UPPSALA UNIVERSITET & UNIVERSITY OF ECONOMICS & BUSINESS,VNUH UNIVERSITET MASTER THESIS OF MPPM Authors: Nguyen Thanh Van Nguyen Thi Yen Nguyen Thi Kim Dung Supervisor: Professor Dr Sven Jungerhem Local Supervisor: Dr Nguyen Manh Hung. Class: MPPM INTAKE 4B - Group 4. Hanoi, March — 2012 ACKNOWLEDGEMENT First of all, we would like to express our sincere thanks to the University of Economics - Hanoi National University and Uppsala University, Sweden. The Masters Program of Public Management organized by the two leading universities of Sweden and Victnam has provided me with synchronized valuable scientific research methods.
Especially, the program has inspired students of further studying such a valuable area of scientific knowledge which is highly applicable to our current works now and in the future. The knowledge gained from the program will be along with us during our professional career. Especially, is great honor to express our special thanks and gratitude to Professor Sven- Erik Svard, Professor Sven Jungerhem and Dr Nguyen Manh Hung, the supervisors who greatly supported us during the research. It’s so proud for us to have a great chance working with such outstanding experienced professors, who are devoting their scientific passionate for the graduate development of each student.
The guidance and scientific passionate found at Professor Sven-Erik Svard, Professor Sven Jungerhem and Dr Nguyen Manh Hung is an important momentum for us during our research. More importantly, our warm-hearted thanks would like to be conveyed to our beloved family, who provided us with great supports, and favorable conditions to complete the course. They are quite a solid rear for us to pursuit the master program for the past year and to complete the research. Anh finally, we also would like to thank all members of the program management board who have strongly supported students during our research; Thanks to my colleagues, and my MPPM 4B classmates for their valuable encouragement for me during this useful study program.
EXECUTIVE SUMMARY Title: Alternating the financial resource for the HIV response in Viet Nam Level: Final assignment for Master Program in Public Management Authors: Nguyen Thanh Van, Nguyen Thi yen and Nguyen Thi Kim Dung Supervisors: Professor Sven-Erik Svard, Professor Sven Jungerhem and Dr Nguyen Manh Hung Date when the thesis is presented. 14/3/2012 Ai In Viet Nam, the HIV response relies mainly on the external funding resources, and small proportion of state budget. This leads to concerns over sustaining prevention and treatment for people living with HIV when the donors’ policies change, withdrawing their support for Viet Nam in the coming times. It is necessary to find an alternative financial resource for sustaining the HIV response in Viet Nam.
This study is to assess the existing financial resources for the national response to HIV/AIDS in Viet Nam and to identify a more sustainable financing approach. In particular, itis to: - Review the available models of financing HIV/AIDS response program in the world - Assess the current status of the financial resource for national response to HIV/AIDS in Viet Nam - Review the policy of HIV/AIDS prevention and control in Viet Nam;and - Explore an alternative model for financing the HIV response in Viet Nam Study methodology: The research uses an inductive approach in order to develop an alternative theoretical model for financing the national response to HIV/AIDS in Viet Nam. The inductive approach requires an examination and evaluation of the existing models for financing the response to HIV/AIDS in the world and in Viet Nam. The general framework of financing the response to HIV/AIDS has been recommended by the UN.
However, the UN model is not an “one-size-fit-all” one and it can be modified to fit into the local context. The Cambodian model for financing the response to HIV/AIDS is an example. Before looking at the case of Viet Nam, the research therefore examines both the UN general model and the Cambodian model for financing the response to HIV/AIDS. “The research uses a qualitative method to investigate and analyze the current financing models for the HIV response in Viet Nam.
It looks at two models: donor-funded and government- funded. ‘The former model is examined in the case study of PEPFAR funded HIV program, whereas the latter model is examined in the case study of state budget funded HIV program. Based on the analysis of these two models, the research generalizes and develops a new ‘theoretical! financing model. ‘The cases are selected because they are specific and contain huge information, but lunnecessary representing any specific group.
The researchers use different data collection ffrom different sources. ‘The research also uses the comparative method to compare and contrast the success and ffailure of two case studies. These case studies bear different characteristics, including igood and bad ones and analysis of the two cases is expected to provide us with a complex picture of financing the HIV response, and based on that, to propose a more sustainable financing model for HIV/AIDS response in Viet Nam. Result and conclusion: “The research proposed a new financing model for the HIV response in an appropriate and sustainable manner, which is the socialization of the HIV/AIDS response.
It has been applied in many other sectors and services, but the HIV services. There are several iadvantages when applying this approach, apart from few other difficulties that can be iaddressed and overcome. The socialization is appropriate in Vietnam's context that the donors are withdrawing from Viet Nam and the state budget for HIV remains constrained ‘Suggestions for future research lIn Viet Nam, the financial matter is sensitive and non-transparent in the public sector. ‘Though the international organizations and UN agencies in Viet Nam are making great ‘efforts to advocate for a more transparency and accountability in the public sector, more ‘efforts need to be made in the coming years.
It is one of the barriers that hinder the research team members from getting access to financial statistics on specific manner but a published general information. Anti- retrovirus treatment for HIV infected people in Viet Nam is provided free of charge and mainly funded by different donors. No model of socialization of HIV related treatment has been built, which causes difficulties for the authors to make comparison and propose more practical recommendations. The authors continue to study the socialization model for the HIV response in Viet Nam.
