UPPSALA UINIVERSITET ATTRACTING AND USING ODA IN AGRICULTURE, RURAL AREAS IN VIET NAM, CASE STUDY OF HOA BINH PROVINCE Nguyen Trung Thanh Nguyen Thi Nga Hoang Thi Ha Giang Supervisor: Dr. Lars Torsten Eriksson Local Supervisor: Dr. Nguyen Tien Dung Class: MPPM - INTAKE 4-Group 11 Hanoi, March — 2012 GRATITUDE The authors would like to express our sincere thanks to Committee on Ethnic Minority Affairs, Ambassador of Ireland in Viet Nam and Ireland’s Project Management Board for their help in creating best conditions for us to parti ate in the joint Master Program of Public Management with Uppsala University for year 2011 - 2012. We would like to express our gratitude to University of Economics and Business — Hanoi National University and Uppsala University - Sweden who have provided us a highly applicable program, introducing a new and attractive studying and researching approach, creating conditions for us to develop our ideas in learning and working.
The authors would also like to express our heart-felt thanks to the two respectable professors: Dr. Nguyễn Tiến Dũng and Dr. Lars Torsten Eriksson who have devotedly instructed us to complete this thesis. We would also like to thank all our collegues and classmates of MPPM intake 04B and families who have contributed valuable ideas, encouraged us to complete this thesis and unforgettable program! Hanoi, March 2012 THE AUTHORS Nguyen Trung Thanh Nguyen Thi Nga Hoang Thi Ha Giang Qe é ' Master Program of Public Management MPPM ~ intake 4B SUMMARY THESIS TOPIC: Attracting and using ODA in agriculture, rural areas in Viet Nam, case study of Hoa Binh province Level: Master Thesis on Program of Public Management Authors: Nguyen Trung Thanh Nguyen Thi Nga Hoang Thi Ha Giang Instructor : Lars Torsten Eriksson Dr.
Nguyen Tien Dung Date of completion: 31 Mar 2012 I. Purpose: Official Development Assistance (ODA) is the official grants, including grant aid and concessional loan by governments, financial institutions and international organizations for the Government of Vietnam to support socio- economic development, hunger elimination and poverty reduction in Vietnam. Vietnam has gone through 18 years of receiving ODA, ODA for agriculture, rural development has played a particularly important role in the social and economic development in Vietnam over time. Especially in rural areas, rural livelihoods have improved significantly, particularly in remote areas, ethnic minority areas.
Typically, Hoa Binh province with 107 difficult communes and 73 extremely difficult communes. There are six ethnic groups living together, of which Muong ethnic group accounts for 60%, Kinh 30%, the rest are Thai, Tay, Dao and H'mong ethnic groups. In period of 2006 - 2010 Hoa Binh province had a total of 33 ODA programs and projects which added about 11% for a total investment of society, playing an important role to promote the province's economic growth in general, agricultural and rural development and poverty reduction in particular. To achieve long-term development goals by 2020, Vietnam will continue to mobilize and use all resources for development, in which ODA continues to play an important role.
In the context that the global economic crisis changes complicatedly, how to mobilize and attract ODA in Vietnam? How to use ODA effectively to support the development of agriculture, rural and poverty reduction in Vietnam? To correctly assess the situation and have solutions to answer the above questions, it is necessary to study the problem in specific conditions, we 2 Ge Master Program ofPublic Management MPPM - intake 4B choose the topic: “Attracting and using ODA in agriculture, rural in Viet Nam, with a case study of Hoa Binh province". The methodology of the research: The Thesis uses the research methods such as dialectical materialism methods, statistical methods. general analysis methods, review comparison. ‘ase study method to compare.
These methods are combined in the entire thesis. Result and conclusion: Apart from the introduction and conclusion, the main content of the thesis is divided into four chapters: Chapter 1: The basics of official development assistance (ODA) In this chapter, the thesis is focused on research to unravel the basic theory on ODA: The concept, characteristics and classification of ODA; factors affecting to attraction and use of ODA in the field of agricultural and rural development in Vietnam in the recent years; the role of ODA for rural development in Vietnam. Dialectical materialist method used in this chapter for research on ODA issu in an objective, comprehensive and placed in the context ofspecific development of the economy of Vietnam. Chapter 2: The attraction and use of ODA for agriculture and rural development in recent years.
From the basic theory of ODA in Chapter 1, through the using of the dialectical materialist method, and statistical methods for meta-analysis method to analyze the information and data in multiple dimensions, the thesis has been reseached in depth the actual situation to attract and use ODA for agriculture and rural development in Vietnam during the period from 1993 to 2011, from which to draw the positive impact analysis due institutions and causes. Chapter 3: The attraction and use of ODA in Hoa Binh province, the case study project for Strengthening the Cooperative and the project on Capacity Building for Community Forest Management for Hoa Binh province. On the basis of ODA issues in agriculture and rural development from Chapter 2, the thesis has used the statistical methods, analysis and synthesis method to compare two projects in the same province to put into the same legal framework conditions, geographical conditions, administration but there is a successful project (Strengthening project Cooperatives in Hoa Binh province) and a less successful project ( Capacity Building project in community forest management in Hoa Binh province) from which to draw lessons learned, recommendations Master Program of Public Management MPPM ~ intake 4B and proposals for the work of attracting and using ODA in agricultural sector in Vietnam in the near future. Chapter 4: Some recommendations on the policy and suggestions.
