a storm did much damage to
port-side cranes.
0
5,000
10,000
15,000
20,000
25,000
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
NH No.5 NH No.10 NH No.18
221
(Source: VINAMRINE)
Figure 7-15：Trend in Cargo Volume Handled at Major Northern Ports (Unit: million tons)
As already stated, Japan’s ODA loan projects developed a national road network to the major
ports in northern Vietnam. It merely took one decade from the mid-1990s to create a first
modern transport system in Vietnam. Each project was implemented at the right time with good
synergy between projects to promote economic development in the Red River Delta. As the
transport system provided diverse regional development opportunities, dynamic
industrialization and logistics development occurred along the roads and around the ports.
Urbanization was spread along the roads too. Although the development of the transport system
did not primarily aim at agriculture development, more agriculture products were consequently
forwarded to the markets due to improved market accessibility. Therefore, development of the
transport system in northern Vietnam is considered a good example of transport system
development that successfully led to regional development.
Concerning daily congestion of the NH No.5, one expressway that runs parallel to NH No.5 is
under construction by a BOT concessionaire. There is also severe traffic congestion inside and
outside Hai Phong Port. To alleviate this congestion, Lach Huyen Port, the first deep seaport in
northern Vietnam, is under construction through PPP where Japan’s ODA is used for public
finances. Another ODA loan was provided to construct an approach road and bridge to the port
from the new expressway. This new road and port system will become operational in 2015.
0
5
10
15
20
25
30
1990
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Hai Phong Cai Lan
222
Column 7-1: How should NH No.5 have been developed?
The Japan’s ODA loan projects immediately after the ODA resumption started their services
around year 2000. Since NH No.5 is a busy corridor connecting two large cities, Hanoi and
Hai Phong, had a major development impact. People enjoyed speedy and comfortable road
transport due to increased speeds of vehicle travel from about 20 km/hour before the project
to over 50 km/hour after the project. Massive urbanization and industrialization also
appeared along the road. Meanwhile, the number of traffic accidents skyrocketed. Excessive
driving speed accounts for 93% of accidents.
This survey interviewed numerous Vietnamese officers and experts. They expressed different
opinions and perceptions concerning the NH No.5 improvement. Representative views are
stated below.
Japanese experts should have designed a 6-lane expressway. The project developed 4
lanes, which later led to traffic congestion. Today, we must construct a new expressway
as a bypass to NH No.5. (A former MOT senior official)
Japanese experts initially suggested 6 lanes but the plan was adjusted to 4 lanes by the
Vietnamese side, which feared an over capacity. The project should have acquired a
wider right-of-way. (A former MOT institute senior researcher)
It is impossible to precisely reproduce such project design-related discussions that were
made twenty years ago. In fact, Japan’s ODA improved 91 km of NH No.5 and Taiwan
improved the remaining 15 km. Japan widened the road to 6 lanes at both the ends of the
road, 19 km in total.
It is rational to develop both ordinary national road and access-controlled expressway on a
heavily used traffic corridor such as Hanoi – Hai Phong. The expectation to meet high-speed
and long-distance travel needs and short-distance travel needs on the same national road
should be corrected.
There was one important plan for NH No.5 related transport development. But the Vietnamese
interviewees may have forgotten or did not understand. The first JICA transport development
study, “the Master Plan Study on Transport Development in the Northern Part of Vietnam
(1993-1994),” suggested the improvement of NH No.5 by 2000 and the construction of a new
access-controlled expressway by 2010.
The first expressway operation in Vietnam will commence on the part of the Japan’s ODA
financed route between Hochiminh City and Dau Giay by the end of 2013 or just after the
completion of this survey. This time, the transport planning theory to demarcate role sharing
between ordinary national roads and access controlled expressways will be clearly
understandable among Vietnamese transport experts.
223
(Source: The Master Plan Study on Transport Development in the Northern Part of Vietnam, 1994)
Figure 7-16: Road Development Master Plan (2010)
7.4.2 Impact on the Formulation of the Vietnam’s North-South Spine (Projects to Be
Assessed)
Vietnam’s north-south transport spine is composed of road and rail. Those infrastructure and
facilities were in very poor condition due to wartime damages, insufficient investment, repair
and maintenance. For instance, many bridges were commonly used and strict limitations of
speed and weight were imposed. Soon after the resumption of Japan’s ODA, cooperation was
extended to the north-south transport infrastructure. This section assesses the following projects.
National Highway No.1 Bridges Rehabilitation Project Phase 1 and Phase 2 (project
Hai Vann Road Tunnel Construction Project (project period: 1997-2005)
Role and Contribution of the Relevant Projects
Japan coordinated with the World Bank and ADB to implement NH No.1 rehabilitation Project.
HAI PHONG
4-lane Freeway
224
As a result, the first and second phases included 73 bridges between Hanoi and Nha Trang, a
total of 43.9 km of access roads, 2 bypass sections for a total of 18.5 km, feeder roads to NH
No.1 and local roads. As a result, vehicle driving speed became faster (over 60 km/hour) than
before (some 30 km/hour) at the surveyed sections.
Hai Vann Road Tunnel (6,280 meters) was constructed as a shortcut route to the old road
traversing Hai Vann Pass (difference of elevation – 475 meters, road distance – 20 km). After
the opening of the tunnel, travel time was largely shortened from 60 minutes using the old
traverse road to merely 15 minutes on average. Before the project, Hai Van Pass was often
closed, 14 times per year on the average, due to weather conditions and traffic accidents. After
the project, the tunnel has never been closed. The traffic crossing Hai Vann Pass increased from
2,024 vehicles per day in 1998 to 3,892 vehicles per day in 2008.
North-South Unification Railway Urgent Rehabilitation Project covered 19 bridges. Prior to the
project, obsolete bridges were bottlenecks to rail service safety, cargo loading capacity and
efficient overall operation. The project enabled faster train operation on the bridges, i.e., from
15-30 km/hour before the project to 60-80 km/hour after the project. By the combination of
bridges and others, faster and more passenger train service was provided in contrast to the early
1990s.
The implementation of these projects enabled faster speed service and larger traffic capacity on
the road and rail, which formed the north-south national spine, thus contributing to enhanced
reliability of transport systems. Especially, Hai Vann Road Tunnel is the longest tunnel in
Vietnam. Collaborative works at every aspect between Japanese and Vietnamese engineers and
constructors resulted in achieving high quality, good environmental management and effective
technology transfer. The excellent performance of the project was widely recognized
domestically and internationally.20
As for socio-economic impact, the impact on industrial and tourism development has been seen
along the corridor. For instance, more than 10 factory areas were developed in Binh Dinh
Province; and Phan Thiet in Binh Thuan Province was developed as an international tourism
destination. In addition to the impact on local development, the Hai Vann Road Tunnel has had
an impact on the East-West Corridor, measured by increased cross-border trade at Lao Bao,
Vietnam.
20 The project was awarded by the American Council of Engineering Companies (ACEC) as a “Global Project” and as well as other awards.
225
7.4.3 Impact on the Holistic Approach to Road Traffic Safety (Projects to Be Assessed)
In line with economic development in the 1990s, the number of road traffic accidents soared. To
address this safety issue, the Vietnam Government established the National Traffic Safety
Committee (NTSC) and provincial traffic safety committees in 1997 in order to undertake traffic
safety measures.
Traffic accidents became acute on the roads financed by Japan’s ODA as well. JICA started with
the “Study on the Traffic Accident and Safety in Vietnam (2001).” Subsequently, a series of
studies and technical cooperation projects were implemented, including “the Traffic Safety
Promotion Program (JFY2002-2004),” “the Project for the Traffic Safety Human Resource
Development in Hanoi (JFY2006-2009)’,” “the Study on the Traffic Accident and Safety in
Vietnam (JFY2007-2009)” and “the Project for Strengthening Traffic Police Training in
People’s Police Academy and Various Police Training Institutions (JFY2010-2013).” In the case
of ODA loans, “the Northern Vietnam National Roads Traffic Safety Improvement Project” was
implemented to assist road safety management at four (4) national highways in the Northern
Vietnam, namely NH 3, NH5, NH10 and NH18.
Taking locally noticeable activities into account, this section selected “the Project for the Traffic
Safety Human Resource Development in Hanoi (2006-2009)” and the ongoing ODA loan
project for impact assessment.
Role and Contribution of the Relevant Projects
“The Project for the Traffic Safety Human Resource Development in Hanoi” aimed at
improving road conditions by means of traffic safety measures. The project supported Hanoi
City to establish traffic safety measures from planning, implementation to evaluation. The
project also targeted capacity development of traffic police, traffic inspectors and the staff of
Transport Department in Hanoi City. The project outcomes included the Hanoi City’s Traffic
Safety 5-year Plan (2011-2015), the Hanoi City’s Human Resource Development Plan
(2011-2015) and comprehensive traffic safety measures. The citizens have recognized great
improvements in traffic safety due to the performance of officers and better driving manners on
the roads after the project commenced. The pilot project, which segregated motorcycles from
4-wheel vehicles at 8 places in the city, was socially accepted and it became a permanent
measure.
The survey did not implement a comprehensive evaluation on “the Northern Vietnam National
Roads Traffic Safety Improvement Project” since project evaluation parameters are supposed to
be checked in 2016 or three years after project completion. The ongoing project shows explicit
226
impact on road traffic safety. For instance, the project selected a section of NH No.18 in Hai
Duong Province in 2007. Since then, traffic safety facilities were installed and traffic safety
advocacy activities were undertaken at governmental buildings, schools and factories located
along NH No.18. It is obvious that traffic safety in the NH No.18 section has been enhanced
since 2008. Hai Duong Province recognized that such traffic safety improvements were
attributed to the project.
(Source: The Post-Project Evaluation Report for NH No.18 Improvement Project I and II)
Figure 7-17：Trend in Road Traffic Accidents on NH No.18 in Hai Duong Province
In Vietnam, road traffic accidents exceeded 10,000 fatalities in 2001. In 2002 and 2007, the
worst fatality figures of about 13,000 were recorded. (Refer to Figure 7-6) However, the
fatality statistics have not shown an incremental tendency up to now, although road traffic has
increased consistently. This can be explained by the combined effort of governmental
organizations such as NTSC and relevant donors’ cooperation including Japan.21 The current
road traffic situation, exceeding 10,000 fatalities every year, is still critical and far from
satisfactory in terms of traffic safety measures. Judging from Japan’s experience, further safety
enhancement is expected.
7.4.4 Impact on Transport Policy and National Transport Development Master Plan
Japan’s ODA in the transport sector contributes to policy setting and master planning for
Vietnam’s transport development, in addition to loan finance and grant aid. Master planning
works have been done based on a proper database, which also contributes to analytical and
research activities by transport experts within Vietnam as well as abroad. JICA’s master
21 The World Bank coordinated with Japan to implement the road traffic safety project on NH No.1 ($32 million since 2005)
0
10
20
30
40
50
60
2005 2006 2007 2008 2009 2010
No. of Accidents No. of Fatalities
No. of Injured Persons
227
planning projects in the sector are listed below.
Table 7-2: Representative Projects for Assisting Transport Policies and Master Planning
Project Name Period
(JFY)
Main Counterpart Agency
1. Master Plan on the Transport Development in the Northern Part of Viet Nam
1993-1994 MOT
2. M/P on Rehabilitation and Improvement of Railways in Vietnam
1994-1996 VNR
3. The F/S on New Development Plan of Hanoi International Airport
1995-1997 CAAV
4 M/P Study on Coastal Shipping Development in Vietnam 1995-1997 VINAMARINE
5. The Study on the Port Development Plan in the Central Region of the Key Economic Area
1997-1998 VINAMARINE
6. Study on the National Transport Development Strategy in Vietnam (VITRANSS)
1999-2000 MOT
7. The Port Development Study in South Vietnam 2000-2002 MOT
8. Feasibility Study on Red River Navigation Improvement, the Segment through Hanoi
2000-2001 VIWA
9. The Study on the Urban Transport Master Plan and FS in HCM Metropolitan Area (HOUTRANS)
2002-2004 HCM City People’s Committee
10. The Comprehensive Urban Development Programme in Hanoi Capital City (HAIDEP)
2005-2007 Hanoi City People’s Committee
11. The Study on the Traffic Accident and Safety in Vietnam 2007-2009 NTSC
12. Study on the Sustainable National Transport Development Strategy in Vietnam (VITRANSS II)
2007-2010 MOT
13. The Master Plan Study on the Development of the New CNS/ATM Systems in Cambodia, Lao PDR and Vietnam
2009-2010 CAAV
14. Study for the Formulation of High Speed Railway Projects on the Hanoi-Ho Chi Minh City
2011-2013 MOT
(Source: JICA website)
Of these projects, the “Study on the National Transport Development Strategy in Vietnam
(VITRANSS)” and the “Study on the Sustainable National Transport Development Strategy in
Vietnam (VITRANSS II)” are the projects that support MOT, which is mandated to formulate
transport policies and master plans of transport development projects. For instance, VITRANSS
produced the long-term development strategy for 2020, the master plan until 2010 and the
priority projects to be implemented by 2005. VITRANSS’s management characteristics were
technology transfer and donor coordination. For technology transfer, VITRNASS organized
workshops and training courses for the counterpart staff from MOT and MOT’s external bureaus
and jointly documented technical papers. In the area of donor coordination, a representative of
the JICA Office chaired donor coordination meetings for transport where the progress of
228
VITRANSS was reported and comments were received for necessary feedback to VITRANSS.
After receiving the VITRANSS final output, MOT carried out consensus building on the
long-term development strategy and the transport master plan and endorsed them for the Prime
Minister’s approval (Prime Minister’s Decision 206/2004/QD-Ttg). Before VITRANSS, there
was no master plan document available in the transport sector. Therefore, there was some
confusion when selecting priority projects and coordinating sub-sectors. After VITRANSS,
however, the development strategy and priority projects were mutually recognized among
related agencies.
VITRANSS II was conducted according to the same procedures as VITRANSS. The final output
was delivered to MOT and MOT finalized it for the Prime Minister’s approval (Prime Minister’s
Decision No.35/QD-Ttg). 22
Today, most intensive transport investments go to MRT projects in Hanoi and Ho Chi Minh City.
The Ho Chi Minh City MRT network plan was created under “the Study on the Urban Transport
Master Plan and FS in HCM Metropolitan Area (HOUTRANS)” for the Ho Chi Minh City
People’s Committee. Similarly, “the Comprehensive Urban Development Programme in Hanoi
Capital City (HAIDEP)” worked out the Hanoi MRT network plan for its counterpart agency,
Hanoi City People’s Committee.
As mentioned above, Japan’s ODA has contributed to Vietnam’s transport sector as a top donor
by not only by its many projects, but also upstream policies and master plan preparation.
Column 7-2: Transport Planning Works in the mid of 1990s
At the beginning of this survey, the Team received some questions from the officers currently
engaged in bilateral transport cooperation. The questions focus on historical background
when ODA projects were resumed in the mid-1990s. At that time, many loan projects were
immediately prepared while sub-sector master plans were formulated continuously.
To answer the questions, the Team interviewed the persons who worked for the bilateral
transport cooperation 20 years ago. Since ODA loan projects immediately after Japan
resumed its ODA have been already described, the interview results on transport planning
works in the mid-1990s are reported below.
(Overall)
20 years ago, the Vietnam’s transport sector was faced with many problems and issues.
22 In February 2013, the Prime Minister’s Decision on the national transport development strategy and master plan was amended to No. 355/QD-TTg.
229
No time was allowed to thoroughly discuss sector strategy as the liaison officer in charge
of transport cooperation at the JICA Vietnam Office. Projects were prepared when
development needs of the Vietnam side were clearly described. Master planning studies
were prepared when the development needs of the Vietnam side were still vague.
(Airport: New Development Plan of Hanoi International Airport)
The study team prepared a new airport development plan separate from the existing
military-civilian airport at Noi Bai. But CAAV did not accept it.
(Railway: North-South Unification Railway)
The study team once prepared a high-speed rail line plan in response to VNR’s request.
After MPI criticized the “over-investment” plan, the study team replaced it with a gradual
improvement plan for the North-South Unification Railway.
(Shipping: Coastal Shipping Development)
When the study started, VINAMARINE was a huge organization including
administration and business. In harmony with a market economy, the study team
suggested VINAMARINE to be split into an administrative body, port operator and
shipping line. During the study, however, VINAMARINE created VINALINES to cover
the port and shipping business. Since the port operator and port users are placed in the
same organization, VINALINES has remained in confusion until today.
