Vocational and Technical Education Project · 2014. 9. 29. · 01 Civil Works 2,000 1,997 0 2,021...

Completion Report

Project Number: 25033 Loan Number: 1655 (SF) December 2008

Viet Nam: Vocational and Technical Education Project

CURRENCY EQUIVALENTS

Currency Unit – Dong (D)

At Appraisal At Project Completion (9 November 1998) (31 March 2008)

D1.00 = $0.000072 $0.000062 $1.00 = D13,898 D16,078

ABBREVIATIONS

ADB – Asian Development Bank AFD – Agence Française de Developpement BME – benefit monitoring and evaluation DOLISA – department of labor, invalids, and social affairs EA – executing agency EMIS – education management information system GDP – gross domestic product GDVT – General Department of Vocational Training JICA – Japan International Cooperation Agency LMIS – Labor Market Information System MOET – Ministry of Education and Training MOLISA – Ministry of Labor, Invalids, and Social Affairs NDF – Nordic Development Fund PCR – project completion report PAS – Program Accreditation System PIU – project implementation unit PSC – project steering committee SDMP – Staff Development Master Plan SSTC – skills standards, testing, and certification TA – technical assistance TCS – technical certification system VINAS – Vietnam National Accreditation System VSRC – Vocational Science Research Center VTE – vocational and technical education

NOTES

(i) The fiscal year (FY) of the Government and its agencies ends on 31 December. (ii) In this report, "$" refers to US dollars.

Vice President C. Lawrence Greenwood, Jr., Operations Group 2 Director General A. Thapan, Southeast Asia Department (SERD) Director S. Lateef, Social Sectors Division, SERD Team leader Y. Hirosato, Senior Education Specialist, SERD Team member D. Santos, Assistant Project Analyst, SERD

CONTENTS

Page

BASIC DATA i

MAP v

I. PROJECT DESCRIPTION 1 II. EVALUATION OF DESIGN AND IMPLEMENTATION 1

A. Relevance of Design and Formulation 1 B. Project Outputs 2 C. Project Costs 7 D. Disbursements 7 E. Project Schedule 8 F. Implementation Arrangements 8 G. Conditions and Covenants 9 H. Consultant Recruitment and Procurement 9 I. Performance of Consultants, Contractors, and Suppliers 10 J. Performance of the Borrower and the Executing Agency 10 K. Performance of the Asian Development Bank 11

III. EVALUATION OF PERFORMANCE 11 A. Relevance 11 B. Effectiveness in Achieving Outcome 11 C. Efficiency in Achieving Outcome and Outputs 11 D. Preliminary Assessment of Sustainability 12 E. Impact 12

IV. OVERALL ASSESSMENT AND RECOMMENDATIONS 13 A. Overall Assessment 13 B. Lessons 13 C. Recommendations 14

APPENDIXES 1. Design and Monitoring Framework 15 2. Summary of Policy Reforms 19 3. Occupations and Training Levels for 15 Key Schools 23 4. Summary of Inputs Provided to Key Schools 24 5. Trends in Indicators Across Key Schools: 2001-2007 25 6. Civil Works 28 7. Staff Development Plan 29 8. Project Costs and Financing Plan 30 9. Breakdown of Annual Disbursements 32 10. Implementation Schedule 33 11. Status of Compliance with Loan Covenants 35 12. Consulting Services 42 13. Assessment of Project Performance 43

i

BASIC DATA A. Loan Identification 1. Country 2. Loan Number 3. Project Title 4. Borrower 5. Executing Agency 6. Original Amount of Loan Actual Amount of Loan 7. Project Completion Report Number

Viet Nam 1655-VIE(SF) Vocational and Technical Education Socialist Republic of Viet Nam Ministry of Labor, Invalids, and Social Affairs SDR38,321,000 SDR22,333,273 PCR VIE 1089

B. Loan Data 1. Appraisal – Date Started – Date Completed 2. Loan Negotiations – Date Started – Date Completed 3. Date of Board Approval 4. Date of Loan Agreement 5. Date of Loan Effectiveness – In Loan Agreement – Actual – Number of Extensions 6. Closing Date – In Loan Agreement – Actual – Number of Extensions 7. Terms of Loan – Interest Rate – Service Charge – Maturity (number of years) – Grace Period (number of years)

4 August 1998 20 August 1998 29 October 1998 30 October 1998 11 December 1998 10 September 1999 9 December 1999 17 December 1999 None 31 October 2004 23 October 2008 Two 0% 1.5% per annum on the amount of loan withdrawn 40 years 10 years

8. Disbursements a. Dates Initial Disbursement

23 December 1999

Final Disbursement

22 September 20081

Time Interval

105.0 months

Effective Date

17 December 1999

Original Closing Date

31 October 2004

Time Interval

58.5 months

1 The loan closing was delayed by the liquidation of the imprest fund for the final settlement.

ii

b. Amount ($’000) Category

Original

Allocation

Last Revised

Allocation

Amount

Canceled

Net Amount

Available

Amount

Disbursed

Undisbursed

Balance 01 Civil Works 2,000 1,997 0 2,021 1,992 28 02 Equipment & Furniture 14,000 14,440 1,500 13,152 12,260 893 03 Instructional Materials 10,500 10,946 2,822 8,469 5,597 2,871 04 Staff Development 8,100 8,426 3,594 4,944 5,282 (338) 05 Consultant Services 7,700 7,908 0 8969 6,101 2,868 06 Surveys & Studies 500 510 233 279 332 (53) 07 Implementation 1,000 1,044 907 138 164 (26) 08 Service Charge 1,500 1,563 0 1,605 842 762 09 Unallocated 8,700 4,309 2,941 0 0 0 99 Imprest Fund 0 (12) 0 0 0 0 Total 54,000 51,131 11,996 39,577 32,570 7,005

9. Local Costs (Financed) - Amount ($’000) 4,845 - Percent of Local Costs 18 - Percent of Total Cost 6 C. Project Data

1. Project Cost ($‘000) Cost Appraisal Estimate Actual

Foreign Exchange Cost 72,000 59,730 Local Currency Cost 48,000 26,560 Total 120,000 86,290

2. Financing Plan ($’000)

Cost Appraisal Estimate Actual Implementation Costs

Borrower Financed 24,000 15,980 ADB Financed 52,500 31,728 AFD Financed 12,000 12,220 JICA Financeda 24,000 19,170 NDF Financed 6,000 6,350 IDC Costs/ADB Service Charge

Borrower Financed 0 0 ADB Financed 1,500 842 JICA Financeda 0 0 NDF Financed 0 0 Total 120,000 86,290 ADB = Asian Development Bank, AFD = Agence Française de Developpement, IDC = interest during construction, JICA = Japan International Cooperation Agency, NDF=Nordic Development Fund. a Government of Japan through the Japan International Cooperation Agency.

iii

3. Cost Breakdown by Project Component ($’000) Component Appraisal Estimate Actual A. Base Cost Staff Development 10,100 6,440 Consultant Services 7,700 6,260 Surveys and Studies 500 330 Instructional Materials 12,500 6,348 Equipment and Furniture 56,000 47,310 Civil Works 8,300 14,210 Implementation 7,800 1,650 Taxes and Duties 4,800 2,900 Total Base Cost 107,700 85,448

B. Contingencies 10,800 0

C. Service Charge 1,500 842

Total Cost 120,000 86,290 4. Project Schedule

Item Appraisal Estimate Actual Date of Contract with Consultants Package 1: Macro-Level Issues Sep 2000 27 Aug 2001 Package 2: School-Level Issues Sep 2000 27 Aug 2001 Individual Consultants 1 Dec 2006 Completion of Consulting Services Package 1 Oct 2004 May 2005 Package 2 Oct 2004 Aug 2005 Individual Consultants 31 Mar 2008 Civil Works First Procurement Dec 2000 3 Jul 2002 Last Procurement Mar 2003 20 Sep 2005 Completion of Civil Works Mar 2003 Mar 2006 Staff Development/Fellowship Start Jul 2000 13 Aug 2002 Completion Oct 2004 31 Mar 2008 Equipment and Furniture First Procurement Mar 2000 15 Dec 2000 Last Procurement Sep 2003 22 Nov 2006 Instructional Materials First Procurement Jan 2002 11 Dec 2003 Last Procurement Oct 2004 24 Apr 2007 Other Milestones