The Policies on attracting and using ODA can be come into pratice its depend on institutional management and use of this fund, as well as human capacity at all levels related to management and using of ODA. An institutional system management and use of ODA have been developed in parallel with the staff and managers professionally of projects. it is certainly basis to ensure the management and using of ODA efficiency and long term. We hope that the solution mentioned in the thesis will help to complete mechanisms and policies for ODA management in agriculture and rural development in the future of Vietnam.
Suggestions for Future Researc Within the limited scope and time, thesis studied in depth only ODA in agriculture and rural development in Vietnam especial two of projects in Hoa Binh Province. According to us, we needed to study on overall of ODA as a whole in various fields and research on many different regional areas to have a more comprehensive so lution to improve policies for attracting and using ODA in Vietnam synchronously and effectively. Contribution of the the: Continuing attracting and using ODA effectively in the agricultural sector and rural areas, and continually updating and innovating ODA management is an inevitable trendWe hope that the analysis in thesis and specific case studies would help the readers have general ideas about attracting and using ODA in the agricultural sector in Vietnam. It is anticipated that ODA for agriculture and rural areas of Vietnam in the near future will remain, even increase in quantity compared with that in the previous period.
However, the structure and aid policies are predicted to have certain changes to better suit the new situation that is changing daily and hourly in the region and around the world. > oP Master Program of Public Management MPPM ~ intake 4B GRATITUDE SUMMARY THESIS. The essentiality of the Thesis. Object and Scope of study 4.
The scientific meaning ofthe research. The methodology of the research. The structure of the research CHAPTER I. The basics of official development assistance (ODA).
The basics of ODA. The coneept and origin of ODA 1 1. Characteristics of ODA 1 1. The factors affecting the attr action and use© of ODA iin Vietnamin recent years.
Factors from donors. ai 1 Factors affecting ODA from receiving countries. The role of ODA to agriculture and rural development iin Vietnam 1.1 ODA contributes to hunger elimination and poverty reduction. ODA radically changes the rural infrastructure for production and life 1.
ODA helps to improve management capacity and expertise in the Agricultur: 1. ODA is an important driving force for developing internal resources in the country 1. ODA creates premises and infrastructure to attract foreign direct investment (FDI). lB Attraction and use of ODA for agriculture and rural development in the past years.
Attraction and use of ODA for the sub-sectors of agriculture and rural development, hunger elimination and poverty reduction in the past years. Attraction and use of ODA by donors emaggeeracar 2. Attraction and use of ODA by region. The effects of ODAin the development of agricultural and rural sectors in the last years.
The positive effects. The share of ODAin total investment in agriculture and rural development is growing ee) 2. ODA for agriculture, rural areas, implementation 0ENGIRRI elimination and poverty reduction strategies of the Government. ODA supports the development and adjustment “Of strategies and policies to develop agriculture management.
ODA and rural infrastructure (including freshwater and rural sanitation). ODA and sustainable development of agriculture, rural areas, especially | in the prevention of natural disasters, epidemics, environmental protection. ODA and the development of agricultural scienceand technology as the basis for the development of efficient, sustainable and high technology agriculture. Limitationsin attracting, managing and using ODA for agriculture.
Lack of an overall, ompreheasive and long term orientation in attracting and using ODAin agriculture mm 2.2 The management anduse documents of ODAin Vietnam are not consistent 3. The preparation, appraisal and approval of programs and projects take long time. Limitation during the bidding organization, especially consultancy recruitment , 3. Limited financial management and difficulties in mobilizing reciprocal fundsin agricultural projects.
c Master Program of Public Management MPPM ~ intake 4B 2. Noprofessional staff in management and implementation of ODA projects. The organizational structure for managemenveoordination and implementation of ODA projects is still insufficient. The monitoring and evaluation of projects is limited n : 29 9.
General settlement of completed projects is slow. amr 30 CHAPTER IIL. The Attraction and use of ODA in Hoa Binh province, case study of the project of strengthening the ability of cooperatives, and the project on Capacity Building for Community Forest Management and lessons for attracting and using ODA. seed] The attraction and use of ODA in Hoa Binh Province Achievements.
3,2: Case study ofthe project on Strengthening capability for Cooperatives in Hoa Binh provvince. General introduction about the projec 3. The results of the project 3. In Tradein Services: 3.
In industry and small scale handicraft industry area 3. In credit area. Some problems in implementation of project. Case study of the project on Capacity Building for Community Forest Management in Hoa Binh province.1, General introduction about the projec 38 3.
Some early project achievements. Some problems during project implementation. Some lessons learned from 02 case studies in Hoa Binh Province. Proper awareness of ODA: i đi 3.
Strong commitment, close direction, and broa participation of local people in “attracting and using ODA — 42 3.3, Developing the reliable and constructive partnership relationship inn development cooperation.4, Officers participating in project management and implementation. The lengthened duration of project preparation 43 CHAPTER IV. Some recommendations on policies and propositions. Some recommendations on policies in attracting and using ODA in agriculture and tural areas in Vietnamin upcoming years.
Continuing the mobilization, management ‘and implementation of ODA flows with preferential interest rates and starting ODA mobilization with less favorable interest rates for agriculture and rural developmentin association with poverty reduction. Selection ofprioritized programs and projects by sub-sectorsin ecological regions. Perfecting institutions, mechanisms and organs managing the implementation of projects in agriculture and rural areas.