(Port: Port Development in the Central Region)
The study team prepared a new port plan at Lien Chieu located in front of the Danang
Bay so as to meet local needs. Recently Danang has received huge international tourism
investments. Today, there seems to be no interest to develop Lien Chieu as a port and
logistics center.
In the mid-1990s, JICA liaison officer was busy preparing, mobilizing and proceeding with
many projects. Each master planning team worked under problematic conditions such as
insufficient data and information and difficult communications with a counterpart agency to
share development issues and direction. Although project ownership of the Vietnamese side
has been always high, dialogue difficulty about planning issues with a counterpart agency at
that time have changed dramatically and practically at present. The Team is stuck by the way
time has changed.
7.5 Features of Japan’s ODA and Lessons Learned from Past Collaboration
Twenty years of Japan’s ODA to the transport sector in Vietnam has been widespread
throughout all transport sub-sectors and from large cities to rural areas. ODA loans take a
dominant share in terms of monetary value. Compared with other major donors’ lending
amounts in the sector such as the World Bank and ADB, Japan has a share of 59%. Thus, about
230
half of the donors’ support to the transport sector are from Japan.
In addition to ODA loans, Japan’s ODA has supported various aspects of Vietnam’s transport
development including policy and regulatory framework, new organizational setup, master
planning work, human resources development through well-coordinated activities to enhance a
synergistic effect. For instance, Japan took a regional development approach to support the
transport system in the Red River Delta and a policy agenda approach such as road traffic safety.
During the last two decades as Vietnam developed its economy, it should be noted that Vietnam
has achieved remarkable progress in transport infrastructure and service planning, construction
and implementation, and management and maintenance capability.
While reviewing 20 years of Japan’s ODA, future cooperation issues in the transport sector are
given below.
Collaborative response to negative development impact: Japan has worked together to
respond to negative development impact. In the case of road projects, when negative
impact surfaced such as rampant traffic accidents and road damage due to poor road repair
and maintenance, Japan supported institutional development, capacity development and
others. But the situation has not improved satisfactorily. From now on, growing
environmental concerns may be observed during and after the project. It is suggested that
Japan further collaborate with Vietnam to provide an in-depth and discreet response to the
negative development impact.
Support for efficient project management: Since many ODA projects took several more
years to complete and were behind the original schedule, the opportunity to have provided
service was lost. The main causes were project design modification in consultation with
local government, land acquisition and resettlement. Recently, Vietnam has been
unsuccessful in its bid tendering. There has been only one bidder with a high-price contract
above the budget of ODA loan projects with STEP 23 conditions. Such bidding is
time-consuming and reduces project management efficiency. It is suggested that Japan
support Vietnam to overcome those issues to realize efficient project management.
Support linkage with the private sector in infrastructure development and operation:
As the economy grows further, Vietnam will have to tackle huge infrastructure
development needs. In recent years, GOV has promoted private investment and PPP
arrangement in port and expressway projects. Conventional private partners in Japan’s
23 STEP (Special Terms for Economic Partnership). STEP was introduced in July 2002, with a view to raising the visibility of Japanese ODA among citizens in both recipient countries and Japan through best use of advanced technologies and know-how of Japanese.
231
ODA are trading firms, general construction firms and consulting firms. Nowadays,
different private players have begun to participate in Japan’s ODA projects in Vietnam such
as railway operator, toll road operator, bus operator and airport terminal operator. Through
participating in Japan’s ODA projects, those private players seem to have accumulated
knowledge and experience in Vietnam’s legislation, transport administration, the business
environment related to infrastructure investment, management and operation. It is
suggested that Japan support Vietnam’s initiative to involve the private sector for more
efficient infrastructure investment and operations, particularly to institutionalize business
environment. It is also suggested that Japan support Japanese private players who are going
to invest, manage and operate infrastructure in Vietnam particularly by way of identifying
favorable projects as well as the said institutionalization support.
232
New NH No.3 and Regional Road Network Construction (04-14)
Rural Bridge Construction in Northern Mountain Area (95-98)
Thanh Tri Bridge, Hanoi City Ring Road No.3 Construction (99-05)
Hanoi City Urban Railway Construction (Line 1, Line 2) (07-08)
Transport Infrastructure Development in Hanoi (98-09)
Terminal 2 Construction Project in Noi Bai Airport 09-13)
Nhat Tan Bridge Construction Project (05-13)
NH No.5, No.10 and No.18 Improvement (93-07)
Hai Phong Port Rehabilitation (93-09)
Cai Lan Port Extension (95-04)
Lach Huyen Port Infrastructure Construction (11-15)
Hai Vann Pass Tunnel Construction Project (96-05)
North – South Expressway Construction (Danang – Quang Ngai) (11-17)
Danang Port Improvement(97-07)
Rural Bridge Construction in Central Region (01-03)
Loan for the North-South Spine (Hanoi – HCM City):
HCM City Urban Railway Construction Project Line 1 (06-17)
Northern Vietnam National Roads Traffic Safety Improvement (06-13)
Development Study
Technical Cooperation
Loan
Grant
Rural Bridge Construction in Mekong Delta (01-03)
North-South Expressway Construction Project (HCM – Dau Giay, Ben Luc – Long Thanh) (07-18)
Project for the Traffic Safety Human Resource Development in Hanoi (06-09)
Figure 7-18: Project Sites in the Transport Sector in Vietnam
233
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235
CHAPTER 8: TELECOMMUNICATIONS
8.1 20-year Partnership at a Glance in Telecommunications
The 20-year partnership for growth and development in the area of the telecommunications in
Vietnam can be summarized according to historical background and priority development issues
as shown in Table 8-1 below. GOV developed the telecommunication sector, which is
considered to drive the nation’s economic development directly as well as indirectly, by
mobilizing private capital. In correspondence with this movement, Japan’s ODA had provided
supports especially where private capital was not expected to play a role. The details will be
described in 8.2 and 8.3.
Table 8-1: Summary of Partnership for Transport Sector Development
5th SEDP (1991-1995)
6th SEDP(1996-2000)
7th SEDP(2001-2005)
8th SEDP (2006-2010)
9th SEDP(2011-2015)
Background Topics
- Paris Peace Agreements on Cambodia Conflict(1991)
- Resumption of Japan’s ODA（1992）
- Restoration of Vietnam-US diplomatic relations (1995)
- Formal entry into ASEAN (1995)
- Asian Currency Crisis (1997)
- Vietnam-US Bilateral Trade Agreement (2000)
- Signing of Japan-Vietnam Investment Agreement; Japan-Vietnam Joint Initiative (2003)
- Formal entry into WTO (2007)
- Lehman Crisis (2008)
- Prime Minister Dung visits Japan (2011)
Sector Situation
-Beginning to think about measures to deal with increasing demand in Telecommunication
-Promoting entry of new companies in telecommunication business by deregulation (98)
-3 fixed-line telephone subscriptions per 100 inhabitants in 2000.
-Installation of at least one fixed-line telephone in every commune (completed in the late 2005)
-12 fixed-line telephone subscriptions per 100 inhabitants in 2004.
-Establishment of Ministry of Information and Communication (in July 2007)
-Promotion of competition in telecom market
-16 fixed-line telephone subscriptions per 100 inhabitants in 2010.
-Establishment of Viet Nam Telecommunications Authority (in Aug 2001)
-Guiding to further expand fixed-line telephone development
-Fast growing mobile phone
-11 fixed-line telephone subscriptions per 100 inhabitants in 2012
Sector Priorities in SEDP
- -To achieve social development by expanding information and
-To develop telecommunication network to support
-To improve service and quality of nationwide telecommunicati
-To develop telecommunication network in rural and
236
5th SEDP (1991-1995)
6th SEDP(1996-2000)
7th SEDP(2001-2005)
8th SEDP (2006-2010)
9th SEDP(2011-2015)
telecommunication network
-To review laws and regulations on telecommunication
industrialization on network
-To reduce telecommunication price
remote areas
-To reduce disparity between rural area and urban area
Direction of Japan’s ODA
- - -To support the areas where private capital cannot be expected in telecommunication infrastructure development
-To develop human resource
-No longer selected as a priority sector in Country Assistance Policy for Vietnam in 2012 .
Priority Issues of Japan’s ODA
-Costal communication system in north
-Master plan for national telecommunication development
- The Training Capability Strengthening Project on PTTC-1
-Costal communication system in south
- North ‒South Submarine Fiber Optic Cable Link Project
-Support for south-south cooperation
-Rural Community Internet Use Development Project
- Central Viet Nam Rural Telecommunication Network Project
- Support for south-south cooperation
(Source: Prepared by the Study Team)
8.2 Historical Review of Development and Growth in Telecommunications
8.2.1 Overview
GOV has set a high economic development goal since the introduction of the Doi Moi policy and
developing the telecommunication sector was considered to be important in order to achieve this
goal. To this end, the government promoted various deregulation, legislation reforms and
promoted market competition through business diversification in the sector. As a result, the
telecommunication network in Vietnam has rapidly expanded. The number of fixed-line
telephone subscriptions per 100 inhabitants increased three times or more, from 3 in 2000 to 11 in
2012.
8.2.2 Rapid Increase in Telecommunication Needs (1991-2000)
In the early 90’s, development of the telecommunications network was led by state-owned
companies and the role of foreign investment was still limited. The number of fixed-line
telephone subscriptions per 100 inhabitants was 0.4 at that time. GOV started with the
237
liberalization of the telecommunication market in the mid-90’s because the growing economy
created a growing need to expand the telecommunications network. Competition in
telecommunications began in 1999 after VIETL and SAIGON POSTEl (SPT) were officially
permitted to enter the telecommunications business in 1998, in addition to the incumbent Vietnam
Posts and Telecommunications (VNPT). Preparation for opening the telecommunications market
was completed when foreign capital investment through a local entity was allowed in 2000 as an
outcome of the US-Vietnam Bilateral Trade Agreement.
8.2.3 Development of Telecommunications Network to Support the Nation’s
Industrialization (2001-2005)
The Post and Telecommunications Development Strategy prepared in 2001 by GOV set up a
mid-term plan up to 2010 and a long-term plan up to 2020. The strategy paper pointed out the
importance of deregulation in the telecommunications industry to promote market
competitiveness. In conjunction with this strategy, the 7th SEDP (2001-2005) gave prioritized
development of the telecommunications network infrastructure where industrial zones, tourism,
historical and cultural sites were concentrated. The need to improve telecommunications services
was also touched on in the plan. In addition, the Presidential decision no. 246 for ICT
development promulgated in October 2005 stated that ICT should be used in every major
development sector and requested the development of the five areas of e-Citizens, e-Government,
e-Business, e-Transactions, and e-Commerce. One analysis shown in the 8th SEDEP was that
new subscribers for fixed-line telephone subscriptions increased by 11 million between 2001 and
2005 during the implementation of the 7th SEDP.
8.2.4 Improvement in Telecommunications Service and Quality (2006-2010）
From a quantitative standpoint such as expanding telephone lines and increasing the number of
customers, much was achieved during the 7th SEDEP. GOV then started to focus more on
improving the quality of telecommunications services in the 8th SEDEP. It included price
reduction and service as well as policy diversity based on the various customers, and further
touched upon the importance of human resources development in the sector. As for the national
goals for 2010, detailed numerical goals such as 5 fixed-line telephone subscriptions per 100
inhabitants in designated areas, installations of at least one fixed-line telephone in every
commune, and provision of internet service to 70% of all commune were proposed.
8.2.5 Measures to Reduce Disparity between Rural and Urban Areas in
Telecommunications Development (2011-to the present）
As mentioned in the beginning of this chapter, Vietnam had identified the development of the
238
telecommunications sector as an important tool for economic development along with the
nation’s industrialization since the introduction of the Doi Moi policy. As a result, the
development of the telecommunications network in rural areas, specially mountainous and
remote areas, was far behind that of urban areas. The 9th SEDEP emphasized these issues and
declared the achievement of the same level of social and economic development nationwide. It is
also stated that the ODA for the telecommunications sector from overseas should pay careful
attention to regional equality in development projects.
8.3 Collaboration between Vietnam and Japan in Telecommunications
8.3.1 Overview
Japan assisted 10 projects in the telecommunication sector from 1970 to 2013.24 After Japan’s
first ODA loan project “Telephone System at the Saigon Metropolitan Area,” was implemented in
1974, Japanese assistance was not been provided for a while. However, when the Japan’s ODA to
Vietnam resumed in 1992, loan projects and technical cooperation projects were planned in the
telecommunications sector as well.
Japan’s ODA in the telecommunications sector is largely categorized into two groups. One group
is assistance to costal communication systems to meet the increasing demand for oversea trade
and coastal safety. The second group is assistance to develop a telecommunications network to
meet the nationwide need for telecommunications. Since Japan assumed that telecommunication
development would accelerate with the entry of private capital, it focused its assistance in the
field of coastal communications, telecommunications network development in the rural area,
human resources development for operation and maintenance where private sector development
was not be expected at the time GOV stressed the importance of this development in their national
policy.
It should be noted that the proportion of Japan’s ODA in telecommunications development in
Vietnam is not significant in view of the amount of infrastructure investment that VNPT
receives from member countries of the European Union such as France, Sweden, and Italy
through ODA. However, because VNPT tends to invest in urban areas due to a business
perspective, Japan’s ODA, which invests in rural areas is appreciated by VNPT.
24 The breakdown of that is 1 development study, 3 technical cooperation projects , and 5 loan projects. Among 5 loan projects, the loans for North ‒South Submarine Fiber Optic Cable Link Project and Rural Community Internet Use Development Project were terminated because a project cancellation request was submitted by GOV in the end of September 201.
239
8.3.2 Development of the Coastal Communication System (1997-2006)
The role of marine transport in both domestic transportation and international trade is large in
Vietnam, which has a 3,200 km coastline. Thus, ensuring safe and efficient marine transportation
had been an important issue with the gradual increase in the volume of imported and exported
freight. Moreover, the International Maritime Organization (IMO), of which Vietnam was a
member, required its members to introduce the Global Maritime Distress and Safety System
(GMDSS) by February 1999. Vietnam did not possess the facilities to support GMDSS, thus the
country’s measures were inadequate in observing the provisions of the SOLAS convention and
complying with the regulations of the SAR convention (International Convention on Maritime
Search and Rescue).
Due to the above situation, GOJ decided to provide two yen -loan assistance projects to install
radio stations and satellite telecommunications facilities. “Coastal Communication System
Project (1992-2002)” covered the northern part of Vietnam from Mong Cai to Danang and the
“Coastal Communications System Project in Southern Part of Viet Nam (2000-2006)” converted
from Dung Quat to Con Dao. It took approximately 10 years to establish nationwide GMDSS in
Vietnam.
8.3.3 Development of a Telecommunications Network (1998-2004)
During this period of time, Japan provided a wide range of assistance from human resources
development in policy planning to construction of a telecommunications network in areas where
private capital investment was not expected. Firstly, Japan assisted in making a master plan in
telecommunications development with a target year of 2010. At that time, GOV had planned to
expand telephone lines to meet the nation’s demand; however, there was no long-term plan. Thus,
Japan provided “The Viet Nam National Development of Telecommunications Project
(JFY1998-1999)” and helped to prepare a long-term telecommunications development plan
(Master Plan) for 2010. In conjunction with this master plan, Japan also provided technical
cooperation in the project, “The Training Capability Strengthening Project on the Posts and
Telecommunications Training Center No.1 (JFY1999-2003)” to improve the operation and
maintenance skills of trainers at PTTC-1 and update their training equipment. The impact of the
project was expected to be large because PTTC-1 was one of the few training institutions in
Vietnam that offered training in telecommunications technology to engineers from all over the
country.
As for assistance to reduce the disparity between rural and urban areas, “Central Vietnam Rural
Telecommunication (1997-2011)” was implemented through yen loan assistance. The project
provided equipment for the telecommunications network including digital switching system of 77
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hosts with about 120,000 lines and a Wireless Local Loop system, and others to 10 provinces in
central Vietnam where the telecommunications network was lagging. Japan had been focusing on
rural areas to reduce the disparity in the telecommunications network since the late 1990s, while
GOV started to prioritize it in late 2000. Furthermore, Japan had started to implement “North ‒
South Submarine Fiber Optic Cable Link Project” since 2002 to improve the quality of the
telecommunications network.