Establishing a Labor Market Information System Jan 2000–Dec 2004 Oct 2001–Dec 2005

Developing Model Technical Schools Jul 2000–Dec 2002 Jul 2001–Mar 2008

Developing an Accreditation System Oct 2000–Dec 2002 Oct 2001–Mar 2008

iv

5. Project Performance Report Ratings

Ratings Implementation Period

Development Objectives

Implementation Progress

From 30 October 1999 to 30 November 1999 Satisfactory Unsatisfactory From 31 December 1999 to 30 November 2004 Satisfactory Satisfactory From 31 December 2004 to 31 July 2005 Highly Satisfactory Satisfactory From 31 August 2005 to 30 June 2008 Satisfactory Satisfactory D. Data on Asian Development Bank Missions

Name of Mission

Date

No. of Persons

No. of Person-Days

Specialization of Membersa

Fact-Finding 20 Apr–12 May 1998 4 77 a, a, b, d Appraisal 3–21 Aug 1998 4 43 a, a, b, c Special Loan Administration 1 20–28 Aug 1999 1 8 a Inception 18–22 Oct 1999 2 10 a, e Loan Review 1 22–27 Feb 2000 1 4 a Loan Review 2 2–8 Nov 2000 1 7 a Loan Review 3 3–7 Sep 2001 2 10 a, e Loan Review 4 22–26 Apr 2002 1 5 a Loan Review 5 28 Oct–1 Nov 2002 1 5 a Loan Review 6 3–7 Mar 2003 1 5 a Midterm Review 2–17 Oct 2003 2 21 a, e Loan Review 7 16–20 Aug 2004 1 5 a Loan Review 8 5–10 Jan 2005 1 5 a Loan Review 9 14–16 Mar 2005 1 3 a Loan Review 10 25 Jul–1Aug 2005 2 16 a, e Loan Review 11 17–20 Jan 2006 1 4 a Loan Review 12 31 Jul–4 Aug 2006 1 5 a Loan Review 13 13–23 Mar 2007 1 11 a Loan Review 14 28 Sep–3 Oct 2007 2 12 a, e Special Loan Administration 2 12–15 Apr 2008 1 4 a Project Completion Review 1–9 Sep 2008 2 18 a, e Note: a a - education specialist, b - programs officer, c - counsel, d - economist, e - assistant project analyst.

Gulf of Thailand

Gulf of Tonkin

Hai Phong

HA NOI

Son LaDien BienPhu

Lai Chau

Lao Cai

Ha Giang Cao Bang

Bac Kan

Lang SonYen Bai Tuyen Quang

Thai Nguyen

Thai Binh

Ninh Binh

Thanh Hoa

Hoa Binh

Phu Ly

Hung Yen

Bac Giang

Ha Long

Vinh

Ha Tinh

Dien Chau

Thai Hoa

Dong Hoi

Dong Ha

Hue

Da Nang

Quang Ngai

Tam Ky

Hoi An

Pleiku

Bong Son

Kon Tum

Quy Nhon

Tuy HoaBuon MaThuot

Dak Song Ninh Hoa

Cam Ranh

Di Linh

Lien Huong

Da LatGia Nghia

Phan Thiet

Phan Rang-Thap Cham

Bien Hoa

Dong Xoai

Ho Chi Minh City

Vung TauMy Tho

Rach GiaPhu Quoc Island

LongXuyen

Can Tho

Vinh Long

Vi Thanh

Chau Doc

Ha Tien

Cao Lanh

Soc Trang

Tra Vinh

Ben Tre

Bac LieuCa Mau

Tan An

Thu Dau Mot

Tay Ninh

HaiDuong

Nha Trang

An Loc

Dat Do

Viet Tri

Phu ThoMong Cai

Cam Pha

Trang Dinh

Vinh Yen

Lai ChauDien BienSon LaLao CaiPhu ThoTuyen QuangHa GiangYen BaiCao BangBac KanThai NguyenVinh PhucHa NoiBac NinhHung YenLang SonQuang NinhBac GiangHai DuongHai PhongThai BinhHoa BinhHa NamNinh BinhNam DinhThanh HoaNghe AnHa TinhQuang BinhQuang TriThua Thien HueDa NangQuang NamQuang NgaiKon TumGia LaiBinh DinhPhu YenDak LakDak NongKhanh HoaLam DongNinh ThuanBinh PhuocTay NinhBinh DuongDong NaiBinh ThuanBa Ria - Vung TauHo Chi MinhLong AnTien GiangDong ThapAn GiangKien GiangHau GiangCan ThoVinh LongBen TreTra VinhSoc TrangBac LieuCa Mau

1.2.3.4.5.6.7.8.9.

10.11.12.13.14.15.16.17.18.19.20.21.22.23.24.25.26.27.28.29.30.31.32.33.34.35.36.37.38.39.40.41.42.43.44.45.46.47.48.49.50.51.52.53.54.55.56.57.58.59.60.61.62.63.

PROVINCES

62

63

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

1718

1920

2122 23

2425

26

27

28

29

30

3132

33

34

35

36

37

3839

40

41

4243

44

45

46 4748

4950

51

5253

54

55

56

5758

60

59

61

LAO PEOPLE'SDEMOCRATIC REPUBLIC

CAMBODIA

PEOPLE'S REPUBLICOF CHINA

Key School (upon project completion)

National Capital

Provincial Capital

City/Town

National Road

Other Road

Railway

River

Provincial Boundary

International Boundary

Boundaries are not necessarily authoritative.

SOCIALIST REPUBLIC OFVIET NAM

VOCATIONAL AND TECHNICALEDUCATION PROJECT

(as completed)

100

Kilometers

50 2000

N

08-4450 EG

103 00’Eo

103 00’Eo

108 00’Eo

108 00’Eo

12 00’No 12 00’No

20 00’No20 00’No

Hai Phong IndustrialVocational College

Vinh Technical Teacher Training University

Hue Industrial College

Central HighlandYouth Ethnic Minorities

Vocational College

Da Lat Vocational College

Da Nang Vocational College

Dong Nai Vocational College

Ho Chi Minh CityUniversity of Industry

Vinh Long TechnicalTeacher Training College

Can Tho Vocational College

Construction VocationalCollege No. I

Dien Bien Health CareSecondary School

Central TransportVocational College 1

Ha Noi University of Industry

Agriculture–Forestry College

I. PROJECT DESCRIPTION 1. Viet Nam’s economy grew impressively following economic reforms first introduced in 1986 and intensified in 1991. The country is undergoing rapid economic transition. A productive, competent, and flexible workforce is a prerequisite for furthering economic development. To improve the quality and efficiency of graduates of vocational and technical education (VTE) programs, the Government of Viet Nam (the Government) recognized the need to upgrade VTE institutions and make education and training better oriented to meet labor market needs. The Government accords high priority to developing its human resources. 2. The Government requested the Asian Development Bank (ADB) to prepare the Vocational and Technical Education Project (the Project) in 1996. The Project was approved on 11 December 1998 for a loan of $54 million and became effective on 17 December 1999. The Project was cofinanced with the Agence Française de Developpement (AFD), Japan International Cooperation Agency (JICA), and Nordic Development Fund (NDF) on a parallel basis. The Project’s impact is a reformed VTE system that can better support the Government’s market-oriented industrialization policy. The Project’s outcomes are the (i) improved market orientation of the VTE system, (ii) key schools to improve the efficiency of VTE programs, and (iii) strengthened institutional capacity in the General Department of Vocational Training (GDVT) to implement the VTE reform. The Project supported six major policy reforms: (i) a labor market information system, (ii) a program accreditation system, (iii) a technical certification system, (iv) improved access for women and minority students, (v) cost recovery, and (vi) private sector participation. To achieve these outcomes, the Project had three main intended outputs: (i) improvement in the market orientation of VTE, (ii) the upgrading of key schools by developing curricula and instructional materials and improving equipment and facilities, and (iii) the introduction of policy reforms in the VTE system through institutional capacity building. The Project’s design and monitoring framework is in Appendix 1, and the summary of policy reforms is in Appendix 2.1