Contribution ofthe thesis: In the context of global economic crisis and consequently declined funding of the donors, sustainable financing of the HIV response in the world and in Viet Nam in particularly is of concern. It is imperative to study and propose a new financing model suitable for Viet Nam The research provides the policy makers in the area of HIV and state budgetary and financial affairs with a realistic approach to reduce the burden of the HIV response in particular and social economic sectors on the state budget, promoting the approach of “state and people work together”. Key words: Alternating financial resources, sustainable financial resources, domestic financial resource, external funding sources, socialization. TABLE OF CONTENTS ACKNOWLEDGEMENT.
EXECUTIVE SUMMAR' ABBREVIATION LIST OF TABLES AND FIGURES 1.1 Overview of the HIV epidemic at global and in Vietnam .2 Rationale for the research. The study objectives and question.4 The study structure 2.1 Researches and studies 3.3 Financing model for HIV response in Cambodia. Current situation and policies offinancial resources for the national response to HIV in Viet Nam.1 Overview of laws and policies relating to HIV issues in Viet Nam.2 Mobilization of financial resources for the national HIV response 4. Achievements in mobilizing the financial resources for the HIV response.4 Shortcomings and difficulties and its causes 4.5 Estimation of financial resources for the HIV response in Viet Nam .1 State budget -financed HIV program 5.2 PEPFAR- funded HIV program 5.
Comparison between the two cases 6. Anew financing model.1 Overview of socialization 6.2 Socialization of the HIV/AIDS response in Viet Nam 7. Conclusion and recommendations Limitation of the study and next steps REFERENCES. APPENDIX ABBREVIATION Asian Development Bank Acquired Immune Deficiency Syndrome Anti- Retroviral Therapy Anti-retrovirus Behavior change communication Community based organizations Civil society organizations Female Sex workers Gross Development Production Global Fund for AIDS, Tuberlocoris, Malaria High burdened low income countries Human Insuffisance Virus Health Policy Initiative Injecting Drug user Information, Education and Communication Low burdened middle income countries Most at risk populations Millenium Development Goals Men who have sex with men Ministry of Finance Ministry of Health MOLISA Ministry of Labor, Invalids and Social Affairs MOH Ministry of Health NASA National AIDS Spending Assessment NGO Non-governmental organization NSP National Strategic Program NTP National Target Program N&S Needle and syringe PBC Performance based contracting PEPFAR Preseient’s Emergency Plan for AIDS Relief PMTCT Prevention of mother to child transmission PLHIV People living with HIV THE Total Health Expenditure UNAIDS United Nations Joint Program on HIV and AIDS UNGASS United Nations General Assembly Special Session on AIDS UNICEF United Nations Fund for Children USAID Unites States Agency ofinternational development VAAC Viet Nam Authority for AIDS control VCT Voluntary Counselling and Testing WB World Bank WHO World Health Organization LIST OF TABLES AND FIGURES Table: Table1 | Projected HIV/AIDS prevalence and expenditures in 2008, Page 32 2015 and 2030- Rapid scale up scenario for Viet Nam Table 2: | PEPFAR funding for HIV/AIDS response in Viet Nam Page 35 Table-Appendix Table1 [Projected HIV/AIDS prevalence and expenditure in 2008, 2015 Page 51 and 2030 Table2 | Total budget of National targeted program on HIV/AIDS | Page 52-54 prevention and control for the 2011-2015 periods Table 3 Summary of considerable suggestions on the potential Page 55 revenues to the government Figure Figure 1 | Main sources of HIV spending, 2007 Page 25 Figure 2 _ | Funding sources for HIV in 2008 Page 26 Figure 3__ | Projected HIV spending for Viet Nam- $Cost/capita- Rapid Scale Page 33 Up Scenario Figure 4 | Projection of Funding sources for HIV/AIDS in Viet Nam Page 36 Figure-Appendix Figure 1 Resource needs for Hard Choice 2 compared to Projected Page 56 Resources available under Moderate Financing Scenarior (USD Figure 2 Resource needs for Hard Choice 2 Compared to projected Page 56 resources available under Optimistics Financing Scenario plus Additional Government Fiscal Efforts Figure 3 _ | Spending by AIDS Service Components (ASC) in 2007 Page 57 Figure 4 _ | Distribution of AIDS Spending by Resources and ASC 2007 Page 57 Figure S [ Total Spending by ASC, 2008 Page 57 [ Figure 6 Total Spending by sources and ASCs, 2008 Page 58 Figure 7 Health Finance Flows in Viet Nam Page 58 1.1 Overview of the HIV epidemic at global and in Vietnam HIV/AIDS is a dangerous epidemic, threatening human health and life, triggering detoriate damages to cultural, social and economic development, social order and security of the country.
HIV/AIDS epidemic is contributing to mortality rate and adverse impacts on demography ofa country. HIV is not only hit the adults at reproductive ages but non- sense children. AIDS related mortality affects birth rate and demographic structure. Once women at reproductive ages die of AIDS, fewer babies are born, that causes low birth rate.
Furthermore, children infected with HIV hardly lead a life for longer than the teenage that badly affects the working force of the country. It is not easy to measure the exact impacts of HIV/AIDS on the economic development at macro level. However, we can see some negative impacts caused by HIV to the social economic development of the country: Needs for health care related to HIV is increasing and consequently health system capacity is weakened. Cost for its prevention and treatment is increasing, therefore it puts a heavy burdens on the financial resources of a country, especially in such a developing country as Viet Nam.
The long-term economic impacts imposed by the epidemic stem from mortality rate, shortage of human resources and depleted human resources. AIDS hit severely the adults, causing a shortage of human resource who engages in production and income generation.