8.3.4 Support for South-South Cooperation (2005-2012)
Since the telecommunications technology in Vietnam had reached a certain level of development,
JICA supported two South-South cooperation projects implemented by PTTC-1. Those projects
fully utilized the outcome of a project-type technical cooperation in “Training Capability
Strengthening on PTTC-1” from JFY1999 to 2003. One project was “Third Country Training
Course on Telecommunications (JFY2005-2008),” which received trainees from Cambodia, Laos,
and Myanmar three times and helped to improve the engineers’ skills in the operations and
maintenance of the telecommunications network. Another project was “Third Country Training
Project on Internet Protocol & New Generation Network Telecommunications Technology
(2009-2011),” which was a continuation of the former project. Because the telecommunications
network technology developed from a digital network to an Internet Protocol (IP) network, JICA
provided PTTC-1 with new equipment; and PTTC-1 implemented the updated training course to
the trainees from Cambodia, Laos, and Myanmar.
8.4 Contribution of Japan’s ODA to Telecommunications Development
8.4.1 Outcome of Coastal Communication System Development Projects
Both north and south coastal communication systems were developed by Japanese ODA.
According to an interview with VINAMARINE, the coastal communication equipment supplied
under Japanese ODA have been effectively used and are still in use even today. The outcome of
the projects is recognized to be extremely large as described in detail in the ex-post evaluation
reports25. The outcomes identified in the reports are as follows.
(1) Improvement of Search and Rescue Activities
Maritime radio communication and satellite telecommunication were available for use in all
ocean areas in Vietnam after the completion of coastal communication projects in both the north
25 The ex-post evaluations were undertaken in FY2003 for “Costal Communication System Project” was undertaken and FY2011 for “Costal Communication System Project in Southern Part of Viet Nam”.
241
and the south; it was found that communication between ships and the shore and ship-to-ship had
improved. The amount of information and the frequency of information transmission from
VISHIPEL such as navigation warnings, search and rescue information, and weather forecasts
had increased. The number of maritime facilities assisted by the Coastal Radio Station (CRS) had
dramatically increased by more than 10 times from 362 in 2006 to 3,454 in 2007 when
COSPAS-SARSAT Local User Terminal/Mission Control Center at Hai Phong came into full
operation. Likewise, the number of seamen who were assisted by the CRS system also increased
between 2004 and 2007 as shown in Figure 5. Although many factors other than the capacity of
the coastal communication system could be related to the improvement of rescue activities,
Japan’s assistance had contributed to making responses to maritime accidents faster.
(2) Promotion of Shipping and Fishing Industries
Passenger volume, cargo volume, and the number of ships at port had expanded. For example,
cargo volume increased three-fold from 1998 to 2007; and the number of ships increased
four-fold during the same period (figure 8-1). These positive changes were mainly caused by
economic growth and the active development of major commercial ports in Vietnam such as Hai
Phong Port, Cai Lan Port, Da Nang Port, and Saigon Port. The ex-post evaluation concluded that
modernization of the coastal communication system had supported favorable conditions for
investment and development of the maritime sector in Vietnam.
(Source: VINAMARINE) Figure 8-1: Volume of Cargo and Number of Ships at Port in Vietnam (1998-2007)
8.4.2 Outcome of Support for the Building Telecommunications Network
Since the implementation of the National Development of Telecommunications Project from
1998 to 1999 when the Japanese government supported the preparation of the
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
200,000
Port Freight Volume(1,000 tons)
Number of Ships inPort
Completion of Costa l
Communication System Project
Completion of Costal
Communication System Project in Southern part of Vietnam
242
Telecommunications Master Plan, Japan continued to provide technical assistance to develop
human resources to maintain the telecommunications infrastructure and the development of a
telecommunication systems in 10 provinces in central Vietnam through a yen-loan26. As shown in
Figure 8-2, the number of annual registered fixed-line telephone subscriptions in the 10
provinces gradually increased from 1998 when the project started and rose rapidly from 2001,
peaking in 2010. This number decreased from 2010. The reason for the decrease was the
introduction of the mobile phone which was beginning to spread throughout the market.
However, because the monthly charges of the fixed-line telephone were much cheaper than the
mobile phone, the need for fixed-line telephones is still high in rural areas where the average
income is relatively low. Therefore, it was concluded that Japan’s assistance corresponded to the
needs of people living in the rural areas.
(Source: VNPT)
Figure 8-2: The Number of Annual Registered Fixed-line Telephone Subscriptions in 10
Provinces (1998-2012)
Table 8-2 shows the number of registered fixed-line telephone subscriptions per 100 inhabitants,
which is one of the development indicators for the telecommunications network. As discussed in
section 8.2.1, the number of fixed-line telephone subscriptions per 100 inhabitants increased from
3.2 in 2000 to 11.4 in 2012. In a comparison with neighboring countries, the rate was higher than
Thailand in 2004, where the telecommunication system was the most developed among these
countries in 2000. This outcome cannot be attributed to Japan’s contribution alone, however,
based on the comments from VNPT and PTTC-1 in interviews, Japan contributed in the
development of a telecommunications network especially in rural areas. 26 The telecommunications network infrastructure project in 10 provinces consisted of 56 packages, of which Japan provided assistance for 4 packages.
The Law on Universalization of Primary Education (91), 4 Resolution no. 4 of the Central Committee of the Party on “Renovation of education”(93)
The Law on Education (98: systematization of the national education)
Revision of the curriculum in the basic education (primary and secondary education) (00), SEDS in education sector 2001-2010, UN’s MDGs
Amendment of the Law on Education (05: Non formal education, school audit, criteria for establishment of school, promotion of the private university)
The Law on Higher Education (12), the Statement of the central committee of the Party “Renovation of education in “whole area” (12), participation in PISA (OECD)
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5th SEDP (1991-1995)
6th SEDP (1996-2000)
7th SEDP (2001-2005)
8th SEDP (2006-2010)
9th SEDP (2011-2015)
Sector Priorities in SEDP
- Universalize primary education/ eliminate illiteracy -Institutionalize the structure of the national education system -Expand Vocational professional training -Develop higher education system -Increase national budget for education, promote the Socialization of Education
- Develop pre-school education - Universalize primary education in the whole country and lower secondary education in big cities/ eliminate illiteracy, open private school
-Ensure human resources in line with employment structure -Improve the quality of higher education, train elites - Improve Teachers college/labor conditions for teacher(especially in remote area), secure the number of teachers
-Improve teaching & learning methods -Promote the Socialization of Education -Formulate the legislation on education
-Adopt the standpoint that education is the primary national policy - Improve quality of human resources to meet industrialization -Achieve universalization of primary education literacy and pre-school education, universalize lower secondary education -Renovate curriculum in basic education, standardization of the assessment -Scale up vocational professional training -Organize full-time schooling replacing a half day in primary education -Re-arrange higher education system - Promote international relations in the sector - State provides necessary budget for the sector
-Standardization, modernization of education and training, broadening of international cooperation -Develop pre-school education/ universalize primary and lower secondary education in the whole country and upper secondary school where possible -Enhance forms of higher education and professional education -Renovate curricula at university, professional and pre-school education to approach the standard of the region and world -Build the national standardized systems at all school level -Ensure social equity in ethnic-minority and disadvantaged areas.
-Undertake comprehensive reform/ enhance education quality especially university -Renovate educational management personnel and administration
-Implement Human Resource Develop Strategy 2011-2020 -Universalize pre-school, primary and secondary education -Renovate teaching methods and learning result assessment -Enhance high-tech vocational training -Develop independent quality audit system -Ensure social equality in education -Strengthen the socialization in education
Direction of Japan’s ODA
Development of higher education and Construction of primary school facility
Improvement of quality of primary education
Human resource development for industry in higher education
Priority Issues of Japan’s ODA
Human resource development in management and production to promote the market economy, promotion of overseas education
“Development of human resource/ institutions ”(Formulation of
“Promotion of economic growth”(development of Human
Economic growth and strengthening competitive
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5th SEDP (1991-1995)
6th SEDP (1996-2000)
7th SEDP (2001-2005)
8th SEDP (2006-2010)
9th SEDP (2011-2015)
in Japan, construction of school facility, development of curriculum/ personnel affairs for teacher, enhancement of technical vocational training/higher education, decentralization of education administration
higher education),”Improvement of education and health”(facility building, improvement of quality of education)
resource who make contribution to economic growth),”Improvement of life and society”(improvement of quality of primary education and conditions to access school)
grounds (human resource development for advanced industry)
(Source: Prepared by the Study Team)
9.2 Historical Review of Development and Growth in Education and Training
9.2.1 Overview
Owing to Ho Chi Minh’s initiative for the eradication of illiteracy in 1945 and the provision of
primary school facilities during the establishment of the socialism system in 1954, the standard of
universal basic education was quite advanced compared with other countries in the region.
The main issues in the education sector since 1992 have shifted from the expansion of access to
education to improvement of the quality of education. Concretely, the focal policies of the
government moved from constructing school facilities and ensuring full-day schooling to
institutionalizing the improvement of education quality, such as revising curricula and setting
school standards.
The government introduced the Socialization of Education policy as the basis for controlling
public expenditures, under which the learners pay the fee for their education. At the same time,
the government cautiously introduced a market mechanism in the education sector to ensure
equity and equality in access to public education for all in the Socialist state.
In recent Socioeconomic Development Plans (SEDPs), the government has made a strong effort
to improve higher and preschool education.
9.2.2 Universalization and Socialization of Education (1992-2000)
With the Law on the Universalization of Primary Education, the government initiated the
universalization of primary education and the eradication of illiteracy. It was one of the earliest
education projects since Doi Moi was enacted. Figure 9-1 and 9-2 illustrates the transition of the
adult literacy rate and the enrollment rate of primary education. The literacy rate was relatively
high as of the 1980s in Vietnam, it declined in the era of poverty in the early 90s, and then it
recovered. The enrollment rate of primary education has increased steadily toward the 100%
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completion of the net enrollment rate owing to the “socialization of education” as well as donors’
The first major policy change in the sector in the Doi Moi era was that the benefit principle
replaced the principle of free education. The government introduced a mechanism to have citizens
pay the cost for education activities. This policy was called the Socialization of Education.
Nonetheless, the government still tried to secure national budget funds for education because the
Communist party emphasized the significant importance of education; consequently, it secured a
set amount of more than 15% of the total state budget since 2004 and more than 20% in 2011.
The other major change to the sector during the 1990s was to legislate a coherent network of the
laws on education. In 1998, the government issued its first Law on Education, under which all
relevant parts of the national education were regulated into one system. The government
integrated the national education system, which was derailed for so many years due to the war as
well as the reconstruction period that followed. The law contributed efficiently and effectively to
subsequent development projects in the sector.
Note: The gross enrollment rate in 2011 is that of 2010; graduation of 11-year-olds in 2000 is that of 2009.
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(Source: MOF, MOET)
Figure 9-3: Ratio of the Education Sector Budget to the Total State Budget
9.2.3 Revision of the Basic Education Curriculum and Donor Coordination for the
EFA Action Plan (2001-2005)
As the accessibility to schools was favorably improved in the basic education in the lowland, the
government moved into action for the reform towards quality education. As the government had
insisted on embodying curriculum renovation on many other occasions—such as in the 3rd
Education reform in 1979, in the SEDP in the Doi Moi era, and in the Law on Education—the
government could come to embark on it in this period. In 2000, the Diet approved the bill to revise
the curriculum in basic education. Vietnam kicked off a new era in its education policy, and thus
the volume of educational content increased to a large degree. In addition to the existing
competence that centered on cognitive ability, the curriculum also emphasized communication
skills and ability. A shift in teaching methods occurred as well. For example, the curriculum
introduced the child-centered and active teaching approach in place of the conventional approach
of rote learning or the lecture-style method.
The 7th SEDP designated education as the highest priority policy and mentioned some concrete
directions for realizing the Law on Education and the curriculum renovation, namely, the
improvement of primary, lower secondary, upper secondary, and vocational schools.
In line with MDGs in 2000, the government focused on introducing full-day schooling in primary
education to ensure enough learning time for students.
It was the remarkable period that GOV’s policies on education had a close relationship with the
donors’ aid. Prior to legislation of the Law on Education and the new curriculum, the
representative of various government ministries, donors including UNDP, UNESCO, the World
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Bank, and UNICEF, and NGOs set up the Sectorial Aid Coordination Meeting on Education in
1995.
Vietnam formulated the long-term education development plan based on EFA. The government’s
EFA Plan 2001-2013 aimed at achieving both the Dakar Framework for Action and MDGs. The
donors centered on UNESCO assisted the government in making that plan (the expert of Support
Program for Primary Education Development).
In 2002 Vietnam issued the Comprehensive Poverty Reduction and Growth Strategy (CPRGS),
the first Poverty Reduction Strategy Paper (PRSP) in the Asian countries. Consequently, in the
same year, Vietnam was selected one of the 23 counterpart countries for the Education For All -
Fast Track Initiative (EFA FTI) proposed by WB. EFA FTI was an international agreement to help
low-income countries achieve a free, universal basic education. This resulted in the donors in
Vietnam concentrating their project into primary education. It meant that at that time the primary
education in Vietnam became the rare field where the aid harmonization and donor coordination
took place.
One of typical outcomes of FTI in Vietnam was to design the Fundamental School Quality Level
(FSQL) which all school in Vietnam should fulfill. Since 2003 the government and donors led by
WB have jointly implemented some projects on it. With clear school standards FSQL aimed at
making the local government allocate efficient and effective budget for improving favorable
learning condition at school. For example the local government could spend much budget for
teacher training if FSQL indicators revealed low quality of teacher whereas it should purchase
desks and chairs if the indicators showed lack of them.
9.2.4 Reinforcement of the Education System (2006–2010)
Though the Law on Education was put into effect in 1998, teachers as well as education officers at
the local level noted the inconveniences and defects in the implementation of the Law. Such
implementation issues include consistency in the qualifications of students among schools, the
standards of the schools, and the need to enhance the schooling system for adults and ethnic
minorities that the existing system did not cover. The diet amended the Law on Education in 2005
to add new items such as non-formal education, education management systems, and criteria for
establishing schools and evaluation standards for the schools and teachers. Further, four years
later, in 2009, the Law was amended to allow schools, especially universities, to have autonomy.
The Law also arranged the items so that the local government could supervise the management of
the universities. The government clarified the regulation of the establishment of the non-state
universities so as to promote their establishment.
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The 8th SEDP raised the sectorial priority policies, such as the standardization, modernization,
and internationalization of the educational content, to improve the quality of education not only in
basic education but also in all schools and centers in the national education system. Considering
primary education was the priority until that time, the government seemed to shift its central
concerns to higher education and human resource development for industry and preschool
education. Regarding primary education, which mostly succeeded in universalization, the
government proceeded with the legislation of school and teacher standards, the evaluation criteria
for teachers together with the FSQL project.
In basic education, standardized criteria for school and teacher evaluation were developed based
on Fundamental School Quality Levels (FSQL) projects; some outcomes such as the Teacher
Evaluation Method .2were legislated.
Toward the equity of education, the government brought forth some measures to ensure better
learning environments for ethnic minorities, who were called “the last 5% of the population,” in
the mountainous regions.
9.2.5 The Comprehensive Education Reform (2011- )
Despite amendments to the Law, which was publicized in many newspaper articles, people still
complained about the delay in education reform; they voiced concern, for example, about human
resources development suitable for the coming era and that Vietnam was moving toward a
modern industry and needed to keep up with international competition due to the accession to
WTO. MOET in 2010 decided to join the PISA (Programme for International Student
Assessment) and then participated in the program in 2012. A total of 5,100 students attended the
program as sample students. Currently, the government is eagerly awaiting the results. While so
far Vietnam has dispatched a few elite students to the International Academic Olympiad for math
and physics, it now joins the PISA, which targets students’ math proficiency. It was an
epoch-making event that Vietnam assumed responsibility for the academic achievement of all
students.
In 2012, the statement “Education reform in the whole area” by the Party Central Committee
pushed further efforts for education development and called for the provision of educational
opportunity for all and improvement of the quality of education. The Party summarized that the
provision of educational opportunity and development of the education system were improved,
whereas the three dimensions of education reform—the equity of education, administration of
education, and teacher training—have lagged behind since the Party’s decision on the new
strategy in the education sector in 2006. The 9th SEDP and SEDS 2011–2020 emphasized major
measures such as human resources development in modern industry, renovation of education
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administration (to regulate and respect the local organization’s discretion in education practices),
arrangement of educational expenditure (to promote the Socialization of Education), equity of
education, and modernization of the basic education curriculum (in preparation for a curriculum
revision in 2015) to contribute to the government’s overall goal: “Vietnam will become a modern,
industrialized country by 2020.”
