VIETNAM NATIONAL UNIVERSITY, HANOI HANOI SCHOOL OF BUSINESS HOANG THI MY HANG INVESTMENT IMPACT EVALUATION OF VIETNAM CHALLENGE FUND: A CASE STUDY OF H’MONG BEEF VALUE CHAIN PROJECT IN CAO BANG PROVINCE Major: Business Administration Code: 60 34 05 MASTER OF BUSINESS ADMINISTRATION THESIS SUPERVISOR: DR. NGUYEN THI PHI NGA HANOI - 2012 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com ACKNOWLEDGEMENTS Firstly, I would like to express my greatly gratitude to my supervisors, Dr. Nguyen Thi Phi Nga for her valuable thoughtful comments and contributions for my thesis. I would like to thanks professors, lecturers and guest speakers from Hanoi School of Business for provide me the valuable knowledge during the MBA course.
I also would like to deeply thank to HSB staff for their kindly support, caringto create the best favorable conditions for my study. My research took several months and I am indebted to the people and organizations that supported me a long way. I also wish to greatly thank to staff of the project “market for poor (M4P2)” phase 2 in Hanoi for creating favorable conditions and documents for me during my study. In particular, I am very indebted to Mr.
BuddhikaSamarasinghe, team leaderof market for poorphase 2 (M4P2) project and Mr. Tung Nguyen, manager of Vietnam Challenge Fund for their valuable comments and contribution to my thesis. I would like thankto Mrs. Le Thi Thanh, Director of Le Thanh Company and to Mr.
Tran Van Khan, Vice Director of Department of Agricultural and Rural Development and all projected households and non-projected households for supporting me during my field work. I wish to thank my dear classmates for their friendship, caring, and sharing to overcome the stress during the course. Finally, I would like to express my deep gratitude to my family and my friends for their supporting and encouragement during the program. i LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com ABSTRACT INVESTMENT IMPACT EVALUATION OF VIETNAM CHALLENGE FUND: A CASE STUDY OF H’MONG BEEF VALUE CHAIN PROJECT IN CAO BANG PROVINCE Hoang Thi My Hang MBA Candidate, 2009-2012 Vietnam National University, Hanoi School of Business Supervisor: Dr.
Nguyen Thi Phi Nga August 2012, 74 pages The challenge funds were introduced as a new approach of international donors in creating opportunities for the disadvantaged majority group by promoting the development of private sectors in developing countries. The challenge fund is social venture investment funds which aim to enhancing ability of the poor to access to goods, services and income and reducing market distortions. The Vietnam Challenge Fund have firstly introduced as a social venture investment fund in Vietnam since 2009. The fund is one of three components of the project Market for Poor Phase 2 (M4P2).
The Vietnam Challenge Fund was implemented under the management of the Ministry of Planning and Investment The Asian Development Bank,as the lead manager and the United Kingdom Department for International Development (DFID), as the primary funder. The impact investment evaluation plays an important role for donors and policy makers in project management and decision making in order to optimize benefit of the projects achieve development sustainability and provide efficient aids. In Vietnam, there is a shortage of methodology to ii LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com evaluate an impact investmentbecause of time consuming, expensive costs and complicated techniques. This study concentrates on analyzing impact investment of the Vietnam Challenge Fund on farmer households before and after project implementation.
By comparing the social economic situations of both project and non- project supported households before and after the project intervention, this research expects to understand how the project has created changes to the socio and economic situation of farmer households under the impact of the Vietnam Challenge Fund (VCF). The quasi-experimental (nonrandom) method is an effective method, which was used to carry out an evaluation by constructing treatment and comparison groups through experimental design. Defining counterfactuals is the core of the impact investment evaluation. The combination of two scenarios, „before- and-after and „with-and-without‟ project intervention can provide the best capture of the project intervention.
Applying this technique for the case study on evaluating the H‟mong beef production project in Cao Bang, two baseline studies were conducted with the randomized selection, the former was in 2009 and the later was in 2012 the selection is not randomized. By analyzing a case study on impacts evaluation of the Challenge Fund project on H‟mong beef production in Cao Bang province, this research aims to provide a systematic analysis social investment return in terms of job creation, income generation, and economic return of the company in terms of technical benefits, commercial benefits and financial benefits. This study attempts to develop a framework to measure the investment impacts of Vietnam Challenge Funds in terms of social and economic returns. It then tried to apply that framework to evaluate the investment impacts of a Challenge Fund, which was carried out by Le Thanh Company in Cao Bang province Vietnam.
Based on the sample of selected projected households and iii LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com non-projected households, data were collected to measure the impacts of the project in terms of technical impacts, commercial impact, and financial impacts. The comparisons between non projected households and projected households, before and after project support among projected households, were made to find out whenever there is a difference on order to give insights for the donor, the project management board, and managers of the partner organization and related institutions. The results revealed that the support of the Vietnam Challenge Fund created a positive change in both economic and social aspects in terms of income generation, job creation, and company benefit. Social return revealed in increase in income generation and job creation.