II. EVALUATION OF DESIGN AND IMPLEMENTATION A. Relevance of Design and Formulation 3. The Government recognized the importance of VTE as part of its education development plan as captured in its Educational Development Strategy 2001–2010. The objectives of the Education Development Strategy are (i) to ensure that 40% of the workforce has received training, of which 26% should receive vocational training; and (ii) to establish 40 high-quality institutions. The design and formulation of the Project, which focused on strengthening the country’s VTE subsector capacity, were relevant, as the Project (i) supported improving VTE quality and relevance to meet labor market needs, enhancing efficiency, expanding capacity, and introducing new technologies to improve access to better training opportunities; (ii) was consistent with ADB’s country strategy for Viet Nam and its overarching objective of improving the access of special groups, including women and ethnic minorities, to VTE (the Project included providing special support to one health care training school and two vocational schools in northern and central highland areas to provide more training opportunities to ethnic minorities); and (iii) built upon ADB’s strategy to promote training-production linkage and school-industry partnership to achieve market-driven skills training.

1 ADB. 1998. Report and Recommendation of the President to the Board of Directors on a Proposed Loan to the

Socialist Republic of Viet Nam for the Vocational and Technical Education Project. Manila.

2

4. ADB provided project preparatory technical assistance (TA)2 and separate advisory TA3 to strengthen the capacity of GDVT to implement the Project. The advisory TA, which was processed separately from the Project, supported a comprehensive analysis of the VTE system by reviewing existing policies for VTE in Viet Nam to strengthen policy dialogue that took place under the project preparatory TA. It also provided initial training in developing a labor market information system and instructional materials that were referred to the design of the Project. The advisory TA was adequately formulated in terms of budget, provision of consultant services, and implementation arrangements to maximize its impact on GDVT capacity building and was relevant, as the Project is the first project loan to the Ministry of Labor, Invalids, and Social Affairs (MOLISA). Although the advisory TA was originally planned to overlap with or at least be followed immediately by the Project, delays in starting up the Project, particularly regarding consultant selection and procurement of equipment, weakened the momentum generated under the advisory TA. In addition, the advisory TA would have been more effective if it had focused more on improving administrative capacity, rather than on technical capacity. 5. The scope and activities of the Project were largely appropriate, and its interventions were timely in addressing the rising demand for skilled labor and technicians in a rapidly changing labor market. However, weaknesses of the project design were its failure to identify certain risks and faulty assumptions that could affect project implementation and the attainment of project objectives. Despite the provision of the advisory TA for capacity building, the project design underestimated management capacity constraints in MOLISA and GDVT. Neither MOLISA, the executing agency, nor GDVT, the implementing agency, had ever run a project before. This caused delays and difficulties especially during project inception. The selection of the 15 key schools to be supported under the Project, which was decided only after loan signing, also affected advance actions and preparatory activities by key schools and delayed loan effectiveness and project implementation (a salient project feature, however, was that the 15 key schools were evenly distributed geographically over the country). Projections for staff development proved to be too ambitious because the initial assessment of staff development needs included upper secondary teachers in schools administered by the Ministry of Education and Training (MOET). The project design was not adjusted in a timely manner when the responsibility for vocational training management was handed from MOET to MOLISA during project appraisal. B. Project Outputs 1. Improved Market Orientation 6. Development of a Labor Market Information System (LMIS). The objective of introducing the LMIS was to help the VTE system learn the demands of enterprises and employers so that skills training would be relevant to labor market needs, as well as to improve management and the forecasting of labor demand. The Project designed questionnaires, developed guidelines for survey methodology, collected data, and prepared survey reports. It conducted training courses for staff of key schools and provincial departments of labor, invalids, and social affairs (DOLISAs) using documents developed under the Project. Staff of key schools and DOLISAs understood survey methodology and were able to conduct their own surveys to fit their particular needs. Four rounds of labor market surveys were conducted. The outputs of

2 ADB. 1996. Technical Assistance to the Socialist Republic of Viet Nam for the Technical Education Project. Manila

(TA 2671-VIE, for $800,000, approved on 25 October 1996). 3 ADB. 1998. Technical Assistance to the Socialist Republic of Viet Nam for the Capacity Building in Vocational and

Technical Education. Manila (TA 3063-VIE, for $600,000, approved on 3 September 1998).

3

each annual survey were input into labor market reports for VTE policy makers. To replicate its outputs, the Project published the Guidelines on Labor Market Studies in VTE for circulation to vocational training institutions, DOLISAs, and relevant ministries and agencies. 7. Career Guidance and Job Placement Services. The objective of career guidance and job placement services was to help graduates of VTE schools find jobs relevant to their skills and help employers reduce employment costs. The Project published Career Guidance and Employment and conducted training workshops for the staff of key schools and DOLISAs to help them better implement career guidance. The public response to the publication has been encouraging. At the request of the Vocational Training Association, the publication will be reprinted, using AFD’s credit proceeds, for distribution to association member schools by the end of 2008. 8. Curriculum Guides and Instructional Materials Development. The objective of this activity was to develop curriculum guides relevant to the skills requirements of employers and to develop instructional materials supporting the delivery of new curricula, such as textbooks, teachers’ guides, and audio-visual materials. The Project developed a process and methodology for developing modern curriculum guides at three qualification levels: primary, secondary, and college. Under the Project, 48 curriculum development committees were established with key school teachers, managers, and outside production managerial staff. MOLISA established 12 national curriculum appraisal boards to assist MOLISA in appraising curriculum guides. In total, the Project developed 97 curriculum guides, 27 at the college level, 43 at the secondary level, and 27 for mobile training programs. MOLISA approved all curriculum guides developed under the Project and endorsed their pilot delivery. The Project also developed textbooks and teachers’ guides based on the new curriculum guides and 100 computer courseware products. These outputs helped substantially in changing the approach to vocational training management, with three qualification levels (primary, secondary, and college) reflected in the Law on Education (revised in 2005) and the Law on Vocational Training of 2006. Occupations and training levels for 15 key schools is in Appendix 3. 9. Development and Production of Multimedia Materials. To make the delivery of new curriculum guides more effective, the Project developed and produced multimedia teaching and learning resources such as compact disks, videos, and posters for mobile training programs and traditional occupations. The Project procured curricula, instructional materials, and audio-visual materials from abroad for key schools and translated them into Vietnamese for reference. The Project piloted the development of a learning management system, which covered 11 occupations for 8 key schools with a view to provide key schools with advanced teaching methodology and access to e-learning practices. The pilot development of the learning management system was timely because e-learning has become a clear trend in Viet Nam.