As the establishment of university was promoted in the 2000s, the number of universities spiked
(Figure 9-4). As a result, the administrative management could not respond to the emergent issues.
Some universities were not successful procuring teachers; others fell behind in curriculum
development or could not sufficiently prepare for the employment placement of graduated
students. Consequently, universities went bankrupt27 (Sống mới xã hội, 2012). In 2012, the Diet
approved the Law on Higher Education, which directed critical change in some administrative
regulations such as expanding university autonomy to handle personnel and the schools’
curriculum development (i.e., the liberalization of education input) and developing the university
assessment system based on an evaluation of the students’ actual academic achievement.
(Source: GSO)
Figure 9-4: Number of Universities and University Students in Vietnam
In primary education, the government has continuously made an effort to improve the quality of
education (Colum 9-3). The School Education Quality Assurance Programme (SEQAP) for
helping children in disadvantaged areas, including ethnic minority areas, to have full-day
schooling and the Vietnam Escuela Nueva (VNEN; “Vietnam New School”) project are under
27 Sống Mới xã hội, 'Hungry for Students - universities running into financial difficulty '(Đại học tư thục nguy cơ phá sản vì “đói” sinh viên）, November 8 2012 (http://songmoi.vn/xa-hoi-giao-duc/dai-hoc-tu-thuc-nguy-co-pha-san-vi-%E2%80%9Cdoi%E2%80%9D-sinh-vien)
257
implementation. The World Bank (WB) funds both projects.
9.2.6 Achievement of MDGs in the Education Sector
Regarding MDG (Millennium Development Goal) 2, achieving universal primary education,
Vietnam has almost reached goal 2. The net enrollment in primary education was 97% and the
primary school completion rate was 88.5% in 2009. The difference between boys and girls in
primary school net enrollment rates was as little as 1%.
Table 9-2: Progress in Achieving MDGs in the Education Sector in Vietnam
Net enrollment rate in primary education 87% 95% 97%(2009)
Primary school completion rate 85.6% 88.5%(2009)
Net enrollment rate in lower secondary education 81% 83.1%(2009)
MDG 3: Promote gender equality and empower women
Percentage of school girls at primary school 47.7%
(1998)
47.7% 47.9%(2009)
Percentage of school girls at lower secondary school 47%
(1998)
47.9% 48.5%(2009)
Percentage of school girls at upper secondary school 46.4%
(1998)
48.9% 52.6%(2009)
(Source: MPI. 2010. Millennium Development Goals 2010 National Report; Vietnam 2/3 of the way achieving the Millennium Development Goals and toward 2015)
9.3 Japan’s ODA in the Education and Training Sector
9.3.1 Overview
Japan’s ODA project in the sector originated in JFY1970 with the Project for the Faculty of
Agriculture of Can Tho University in the era of the Republic of Vietnam regime. Since the
resumption of Japan’s ODA, there have been three major domains in Japan’s cooperation in the
education sector in Vietnam. The first one is strengthening the capacity of higher education in
agriculture, the second is cooperation in primary education, and the third is human resource
development in modern industry.
The first Japan’s ODA project since its resumption was implemented to develop the capacity for
education and research activity among the faculty of Can Tho University. The Education and
Research Capability Building Project of Hanoi Agricultural University was subsequently
implemented. These two projects could be considered part of the stream of Japan’s cooperation
for capacity building in agricultural universities.
The support for primary education began in JFY1994. Japan began the ODA project with the
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Photo 9-1: School facility that was built by Japan’s ODA in Ha Giang province
(Photo: Plan Japan）
provision of primary school facilities and then shifted its objective toward the development of
primary education institutions in accordance with the revisions to the primary school curriculum
in 2000.
In JFY2000, JICA launched the first of a series of projects for fostering technicians in engineering
at Hanoi Industrial College to contribute towards industrialization. Soon after, technical
cooperation projects for engineering universities in Hanoi and Ho Chi Minh City, and then a
program of overseas study in Japan for civil servants, were implemented. These projects were
grouped and positioned as projects for human resource development in modern industry.
9.3.2 Support for Higher Education and the Construction of Primary Schools (1970–
2000)
Under the Republic of Vietnam regime, Japan
provided technical cooperation for the faculty of
agriculture of Can Tho University beginning in
JFY1970. Nine long-term experts and four
short-term experts were dispatched in six years.
The first project after the resumption of Japan’s
ODA was also implemented at Can Tho
University. The project aimed at enhancing the
quality of higher education to contribute to
industrial development in the Mekong Delta
region.
The report Study on the County Assistance Programme (JICA 1995) and the County Assistance
Programme (JICA 2000) incorporated some needs: human resource development in the area of
management and production to ensure the shift to a market-oriented economy; provision of school
facilities; and support for revising the basic education curriculum. To meet these policy needs,
Japan began “The Project for the Improvement of the Facilities of Primary Schools” with the
construction of school buildings in JFY1994. Table 10-2 illustrates the total number of schools
that Japan provided the funds to build, including the grant project “The Project for the
Improvement of the Facilities of Primary Schools in the Northern Mountain Region” in the 2000s.
Up to 2006, 275 schools were built in 25 of 64 cities/provinces, equivalent to 4% of the total
number of schools in the 24 target cities/provinces.
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The WB project “Primary Education Project (1994–2002)” built a total of 7,50028 classrooms in
36 cities/provinces that did not duplicate Japan’s ODA target. At that time, since the enrollment
rate in primary education had rapidly improved, there was a severe shortage of classrooms. Grants
from Japan made a certain contribution to that situation.
Table 9-3 The Number of Schools Built by Japan’s ODA
(Note: The numbers in parentheses are the total numbers of schools in the target cities/provinces.) (Source: MOET, GSO）
The Education and Research Capability Building Project of Hanoi Agricultural University, which
was implemented in the late 1990s, fostered human resources who could lead the market-oriented
policy and agricultural research projects as well as directly instruct farmers to improve production
in the agricultural sector.
9.3.3 Improving the Quality of Primary Education (2001-2005)
Owing to the Law on Education, the revision of the basic education curriculum, SEDS 2001–2010,
etc., the institutional environment for educational development was greatly improved. Because
the donor coordination in the sector received much attention from prospective donors, the JICA
28 Although the Study team could not obtain the data on the number of schools built through the WB fund, it is equivalent to 800–850 schools by applying the average number of classrooms per school built via the Japan fund.
Phase 1 in 1994 Phase 4-1 1997 Phase 1-1 in 2000Thai Binh 8 (294) Da Nang 2 (98) Lai Chau 11 (100)
Nam Ha 13 (431) Quang Nam 12 (266) Ha Giang 10 (146)
Total 275 (6903)(Ratio: the granted buildings per the total buildings in the target cities/provinces) 3.98%
Project for Improvement ofFacilities of Primary Schools inthe Northern Mountain Region
Project for the Improvement of the Facilities ofPrimary Schools
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Development Study Support Program for Primary Education Development was implemented.
The study played an introductory role in coordinating international education development
between the government and donors. The study developed the international cooperation map in
order to position respective donors’ activities. As a result, the study contributed to make a
blueprint in the primary education sector in the “National EFA Action Plan 2003–2015” led by the
government and UNESCO. UNESCO, however, was assisting the government in issuing the EFA
National Plan, and WB launched a project to develop an FSQL project based on the Fast Track
Initiative in which many other donors had decided to participate. Hence, the development study’s
actual function was undermined. JICA launched in 2004 the Project for Strengthening
Cluster-Based Teacher Training and School Management in order to support focusing on the
teacher education system rather than the entire area of primary education.
In the northern mountainous region, WB, the Belgian Development Agency (BTC), AusAID, and
JICA jointly coordinated their respective primary education projects. WB ran the FSQL project
and the “Primary Teacher Development Project” that covered development of teacher
qualification/evaluation criteria and implementation of teacher training. Belgium implemented
teacher training in the wide-ranging the northern mountainous region (Project for Pre-service
Teacher Training in 7 Northern Mountain Provinces and Support for Remote Training for Local
Teachers in Five Disadvantaged Province), AusAID developed materials for teachers to
implement child-centered education (Basic Education for Ethnic Minority Children), and
UNICEF mobilized the Movement for the Friendly School.
Regarding MDGs, although the enrollment rates in primary education were quite high in the
lowlands, those in the rural areas, especially in the northern mountainous region, were still not
favorable; there was still the need for a better learning environment in the region. As part of the
succession of projects in the 1990s, the Grant Project for the Improvement of Primary School
Facilities Schools in the northern mountainous region (phases 1 and 2) constructed school
buildings in the mountainous regions.
9.3.4 Human Resource Development in Higher Education (2006-)
The Country Assistance Programme 2004 and 2009 placed its education sector focus on “Human
resource development to support growth.” On another front, support for basic education
disappeared in the 2009 program after Vietnam successfully achieved the sector’s MDGs (Figure
9-2).
In order to develop human resources in administration and legislation offices, the Project for
Human Resource Development Scholarship, which provides overseas study in Japan for civil
servants and junior leaders, began in JFY2001. This ongoing project was launched as part of the
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“Project for welcoming 100,000 students from overseas” implemented by the Japanese
government. Competent young officers from Asian countries that face reform in a
market-oriented economy study in the graduate course in Japan. The purpose of the project is 1) to
provide the opportunity to study in Japan so that participants can contribute to solving problems
in Vietnamese society after their overseas study and 2) to deepen mutual understanding and
friendship between the two countries. Originally, the program targeted candidates from private
companies; since JFY2007, it has been limited to civil servants. The number of foreign students
from Vietnam so far has reached 394 persons. The Japanese universities that received the most
number of Vietnamese students are Kyushu University, International University of Japan, Waseda
University, Nagoya University, and Hitotsubashi University. The government of Australia has
offered scholarship program such as the Australian Awards Scholarship, Australia Development
Scholarship, and Australia Leadership Award as the government's development assistant for more
than 3,300 students29 for more than 35 years. According to the Australia - Vietnam Joint Aid
Program Strategy 2010-2015, they are going to offer scholarship for 1,680 students up to 2015.
JICA provided smaller scale of scholarship than that of AusAID.
The Asian currency crisis alerted ASEAN countries to the needs of human resources development
in engineering that reinforce the modern industry. ASEAN and Japan began their collaborative
project, “ASEAN University Network/Southeast Asia Engineering Education Development
Network SEED-Net,” which aimed to improve the quality of university teachers and the
curriculum of graduate courses. Since it was consistent with GOV policy of industrialization,
Hanoi University of Technology and Ho Chi Minh City University of Technology took part in the
project30. During phase 1 and 2 (JFY2001-2011), 125 scholarship students from both the two
universities succeeded to take master degree and so 96 students did doctor degree in total. The
receiving universities in Japan were those such as Chulalongkom University, ITB (Institut
Teknologi Bandung, Indonesia), DLSU (De La Salle University) in ASEAN countries, and Tokyo
Institute of Technology, The University of Tokyo, Hokkaido University.
The other projects were also implemented in the above two universities in JFY2006. In order to
foster human resources in engineering, there were two technical cooperation projects for capacity
development in technology universities in Hanoi and Ho Chi Minh City in JFY2006. The project
to strengthen the capacity of ITSS education at the Hanoi University of Technology aimed at
enhancing capacity in ICT education31. The project Capacity Building of Ho Chi Minh City
University of Technology to Strengthen University- Community Linkage aimed at activating
29 It shows the numbers of the alumni members, there seems to be more scholarship recipients. 30 See the Chapter 4 for detail information of this project as HRD in the advanced industry 31 ditto.
262
research and education so that the university could assist the local community in providing
technological solutions through consistent cooperation with the local government (Colum 9-1).
Since JFY2011, the Project for Strengthening Tay Bac University for the Sustainable Rural
Development of the Northwest Region, where the need for industrial development is critical, is
now under implementation. The purpose of the project is, as with the project at HCM City
University of Technology, to foster human resources who will be able to contribute to local
industry through higher education.
To meet the demand for high-quality technicians for modern industry in Vietnam, JICA
implemented the Project for Strengthening Training Capability for Technical Workers at Hanoi
Industrial College32 in JFY2000, the Project for Human Resource Development of Technicians at
Hanoi University of Industry33 (the school was renamed and upgraded from a college to a
university after the reorganization of government ministries) in JFY2009, and . the Project for
strengthening TOT functions at Hanoi University of Industry in JFY201334. As described in
Chapter 4, the total amount of FDI has jumped sharply since 2006, resulting in low numbers of
industrial workers in the industrial complexes in the Red River Delta. These projects responded to
the demands of human resources development in the supporting industry. Since 2005 the numbers
of graduates from the faculties that JICA supported through these projects have reached more than
5,000 in the short-term courses, more than 3,600 in the long-term courses.
32 See Chapter 5 for detailed information on this project as HRD for the market-oriented economy 33 See Chapter 5 for detailed information on this project as HRD in management 34 Ibid.
263
Column 9-1: A Graduate of the Project for Human Resources Development Scholarship
(Interview with Mr. Chu Trung Dung (the Supreme People’s Court of Vietnam)
I graduated from a university in
Vietnam and then began to work for
the Institute of Scientific Justice of
Vietnam. I went through a foreign
study program in Australia for two
years. I had the opportunity to
participate in a working group for
establishing the first Civil Code in
Vietnam in 2000. I received the
scholarship of this JICA project to
take a graduate course in the
Department of Law at Nagoya
University. Coming back to Vietnam,
I was appointed as the deputy director,
my current position, of the International Cooperation Department.
In Japan, I majored in Comparative Law. It was an interesting day for me to get to know the rules
of the trial in the courts of various countries. I learned that there was no consistent procedure for
collecting evidence for trials in Vietnam, for instance, to collect evidence from large
establishments such as state-owned enterprises. I also learned about rights according to the Law,
and that Vietnam did not have the conditions necessary for guaranteeing rights. Concretely,
though the Constitution of Vietnam mentioned the rights, there was no clear idea of who
can/cannot do, what must/must not be done so that the rights are guaranteed. The rights can never
be guaranteed if the stakeholders do not cooperate with each other over the realization of the
rights. This is just one example of what I learned in Japan.
I have a request for JICA’s human resources development project. Honestly speaking, there is a
huge need for human resources development in Vietnam—I am sure of it. We need to expand the
opportunity for learning not only to school-age children but also to adults and professionals.
Though I have experienced learning abroad, I feel I need to learn more right now, on a consistent
basis, to improve our everyday professional work. In contemporary society, knowledge can
quickly become outdated. Japan acquires the know-how to replace outdated knowledge with
newer knowledge. They understand how to complete themselves. There is the need for such a
dynamic learning system but not exclusively for the JICA program. International cooperation
would be crucial in creating such a system. I remember that when I faced aporia with a particular
Photo 9-2: Graduated student of Project for Human Resource Development Scholarship Left: Mr. Chu Trung Dung (Supreme People’s Court of Vietnam), Right: The Supreme People’s Court of Vietnam
264
issue my teacher suggested some different approaches. The library and reference rooms in Japan
provided me with enough material. I hope Vietnam can provide professionals with a good
learning environment.
9.4 Contribution of Japan’s ODA to the Education and Training Development
(1) Contribution to basic education
JICA implemented three projects in primary education in Vietnam. In the grant project, Japan
offered the building of primary schools that can withstand severe natural disasters such as storms
and floods in the Central Coast region. People allegedly flee to the school during huge floods
caused by the storms (MOFA, 2005). In the Support Program for Primary Education
Development, JICA served as the “gateway” for other donors so that JICA could start their
international cooperation in the sector (JICA project expert). In the Project for Strengthening
Cluster-based Teacher Training and School Management, JICA proposed a model of school-based
teacher training to replace the conventional lecture-style teacher training (Column 9-3).
(2) Contribution to human resource development in modern industry
Japan’s assistance has concentrated on human resource development in modern industry since the
late 2000s. The policy of “Human resources development to support growth” as the focal point of
the Country Assistance Programme has made a certain contribution to the development of
industry in Vietnam. This contribution of Japanese assistance has two different directions. The
first approach was direct training in specific and practical techniques and skills that are required
for industry, such as export-oriented fabrication and supporting industry in the industry
complexes (for more details, refer to Chapter 5). The second approach was the indirect
development of the generation forging the future of industrial society through the improvement of
higher education. Concretely, there were projects that enriched research and education at Can Tho
University, Hanoi University of Agriculture, Hanoi and Ho Chi Minh City University of
Technology. Ho Chi Minh City University of Technology, in particular, proceeded with the reform
both in research and education activities and accumulated good practices prior to the Doi Moi
reform policies of higher education (formulation of the Law on Higher Education in 2012).
