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Vietnam

FY 2001 Program Description and Activity Data Sheets

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FY 2001 Program

In FY 2001, USAID will focus its programs in two areas: (1) enhancing the environment for trade and investment and (2) improving access to services for vulnerable groups.

USAID-funded technical experts will work with the Government of Vietnam (GVN) to build understanding among Vietnamese stakeholders in the public and private sectors on the necessary steps to liberalize the trade and investment framework and to assist in implementing the market reforms required under such a framework. USAID-funded assistance has already assisted in development of the companies law (enacted in late 1998) that has helped level the playing field for the private sector, and through provision of expert technical assistance helped accelerate negotiations for the U.S.-Vietnam bilateral trade agreement which reached agreement-in-principal in 1999. In FY 2001, USAID will continue to assist the GVN in implementing the free-market reforms required under the bilateral trade agreement, and to assist Vietnam in ascending to membership of the World Trade Organization (WTO).

Through the Accelerating Economic Recovery in Asia program, USAID will assist Vietnam in developing structural reforms needed for trade and investment such as financial sector reform, economic governance (accountability and transparency), and regional competitiveness. USAID's United States-Asia Environmental Partnership portfolio of activities, such as trade fairs, will continue to accelerate transfer of U. S. environmental technology designed to meet specific needs in Vietnam.

While accelerating economic liberalization and growth are key to Vietnam's future, it is important that the disadvantaged do not get left behind. USAID will continue to improve access to services for selected vulnerable groups including: victims of the annual floods; victims of injuries from the war or from land mines; orphans and displaced children; and those that are at high risk of contacting HIV/AIDS.

In Vietnam, floods are an annual event. For example two major floods in the central region in 1999 caused unprecedented damage in terms of property and lives. USAID's Office of Foreign Disaster Assistance (OFDA) provided over $750,000 in assistance for emergency relief and for construction of 1,400 concrete foundations for flood-resistant homes. In FY 2001, OFDA will continue to respond to these disasters as they occur and to assist Vietnam in preparing for these disasters and in mitigating the damage and destruction they cause.

Through a number of USAID grants, funded by the Leahy War Victims Fund (LWVF) and the Displaced Children and Orphans Fund (DCOF), U.S. Private and Voluntary Organizations (USPVOs) will continue to help improve opportunities to war victims and children at risk. For the war victims and victims of mines left by the war, activities will continue to focus on providing orthotic and prosthetic devices as well as rehabilitation for those in need of artificial limbs. The program will continue to promote barrier-free excess in building construction and increase the participation of the disabled in the decision-making process. The DCOF will place more emphasis on children with disabilities and develop local capacity to include them in the education process. Future programming under the LWVF and DCOF will place more emphasis on sustainability by building local capabilities to support these disabled groups, for example local production of prosthetic and orthotic devices and community support for children with disabilities.

Utilizing Asia Regional Development and Support funds, USAID will continue to support a regional HIV/AIDS program. In Vietnam, USPVOs will continue to work with the GVN's National AIDS Bureau (NAB) to improve its capacity to implement AIDS prevention programs. Focussing on provinces that border Cambodia and Laos, activities will include condom social marketing, communication for behavior change, sexually transmitted disease (STD) case management, and policy-based interventions.



ACTIVITY DATA SHEET

PROGRAM: Vietnam
TITLE AND NUMBER: Enhanced Environment for Trade and Investment 440-006
STATUS: Continuing
PLANNED FY 2000 OBLIGATION AND FUNDING SOURCE: $1,250,000 DA
PROPOSED FY 2001 OBLIGATION AND FUNDING SOURCE: $2,000,000 DA
INITIAL OBLIGATION: FY 1997 ESTIMATED COMPLETION DATE: FY 2005

Summary: It is widely recognized that if Vietnam is to achieve sustainable growth domestically and compete internationally, it will need to move from a controlled, centrally planned economy to one that permits freer and broader participation of the private sector. As part of this process it will need to develop and implement a wide range of reforms that will permit greater participation in the world economy. USAID has experience and a comparative advantage in providing technical assistance that may help Vietnam understand, develop, and implement trade reforms, including tariff and customs reforms, removal of non-tariff barriers, investment licensing and registration, intellectual property rights, market access, procurement reform, removal of anti-competitive policies, and improved accountability and transparency. This strategic objective enables USAID to respond as opportunities and openings with the GVN arise. This objective is consistent with MPP goals to open Vietnam's markets to free the flow of goods, services, and capital; and to promote broad-based growth in Vietnam's developing and transitional economy. With the development of a long-term strategy for Vietnam's economic development in mind, the program will contribute to the attainment of transparency, due process, accountability and market-based principles for Vietnam. To date, USAID has responded to opportunities in trade and investment policy and in developing a companies law.

Key Results: With USAID-funded technical assistance, Vietnam developed a draft companies law designed to level the playing field for the private sector. This was incorporated into the broader Enterprises Law passed by the National Assembly in 1999. USAID-supported assistance to the Ministry of Trade contributed to acceleration of negotiations for the U.S.-Vietnam Trade Agreement, leading to an agreement-in-principal in 1999.

