Transcript The ADB: organization - International Support Group

ISG Plenary Meeting
Investment Orientation for the
Development of the New Rural
Areas in Vietnam Asian
Ayumi Konishi
Country Director for Viet Nam
Asian Development Bank
10 November, 2010, Ha Noi
Congratulations!
• For Viet Nam to have become a Middle
Income Country
• For Thang Long Ha Noi 1000
• For being a successful ASEAN Chair in 2010
• For hosting the International Rice Congress
• For convening this ISG meeting
• ……and a lot more
New SEDS/SEDP
• Focus on “Inclusiveness” of the
socioeconomic development of Viet
Nam – i.e., not to let the rural areas to
be left behind
• Focus on “environmental sustainability”
through improved natural resources
management, environmental protection
measures, and measures to address
climate change
Planning on the Development
of New Rural Areas
The first program under the Prime Minister’s
Decision approving the National Target
Program on Building New Rural Areas is
entitled, “Planning on the Development of
New Rural Areas”. Planning is the first step
and this is the subject for my presentation.
Major Agriculture Sector Issues
• Agriculture growth, productivity improvement
and diversification have been impressive
• ANRE activities remain critically important for
the majority of Viet Nam’s households and for
future efforts at poverty reduction
• However, crop production remains dominated
by paddy commodity
• output quality is typically poor by regional
standards
• little value addition, and need to improve the
sector’s technological base
• Food safety and environmental concerns
Major Natural Resources Sector Issues
• Natural resources are under ever-increasing
pressure
• Anticipated effects of climate change are likely
to be particularly severe
• Sector factor market conditions are deficient in
several major respects
• Overall enterprise structure is dominated by
(inefficient) SOEs and (undercapitalized)
agriculture and micro-business units
However……..
• Sector planning is technically weak in some
areas
• Staff capacity is limited and performance
management issues affect MARD, MONRE, etc.
• Total amount of public expenditure devoted to
the sector is still low
• There are problems in the distribution between
capital and recurrent spending
• Decentralization is changing responsibilities
for public expenditure management
• Sector management is becoming more
complex, and there is a need to modernize the
role of state institutions in service delivery
Breakdown of ongoing ADB loans
(as of 31 July 2010)
Water and Other
Municipal Infrastructure
& Services
5.42%
Multisector
1.14%
Agriculture and Natural
Resources
14.03%
Education
6.26%
Transport and ICT
34.65%
Energy
32.79%
Public Sector
Management
2.41%
Industry and Trade
0.37%
Health and Social
Protection
2.28%
Finance
0.64%
Breakdown of ongoing ADB TAs
( as of 31 July 2010)
Water and Other Municipal
Infrastructure and Services
10.12%
Multisector
1.90%
Agriculture & Natural
Resources
21.97%
Transportation and ICT
18.14%
Education
2.63%
Public Sector Management
3.28%
Energy
20.23%
Industry and Trade
14.55%
Health, Nutrition and Social
Protection
2.58%
Finance
4.59%
Lessons from ADB Experience
• Projects’ efficiency has been compromised by
implementation delays
• Sustainability of investments (e.g., in rural
infrastructure) is threatened by O&M financing/cost
recovery concerns
• There is a need to get the strategic setting of
investments right
• Ensure high levels of Government ownership
• Support day-to-day implementation with sufficient
levels of in-country resources
• Ensure sufficient project financing
• Avoid overlaps in geographical coverage and
investment scale and scope
Then, what can we do together?
• Capacity building at different levels/areas
• Crop diversification
• Introduction of technology to move to higher
value added
• Sector reforms
• Development of rural infrastructure and their
appropriate maintenance
• …and more
Thank you for your attention!
For information on ADB activities in Viet Nam:
• Please Visit Viet Nam Resident Mission web site
at http://www.adb.org/vietnam or
• Email to [email protected]