There was a considerable increase in the household income from H‟Mong cattle rearing (by 88%) and the proportion of income derived from cattle-rearing in the total household income also increased, from 31% in 2010 to 51% in 2011.The average income of the households in the treatment group was VND 17,478,640 per household, which is 32.2% higher than that of households in the control group, VND 13,217,120. In term of job creation, under the operation of the slaughterhouse facility generates an addition of 15 part-time workers, working on average for 4-5 hours a day. In addition, cattle rearing has created a number of extra jobs in the survey area. More than 100 additional laborers from the families and the neighbor-hood are engaged in simple work involved in cattle rearing on a rotating non-paid basis.
The economic return of the company indicated in three terms which are technical, commercial and financial benefits. In the aspect of technical benefit, the project grant to build the first slaughterhouse for cows built in the northern mountainous area of Vietnam. This slaughterhouse fully meets the hygiene requirements of the local Cao Bang government. In addition, the iv LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com company has also benefited from capacity building for their staff by receiving training and technical support from Center for Agrarian System R&D (CASRAD), VCF term which including international experts, visitors who provide expertise knowledge, technical supports and facilities for the company in managing and developing this model.
In the aspect of commercial returns, a remarkable contribution of the project was the development of the traceability for H‟Mong cow is excellent way to access high quality market and traceable products. This success could be replicated to other agricultural products which can potentially bring more job opportunities and higher level of income generation for the community. In the aspect of financial return, the strong sales volume growth indicates that a domestic market does exist for this niche beef product, and H‟Mong beef brand is being established. Le Thanh Company anticipates that participating farmers will achieve at least a 15% increase in their incomes derived from cattle rearing.
However, the fund is facing several challenges related to capacity of implementing partners and beneficiaries, the availability of fund, and difficulty of geographical conditions. Some suggestions for further research are also given. Studies on impact investment of the Vietnam Challenge Fund provide fruitful lessons for the following new business models and future challenge funds design and implementation.The result of this study will provide lessons learnt which contributes to enrich an effective tool for better project design, project assessments, and investment decision making of the future Challenge Funds.The successful lesson of the H‟mong beef project in Cao Bang province illustrates that the VCF can propose innovative of new business models to engage the poor on a replicable and sustainable basis. v LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com TÓM TẮT ĐÁNH GIÁ TÁC ĐỘNG ĐẦU TƯ CỦA QUỸ THÁCH THỨC VIỆT NAM: A CASE STUDY OF H’MONG BEEF VALUE CHAIN PROJECT IN CAO BANG PROVINCE Hoàng Thị Mỹ Hằng, Học viên MBA, 2006-2008 Đại học Quốc gia Hà Nội, Khoa Quản trị Kinh Doanh Hướng dẫn: TS.
Nguyễn Thị Phi Nga Tháng 08/2012, 74 trang Quỹ thách thức được giới thiệu như một phương pháp tiếp cận mới của các nhà tài trợ quốc tế trong việc tạo cơ hội cho nhóm người yếu, thế bằng việc thúc đẩy sự phát triển của khu vực tư nhân ở các nước đang phát triển. Quỹ thách thức là quỹ đầu tư mạo hiểm xã hội có mục đích tăng cường năng lực tiếp cận của người nghèo tới hàng hóa, dịch vụ, nâng cao thu nhập và giảm sự lệch lạc của thị trường. Quỹ thách thức Việt Nam được giới thiệu trước hết như là một quỹ đầu tư mạo hiểm xã hội ở Việt Nam từ năm 2009. Quỹ là một trong ba thành phần của Dự án Thị trường cho người nghèo, Pha 2.
Quỹ thách thức Việt Nam hoạt động dưới sự quản lý của Bộ Kế hoạch và Đầu tư; Ngân hàng phát triển Châu Á là nhà quản lý chính và Bộ Phát triển quốc tế của Vương quốc Anh là nhà tài trợ chính. Đánh giá tác động đầu tư đóng một vai trò quan trọng đối với các nhà tài trợ và các nhà hoạch định chính sách trong việc quản lý dự án và ra quyết định, nhằm tối ưu hóa lợi ích của dự án, đạt đến sự phát triển bền vững và cung cấp các nguồn tài trợ hiệu quả. Ở Việt Nam, vẫn còn sự thiếu hụt về phương pháp để đánh giá tác động đầu tư, do tốn thời gian, chi phí cao và kỹ thuật phức vi LUAN VAN CHAT LUONG download : add luanvanchat@agmail. Nghiên cứu này tập trung vào phân tích tác động đầu tư của Quỹ Thách thức Việt Nam đối với các hộ gia đình nông dân trước và sau khi thi hành dự án.
Bằng việc so sánh tình trạng kinh tế xã hội của các hộ gia đình trước và sau khi có sự hỗ trợ của dự án, nghiên cứu này tìm hiểu dự án đã tạo ra những thay đổi như thế nào đối với tình trạng kinh tế, xã hội của các hộ gia đình dưới tác động của Quỹ thách thức Việt Nam. Phương pháp nửa thực nghiệm (không ngẫu nhiên) là một phương pháp hiệu quả, đã được sử dụng để thực hiện đánh giá bằng việc xây dựng và so sánh các nhóm qua việc thiết kế thực nghiệm. Xác định cac gia thiet tac nhan là thành phần chủ yếu của đầu tư tác động. Sự kết hợp của hai kịch bản, “trước và sau” và “có và không có” sự can thiệp của dự án có thể cung cấp cách thức tốt nhất để đánh giá sự can thiệp của dự án.