Performance and Prospects: The US-Vietnam bilateral trade agreement is considered to be one of the most complex ever negotiated. It not only involves trade in goods and services, but also includes investment and intellectual property rights. Furthermore it requires Vietnam to make a broad range of reforms that, when implemented, will fundamentally change how Vietnam conducts its business. These reforms include: substantial reductions in tariffs; transparency in government procurement; uniform implementation of standards, taxes, and dispute resolution; removal of quotas; market access rights; elimination of trade-related investment restrictions; and acceptance of WTO rules on customs valuation, intellectual property rights and trade in services.

USAID's trade policy activity under this strategic objective is providing technical assistance designed to give Vietnam a better understanding of the role that international standards and the rule of law play in underpinning a successful free market economy. The program provides key Vietnamese officials with a better familiarity of the policies, concepts, regulations, and benefits associated with commercial legal reform, particularly as they relate to trade in goods, trade in services, investment, and intellectual property rights. The program helps understand the principles and commitments of international trade regimes; how existing laws and practices relate; and provides technical and substantive assistance in developing new laws and regulations which are compatible with international trade and investment norms and are beneficial to economic development.

USAID-supported international trade attorneys from U.S.-based law offices have conducted technical assistance sessions for various ministries and government offices responsible for Vietnam's economic integration. With ongoing support and participation from the private sector, the program provides comparative information on other U.S. trade and investment treaty partners and WTO members, particularly other transitional economies; facilitates strong awareness of detailed requirements for Vietnam's bilateral trade agreement with the U.S. and WTO accession; and identifies and builds capacity in legal reforms to ensure effective transition for Vietnam's goal of international integration and a more market-based economy with effective regulation.

At present, technical assistance is helping to conclude the U.S.-Vietnam trade agreement, and to identify and draft laws that will help prepare for the smooth implementation of the agreement. Assistance will continue to help Vietnam understand, develop and implement the reforms required under the bilateral trade agreement (such as those listed above), and to assist Vietnam in meeting the numerous requirements for WTO membership.

Through the Accelerating Economic Recovery in Asia SO, USAID will assist Vietnam in developing structural reforms needed for trade and investment such as financial sector reform, economic governance (accountability and transparency), and regional competitiveness. USAID's United States-Asia Environmental Partnership portfolio of activities such as trade fairs that will continue to accelerate transfer of U. S. environmental technology designed to address specific problems in Vietnam.

Possible Adjustments to Plans: None.

Other Donor Programs: The World Bank policy agenda for economic growth focuses on three areas: creating a sound banking system, reforming the state enterprise system, and opening up international trade. While the World Bank and the Asian Development Bank (ADB) are active in modernizing the banking system and are encouraging state enterprise reform, USAID's support for the bilateral trade agreement and related reforms are considered central to opening up international trade.

Principal Contractors, Grantees or Agencies: Coopers and Lybrand, and the US-Vietnam Trade Council.

Selected Performance Measures: Baseline
(1997)
Actual
(1998)
Target
(1999)
Target
(2000)
Target
(2001)
Companies Law enacted No Yes Yes Yes Yes
Trade Agreement issues resolved 0 5 20 15 -
Agreement-in-Principal for the U.S.-Vietnam Bilateral Trade Agreement No No Yes Yes Yes
U.S.-Vietnam Bilateral Trade Agreement signed No No No Yes Yes
Trade and investment procedures approved 0 0 0 8 10

These indicators track with the process of completing and implementing the U.S.-Vietnam bilateral trade agreement by reaching agreement in principal, resolving remaining issues surrounding the trade agreement, formal signing of the agreement itself, and developing and getting approval of trade and investment procedures.

U.S. Finance Table (Microsoft Excel)

ACTIVITY DATA SHEET

PROGRAM: Vietnam
TITLE AND NUMBER: Improved Access to Services for Selected Vulnerable Groups 440-007
STATUS: Continuing
PLANNED FY 2000 OBLIGATION AND FUNDING SOURCE: $1,500,000 CSD
PROPOSED FY 2001 OBLIGATION AND FUNDING SOURCE: -0-
INITIAL OBLIGATION: FY 1991 ESTIMATED COMPLETION DATE: FY 2002

Summary: While accelerating economic liberalization and growth are key to Vietnam's future, it is important that the disadvantaged do not get left behind. Under this Strategic Objective, USAID provides support to selected vulnerable groups with a view to improve opportunities for them to lead more productive lives. These groups include: victims of the annual floods; victims of injuries from the war or the mines; orphans and displaced children; and those that are at high risk of contracting HIV/AIDS.

Through this strategic objective, USAID is able to provide assistance utilizing resources from the Leahy War Victims Fund (LWVF), the Displaced Children and Orphans Fund (DOCF), the Asia Regional HIV/AIDS program, and resources from the Office of Foreign Disaster Assistance (OFDA). This objective is consistent with MPP goals to prevent or minimize human costs of conflict and natural disasters in the region, and to enhance the health status of the Vietnamese people through programmatic and policy support.