2. Key Schools Developed

10. Key School Selection and Development and Monitoring Plan. MOLISA designated 15 key schools as follows: six ADB-financed key schools (Dien Bien Health Care Secondary School, Dien Bien; Agriculture-Forestry College, Bag Giang; Da Nang Technical Economic School, Da Nang; Central Highland Youth and Ethnic Minorities Vocational Training School, Dak Lak; Da Lat Technical School, Da Lat; and Can Tho Technical Worker’s School, Can Tho); four AFD-financed key schools (Vietxo Technical Worker’s School No. I, Vinh Phuc; Hai Phong Industry Secondary School, Hai Phong; Technical Worker’s School No. 1, Ho Chi Minh City; and Dong Nai Technical Worker’s School); three NDF-financed key schools (Vinh Technical Teacher Training College, Vinh; Hue Technical Practical Worker’s School, Hue; and Vinh Long Technical

4

Teacher Training College); and two JICA-financed key schools (Technical Worker’s School No. 1, Ha Noi, and Training School for Road Construction and Machinery, Ha Noi). The project implementation unit (PIU) prepared a key school development plan that summarized (i) the planned input of each key school by major expenditure categories and source of funds and (ii) key school operations by training courses, physical facilities, and financiers under the Project. The summary of inputs provided to key school is in Appendix 4. For monitoring the improvement of efficiency in each key school, the PIU prepared a time series monitoring framework based on data retrieved from the benefits monitoring and evaluation reports of the Project, which is in Appendix 5 (Trends in Indicators Across Key Schools, 2001–2007). It is remarkable that, owing to the project intervention, 12 key schools were upgraded during implementation from technical secondary school to vocational college, or from vocational college to university, as follows:

(i) Da Nang Technical Economic School became Da Nang Vocational College; (ii) Central Highland Youth and Ethnic Minorities Vocational Training School became

Central Highland Youth and Ethnic Minorities Vocational College; (iii) Da Lat Technical School became Da Lat Vocational College; (iv) Can Tho Technical Worker’s School became Can Tho Vocational College; (v) Vietxo Technical Worker’s School No. I became Construction Vocational College

No. I; (vi) Hai Phong Industry Secondary School became Hai Phong Industrial Vocational

College; (vii) Technical Worker’s School No. 1 became Ho Chi Minh City University of

Industry; (viii) Dong Nai Technical Worker’s School became Dong Nai Vocational College; (ix) Vinh Technical Teacher Training College became Vinh Technical Teacher

Training University; (x) Hue Technical Practical Worker’s School became Hue Industrial College; (xi) Technical Worker’s School No. 1 became Ha Noi University of Industry; and (xii) Training School for Road Construction and Machinery became Central Transport

Vocational College 1. 11. Facilities Development. ADB, AFD, and counterpart funds from central and provincial budgets financed the renovation or construction of classrooms and the installation of equipment. Civil works were completed ahead of training activities, which created comfortable facilities in which key schools could deliver their training. However, civil works for the Vocational Science Research Center were not completed because the construction site was unavailable. Civil works are summarized in Appendix 6. 12. Training Equipment Provision. To equip key schools with new equipment relevant to developing curricula and instructional materials, ADB financed the procurement of equipment worth $12.4 million for six key schools, as did NDF for US$6.4 million for three key schools and AFD for €9.0 million for four key schools. The procurement plan included 16 packages, comprising seven packages under ADB financing, five under NDF, and four under AFD. Equipment supplied to key schools was generally viewed as responsive to current training requirements and relevant to future needs. Although there were some delays in procurement, the installation of modern and relevant equipment at key schools has improved their training capacity, quality, and efficiency and contributed to their enhanced attractiveness. This led to increased enrollments and enabled key schools to generate additional income by utilizing the new equipment.

5

13. Production Units. To link training with practice and generate additional income for the 15 key schools, the Project established 15 production units, one at each key school. Some production units have generated income during their operations. In particular, Ho Chi Minh City University of Industry and Ha Noi University of Industry had outstanding production activities and marketing capacity, which helped them attract financial contributions from enterprises. These two universities are considered demonstration schools on production activities.

3. Policy Reforms Introduced and Institutional Capacity Strengthened 14. Program Accreditation System. GDVT drafted a policy and system for the quality control of vocational training programs and pilot tested it as the Vietnam National Accreditation System (VINAS) in 2002. After completing the piloting of VINAS in two key schools in 2003, MOLISA introduced the program accreditation system in all 15 key schools. Quality teams were established at key schools for self assessment. Following ADB approval, the Project used part of the loan savings to engage consultants to assist GDVT in developing training materials for auditors and in conducting a training course for core auditors for GDVT’s future accreditation exercises. Apart from that, the consultants helped GDVT develop quality accreditation criteria and procedures, subject to MOLISA’s approval, for the system-wide application of program accreditation exercises. MOLISA established the Vocational Accreditation Department within GDVT in October 2006. Recently, the Government approved a new organizational structure for GDVT, including the Vocational Accreditation Department. 15. Skills Standards, Testing, and Certification. Having considered methods of developing skills standards in other countries, the Project drafted the procedure and method for developing competency-based skills standards using job descriptions and skills requirements developed by competent and experienced people from industry. This ensured that skills standards were in accordance with the skills required at the workplace. Following the pilot development of skills standards for two occupations, the Project developed skills standards for 48 occupations. The Project drafted a qualification framework for primary, secondary, and college levels that clearly defines the knowledge and skills to be attained at each level. Following the development of skills standards, the Project conducted the pilot development of test banks for two occupations and a pilot assessment of student competencies. The pilots were appreciated by relevant enterprises and agencies. Subsequently, the Project conducted a number of training workshops on test bank development and computerized test management for key schools so that they could better manage testing and certification. Recently, MOLISA approved the new organizational structure of GDVT, including the National Skills Testing and Certification Department. 16. Access for Female and Minority Students. MOLISA and GDVT have prepared an action plan to promote the participation of women and minorities in vocational training. The plan was submitted to ADB on 11 December 2001. Based on the plan, GDVT introduced in November 2002 two pilot programs, in Can Tho Technical Worker School for sewing and in Dien Bien Health Care Secondary School for nursing and midwifery. GDVT conducted a policy workshop in February 2003 that prepared a proposal for a revised policy framework on access, including the establishment of a disadvantaged persons unit in GDVT. Based on this pilot program, the GDVT and the PIU instituted similar exercises in key schools for disadvantaged groups such as women, ethnic minorities, the poor, and the disabled for implementation from December 2005.

6

17. To provide training programs to those people who have little chance to attend school, three mobile training centers were established at Dien Bien, Dak Lak, and Bac Giang. The Project developed and delivered 27 mobile training programs targeting 540 people (of which 78% were women and 76% members of ethnic minorities), produced audio-visual materials, and procured equipment to support training delivery. Mobile training programs developed under the Project were relevant to the rural workforce as required by the Government. The Project published and replicated curricula and audio-visual materials for circulation among other VTE schools using Government funds. 18. School-Industry Partnership. To create a close linkage between schools and enterprises and to ensure the relevance of training to labor market demands, the Project developed a manual for school-industry partnerships and conducted training workshops on their effective establishment. The Project guided key schools in establishing school-industry advisory councils whose role is to monitor the relevance of key school operations to the needs of industries and employers, including the review of training programs, publicity, and the promotion of job placement at each key school. A program-industry advisory committee was established for each occupation to ensure that the skills and knowledge delivered by each program meets employers’ requirements. 19. Staff Development. Staff development was one of the most important activities of the Project, as it aimed to reform the VTE system by building the capacity of managerial staff and improving institutional capacity. The Project produced the Staff Development Master Plan (SDMP). It trained 4,709 participants (96% of the SDMP target), including policy makers across all levels of government and teachers, of whom 372 received external study tours (99% of the SDMP target), 186 received external fellowships (90% of the SDMP target), and 4,151 received local short-term training (96% of the SDMP target). The SDMP included extensive training for teachers and administrators and related specialist activities. Senior officials went on study tours overseas to observe current developments in VTE. In general, overseas and local training courses equipped participants with new thoughts on vocational training management and improved the capacity of vocational teaching staff. The staff development plan, summarizing the number of participants and person-months across different training categories, is in Appendix 7. 20. The staff development target envisaged at appraisal, calling for more than 20,000 people to be trained, was not realistic. The midterm review in October 2003 reduced the project target to 6,300 (later further reduced to 4,900), taking into account the actual number of personnel in the VTE system. This led to cancelling the second phase of the SDMP, saving $3.04 million. The slow implementation of staff development was traced back to the lack of guidelines for the procurement of training services, which resulted in poor bidding documents and repeated rebidding of tenders. The PIU subsequently developed more suitable sample bidding documents for the procurement of training services, which may be adapted by other projects. 21. The lessons are that the staff development plan should pay attention to (i) training for teachers in key schools on the technological aspects of the equipment to be procured and the effective use of it in their teaching and (ii) training for teachers on teaching methodology using newly developed curricula and new equipment, as well as on quality assessment and testing of new training programs. Learning from this experience, the PIU utilized savings under AFD financing to conduct overseas training courses on the transfer of technology at the suppliers’ training centers and mobilized French consultants to conduct training for teachers at four AFD-financed key schools.