Compared with that of other donors, Japan’s assistance in the education sector did not intervene in
the institutional development of the education system, such as the institutionalization of higher
education or the revision of the primary education curriculum. Japan’s approach may have taken
on the character of professional and technical training.
265
Two projects can be highlighted as demonstrating good practices; one is the Capacity Building of
Ho Chi Minh City University of Technology to Strengthen University-Community Linkage and
the other is the Project for Strengthening Cluster-Based Teacher Training and School
Management. The former showed successful results in the reform of university management,
whereas the latter had an impact on the numbers of teachers in basic education in many provinces.
Although both projects have already been completed, further positive impact is expected.
Column 9-2: Towards Doi Moi (Renovation) of Higher Education
-The Capacity Building of Ho Chi Minh City University of Technology to Strengthen
University- Community Linkage (2006-2012)
The purpose of the project was for Ho Chi Minh City University of Technology (hereinafter
described as HCMCUT), the most renowned of the universities in the southern region, to enhance
the capacity of research and education as well as of develop projects that respond to the needs in
rural areas and to transfer engineering technology to the resource persons who are responsible for
rural development in these areas.
One of the outcomes of this project was the establishment of a collaboration model between
industry and university. HCMCUT developed the procedures and protocols of the collaborative
working model between local organizations (people’s committees, local enterprises, labor unions,
and so on), and universities were established. As a result, HCMCUT founded and developed 40
research themes during phases 1 and 2. The prototype machines were developed and
manufactured, and they are currently in use in production at local communities (Figure 9-5).
Table 9-3 shows the above research themes and the number of students’ dissertations that were
published in scientific journals. In the process of the project, HCMCUT played an important role
in terms of screening the research themes, manufacturing the machine, and transferring technical
knowledge and skills for the local agents.
The other outcome was the improvement of the environment of research activities at the
university. As shown in the table below, the model students in the project actively proposed their
research papers to journals. Through the application of the collaborative research themes, the
educational curriculum model for undergraduate and graduate students (education centered in
research projects) was established. Moreover, the university also improved the evaluation system
for teachers so that the teachers who took patents would be valued in the evaluation.
266
Table 9-4: Collaborative Research Themes and Number of Model Students’ Research Papers
(Source: JICA, 2012)
Aiming to become an industrialized country by 2020, Vietnam has the pressing problem of
strengthening the capacity of universities to form the basis of R&D. Moreover, because of the
rapid increase in the number of universities (Figure 9-3), universities have insufficient facilities
and equipment, a lack of teachers, and a vulnerable management plan. The quality of education
and low scores on students’ entrance examinations have become an object of public concern
(Vietnam Television Corporation News, 2013). As shown in figure 9-6, there are still many
university teachers whose academic qualifications are bachelor’s degrees from whole universities.
“The universities in Vietnam are not universities that can conduct research” (Teacher of
HCMCUT).
For this project, HCMCUT created a new research model that surpassed other universities by
gradually recruiting young researchers who had studied abroad and building a community of
researchers. According to the vice rector of the university, the number of teaching staff who
qualified for PhDs has risen since the completion of the project. More researchers at the university
will contribute to the development of local industries in the future.
(Source: GSO, HCMCUT）* Data in HCMCUT in 2011 is that of in 2013)
Figure 9-5: Academic Qualifications of University Teacher (2006, 2011)
Column 9-3: The Training Model that Changes Classrooms
-Project for Strengthening Cluster-Based Teacher Training and School Management
(2004–2007)
Photo 9-3: A session of lesson study in Bac Giang province (left: an open class, right: students are learning science. Teachers develop their professional competence through observation of when, what and how student learns.)
To contribute to the implementation of a new curriculum in primary schools (2002), the JICA
project for Strengthening Cluster-Based Teacher Training and School Management began in a
pilot province (Bac Giang province) in JFY2004. Bac Giang province favorably accepted the
lesson study model, which the project introduced as the school-based teacher training. Yet,
MOET did not disseminate the JICA teacher-training model, which was the overall goal of the
project. Hence, the final evaluation and the post-evaluation study concluded that the project was
problematic in terms of its objectives.
Contrary to the conclusion, since 2012 MOET has suddenly begun paying attention to the lesson
study model. The vice minister visited the lesson study session in Bac Giang province; MOET
subsequently introduced it as a teacher training component of SEQAP (WB’s project for
supporting full-day schooling). Further, MOET invited some officers in Bac Giang province as
lecturers to implement the training course on lesson study in 36 provinces in the summer of 2013.
Teachers showed considerable effort in Bac Giang, behind MOET’s attention to the lesson study.
Nonetheless, why did the lesson study in Bac Giang draw MOET’s interest?
As Professor Son (Institute of Curriculum Development at Hanoi University of Education)
explained, the curriculum reform in 2012 was just an initial trial to improve the quality of primary
education. Vietnam will prepare the next curriculum in 2015. The reform of education quality will
enter its key stage. The VNEN project (aiming to establish the new school) is bold enough to
develop the coming textbook referring to the model of curriculum in Colombia. The government
ran the national project on teacher reform since around 2010. MOET needed an effective
268
teacher-training model and thus began to seek it. The JICA-Bac Giang model is a proposal that
focuses on the observation of learning as students do. It is so easy to understand that teachers are
accepting it favorably.
The Director of Education Division of Save the Children Vietnam account for the introduction of
the lesson study in schools in their project area since 2010; teachers can think, for the first time in
their career, about whether their teaching activities really bring about students’ learning by getting
to know the lesson study. They think only about finishing the contents of the textbook because
they are afraid of teacher evaluations. Observing students’ learning is a typical duty of teachers,
yet it is new and interesting. Save the Children and Plan Vietnam have implemented the lesson
study in 13 provinces altogether.
A former working group member of the JICA Bac Giang project expects future plans of the
Department of Education and Training of Bac Giang; we want to propose the new teacher training
system by utilizing the lesson study. We are focusing on the reform of the excellent teacher
examination. So far, we have examined them by the paper score in the respective subject. We want
to add to the examination by expressing students’ learning in a real video clip of a lesson. Easily,
we will ascertain what is missing in the candidate teacher’s competence. Vietnam is where we
want to try it first.
In 2007, there was only one province (Bac Giang Province) using the JICA training model. As of
2013, 13 provinces have introduced the lesson study model through NGOs, and 36 provinces have
received training in lesson study by MOET. The dissemination of the lesson study indicates that
Japanese teachers’ practice creating learning at the classroom level is gradually being accepted by
Vietnamese teachers.
9.5 Features of Japan’s ODA and Lessons Learned from the Past Collaboration in
Education and Training
As described in the following two projects, learning from each other is sometimes a fifty-fifty
relationship, while other times it is similar to an apprenticeship between Vietnamese and Japanese
key persons concerned with specific issues in their practice. It is the very feature of Japan’s
technical cooperation project and key point to bear sustainable outcomes.
(1) Primary Education
The former high-ranking officer of MOET, who held both positions of vice director and director
of the Department of Primary Education, was impressed by Japan’s ODA projects building school
facilities via the grant and promoting the lesson study in Bac Giang province. The current vice
269
director of the department was also impressed by these two projects. The impact of building
school facilities in the early days, since resuming Japan’s ODA, is still retained in the concerned
people’s memory.
Regarding the Project for Strengthening Cluster-based Teacher Training and School Management,
the concerned people in the sector only remember the introduction of the lesson study, though the
project provided them with a set of training manuals for teachers, principals, and education
administration officers. It is noteworthy that teachers recognized the observation and reflection of
students’ learning in a live classroom as a more useful training method than an off-the-job training
course away from the classroom. It indicates the limitation of effectiveness in the training course
with the knowledge transfer style. It also suggests that the training consisting of discussions about
specific and the lived educational phenomena between Japanese experts and teachers in schools is
effective.
(2) Higher Education
It is notable that the ASEAN University Network/Southeast Asia Engineering Education
Development Network and the Capacity Building of Ho Chi Minh City University of Technology
to Strengthen University-Community Linkage created a synergism. Leaders of HCMCUT created
a cooperative relationship with Japanese university teachers by engaging in the former project.
This relationship functioned as synergy in the latter project.
270
Project for Human Resource Development of Technicians at Hanoi University of Industry (09-12)
Loan in the Whole Country:
Higher Education Development Support Project on ICT (06-14)
Technical Coperation in the Whole County:
ASEAN University Network/Southeast Asia Engineering Education Development Network SEED-Net (phase 1) (02-17)
Capacity Building of Ho Chi Minh City University of Technology to Strengthen University-Community Linkage (05-12)
Development Study in the Whole Country:
Support Program for Primary Education Development (01-03)
Project for Strengthening Cluster-based Teacher Training and School Management (04-07)
Project for Strengthening of Tay Bac University for Sustainable Rural Development of the Northwest Region (10-13)
Education and Research Capability Building Project of Hanoi Agricultural University (98-04)
Project on strengthening the capacity of ITSS education at Hanoi University of Technology phase 1,2 (06-11)
Project for the Faculty of Agriculture of Can Tho University (69-75)
Improvement of Environmental Education in Agricultural Sciences in Can Tho University (99-01)
Development Study
Technical Cooperation
Loan
Grant
Grant in the Whole Country:
Project for Human Resource Development Scholarship (00-16)
Project for the Improvement of the Facilities of Primary Schools Phase 1, 2, 3, 4 (94-98)
Project for the Improvement of the Facilities and Equipment of the Faculty of Agriculture, Can Tho University (94-98)
Project for the Improvement of the Facilities of Primary Schools Phase 1, 2 (03-06)
Figure 9-6: Project Sites in the Education and Training Sector in Vietnam
271
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273
CHAPTER 10: HEALTH CARE AND SOCIAL SECURITY
10.1 20-year Partnership at a Glance in Education and Training
Continuous wars until 1980 as well as the economic crisis in 1980s caused Vietnamese national
health system to deteriorate both in physical infrastructure and personnel, operational
management of the health organizations. After introduction of Doi Moi policies GOV has put
attention to urgent problems and implemented timely countermeasures such as the infectious
disease control, promotion of maternal and child health, emerging communicable diseases (SARS
and avian flu), protection from non-communicable diseases and injury by traffic accidents and so
forth. Japan's ODA began with the support for the central level core hospitals and a project on
maternal and child health, then evolved around human resource development as well as
high-technology transfer in communicable disease control towards the correction of disparity in
heals service provision.
The 20-year partnership for the growth and development in the area of the Education and Training
in Vietnam can be summarized, with the historical background and the periodical priority
development issues, as in the table below:
Table 10-1: Summary of Partnership for Health Care and Social Security Sector
Development
5th SEDP (1991-1995)
6th SEDP (1996-2000)
7th SEDP (2001-2005)
8th SEDP (2006-2010)
9th SEDP (2011-2015)
Background Topics
・Paris Peace Agreements on Cambodia Conflict(1991) ・Resumption of Japan’s ODA（1992）
・Restoration of Vietnam-US diplomatic relations（1995）・Formal entry into ASEAN (1995) ・Asian Currency Crisis（1997）
-Improve health indicators for people -Provide all people with basic medical
-Improve health standard for people -Build up a model of
274
5th SEDP (1991-1995)
6th SEDP (1996-2000)
7th SEDP (2001-2005)
8th SEDP (2006-2010)
9th SEDP (2011-2015)
system (especially the commune health station) - Control infectious and parasitic disease, malaria, HIV/AIDS - Promote maternal and child health
- Ensure the pharmacy’s demands are met
- Improve medical equipment
- Develop health insurance - Train health personnel
- Expand international cooperation in the health sector - Reduce population growth and propaganda of population policy
-Implement population strategies, reduce the 3rd birth in a family- Reduce malnutrition rate among children <5 -Reduce communicable disease/ expand injection prog.; control HIV/AIDS -Improve health care service; ensure the pharmacy’s demands are met -Mobilize capital from people and other sectors - All communes have a health station - Diversify health insurance
-Improve health indicators for people, prevent non communicable disease -Strengthen the average longevity -Emphasize maternal child healthcare -Prevent adult diseases -Improve equity in accessing healthcare -Develop pharmaceutical industry
service and access to quality medical services; improve public health care at the grassroots level in infrastructure and staff - Improve people’s health care system and capacity to detect and control epidemics, especially HIV/AIDS and emerging diseases; improve preventive medicine -Build and upgrade general hospitals in the province and district - Develop the pharmaceutical industry and domestic production - Renovate medical financial policies; correct self-pay policy; promote participation of non-public medical system
-Control population growth - Complete system of medical legislation -Develop medical staff in terms of professional skills, responsibilities, and ethics
population management; establish demographic statistics -Promote preventive health care -Continue improving the health service organizations, develop health related human resources -Foster socialization of medical services through participation of private medical organizations - Promote international cooperation -Improving the system of law on health services -Develop the medical supply industry
Direction of Japan’s ODA
Assistance for reconstruction
Strengthening capacity of the core hospital, improvement of maternal child health
Improvement of PHC, strengthening capacity of local hospital
Human resource development in medical service through the top referral hospitals, development of dissemination models
Counter measures against vulnerability of the society
275
5th SEDP (1991-1995)
6th SEDP (1996-2000)
7th SEDP (2001-2005)
8th SEDP (2006-2010)
9th SEDP (2011-2015)
Priority Issues of Japan’s ODA
Measures for diseases at the high morbidity and death rates, promotion of PHC
Improvement of medical service system (promotion of PHC, improving medical service in the urban, cooperation for the global magnitude issues such as Polio, family planning, HIV/AIDS)
Donor coordination, establishment of referral system, improvement of facility/ equipment of national and provincial organization, human resource development, hospital management, policy planning, improvement of reproductive health
Improvement of the basic social service (policy planning and capacity development on human resource development at MOH and the core organization, strengthening medical service system in local hospital through the dissemination model, improvement of facility and equipment at the central and local medical organization
(Source: Prepared by the Study Team)
10.2 Historical Review of Development and Growth in Health
10.2.1 Overview
The issues in the health sector have undergone a big shift in the past 20 years. Figures 10-1 and
10-2 show the changes in the ratios of death and morbidity in three disease categories, and Figure
10-3 shows the changes in the numbers of deaths per 100,000 people by cause of death. These
figures indicate 1) that general communicable and perinatal diseases have tended to decrease
whereas non-communicable diseases, namely the adult diseases, have in contrast tended to
increase, 2) that patient trauma from traffic accidents increased sharply in the 2000s, and 3) that
death from HIV/AIDS and other bacterial infectious diseases has emerged since the middle of the
2000s. These features may represent that the main tasks of the health sector have shifted from the
so-called improvement of primary health, such as maternal and child health, preventive medicine,
and primary health indicators, to the reinforcement of the medical service system, such as
improvement of the facilities and equipment in hospitals and human resources development in the
sector.
Moving to the reinforcement of the medical service system, it will be critical to correct disparities
in access to medical services. Only a limited number of people can receive high-quality medical
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service at a few central or provincial hospitals. Since more and more people desire quality
medical service the enhancement of the medical service network is taking on importance. The
network of quality medical service needs to be enhanced.
The correction of disparities in the health sector includes the provision of consistent health
services for the ethnic minority people in the mountainous region. It is important for Vietnam to
secure good health for the minorities as it prepares to become a more developed country.
(Source: MOH) (Source: MOH)
Figure 10-1: The Trend of the Ratios of
Death in Three Disease Categories
Figure 10-2: The Trend of the Ratios of
Morbidity in Three Disease Categories
(Source: Vietnam Medical Information, MOH as modified by study team)
Figure 10-3: The Changes in the Numbers of Deaths per 100,000 People by Cause of Death
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10.2.2 Preventing Communicable Disease with Primary Health Care and Improving
Maternal and Child Health (-2000)
Vietnam early established a primitive referral system among the commune health stations, the
district hospitals, and the provincial hospitals. Figure 10-4 shows the current health
administration system in Vietnam. In particular, the network between the commune health station
and the village health workers was already functional in the war era. Yet this health administration
system from the grassroots to the central level deteriorated during the war and the planned
economy (Ministry of Health and Health Partnership Group, 2007).
