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Ayumi Konishi Country Director for Viet Nam Asian Development Bank 10 November, 2010, Ha Noi

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

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Ayumi Konishi Country Director for Viet Nam Asian Development Bank 10 November, 2010, Ha Noi

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  1. ISG Plenary MeetingInvestment 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

  2. 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

  3. 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

  4. 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.

  5. 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

  6. 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

  7. 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

  8. Breakdown of ongoing ADB loans(as of 31 July 2010)

  9. Breakdown of ongoing ADB TAs( as of 31 July 2010)

  10. 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

  11. 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

  12. 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 adbvrm@adb.org

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