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C. Project Costs 22. At appraisal, the total project cost was estimated at $120 million, of which $72 million was foreign exchange cost, including the $1.5 million service charge. The local currency cost was estimated at $48 million. ADB’s share was estimated at $54 million, AFD’s at $12 million, JICA’s at $24 million, NDF’s at $6 million, and the Government’s at $24 million. The actual cost of the Project was $86.290 million, of which ADB financed $32.57 million, AFD $12.22 million, JICA $19.17 million, NDF $6.35 million, and the Government $15.98 million. This was 72% of the original estimate, with substantial savings in ADB funding. Loan savings included savings from procurement; from low actual implementation costs as per Government’s expenditure norms against high implementation costs at project design; from the cancellation of the second phase of the SDMP, totaling $3.04 million; and from unallocated budget and exchange rate variations. As a result, at the request of the Borrower, loan funds of $4.5 million equivalent identified as surplus during the midterm review were cancelled on 4 February 2004, and a further $12.0 million equivalent identified as surplus in January 2006 was cancelled on 3 April 2006. An undisbursed balance of $6.9 million was cancelled upon closing the loan account. A summary of the appraisal and actual financing plans is in Table 1. Detailed project costs estimates at appraisal and completion are shown in Appendix 8.

Table 1: Appraisal and Actual Financing Plans and Costs

Appraisal Estimate Actual Source Foreign Local Total Foreign Local Total

ADB-Financed 36.00 18.00 54.00 27.73 4.84 32.57 AFD 6.00 6.00 12.00 6.48 5.74 12.22 JICAa 24.00 0.00 24.00 19.17 0.00 19.17 NDF 6.00 0.00 6.00 6.35 0.00 6.35 Government 0.00 24.00 24.00 0.00 15.98 15.98 Total 72.00 48.00 120.00 59.73 26.56 86.29 ADB = Asian Development Bank, AFD = Agence Française de Developpement, JICA = Japan International Cooperation Agency, NDF = Nordic Development Fund. a The Government requested the Government of Japan to provide as a grant through JICA the equipment with

associated expert service and staff training to two key schools in the amount of $24 million equivalent. Source: ADB. D. Disbursements 23. An imprest account was opened on 22 November 1999 at the Bank for Foreign Trade of Viet Nam, and an initial advance of $100,000 was disbursed in December 1999. The advance was increased to $1.0 million in December 2000. Because of the 2-year slippage in project implementation, disbursements continued to be very slow until the 4th year. As a result, the advance was cut from $1.0 million to $600,000 in April 2003. Financial progress started to gain momentum towards the 4th quarter of 2003, as contract awards and disbursements improved significantly. The use of the imprest fund and statement of expenditure procedures simplified the process for drawing advances and replenishments, which enabled the PIU to make timely payments to local contractors, suppliers, and consultants. Delays in replenishing the advance were attributed to delays in procurement. Overall, there were no significant problems in the liquidation and replenishment of the imprest fund. Towards the end, minor delays were encountered in processing direct payments to local suppliers due to the need to translate invoices from Vietnamese to English, which slightly delayed closing the loan account.

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Disbursements of ADB loan funds amounted to $32.57 million. The quarterly breakdown of annual disbursements is in Appendix 9. E. Project Schedule 24. The Project was originally scheduled for closing by October 2004. Both physical and financial progress was affected by the 2-year slippage at the start. There was a 1-year slippage before the Project became effective for the following reasons: (i) MOLISA’s replacing MOET as the Executing Agency (EA) and (ii) the new EA’s redesign of the key school selection process and finalizing it with the line ministries and provincial governments concerned. Moreover, as this was MOLISA’s first foreign loan project, it required another year to prepare internal regulations, an organizational framework, and the allocation of authority required for project implementation. At the midterm review in October 2003, a revised implementation plan was prepared in coordination with cofinanciers. The Borrower then requested an extension of the loan closing date from 31 October 2004 to 30 September 2006, which was approved on 24 February 2004. 25. After ADB granted the first extension, the Project suffered delays for about another year. In 2004, the Office of the Auditor General conducted an investigation of allegations raised by an unsuccessful bidder to supply training equipment. The 7-month investigation dismissed the bidder’s complaint, but 1 year of the 2-year extension was lost because the investigation halted project procurement and disbursements. As a result, the Borrower requested a further 18-month extension, from 30 September 2006 to 31 March 2008. In support of the Borrower’s request for extension, AFD extended its implementation period to 31 December 200844and NDF to 31 December 2006. There were delays in the staff development program, particularly regarding overseas programs, because the packages were too small to attract international bidders, and in consulting services because of complicated contracting processes. Slippage in consulting services contracting resulted in the withdrawal of some international and local consultants. The substitution process was lengthy. A comparison of the planned schedule against actual implementation is in Appendix 10. F. Implementation Arrangements 26. The project steering committee was established with the vice minister of MOLISA as chairperson and with members from the State Bank of Viet Nam, related ministries, Office of the Prime Minister, Viet Nam Chamber of Commerce and Industry, and women’s and labor unions. GDVT was the implementing agency, with the project director being the director general of GDVT until December 2006 and subsequently, the deputy director general of GDVT. Day-to-day activities were handled by the project manager, who was supported by the deputy project manager and the PIU staff. Sub-PIUs were established in each key school, though the production unit in each key school was managed by a separate unit manager. The PIU had no previous experience in managing a foreign-funded project. Initially, there were only a few full-time staffers, so the PIU had to recruit contractual staff, who opted to work elsewhere after gaining experience. There were several changes in project leadership as a result of the retirement of two GDVT directors general and three changes in project manager, which affected project performance. The third and final project director was appointed in February 2007. Despite the delays in implementation, the Project was able to overcome negative impacts through improved management in the later part of implementation.

4 On 18 December 2008, the EA advised the extension of the AFD component until 27 March 2009.

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G. Conditions and Covenants 27. Thirty two of the 36 loan covenants were complied with satisfactorily. Three loan covenants—the adoption of a decree to empower MOLISA to collect fees; development of a skills standards, testing, and certification system for 48 occupations; and the action plan to attract more females and ethnic minority groups to vocational and technical schools—were complied with after delay. One covenant underwent a minor change, with six new units established in GDVT instead of seven. The Project was completed without any covenant cancelled or significantly altered. The major gain from the Project is evidenced by (i) the drafting of the Vocational Training Law in 2006 as part of policy reform agenda, which reflects the experiences, findings, and recommendations from the various components of the VTEP project and (ii) a new organizational structure for GDVT that creates new units to ensure the relevance of vocational training management to sector reform (Loan Agreement Schedule 6, para. 2). The covenant on expanding technical certification and accreditation to other schools and sectors had not been fully met upon project completion, but ADB agreed that GDVT would implement them system-wide after the Project. All financial covenants were complied with, and strict adherence to disbursement procedures was followed—sometimes causing delays. The status of compliance with the loan covenants is in Appendix 11. H. Consultant Recruitment and Procurement 28. The Project used 261 person-months of international consultancy, or slightly less than the 293 person-months at appraisal. National consultants provided 442 person-months of service, against a much lower appraisal provision of 327 person-months. As national consultants with the required expertise were identified during the Project, their inputs replaced those of international consultants. The consulting services are summarized in Appendix 12. Recruitment was carried out in accordance with ADB’s Guidelines on the Use of Consultants and other arrangements satisfactory to the ADB on the engagement of national consultants. The consultancy services consisted of two packages, commencing on 10 September 2001. The specialist service package of package 1 was confined to system-level inputs, while package 2 provided inputs at both the key school and the system level. There were no disagreements between the EA and ADB on the selection of consultants. During the second extension period, from 30 September 2006 to 31 March 2008, individual consultants were recruited. 29. The procurement of equipment under ADB financing mainly followed the international competitive bidding procedure. There were delays in procurement because of the (i) delay in finalizing the lists of equipment by key schools, as their staff were not familiar with modern equipment and the project procurement specialists knew only about procurement procedures; (ii) unavailability of completed curriculum guides by the time of finalizing equipment specifications, which made choosing equipment difficult; (iii) time-consuming and complicated international competitive bidding procedure, suspension of procurement for about 1 year, and rebidding of some packages; and (iv) delay in awarding contracts for equipment supply and installation. The PIU, which initially was unfamiliar with procurement procedures, signed contracts with successful bidders and engaged consultants for supervising equipment installation and acceptance, while key schools were only recipients of equipment and lacked communication and coordination with suppliers.