(Source: Ministry of Health, Health Partnership Group, Joint Annual Health Review 2007)
Figure 10-4: Health Administration System
The 5th SEDP, the 6th SEDP, and SEDS 1996–2000 directed the health sector more toward goals
such as providing people with primary health care, promotion of preventive medicine,
improvement of maternal and child health, prevention of communicable diseases, promoting a
population control policy.
With respect to infectious diseases, as Table 10-2 illustrates, there were a large number of patients
suffering from pulmonary problems, alimentary diseases, and protozoan infections. The
challenge of the government right after the Doi Moi policy in the sector was to control these
(Source: Central Institute for Medical Science Information of MOH)
Regarding the essential indicators of maternal and child health, Figure 10-5 shows the infant
mortality rate and maternal mortality rate. From 1994 to 1999, both indicators made
improvements; then, since 2000, these indicators were improved to a large degree. In Table 10-1,
the number of women who terminated their pregnancy is counted as the disease for a matter of
statistical convenience. Statistics suggest that the actual population control method in the 90s
relied on abortion. There were 138 live births (100,000 babies) in 1999, which indicates the
number of 161 abortions (100,000 cases) was large. Needed at that time was education on
reproductive health so that couples did not choose unintended pregnancy rather than artificial
termination.
(Source: MOH)
Figure 10-5: Trends in Maternal and Child Health Indicators
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10.2.3 Improvement Health Indicators and Donor Coordination (2001-2005)
In line with the MDGs, the comprehensive objectives were established for social and cultural
sector development (including health sector development) in the 7th SEDP and in SEDS 2001–
2010. In addition to the existing tasks—for example, controlling the birth rate, promoting
preventive medicine, and improving maternal and child health—new objectives, such as
promoting reproductive health (the first appearance in SEDP), developing measures against
HIV/AIDS, reducing the number of trauma patients (traffic accidents), and improving food safety,
were incorporated. Over 50,000 people died in 2004 by trauma to the head due to traffic
accidents; thus, measures for trauma patients became an urgent issue (Figure 10-3).
Regarding HIV/AIDS, as shown in Figure 10-6, its prevalence has increased slightly since 2000,
but then it hovered around 0.4%. Its prevalence in 2009 was relatively low in comparison with
those data in other countries, such as 7.2% (East and South Africa) and 2.7% (West and Central
Africa). Compared to the Asian countries’ situation—such as 1.3% (Thailand), 0.5% (Cambodia),
0.2% (Laos), and 0.6% (Myanmar)—the figure in Vietnam was at the average level (UNICEF,
2011).
(Source: CIA World Factbook)
Figure 10-6: Trend of HIV/AIDS Prevalence
With respect to tuberculosis, the discovery rate and the recovery rate from 1990 to 2009 is shown
in the figure 10-7. Vietnam succeeds in keeping more than 90% of the recovery rate that surpasses
the WHO's target of 85%, while the discovery rate has not improved since 2000, keeping under
WHO's target of 70%. As of 2010, Vietnam retains 300,000 patients of tuberculosis, of which
200,000 patients newly infected, and of which 30,000 patients died by the ill (WHO, 2011).
The mortality caused by Malaria has been improved in a large scale (Figure 10-8). Since 2004 the
mortality has been limited under 40. However, Vietnam has still not completed Malaria control;
0
0.1
0.2
0.3
0.4
0.5
0.6
1999 2001 2003 2007 2009
%
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there still remain the areas that have risk of pandemic. As of 2009, 24 million people allegedly
live in these areas such as mountainous, wetland in the coasts and border region and so on
(Ministry of Health and Health Partnership Group, 2010).
(Source: Millennium Development Goals Database)
Figure 10-7: The Transit of the Discovery Rate and Recovery Rate of Tuberculosis (1990−2009)
(Source: World Malaria Report)
Figure 10-8: Transition of Mortality Caused by Malaria (2000−2008)
In addition to the existing infectious diseases, the government needed to take measure against the
emerging infectious diseases. Vietnam drew the attention from the world when the severe acute
respiratory syndrome (SARS) broke out in 2003. Fortunately the government could bring it under
control fastest in the world. Subsequently, Vietnam suffered from the bird flu (H5N1) in 2004, the
new bird flu (H1N1) in 2009, has faced threat of emerging infectious diseases. In order to protect
people's health in the new situation, 8th SEDP raised the objective of improvement of capacity of
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detecting and control epidemics.
(Source: National Institute of Hygiene and Epidemiology)
Figure 10-9: Trend of Number of SARS Patients
(Source: WHO Western Pacific Region, 2012a)
Figure 10-10: Trend of Number of Patients of Bird Flu (H5N1)
10.2.4 The Direction of Health Sector Development by Resolution 46 of Central
Committee of the Party (2006-)
In 2005, the Central Committee of the Party adopted resolution number 46, “The protection, care,
and improvement of people’s health in the new situation.” It reviewed reform policies in the
sector since the 90s and then focused on four major issues in the coming period, namely the
improvement of the national medical health system, quality of health and medical services,
correction of disparity in providing health services, especially in the mountainous and ethnic
minority regions, and the development of a production and provision system for medical supplies.
In the same year, the Ministry of Health (MOH) also issued the Master Plan for the Health System
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Development in Vietnam in the Period to 2010 and Vision by 2020 in 2006. It was a
comprehensive policy in accordance with the Resolution above, allowing the government to
ensure the provision of preventive medicine at the grassroots level at the health stations and
quality medical services for all people. To implement these respective directions, the government
decided on the action plans, which reached 41 plans in total.
Behind the Party’s and government’s policies above, there seemed to be two emerging needs in
the health sector, namely the need for advanced medical services and the need to correct
disparities in providing medical services.
Figure 10-11 illustrates the categories of causes of death in 2008. The portion of communicable
diseases together with injuries took around one quarter; the non-communicable diseases
comprised the rest, around three quarters. As the disease structure in Vietnam moves toward
non-communicable diseases-centered one, medical services should be forced to upgrade to
respond to that structure. While the top referral hospitals or big city hospitals can begin to retain
equipment and human resources who have knowledge and skills aligned with advanced medical
services, the hospitals in rural areas and at the district level cannot have enough facilities and
human resources. As a result, patients are concentrated at central-level hospitals that offer the
advanced medical services. Table 10-3 illustrates the number of beds and usage ratio of beds in
the provincial and top referral hospitals. With regard to the usage ratio, the average of the
central-level hospital surpasses that of the provincial level; moreover, the ratio of the top three
referral hospitals is far beyond other hospitals (Column 10-1).
(Source: WHO Western Pacific Region, 2012b)
Figure 10-11: Causes of Death (2008)
Cardiovascular, 40%
Cancer, 14%
Respiratory diseases, 8%
Diabetes, 3%
Other NCDs, 10%
Communicable, maternal,
prerinatal and nutritional conditions,
16%
Injuries, 9%
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Table 10-3: Number of Beds and the Usage ratio of Beds in the Central and Provincial Level
Hospitals (2008)
Central level hospital Provincial hospital
Average Bac Mai hospital
Cho Ray hospital
Hue Central hospital
Average
Number of beds (plan) 19,428 1,500 1,400 1,100 87,636
Usage ratio of beds 117% 177% 193% 182% 105%
(Source: National Center for Global Health and Medicine, 2010 and JICA, 2012)
In accordance with the Resolution and the master plan above, the 9th SEDP included the new
policy of providing medical service utilizing private companies. In years to come, market
mechanisms will be further promoted in the health sector.
At first sight, the SEDS 2011–2020 seems to be balancing between the introduction of market
mechanisms and security for vulnerable groups. With respect to security for the vulnerable, the
SEDS incorporated the study of universal care and enriched medical services for the poor in order
to establish the national health insurance system. The SEDS put relative focus on the
establishment of the medical service system rather than the improvement of health indicators;
strengthening the top referral hospital in Hanoi and HCM City, investment in the health sector by
the private sector, elimination of congestion in the central and provincial hospitals, improvement
of management transparency and autonomy in public medical institutions, standardization of
medical service, and professional and ethical development of human resources in the sector.
10.2.5 Donor Harmonization and Achievement of MDGs in the Health Sector
The aid harmonization and coordination in the sector moved forward. In the mid-1990s
international donors resumed their supports to Vietnam. At the beginning of the resumption, the
aid effectiveness was not effective due to their 'fragmented assistance' where donors implemented
lots of small projects on their own purpose. For instance there was the problem of the allocation of
human resource in Vietnamese health sector; some divisions of MOH managed too many projects
while the others did not operate any project. Quite a lot of projects with the same goal and method
ran separately. At that time the donors' efficient assistant was crucial so that Vietnamese health
sector provided people with equity and quality of medical services.
The government has organized a regularly scheduled health sector coordination meeting
involving participants from the government and the donor community since 1995 to seek more
efficient aid. In 2004, GOV adopted Hanoi Core Statement that was the world's first initiative to
fit Paris Declaration with Vietnamese local conditions. In the wake of the statement donor
harmonization and streamlining moved into high gear. The government planned to directly
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incorporate more than a half of the total amount of external assistance into the general budget of
the health sector through the sector-wide approach (Ministry of Health and Health Partnership
Group, 2007). The dialogue between the government and donors became active, resulting in the
formulation of comprehensive policies such as 'Master Plan for the Health System Development
in Vietnam in the Period to 2010 and Vision by 2020'.
WHO led the donors in the sector development and assisted MOH with policy advisory and
technical cooperation. In recent years it has approached broad array of assistance such as
management of hospital, MDR-TB (Multidrug-resistant tuberculosis), antiretroviral therapy,
diabetes control and protection from traffic accidents and so forth.
Major projects of UN and bilateral donors are shown in the table 10-4. The WB and ADB assisted
in all health sub-sectors, especially made a large contribution to provision of facility and
equipment (JICA, 2012). In recent years these two banks have commenced human resource
projects such as Health Professional Education and Training for Health System Reform (WB),
Health Human Resource Sector Development Program (ADB). UNICEF and UNFPA have
focused on assistance in maternal and child health. USAID, DFID, and the Netherlands attached
great importance to the measures against HIV/AIDS. EU, Sweden (Swedish International
Development Cooperation Agency: SIDA), the Netherlands, AusAID supported PHC
development.
Respective donors have provided the amounts of assistance as follows (Figure 10-12). The values
of respective donors show their accumulated amount of all project funds that MOH managed from
2002 to 2007. The top donors were the WB, ADB, Japan, the Global Fund (an institution
specialized in HIV/AIDS, tuberculosis and malaria) and the Netherlands. Though the annual
amounts of respective donors differ, the WB, ADB and Japan keep providing the largest amount
for the sector for decades.
(Source: Ministry of Health and Health Partnership Group, 2008)
Figure 10-12: Major Donor's Amount of Assistance
(Accumulated Amount from 2002 to 2007)
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Table 10-4: Major Donors’ Projects in the Health Sector
Donor Project name Year
(launching)
Domain
WB
Population and Family Health Project 1996 Maternal Child health
National Health Support 1996 Maternal Child health; Primary Health care; preventive medicine; Management; Produce pharmacy
Regional Blood Transfusion Centers 2002 Provision of Facility/Equipment
HIV/AIDS Prevention 2005 HIV/AIDS
VN-Avian & Human Influenza Control &Prep 2007 -2014 SARS, bird-flu
Northern Upland Health Support Project 2008 -2014 Primary health care/ preventive medicine
Healthcare support to the poor of the Northern Upland and Central Highlands
2008 Primary health care/ preventive medicine
Central North Region Health Support Project 2010 -2016 Build hospital/ Provide medical equipment
Mekong Regional Health Support Project 2011 -2017 Human Resource Development
North East and Red River Delta Regions Health System Support Project
2013 -2019
Human Resource Development
VN - Health Professional Education and Training for Health System Reform
2012 - 2014
Primary health care/ preventive medicine
ADB
Regional Communicable Diseases Control Project
2005 Maternal Child health
Nutritious Food for 6-24 Month Old Children Vulnerable to Malnutrition in Poor Areas 2006 Maternal Child health
HIV/AIDS Prevention Among Youth 2006 HIV/AIDS
Health Care in the South Central Coast Region 2006 Maternal Child health Central Region Rural Water Supply and Sanitation Sector Project
2008 Human Resource Development
Health Care in the South Central Coast Region Project 2008 Human Resource Development
Health Human Resources Sector Development Program 2010 Human Resource Development
Second Health Care in the Central Highlands 2011 Health Care Making Health Care More Affordable for the Poor: Health Financing in Viet Nam 2002 Health Care
EU
Health Care Support to The Poor of the Northern Uplands and Central Highlands
2005 -2012
Primary health care/ preventive medicine
To promote a rights-based inclusive approach on HIV/AIDS policy for discriminated indigenous people and PLHIV living in Quang Tri province, Viet Nam
2010 - 2012 HIV/AIDS
Community-Based Health & First Aid 2013 -2016 Primary health care/ preventive medicine
Health Sector Capacity Support Project (HSCSP)
2013-2017 Human Resource Development
Building Capacity in Local Authority and Private Sector Sexual and Reproductive Healthcare Providers in Viet Nam and Cambodia
2010 - 2013 Human Resource Development
USAID
USAID/APII 2009 -2013
SARS, bird-flu
Supported Employment and Prevention HIV prevention for high-risk individuals at Workplace in Vietnam
2013 HIV/AIDS
Environmental remediation of Dioxin Contamination at Da Nang Airport
2008 -2013
Primary health care/ preventive medicine
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USAID Health Care Improvement Project (HCI)
2007 -2011 HIV/AIDS
DFID HIV/AIDS Prevention Programme 2008 -
2013HIV/AIDS
Preventing HIV/AIDS in Vietnam Programme 2002 -2011 HIV/AIDS
UNICEF
The Rural Water Supply and Sanitation (RWSS) National Target Programme (NTP)
2011 -2015 Primary health care/ preventive medicine
Prevention of Mother-to-Child Transmission of HIV (PMTCT) National Programme of Action
2006 -2009
Maternal Child health; HIV/AIDS
SIDA Physical activity in prevention and treatment of NCDs
2010 -2013 Primary health care/ preventive medicine
UNFPA
Strengthening capacity in socio-economic development planning, implementation and provision of basic social services in Kon Tum
2007 - 2010
Maternal and reproductive health, child health and nutrition
Implementation of the National Youth Development Strategy
2011 - 2020
Young people’s needs for sexual and reproductive health services
The Seventh Country Programme 2006 -2010
Maternal Child health; HIV/AIDS
Netherlands
Community Managed Health Development 1996 Health Development
Sunflower-network 2004 HIV/AIDS
Empowering women with a history of drug use Cactus Blossom group 2005 HIV/AIDS
Good health care requires good doctors 2005 Local health workers training
(Source: Data from donors’ home pages as modified by the study team)
Figure 10-13 illustrates the ratio of the amount of external assistance by sub-sectors from 2001 to
2008. The 4 sub-sectors that largely concerned with MDGs received even scale of external
assistance.
(Source: Ministry of Health and Health Partnership Group, 2008)
The MDGs set a target for the under-5 mortality rate that the value in 2015 will be less than
one-third that in 1990. Because the value in 1990 in Vietnam was 58.1 persons (number of deaths
per 1,000 of the target population), the 2015 objective is 19.3 persons. Vietnam reduced the rate to
23.3 persons in 2011. Vietnam has nearly met the objective.
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The MDGs target a maternal mortality rate in 2015 of less than one-quarter of that in 1990.
Because the rate in 1990 in Vietnam was 233 persons (per 100,000 live births), the 2015 objective
is 58.3 persons. The rate in 2011 was 67 persons, and thus Vietnam is going to achieve the
objective by 2015.
The MDGs target reduced morbidity from communicable diseases such as HIV/AIDS and malaria
by 2015. To date, Vietnam has achieved notable results in reducing cases of malaria. As for
HIV/AIDS, the rate began to rise but has remained at 0.4–0.5% in recent years.
With respect to access to clean water and improved latrines, the MDGs set the target that the
population without access to these in 1990 will be reduced by half by 2015. Vietnam achieved the
goal of access to clean water and is going to achieve its goal for latrine access.
Table 10-5: Progress in Achieving MDGs in the Health Sector
MDGs Indicators 1990 2000 2006 2011 Implementation progress MDG 4: Reduce the under-five mortality rate by two-thirds, between 1990 and 2015.
Under-five mortality rate (per 1,000 live births)
58.1 42.0 26.0 23.3 Fell by more than half (1990-2011). Efforts needed to reduce to 19.3 by 2015.