Key Results: As a result of an LWVF initiated barrier-free access initiative, the GVN mandated that the ongoing construction of the new Hanoi international airport be changed to incorporate barrier-free design standards. The DCOF played a leading role in the recent policy shift from institutional to community-based care for disabled children. The regional HIV/AIDS program supported the initiation of a condom social marketing program. In response to annual floods, OFDA provided assistance for construction of 1,400 flood resistant homes.

Performance and Prospects: Through a number of USAID grants, funded by the Leahy War Victims Fund and the Displaced Children and Orphans Fund, USPVOs help improve opportunities to war victims and children at risk. Under the LWVF, numerous U.S. barrier-free design experts were brought to Vietnam to assess and then advise on how open physical access for persons with disabilities could be incorporated into traditional Vietnamese construction techniques. The program also recently completed the upgrading of Bach Mai Hospital in Hanoi to address the increasingly large gap in orthotic services, especially for children. This facility, located at Hanoi's leading teaching hospital, will not only provide direct services to thousands of children a year, but will also house a mobile orthotic unit capable of taking services directly to the beneficiaries. In addition the program introduced a newly designed prosthetic foot that is stronger and more durable than those currently used in Vietnam. This has significant implications on the provision of limbs, as the foot piece is currently the weakest component in the limb system. A broken foot piece necessitates a costly return to the rehabilitation center, since prosthetic feet only last for 6-12 months, as opposed to a mean wear of 3 years for other components. Assistance will continue to strengthen local capabilities to provide services to the disabled including improved policies and local prosthetic production capabilities.

The DCOF is placing more emphasis on supporting children with disabilities. Targeting children with hearing disabilities, over 295 children have been identified with hearing impairments through basic screening techniques and over 250 teachers and government staff have received training on how to mainstream these children into regular classrooms. Two key training manuals have been translated, have been accepted by the Vietnamese government, and are being used as core materials for courses in community-based rehabilitation. In addition, two programs are underway to train trainers of elementary school teachers in inclusive education and non-formal education teachers in vocational rehabilitation for adolescents with disabilities. Future assistance will continue to emphasize mainstreaming of children with disabilities, leading to more productive lives. USAID's HIV/AIDS program works closely with the National AIDS Bureau (NAB) of Vietnam to improve its capacity to implement AIDS prevention activities. The project consists of ongoing support for condom social marketing, as well as support at the national level and in two provinces for communication for behavior change, STD case management, and policy-based interventions. The technical assistance has supported a national condom social marketing project, helped plan a behavioral surveillance survey for Vietnam and helped the GVN establish an AIDS Hotline. In addition to the national-level interventions, the program will be working intensively in four provinces. HIV/AIDS prevention programs in these provinces will be developed based on the results of a rapid situation analysis now underway.

In FY 1999, OFDA provided assistance to respond to the impacts of flood and drought throughout Vietnam. This assistance included a seeds and tools activity in flood affected areas of central Vietnam implemented through the U. N. Development Program, and funding to support the local purchase and distribution of relief assistance and supplies through the Red Cross. In order to mitigate the impacts of floods in the future, OFDA has supported two separate technical assistance activities. First, OFDA has provided support for the National Oceanic and Atmospheric Administration/National Weather Service (NOAA/NWS) to travel to Vietnam to develop a proposal and implementation plan for a Red River flood forecasting and early warning system. Second, OFDA has supported the U. S. Army Corps of Engineers (USACE) to provide technical assistance to the Government of Vietnam on specialized construction techniques for flood control and mitigation. The USACE visited sites in North, Central, and South Vietnam and are preparing a report with recommendations for improved river and sea dyke management and construction. In FY 2001, OFDA will continue to assist Vietnam in disaster preparation and flood mitigation to reduce the extensive annual damage of these disasters.

Possible Adjustment to Plans: None.

Other Donors Program: USAID is the lead donor in providing assistance to the disabled. The United Nations Agencies comprise the principal donor in the health sectors providing over $15 million for child primary health care and nutrition, immunizations, family planning and reproductive health care. The UN is also one of the principal donors for humanitarian and food relief. In addition, many bilateral donors are active in disaster assistance including Belgium, Italy, Netherlands, New Zealand, Switzerland, United Kingdom and the United States.

Principal Contractors, Grantees or Agencies: Vietnam Assistance to the Handicapped, Vietnam Veterans of America Foundation, Prosthetics Outreach Foundation, Health Volunteers Overseas, World Vision Relief and Development, Catholic Relief Services, Family Health International, International Federation of the Red Cross, National Oceanic and Atmospheric Administration/National Weather Service, and the U.S. Army Corps of Engineers.

Selected Performance Measures: Baseline
(1997)
Actual
(1998)
Target
(1999)
Target
(2000)
Target
(2001)
Orthopedic Devices fitted and delivered 0 50,000 55,000 60,000 65,000
Children provided with critically needed services or protection 0 9,000 10,000 11,000 12,000

U.S. Finance Table (Microsoft Excel)

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Last Updated on: November 17, 2000