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30. The procurement of equipment under NDF financing worth $6.4 million was completed successfully. However, procurement suffered from delays for the same reasons as for ADB-financed procurement. Despite this, procurement was completed on time because procurement and contracting responsibilities were decentralized to key schools and there was adequate support from DOLISAs. 31. The procurement under AFD’s credit of €9 million equivalent was initially the most sluggish. In this case, additional delay was caused by the requirement that at least 55% of equipment originate from France. This resulted in bid prices that were higher than the approved package values. After the failure of the first procurement cycle, AFD loosened its conditions by allowing 55% of the equipment to originate from anywhere in the Euro zone. At the same time, procurement and contracting responsibilities were delegated to key schools. As a result, procurement at key schools went smoothly and was substantially completed within 2 years. The delegation of procurement responsibility appeared effective, which is in line with the Government’s direction of delegating more management responsibility, along with supervision and guidance, during implementation. 32. Under the JICA component, the Hanoi Industrial College (upgraded to Ha Noi Industrial University) completed its procurement on time in March 2005, and the Training School for Road Construction and Machinery (upgraded to the Central Transport Vocational College I) completed its procurement on time in January 2006. I. Performance of Consultants, Contractors, and Suppliers 33. The consultants’ performance was satisfactory in a number of important areas such as curriculum revision for new technologies, private sector links, skills standards, testing and certification, and vocational guidance and placement. However, in terms of managing consultants, the PIU did not actively discuss the mobilization plans for consultants with the consulting firms. As a result, from September 2001 to December 2002, many international consultants were mobilized when there was little implementation progress. Once the project actually started, only a few person-months of international consultancy remained, which made it difficult for the PIU to implement professional activities. During the second extension period, from 30 September 2006 to 31 March 2008, ADB agreed to the recruitment of individual consultants. This was viewed by the PIU as effective and efficient. The performance of contractors and suppliers was generally satisfactory, with most contractors and suppliers meeting delivery schedules. J. Performance of the Borrower and the Executing Agency 34. The Project was conceived originally with MOET as the EA but was finally implemented by MOLISA as the EA and GDVT as the implementing agency. The performance of the Borrower was satisfactory. However, the first 2 years of project implementation were slow. GDVT assigned just a few staff to work on the Project, on top of their current responsibilities, so that the PIU could not manage project activities efficiently. Temporary measures, such as contracting personnel from outside MOLISA and GDVT, relieved the staffing pressure for a while, but contracted staff left quickly after gaining experience. The Project was also affected by a series of personnel movements. With the appointment of the current PIU management staff, the pace of project implementation was accelerated and the Project regained its momentum. Overall, the performance of MOLISA and GDVT can be considered satisfactory, as all project targets were achieved at a lower cost, albeit in longer timeframes.

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K. Performance of the Asian Development Bank 35. ADB’s performance was generally satisfactory. From August 1999 to September 2008, ADB dispatched 19 review missions, including inception, midterm, and project completion review missions, and two special project administration missions. ADB closely supervised and monitored the Project and guided the EA and implementing agency on procurement and the recruitment of consulting services. In particular, ADB provided advisory TA for capacity building during Project start up. While the advisory TA focused on technical capacity building, ADB supported administrative capacity building in GDVT and the PIU by conducting a series of project management and implementation seminars. ADB approved contract awards on a timely basis and promptly clarified any issues raised by the PIU. The Government appreciated ADB’s approval of the two loan extensions in light of implementation delays and the need to complete equipment and staff development contracts. ADB fielded quarterly review missions from 2005 to mid-2006 to provide the needed guidance and timely assistance to project implementation, the lack of which could have resulted in further delays in project completion.

III. EVALUATION OF PERFORMANCE A. Relevance 36. The Project was highly relevant as it supported the Government’s major education sector policy priorities under the Education Development Strategy 2001–2010, especially the importance accorded to vocational training in improving the relevance and efficiency of the VTE system for human resource development. The Project conformed to ADB’s objective to reduce poverty and its emphasis on human resource development through skills training and employment promotion. B. Effectiveness in Achieving Outcome 37. The Project is assessed as effective in achieving three outcomes in a satisfactory manner (Appendix 1). The Project successfully improved the market orientation of the VTE system, as evidenced by (i) four labor market surveys to make the VTE system and programs responsive to the labor market demands and signals and survey reports, including employers’ opinion published; (ii) 97 curriculum guides and 100 related computer courseware developed; and (iii) 15 key schools designated, modern training equipment procured for 15 key schools, and 15 production units established at key schools. Total enrollment in key schools increased from 60,700 in 2001 to 107,000 in 2007, or a cumulative enrollment of 578,600 during the life of the Project. The Project achieved its objective of developing key schools to improve the internal efficiency of VTE programs, as shown by (i) the improved expertise of key schools in teaching methods and instructional design, curriculum and multimedia development, quality assurance, and school-industry partnerships; and (ii) approximately 4,700 trained staff, instructors, and administrators. The Project strengthened the institutional capacity of GDVT to implement the VTE reforms through program accreditation and technical certification systems (Appendix 2). In particular, the Project introduced three qualification levels—primary, secondary, and college—and adopted the VINAS for the quality control of VTE programs. C. Efficiency in Achieving Outcome and Outputs 38. The Project was efficient and, though it required a long loan extension, the efficiency of the investment was high. Upon project completion, the utilization of project facilities was estimated at around 95%. All 15 key schools successfully procured equipment and utilized it in

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training activities. The dropout rate remained low, at 4% on average, from 2001 to 2007. The student-teacher ratio improved from 36:1 in 2001 to 30:1 in 2007. The graduate employment rate was high, at an average of 85% during project implementation. The development of key schools can be considered internally and externally efficient (Appendix 5). D. Preliminary Assessment of Sustainability 39. The Project is likely to be sustainable. The Vocational Training Law of 2006 recognizes VTE as part of the education and training system, and, institutionally, the Government has defined MOLISA and GDVT as the state agencies responsible for vocational training (Government Decree No. 186/2007/ND-CP, dated 25 December 2007). The Project promoted income-generating activities in key schools to enhance sustainability and develop entrepreneurial skills among students. Total key school revenue increased by approximately fourfold between 2001 and 2007. Partnering with local industries and the private sector is an innovative feature of the project design. With production units established in most of the schools, some are generating sizeable revenues. Marketing plans were formulated to assist schools in their campaign to be more self-reliant. Key schools are encouraged to generate their own earnings from a variety of sources, including higher student fees and the sale of products, courseware, curriculum guides, and training packages, which will improve the prospects for sustainability. E. Impact 40. The Project has largely achieved its intended impact of reforming the VTE system in support of the Government’s market-oriented industrialization policy by supplying well-trained workers and production technicians for key occupations. In particular, the Project contributed to the adoption of the Vocational Training Law of 2006, which provided the legal basis for VTE system reform strategies. The Project developed demand-based VTE programs by introducing the LMIS, trained 108,000 skilled workers and production technicians (many more than the 37,500 workers and technicians targeted at appraisal), improved the efficiency of VTE programs at 15 key schools, and introduced program accreditation and technical certification systems as parts of quality assurance systems. A major unforeseen outcome was the upgrading of 12 of the 15 key schools from technical secondary school to vocational college, or from vocational college to university, owing to significant improvements in their facilities, equipment, and training capacity. 41. The Project reduced poverty and addressed social issues in skills training by making access to selected key schools more equitable for women and ethnic minorities. In particular, the Project improved equitable access to skills training opportunities by improving the facilities of three pilot key schools for women and ethnic minorities—the Dien Bien Health Care Secondary School, Central Highland Youth Ethnic Minorities Vocational College in Dak Lak, and Agriculture-Forestry College in Bac Giang—and by establishing a new mode of mobile training program to reach out to poor rural communities of mainly ethnic minorities (paras. 16 and 17). The improved training opportunities for women created greater awareness of skills training programs for self-employment, which contributed to achieving almost equal remuneration for male and female graduates from VTE programs (Appendix 5).