Underweight rate (weight/ age)
45％ 33.8％ 23.4％ 16.8％ Reduced by more than half compared to 1990.
Stunning rate (height/ age)
63％ （1992-1993）
36.5％ 35.2％ 27.5％ Reduced by more than half compared to 1990.
MDG 5: Reduce the maternal mortality ratio by three quarters, between 1990 and 2015.
Maternal mortality ratio per 100,000 live births.
233 （UNIC
EF /MOH)
95 75.1 67 Reduced by about two thirds. Greater efforts are needed to reduce the maternal mortality ratio to 58.3 deaths per 100,000 live births.
MDG 6: Combat HIV/AIDS, malaria and other infectious diseases
HIV prevalence rate (% people aged 15-49 years)
0.004 （1991）
0.27 0.53 0.45 HIV prevalence rate has stopped increasing
Malaria prevalence (per 100,000)
1650 （1991）
380 108.9 55 Malaria control goal achieved.
Tuberculosis incidence (per 100,000)
-- 374 283 225 Tuberculosis control goal achievable by 2015.
MDG 7: Ensure environmental
Share of population
30％ 78.1％(1999)
86.7％ (2009)
Goal achieved.
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MDGs Indicators 1990 2000 2006 2011 Implementation progress sustainability including cutting by half the number of people without access to safe water and basic sanitation
using improved drinking water source Share of rural population using an improved latrine
16.4％(1999)
54％ （2009）
Rate is increasing rapidly but only slightly over half the population is covered.
(Source: Ministry of Health, Health Partnership Group, Joint Annual Health Review 2012)
10.3 Japan’s ODA in the Health Sector
10.3.1 Overview
In JFY1966, in the Republic of Vietnam regime, the Saigon Hospital Project, and the Cho Ray
Project marked the beginning of Japan’s ODA projects in the health sector. From the two earliest
projects onward, Japan assisted in sector development with the following four directives. The first
directive was to improve the facilities and equipment at the central and provincial hospitals; the
second was to develop the medical service system and human resources in the core hospitals; and
the third was to improve maternal and child health; the fourth was to develop measures against
communicable diseases.
The first projects since Japan’s ODA resumed were the three grant projects for improving hospital
facilities and equipment, namely, the Project for the Rehabilitation and Upgrading of the Cho Ray
Hospital; the Project for the Improvement of Medical Equipment in the Hai Ba Trung Hospital;
and the Project for the Improvement of Medical Equipment in Hanoi City. Subsequently, projects
improving facilities and equipment at the core hospitals were also implemented in the north,
central and south regions using both grants and technical cooperation projects.
After using the Japanese grants to acquire equipment, the three hospitals—Cho Ray, Bach Mai,
and Hue Central—the top referral hospitals in the three regions, received technical assistance
projects aiming at strengthening the total management of the hospitals. At the same time, in order
to transfer the achievements in the three core hospitals to other hospitals, JICA developed an
effective model of human resource development utilizing the three core hospitals. This model was
also adopted into by projects in the northwest area, such as Hoa Binh Province, since JFY2004.
In regard to maternal and child health, a project on reproductive health was implemented for 10
years in Nghe An province in the central region. This project was the second technical
cooperation project in the health sector since the resumption of Japan’s ODA and was
implemented by an NGO, JOICFP. In JFY2011, the project aimed at disseminating a handbook on
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the Japan model of maternal and child health that was respected in the international community.
With respect to countermeasures against communicable diseases, grant projects for measles and
HIV/AIDS ran in JFY1995 and JFY2000, a project for facility construction of measles vaccine
began in JFY2003, then a technical cooperation project for vaccine production commenced in
JFY2006. To address dangerous diseases such as SARS and bird flu, a series of projects for
strengthening the capacity of the National Institute of Hygiene and Epidemiology (NIHE) was
implemented in JFY2006.
As for the domain of social security, Japan provided a vocational training facility for orphans
under the Republic of Vietnam regime. Since then, some JICA grassroots projects have supported
education for handicapped children. Projects for preventing human trafficking and strengthening
medical rehabilitation service were implemented in JFY2009 and JFY2010.
10.3.2 Strengthening of the Core Hospital and Maternal and Child Health (1966-2000)
In JFY1966, under the Republic of Vietnam regime, Japan assisted Saigon Hospital and Cho Ray
Hospital in improving both their facilities and their technical medical service. After the end of the
war, grant projects (JFY1992-1995) and the technical cooperation project “Cho Ray Hospital
Project” (JFY1995-1999) was implemented.
Japan improved or provided facilities and equipment for Cho Ray and Bach Mai hospitals, the top
two core hospitals in the north and south regions. Because the 5th SEDP included the target of
establishing hospitals with advanced medical service, Japan’s two projects corresponded well to
the needs of the government. As soon as the hardware improvement was completed, technical
cooperation projects were subsequently implemented. The two projects organized a number of
training sessions that covered the full area of hospital operations, including techniques in
examination/medical therapy, financial management, nursing care, and so on. The two hospitals
now play an important role as core hospitals for providing quality medical service in the two
largest cities in Vietnam. At the time, the JICA projects also strengthened the two core hospitals’
systems for organizing training courses for hospitals and medical units lower than provincial
level.
The report of the Study on the Country Assistance Programme placed its focus in the health sector
on measures against communicable diseases with high morbidity and mortality rates and on
promoting primary health care. Based on this directive, JICA began in JFY1997 the Reproductive
Health Project to promote maternal and child primary health care.
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10.3.3 Primary Health Care and Strengthening Medical Services in Rural Areas by
Donor Coordination (2000–2005)
The Country Assistance Programme (JICA, 2000) incorporated policies in the sector such as
reinforcing primary health care, improving medical services in the core hospitals, and taking
measures against communicable diseases. Responding to the needs of the large population in the
central region, which has limited access to the top referral hospitals in Hanoi and Ho Chi Minh
City, Japan provided the Hue Central Hospital with facilities and equipment with the aim of
strengthening its function as an effective top referral hospital in the region. In addition to this
project, Japan provided grants to improve hardware in some hospitals such as Hoa Binh General
Hospital, Da Nang City Hospital and the National Institute of Pediatrics.
In regard to measures against communicable diseases, grants such as the Project to Construct
Facilities for Measles Vaccine Production, the Project for Accelerated Measles Control, and the
Project for the Prevention and Control of HIV/AIDS Transmission were implemented.
In the 2000s, donor coordination in the health sector expanded. However, each donor had already
planned concrete projects in line with its country’s strategy. Hence, the donors formulated their
respective projects to avoid overlapping the targets or components of other donors’ projects.
Under these circumstances, JICA began two projects, namely, the Project for Strengthening
Health Service Provision in Hoa Binh Province in JFY2004 and the Project for Strengthening
Medical Service in the Northwest Provinces in JFY2013. In 2004 or so, in the health sector in the
assisted in primary health care, and UNFPA assisted in maternal and child health. JICA played a
role in developing human resources and establishing the health sector training system centered
around its core hospitals. Concretely, the project in Hoa Binh developed a model for human
resource development and a referral system in order to ensure efficient and effective medical
service through the network among the provincial hospital, the district hospitals.
GOV made an active commitment to achieving its MDGs. Responding to this commitment, JICA
assisted Nghe An province in sharing the experience of promoting maternal and child health
through subsequent projects, namely the Reproductive Health Project in Nghe An Province
(Phase 2) and the Project for Capacity Building for the Dissemination of Community-Based RH
Promotion Approach. The latter project disseminated the model in four provinces in the central
region.
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10.3.4 Correction of Disparity in Medical Services Provisions based on Three Core
Hospitals and Corresponding to Vulnerability (2005–)
The Country Assistance Programme (2004) directed strategies such as reinforcement of the
referral system model and strengthening reproductive health.
JICA’s major strategy since ODA resumed was always human resource development in the health
sector aimed at correcting disparities in medical service between urban and rural areas. By
developing human resources, JICA expected to raise the quality of medical services to the level
achieved in the three core hospitals to disseminate to provincial and district hospitals in the wider
area. Health administration system in Vietnam had developed its unique training system
“Direction of Healthcare Activities (DOHA)” where the upper level hospital trained the lower
level hospital, and JICA focused attention on improving this training system. JICA implemented
“In-country Training Program for Strengthening Capacity of Human Resources of Health Care
Services in the Southern Area of Vietnam” based on Cho Ray hospital in JFY2004, “Project for
Improvement of Medical Services in the Center Region of Viet Nam” based on of Hue Central
hospital in JFY2005, “Bach Mai Hospital Project for Strengthening Training Capacity for
Provincial Hospitals” in JFY2006. After improvement of DOHA based on the three core hospitals
took off JICA implemented “Project for Improvement of the Quality of Human Resources in the
Medical Service System” that standardized the national training curriculum in the selected 8
subjects.
Although the three core referral hospitals were achieving the establishment of the medical service
provision system within the hospital, the rural hospitals needed further improvement in quality of
medical service. Along with strengthening the DOHA training system centered on the core
hospitals, the above projects in Hoa Binh province and the northwest region could be positioned
as the trial projects that the JICA model of human resources development expanded toward the
rural areas. To promote maternal and child health, two projects, namely, the Project for Capacity
Building for the Dissemination of Community-Based RH Promotion Approach and the Project
for Implementing Maternal and Child Health Handbook for Scaling Nationwide were
implemented in JFY2006 and JFY2011. The former succeeded the two relevant JICA projects that
originated in the 1990s to disseminate the achievement of the projects in Nghe An.
Most technical cooperation projects in the area of communicable diseases commenced in this era.
Whereas some donors concentrated on support for HIV/AIDS, JICA began with support for
vaccination against measles and capacity on detecting highly hazardous infectious pathogens
such as SARS and bird flu. The grant for the Accelerated Measles Control (JFY2000) project was
succeeded by the Project for Strengthening Capacity for Measles Vaccine Production (JFY2006)
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and the Project for Strengthening Capacity for Measles-Rubella Combined Vaccine Production
(JFY2013).
As part of the group of NIHE projects to strengthen research capacity, JICA implemented four
projects one after another, namely, (1) the Project for Capacity Development for the National
Institute of Hygiene and Epidemiology, (2) the Project for Improvement of Safety Laboratory for
National Institute of Hygiene and Epidemiology, (3) the Project for Capacity Development for
Laboratory Network in Vietnam of Biosafety and Examination of Highly Hazardous Infectious
Pathogens and (4) the Project to Determine the Outbreak Mechanisms and Development of a
Surveillance Model for Multi-Drug Resistant Bacteria.
With respect to support for improving hardware, JICA implemented a grant project for the
National Hospital for Obstetrics and Gynecology in 2010 and loan projects for the Regional and
Provincial Hospital Development Project in 2006-2011. The second phase of that loan project is
ongoing since 2012.
10.4 Contribution of Japan’s ODA to the Health Development
10.4.1 The Approach to Human Resource Development at the Top Referral Hospitals
Compared with other donors, Japan’s approach characteristically sets specific bases for
considerable and long-term input to establish a consistent model through which the subsequent
projects extend technical cooperation to the other hospitals (Colum 10-1).
A Japanese expert who has engaged in JICA projects from the support for Cho Ray Hospital in the
90s references two features of Japan’s ODA. The first feature is a proposed comprehensive reform
model for the whole hospital. The second feature is that the input to the top referral hospital was
efficient and effective at improving the hospitals at all levels. With respect to the former feature,
the project at Cho Ray Hospital, the first project in the sector since the resumption of Japan’s
ODA, included all components for comprehensive hospital education, covering facility
renovation, strengthening examination and medical treatment techniques, installing an
information system, improving nursing-care management, and restoring fiscal health. The
consequent benefit to the patients would be limited if only equipment, only a good information
system, only skilled treatment techniques, only careful nursing service, or only steady fiscal
management implemented at the hospital. Different from other donors that trained some specific
domain or technique, the major contribution of Japan’s assistance was to develop an effective
workplace throughout the whole hospital.
In regard to the latter feature, in Vietnam, a system prevails under which the hospital at upper
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level directs that at the lower levels. Whereas the outcomes of technical cooperation in the
organization at the upper level tend to disseminate smoothly to the lower levels, it is very difficult
for the reverse to occur. The impacts of Japan’s technical cooperation, such as hospital
management and medical examination and treatment techniques, spread to a number of
lower-level hospitals because of Vietnam’s unique leadership system. Japan had sufficient
foresight to focus attention on the uniqueness of Vietnam society after the resumption of ODA and
continued to develop human resources at the core hospitals for two decades. The ongoing project
for Improvement of the Quality of Human Resources in the Medical Service System is preparing
the national training curriculum that utilizes the outcomes of the three core hospital projects.
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Column 10-1: Support for the three core hospitals
Project on Cho Ray Hospital, Back Mai Hospital Project for Functional Enhancement,
Project for Improvement of Medical Services in the Center Region of Viet Nam
JICA supported three core hospitals: a series of projects for Cho Ray Hospital underway in the era
of the Republic of Vietnam regime during the war to develop cerebral surgery (JFY1966–1977,
JFY1992–1998, JFY2004–2008), projects for Bach Mai Hospital that introduced the most
advanced facilities and equipment to provide a high quality of medical service (JFY1997–2004,
JFY2006–2009), and projects for Hue Central Hospital whose mission was to improve the
medical services level in the Central region, which suffered from poverty and poor health due to
the war (JFY2004–2010). While Japan’s provision with contemporary architecture and updated
equipment attracted people’s attention, the important feature was to develop human resources on
a broad scale.
Cho Ray Hospital has built a reputation for advanced surgery owing to Japan’s support. The
hospital introduced the first CT scan in Vietnam granted by Japan after resuming ODA; the
capacity of diagnosing improved tremendously. In addition to technology renovation, the JICA
project also tried to reform the whole hospital, resulting in improvements of the quality of service;
consequently, patients from provinces in the Southern region rushed to the hospital. Three
thousand patients come to receive examinations per day. As seen in Photo10-1, patients hardly
move around within the hospital due to limited space. In fact, there are too many patients in the
ward. It is normal for two or three patients to share one bed (photo on the right: Back Mai Hospital.
The same situation takes place in Cho Ray Hospital.). The more Japan supported the core
hospitals, the greater the number of patients.
When the Back Mai Project for Functional Enhancement was implemented, JICA proposed an
Photo 10-1: Cho Ray and Back Mai Hospital (Left: reception room in Cho Ray hospital, Right: ward of cardiovascular medicine in Back May hospital
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improvement of the Direction of
Healthcare Activity (DOHA) training
system so that the core hospital shared the
training course with medical staff in rural
areas. Furthermore, after completing the
technical cooperation project in the
respective core hospitals, JICA
implemented subsequent projects so as to
establish an effective model of training
under the DOHA system. Table 10-6
shows the result of training activities in
Bach Mai Hospital from JFY1999. This
training scheme for staff in rural areas still
continues in the three core hospitals.
Table 10-6: Number of Training Courses Delivered by Bach Mai Hospital and
Participants
(Source: JICA, 2010a and Training and Direction of Healthcare Activity Center)
10.4.2 Proposition of Improving Everyday Work by Long-term Experts
The other characteristic of Japan’s technical assistant approach to medical organizations in
Vietnam is the “co-work” by Japanese experts and Vietnamese counterparts over a long period of
time (Japanese expert of “Project for Strengthening Health Service Provision in Hoa Binh
Province”). Projects in the sector dispatched both long-term and short-term Japanese experts to
deliver on-the-job training (OJT). The plans for OJT were made by the long-term experts, who
knew well the need in the field based on a substantial amount of co-work time with their
counterparts. It can be said that there was a synthetic OJT program that effectively combined
long-term OJT with short-term OJT (Japanese expert of “Advisor to Ministry of Health”).
The outcome of this type of OJT is the very essence of Japan’s assistance. In short, it is an
1999 2000 2001 2002 2003 2004 2005 2012
Training course by budgetfrom hospital/government 79 59 65 50 53 39 59 111
Training course by budgetfrom JICA 0 11 15 11 11 10 0 8
Total number oftraining course 79 70 80 61 64 49 59 119
Total number o participant 2,654 2,907 4,195 4,431 2,953 2,465 3,295 3,607
Photo 10-2: Staffs from Dien Bien Province Learn in the Training and Direction of
Healthcare Activity Center in Bach Mai hospital
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improvement in everyday work. A Japanese expert of the “Reproductive Health Project” explains
that the (technical cooperation) project was designed as a project for dissemination. Once moving
toward dissemination, the project did not try to develop or introduce new technology but instead
emphasized how the health staff delivered their authentic services to people. It was a capacity
development and knowledge management project with respect to intervening in the
implementation of health work.