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42. There was no adverse environmental impact. Indeed, the Project raised environmental awareness by including in curriculum guides and training programs instruction on environmental protection measures such as the safe disposal of hazardous waste, conservation of energy and nonrenewable resources, and recycling of used materials and equipment. There was no resettlement, as project facilities were built at existing locations.

IV. OVERALL ASSESSMENT AND RECOMMENDATIONS A. Overall Assessment 43. The Project is rated successful based on key criteria in ADB’s guidelines: relevance, effectiveness, efficiency, and sustainability (Appendix 13). It was implemented as conceived at appraisal. The project design was highly relevant to major policy priorities under the Education Development Strategy 2001–2010. The Project was effective in achieving most of the targeted outcomes and outputs. It was efficient, as evidenced by the improved efficiency of the 15 key schools. The Project is likely to be sustainable, as establishing a network of 15 key schools across the country created a critical mass of technical teachers, and because it involved local industry in school management and generates sizeable revenues in production units. B. Lessons 44. An adequate project management structure should be in place before the Project starts. A key issue was the weak delegation of management and budget responsibility from MOLISA to GVDT and the PIU. It proved difficult to mobilize capable project staff before project effectiveness. Initial delays in project implementation were largely caused by the inexperience of MOLISA and GDVT in project management, in spite of the advisory TA for capacity building. MOLISA and GDVT were not fully involved in project preparation, which was carried out by MOET, and therefore faced tremendous capacity constraints once the responsibility was transferred to them. The insufficient delegation of authority to GDVT as the implementing agency, as well as to the PIU, made the submission of withdrawal applications to ADB very time consuming. The initial lack of staff experienced in procurement, especially in handling bidding at the PIU and sub-PIUs at key schools, might have been another reason for these delays. 45. The scope of project coordination work should be in line with the capacity of the implementing agency. The Project was cofinanced with three agencies—AFD, JICA, and NDF—on a parallel basis, which made project coordination difficult. The administration of key schools belonging to different ministries and provincial governments required extra coordination, compounding the complexity of project management and implementation. It would have been better to limit the number of funding agencies and government agencies to match the capacity of GDVT and the PIU. Despite initial difficulties in coordination and managing the subprojects under cofinancing, the PIU took corrective measures such as streamlining procurement procedures under the AFD-financed project. A result of this experience is that GDVT is now developing a new organizational structure to better manage donor-funded projects. 46. Operation and maintenance cost should be adequately addressed and provided. A lack of funds for repairing and maintaining school equipment and buildings was common. Future projects may consider setting aside an endowment from the loan and counterpart funds from government and employers for operation and maintenance. Schools should be encouraged to generate additional funds to support their recurrent activities.

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C. Recommendations 1. Project Related

47. The procurement of equipment should be streamlined by decentralizing procurement and contracting responsibilities to key schools and away from the central PIU. This will ensure improved capacity in key schools for procurement. At the same time, key schools will be more accountable for their procurement decisions. 48. GDVT should develop guidelines on how to prepare a maintenance plan for equipment in key schools and reallocate or even dispose of irrelevant equipment procured by the Project to maximize the use of the equipment provided. A more cost-effective mechanism to meet future needs for equipment repair and maintenance should be developed. 49. GDVT should encourage project schools to augment the activities of their production units and establish closer linkages with the local market. Schools should be allowed to keep and use the income they generate for maintenance and other operating costs. 50. Major project outputs should be further adapted and replicated in other schools in the VTE system to help ensure sustainability at the school level. A plan for the gradual dissemination and replication of project outputs to other schools in the VTE system should be developed by summarizing, assessing, and developing a comprehensive set of manuals, handbooks, and software. Project outputs should be disseminated to improve other projects.

2. General

51. The VTE system should focus its efforts to improve training quality by focusing on enhancing students’ skills, especially in vocational colleges and vocational secondary schools. For the purpose of monitoring and evaluating training quality, MOLISA should finalize the quality accreditation system; expand accreditation to more schools; and expand the system of skills standards, testing, and certification to cover more occupations and applicants.

52. Experiences during project implementation and the day-to-day activities of vocational training institutions showed that staff capacity in management and training delivery is a decisive factor. GDVT should develop a training plan for vocational management staff by (i) defining the official designation of each management post, (ii) developing training programs for managers, and (iii) delivering training programs for managers and certifying them.

53. The periodic upgrading of skills and knowledge arising from new technologies and changing job markets requires regular, continuing, and relevant technical teacher training and upgrading. A policy to ensure that teachers’ remuneration is commensurate with qualifications and expertise should be worked out. This will help drive the continuing upgrading of technical teacher competency and keep qualified teachers in the system, while attracting more qualified teachers and leading specialists to the system.

54. MOLISA should issue regulations on partnership between training institutions and enterprises to provide a legal framework for them. It should instruct training institutions to establish an organizational structure responsible for partnership with industry.

55. A study on financing VTE should be carried out. It would be timely to examine the applicability of (i) a fund for skills development or training financed by the Government, industry, and other sources to support the activities of training institutions and (ii) an investment fund from which training institutions can get loans for civil works, procuring training equipment, and staff development. This would support the Government’s intended establishment of a vocational training support fund (Article 86, Vocational Training Law 2006).

Appendix 1

15

DESIGN AND MONITORING FRAMEWORK

Design Summary

Performance Targets/Indicators

Data Source/Reporting Mechanisms

Status at PCR

1. Impacta 1.1 Reform the

vocational and technical education (VTE) system to support the Government’s market-oriented industrialization policy and supply well-trained, skilled workers and production technicians for key occupations.

• Introduce demand-

based VTE programs to increase external efficiency.

• Train 37,500 skilled

workers and production technicians.

• Increase the

efficiency of VTE programs at 15 key schools.

• Introduce quality-

assurance systems.

• Reports of labor

market surveys • Tracer study reports • Employers’ opinion

survey reports on the performance of the VTE graduates

• Quarterly reports and

mission reports Project completion

report

• Labor Market

Information System was developed.

• 108,000 skilled workers and production technicians received pre-employment and upgrading training.

• For improved efficiency of VTE programs, see main text and Appendix 5.

• GVDT established Vocational Accreditation Department and National Skills Testing and Certification Department.

2. Outcome 2.1 Improve the market

orientation of the VTE system.

Conduct 4 labor

market surveys. Develop 100 VTE

programs. Prepare 500 sets of

instructional materials.

Develop 100 sets of

computer courseware.

Designate 15 key

schools. Increase the size of

schools. Procure equipment.

Establish 15

production units.

Reports of labor

market surveys Number of developed

VTE programs Number of developed

instructional materials Amount of developed

computer courseware Number of designated

key schools School size (number

of students) Amount of procured

and installed equipment

Number of established

and functioning production units

• 4 annual labor market

surveys conducted and survey reports, including employers’ opinion, published.