Although Japan, of course, introduced some advanced technologies such as brain surgeries and
endoscopic operations, Japan also contributed much to improving the everyday work of both
professional and clerical staff through the constant basic training conducted by individual
long-term experts. As seen in “A comprehensive hospital education” above, doctors and health
workers covered not only professional work such as medical examination and treatment but also
other miscellaneous duties such as hand washing, organizing documents, attending meetings, etc.
In addition, although Japan’s input at higher-level hospitals could be efficient, this approach
would fail if the doctors in those hospitals found no merit in Japan’s technical assistance. By
doing co-work, such as basic routine work or everyday work together, Vietnamese doctors and
Japanese long-term experts seemed to foster their mutual relationship of trust.
10.4.3 Contribution to Protection against Infection
There are many cases in which other countries and universities offer their support to GOV in the
research on tropical medicine. As for Polio, the Vietnamese Institute, Japan Poliomyelitis
Research Institute and the Kitasato Institute (Japan) cooperated with each other (Column 10-4).
While the United States offered support for HIV/AIDS, and the University of Oxford cooperated
in the research on the bird flu, Japan’s ODA assisted in the protection against the measles and
rubella, as well as in the establishment of the bio-safety system (Columns 10-2 and 10-3).
Meanwhile, the threat from malaria was reduced to a large degree due to provisions of the
medicine Artemisinin.
The contribution to the establishment of the bio-safety system aimed not to take countermeasures
against specific bio agents but to improve the very capacity to detect bio agents, which is the
essential measure against all infectious diseases. This project is expected to have a large impact
on the safeguard against emerging diseases, such as SARS and the bird flu, from which Vietnam
suffered in recent years.
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Column 10-2: Vietnam’s ability to produce vaccines
Project for Strengthening Capacity for Measles Vaccine Production (JFY2005-2009), Project for
Strengthening Capacity for Measles-Rubella Combined Vaccine Production (JFY2013-2016)
In 2000, Vietnam declared the eradication of Polio. In the 1990s, farmers in rural areas in Vietnam
did not know that some children’s bodily disorders in their community were caused by Polio
(Japanese expert of the Project for Implementing Maternal and Child Health Handbook for
Scaling Up Nationwide). Since the 1980s, a Vietnamese researcher, Dr. Manh, who cooperated to
develop one of the Polio vaccines in Japan, had deepened exchanges with Professor Makino of the
Kitasato Institute and then acceded to the first director of The Center for Research and Production
of Vaccines (POLYVAC) to exert himself to eradicate Polio.
After the eradication of Polio, Dr. Manh had a dream to produce the measles vaccine because
Vietnam relied on imports to obtain it. He asked the Kitasato Institute through Professor Makino
for their cooperation. In Vietnam, the measles was one of the essential immunizations, since the
epidemic of measles occurred every decade (Figure 10-14). Production of the vaccine benefited
1,500,000 babies. Dr. Manh’s dream was taken over by Dr. Hien, the current director of
POLYVAC. The project implemented at POLYVAC produced the Polio vaccine. POLYVAC
began the project with no facility and no experience yet succeeded in the production and
distribution by only a short duration of training, for 3 years and 8 months, whereas it took 7 years
to produce the Polio and measles vaccine in the JICA project in Indonesia. POLYVAC is
preparing to export and sell it to international agents such as UNICEF. In order for POLYVAC to
be able to export and sell, the following condition must be fulfilled: WHO certifies the standards
of the Vietnamese national verification organization and then POLYVAC passes WHO’s
preliminary review.
0%
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Measles case rate Rubella case rate Measles immunization coverage
Photo 10-3: Records Office in POLYVAC where All Records that the GMP Requires are Available.
(Source: MOH, National Institute of Hygiene
Epidemiology)
Figure 10-14: Measles and Rubella Case Rates and Measles Immunization Coverage
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In order to produce the vaccine, it is not enough to acquire the technology for production.
POLYVAC needs to obtain the international certification of Good Manufacturing Practice (GMP).
To obtain it, there are some hurdles to overcome. All staff must understand all processes for
production, make records of the process, and refer and submit the record when it is needed for
review. The record includes so many formats (Photo 10-3). Different from the private certificate
such as ISO, the rule is regulated by the law. By certifying all standards are cleared, POLYVAC is
able to produce and sell the vaccine.
The JICA project implemented short-term and concentrative training for the POLYVAC staff:
“Vietnamese staffs were patient enough to bear up hard training. It owed a lot to a favorable
relationship between the staff and the Kitasato Institute. Staffs hewed very well to what the
experts said on know-how since they respect experts from Kitasato Institute from the history of
the two institutes” (Japanese expert of this project). Currently, POLYVAC produces one of the
two immunizations of measles in Vietnam (POLYVAC has capacity of production as much as the
two immunizations).
The cooperation between Dr. Manh and Professor Makino that prefaced the production of the
Polio and measles vaccine preceded the production of the measles and Rubella vaccine.
Column 10-3: To overcome “the time people had little choice but to forget the
pain”—Countermeasures against communicable diseases
in the Project for Capacity Development for Laboratory Network in Vietnam of Biosafety
and Examination of Highly Hazardous Infectious Pathogens
Vietnam confronted threats from new types of bacterial infectious diseases such as SARS in 2003
and bird flu (H5N1) in 2004 and the new type of H1N1. The bitter experience of suffering huge
economic loss is still fresh in people’s memory. In order to address these threats from the
emerging communicable diseases in an appropriate way, Vietnam firstly should be able to identify
rapidly the variation of infectious pathogens through the competent laboratory such as that of the
Bio Safety Level 3 (hereinafter BSL-3).
JICA provided BSL-3 laboratory by the grant project then implement technical cooperation
project that offered technology transfer to Vietnamese researchers so that they could make the
correct use of the laboratory. The project outcome is that the National Institute of Hygiene and
Epidemiology and lower-level relevant institutions will develop biosafety systems to contain
hazardous bacteria and viruses.
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In the globalized world, the epidemics
never have the boundary of countries. This
project is significant in terms of defending
the security not only for Vietnamese
people but also for other countries.
Vietnamese researchers were, of course,
already aware of the notion of biosafety.
However, they did not have a clear idea of
what kinds of catastrophes could happen if
they could not identify emerging bacteria
or viruses or if they allowed hazardous
pathogens to spread from their places of
origin, such as field sites or laboratories.
Thus, they did not understand their responsibility to confront this dangerous reality. Researchers
have come to know the seriousness of what biosafety means through the concrete operation of the
BSL-3 laboratory as part of this project.
This project owes much to a commitment from the National Institute of Infectious Disease of
Japan for its implementation. It was the first international cooperation project in which the
Japanese organization of professional infectious disease researchers formally participated.
Authorities in the field in Japan led co-research with Vietnamese researchers and persons in the
field.
At the time that Japan’s ODA resumed, many lives had been lost owing to spread of
communicable diseases that should have been prevented (Japanese expert of this project). There
were not rare deaths or residual disability cases of pregnant women and infants stemming from
poor maternal and child health. Polio and malaria morbidity were once not controlled well. Some
people suffered from unknown diseases because of limited access to medical examinations.
The time when people were dying from infectious diseases was a time when people had little
choice but to resign themselves to morbidity, a time when people had little choice but to forget the
pain. Today, health indicators in Vietnam have substantially improved; the preventable
communicable diseases are well controlled. The introduction of biosafety means that Vietnam is
overcoming the unhappy time above. Coping with emerging infectious diseases is a symbolic
policy in Vietnam, which that has achieved status as a lower middle-income country and seeks to
become an upper middle-income country.
Photo 10-4: Training on canine madness using the bio-safety laboratory by a Japanese expert
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10.4.4 The Nghe An Model for Improving Community Health
Figure 10-5 illustrates the trends in three indicators in the field of maternal and child health. It
shows that the infant and maternal mortality rate decreased to a large degree from 1999 to 2009.
As described above, Vietnam is likely to achieve its MDGs in maternal and child health.
The Reproductive Health Project kicked off in JFY1997, the very time the government needed to
cope with maternal and child mortality. Until its completion, the project, which lasted for 10 years
in 3 phases, moved hand in hand with the government’s effort to improve these mortality rates.
The characteristic of this project is obtaining the resources from the community to achieve the
project’s purpose (Japanese expert of the Reproductive Health Project). It was a sufficient and
effective approach that the project mobilized community people towards sustainable health
promotion activities (the former director of Women’s Union of Nghe An province). The project
emphasized three principles in its implementation: first, to obtain strong commitment from the
leader of the administration office; second, to have the target health staff continue performing
thoroughly basic jobs in everyday work rather than learning new techniques for new equipment;
and third, based on the experience35 of community management in Japan, involving actors in the
community in the implementation because the project recognized the community as the main
counterpart. An interview session at a community health station for this study revealed that today,
community organizations, centered on the Women’s Union and including the Youth Union,
Farmer’s Union, Father’s Front and community administration office, still collaboratively
organize communication activities for women’s reproductive health.
Hence, there are fewer services that community health stations will provide to pregnant women.
Furthermore, GOV needs more assistance in strengthening the medical service system because
the importance of improving primary health care and maternal and child health seem to be
relatively decreasing.
35 The activities for improvement of maternal and child health in the rural area in the postwar era in Japan, for instance, the health promotion by women’s group (Aiiku group) and maternal and child health volunteer in hamlet level. Based on the hamlet community, they took care of each other, shared knowledge and information on family planning, maternal and child health.
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10.5 Features of Japan’s ODA and Lessons Learned from the Past Collaboration in
Health
(1) Management of the plan and its execution
Interestingly, in the interviews for this study, there were duplicate comments from a doctor at
MOH, Cho Ray hospital, Bac Mai hospital, a reproductive health center of Nghe An province:
“Japanese experts prepared a plan very carefully in great detail. Looking at their carefulness, we
got irritated, or even embarrassed, honestly speaking. But after implementing the plan, we got to
know the appropriateness of their plan.” The Japanese experts’ “elaboration” referenced above is
used in the context of “hospital education.” The hospital education (or reform of the hospital) in
the JICA project covered not a division or an individual in the hospital but all sub groups and staff
in the hospital; consequently, each division and individual needs to work collaboratively, crossing
each division and individual boundary. At that moment, many meetings were held for consensus
building among them (vice director of Bac Mai Hospital). Once consensus was built, all staff
needed to execute the plan thoroughly along with the Plan-Do-Check-Act flow (doctor in the
reproductive health center of Nghe An). According to the doctors’ reflections, they must know the
importance of “elaboration” work at consensus building and the implementation of the plan,
though the process took much effort. This process was what the Vietnamese doctors learned from
the JICA project. Moreover, these impacts also seem to reach the broad range of the health sector
because of the DOHA system in Vietnam.
(2) Potential of “the grassroots involvement”
The director of the Department of International Cooperation of MOH, who has cooperated with
Photo 10-5：Midwife’s activity (left: she still performs the prenatal checkup using the JICA method; right: information sharing about the woman’s health by a home visit
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Japan for many years, called the outcome of the JICA project in Nghe An province the “model of
grassroots involvement” and then recognized its positive impact on four neighboring provinces.
In recent years, Japan’s approach in the sector has shown preference in strengthening hospitals at
the higher level, such as top referral or the provincial level, whereas the priority of supporting the
health system at the grassroots level seems to go down comparatively. The reason is that the
top-down approach is efficient as described above. Yet, are there no more possibilities in utilizing
this model of grassroots involvement further?
The model of grassroots involvement has further potential to synthesize the energy in the
community to solve other social problems. This model can promote communication and
information sharing among commune actors, such as neighborhoods and peers. Further, it
promotes co-happiness among actors through the improvement of maternal and child health. This
model could work well because of its similarity to the Party’s governance system where mass
organizations mobilize their respective members for community development. This was a unique
project that properly mobilized community resources and methodology inherent in the
Vietnamese culture to achieve goals in the field of maternal and child health. However, it is not
limited to the health sector; this model could be utilized in other community development
projects.
(3) Issue of ethics education for human resources in the health sector
A Japanese expert of the Project for Improvement of the Quality of Human Resources in the
Medical Service System commented for the study team that he hopes staff in the health sector in
Vietnam has a philosophy that patients need to be treated as human beings. In the history of
Japan’s ODA project, every project raised as an objective the perspective of “treating a patient as
a human being,” such as improving one’s attitude toward patients, soft skills, the principle of
client first, better doctor-patient relationships, and so on. In fact, the achievement of this objective
was scaled at evaluation studies. A questionnaire survey revealed that the percentage of patients
who answered “the attitude of the doctor is good” reached 85% at the final evaluation study and
99% at the post-evaluation study (third-party evaluation of the Bach Mai Hospital project). On
another front, Japanese experts commented for the study that the attitudes toward patients in the
Vietnamese hospital have been improved, but “more improvement would be expected.” The data
in the questionnaire illustrate the accomplishment of the goal, whereas Japanese experts do not
recognize success in this matter. What does this gap mean?
It is difficult to judge the matter because of the cultural gap between Vietnam and Japan. As such,
both sides would be able to confirm the starting point for further cooperation is one that
Vietnamese staff value, hoping for a favorable relationship with patients; at the same time, the
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Japanese also have the same objective. It makes no sense to judge which side’s recognition of the
current situation is true. It is important that both sides discover a concrete, favorable relationship
with patients within the actual medical practice. Co-practice at the workplace between
Vietnamese and Japanese doctors as “basic routine work” and “everyday work” might need to be
addressed. Ethics education that improves one’s attitude toward patients must coincide with
improvements to the facility and technology.
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国立小児病院機材改善計画(03)
Reproductive Health Project in Nghe An Province Phase1・ 2/ Capacity Building for Dissemination of Community-based RH Promotion Approach (97-09)
Loan in the Whole Country:
Regional and Provincial Hospital Development Project Phase 1, 2 (05, 11-on going)
Technical Coorperation in the Whole Country:
Project for Strengthening Capacity for Measles Vaccine Production (05-09) Project for Strengthening Capacity for Measles-Rubella Combined Vaccine Production (13-17) Project for Capacity Development for Laboratory Network in Vietnam of Biosafety and Examination of Highly Hazardous Infectious Pathogens（10-15） Project for Improvement of the Quality of Human Resources in the Medical Service System（10-15） Project for Implementing Maternal and Child Health Handbook for Scaling Up Nationwide (10-13)
In-country Training Program for Strengthening Capacity of Human Resources of Health Care Services in the Southern Area of Vietnam (04-08)
チ ョ ー ラ イ 病 院 改 善 計 画
(92-94)
Project for Improvement of Medical Services in the Center Region of Viet Nam (05-10)
Development Study in the Whole Country:
Regional and Provincial Hospital Development Project Phase 2 (09-10)
ハ ノ イ 市 イ ン フ ラ 整 備 計 画
Project for Strengthening Medical Service in Northwest Provinces (12-16)
フエ中央病院改善計画 (04-06)
Bach Mai Hospital Project for Functional Enhancement (99-04)
Determine the Outbreak Mechanisms and Development of a surveillance Model for Multi-Drug Resistant Bacteria (11-16)
国立産婦人科病院機材整備計
画 (09)
Project on Cho Ray Hospital (95-98)
Project for Improvement of Medical Equipment of Da Nang Hospital (05)
バックマイ病院改善計画 (07-00)
Project for Strengthening Health Service Provision in Hoa Binh Province (04-09)
Project for the Improvement of Hoa Binh General Hospital (05)
Grant in the Whole Country:
Project for Improvement of Cold Chain for Expanded Programme on Immunization (95) Project for Prevention and Control of HIV/AIDS Transmission (00) Construction Facilities for Measles Vaccine Production (03-05) Project for Improvement of Safety Laboratory for National Institute of Hygiene and Epidemiology (06)
Project for Improvement of the Bach Mai Hospital (97-00)
Project for Improvement of Equipment of National Institute of Pediatrics (03)
Project for Improvement of Equipment in the National Hospital for Obstetrics and Gynecology (09)
Project for Improvement of the Hue Central Hospital (04-06)
Project for the Rehabilitation and Upgrading of the Cho Ray Hospital (92‐94)
Development Study
Technical Cooperation
Loan
Grant
Figure 10-15: Project Sites in the Health Sector in Vietnam