• 97 curriculum guides developed, of which 27 at college level, 43 at secondary level, and 27 for mobile training programs

• 100 computer courseware products developed

• MOLISA designated 15 key schools.

• The number of students at key schools reached 107,000 in 2007.

• The procurement of equipment included 16 packages, which were financed by ADB for US$12.4 million for 6 key schools (7 packages), NDF for US$6.4 million for 3 key schools (5 packages), and by AFD for €9.0 million equivalent for 4 key

Appendix 1

16

Design Summary



Status at PCR

schools (4 packages). • 15 production units

were established at 15 key schools.

2.2 Develop key schools

to improve the internal efficiency of VTE programs.

Provide consulting

services. Train school staff,

instructors, and GDVT administrators.

Number of consultants

fielded Number of trained

staff, instructors, and administrators

• 261 person-months of

international consultancy and 442 person-months of domestic were used in instructional design; curriculum and multimedia development; skills standards, testing, and certification; and school-industry partnership.

• 4,700 staffs, instructors, and administrators received training.

2.3 Strengthen institutional capacity of GDVT to implement the VTE reforms effectively.

Introduce technical

certification system. Develop program

accreditation system.

Decree introducing

technical certification system

Decree introducing

program accreditation system

• Three qualification

levels (primary, secondary, and college) were defined by the Law on Vocational Training in 2006.

• MOLISA adopted the Vietnam National Accreditation System for the quality control of training programs.

• 48 curriculum development committees were established for 48 occupations.

• MOLISA established 12 national curriculum appraisal boards to assist MOLISA in appraising curriculum guides.

Appendix 1 17

Design Summary



Status at PCR

3. Outputs

3.1 Improve market orientation.

Change supply-

driven VTE system into a market-oriented system.

Develop highly

relevant VTE programs.

Employment rate of

the graduates Opinions of employers

on the job performance of graduates

Employment rates of

the graduates ranged from 83% to 92% during 2001–2007.

4 annual labor market surveys conducted and survey reports including employers’ opinion published

Program-industry advisory committees and school-Industry advisory councils established in all key schools

3.2 Develop key schools.

Improve 15 key schools up to the international standard.

Operate self-

sustainable production units.

Unit training costs Space utilization rate

Equipment utilization

rate Revenues generated

by production units

12 out of 15 key schools have been upgraded from technical secondary school to vocational college, or from vocational college to university.

For cost efficiency of key schools, see main text and Appendix 5.

3.3 Introduce policy

reforms and strengthen institutional capacity.

Provide consulting services on VTE reform.

Provide staff training

to improve institutional capacity.

Introduce policy

reforms.

Person-months of consulting services

Number of staffers

trained under the Project

Government decrees

issued

261 person-months of international consultancy and 442 person-months of domestic were used.

4,700 staffers, instructors, and administrators received training.

Vocational Training Law passed by National Assembly in 2006 and became effective on 1 June 2007.

See main text and Appendix 2 for summary of policy reforms.

4. Inputs A. Base Costs

Staff Development Consultant Services Surveys and Studies Instructional Materials

$10.1 million $7.7 million

$0.5 million

$12.5 million

Project Accounts Loan Financial

Information System


$0.33 million

$6.34 million

Appendix 1

18

Design Summary



Status at PCR

Equipment and Furniture Civil Works Implementation Taxes and duties Total Base Cost

B. Contingencies C. Service Charge Total Cost

$56.0 million $8.3 million $7.8 million $4.8 million

$107.7 million

$10.8 million

$1.5 million

$120.0 million

$47.31 million $14.21 million $1.65 million $2.90 million $85.45million

$0

$0.84 million

$86.29 million

Project Financing ADB AFD NDF JICA Government

$54.0 million $12.0 million $6.0 million


$32.57 million $12.22 million $6.35 million


ADB = Asian Development Bank, AFD = Agence Française de Developpement, GDVT = General Department of Vocational Training, JICA = Japan International Cooperation Agency, MOLISA = Ministry of Labor, Invalids, and Social Affairs, NDF = Nordic Development Fund, VTE = vocational and technical education a The impact, outcome and outputs were the goal, objectives, and components in the original project framework. Source: ADB. 1988. Report and Recommendation of the President to the Board of Directors on a Proposed Loan to the Socialist Republic of Viet Nam for the Vocational and Technical Education Project. Manila.

Appendix 2 19

SUMMARY OF POLICY REFORMS

Policy Activity Indicators Deadline Status At PCR

Establish a labor market information system (LMIS)

A completed LMIS design and plan

Within 6 months of loan effectiveness

Vocational Science Research Center (VSRC) operates LMIS, linked to benefit monitoring and evaluation and education management information system (EMIS). Under supervision of VSRC, 15 key schools and the provincial departments of labor, invalids, and social affairs (DOLISAs) carry out individual studies and surveys.

Standards set for data from schools and accurate for reporting in vocational training system

Procurement of LMIS computer equipment for VSRC, 9 Asian Development Bank (ADB)-financed key schools, and DOLISAs completed in March 2003. Physical development of EMIS completed. EMIS installed and tested at key schools.

Conduct labor market surveys

Labor market survey reports 4 rounds of surveys conducted DOLISAs and VSRC take over responsibility of labor market surveys with schools after Project

The first survey should be conducted within 12 months of loan effectiveness

Baseline survey, Economic Activity and Employment Profiles for Vietnamese as a Whole in 15 Project Provinces, produced in July 2002.

Report of the 1st survey published in September 2003 Report of the 2nd survey published in July 2003. Report of the 3rd survey published in March 2006. VSRC started the 4th survey in December 2005 and completed it in December 2006.

1. Labor Market Monitoring

Use labor market information.

Developed curricula Job placement data

The curricula should be developed within 18 months of the loan effectiveness date.

97 curriculum guides approved by national curriculum appraisal boards and transferred to General Department of Vocational Training (GDVT). National job placement guide printed, published, and distributed.

Appendix 2

20


Adopt the LMIS and continue collecting and using labor market information.

Minister's decision

The Minister should decide within 24 months of loan effectiveness

Decision made to institute 3 cycles of survey administration. LMIS responsibilities decentralized to key school by May 2005.

Design a program accreditation system (PAS).

Developed framework for PAS


PAS designed

Apply PAS to 15 key schools.

Evaluation report Vietnam National Accreditation System (VINAS) accreditation manual approved by ADB.


Pilot evaluated and program accreditation system refined. VINAS has been introduced and piloted in 14 key schools.

Adopt PAS as a routine procedure

Minister's decision


Ministry of Labor, Invalids, and Social Affairs (MOLISA) has acquired authority to implement all vocational training programs under the Vocational Training Law of 2006.

2. Program Accreditation System

Expand to other vocational and technical schools

Evaluation reports


Installed system. Vocational Accreditation Department established within GDVT as the unit responsible for PAS.

Design a technical certification system (TCS).

TCS plan regulations & procedures in place


National Skills Testing and Certification Department established. TCS designed. Implement pilot project at two key schools, including accrediting an assessment center to perform assessment ofcandidates in (i) metal cutting and machinist and (ii) domestic electrician occupations. Regulations and procedures ready.

3. Technical Certification System

Apply TCS to 15 key schools.

Testing results Within 24 months of loan effectiveness

Pilot programs completed

Appendix 2 21


Adopt TCS as Government policy.

Minister's decision


Adopted and mandated by the Vocational Training Law

Expand to other vocational and technical schools.

Testing results Within 36 months of loan effectiveness

MOLISA received regulatory authority over vocational training and schools by virtue of Government Decree No. 186/2007/ND-CP, dated 25 December 2007.

Prepare an action plan to attract more women and minority students.

Action plan Within 12 months of loan effectiveness

An action plan was developed and submitted to ADB for comment on 11 November 2001and revised in September 2002. Pilot programs completed in February 2003. Policy draft completed in February 2003. Training programs conducted with agreement with other agencies

Implementation of the action plan

Midterm progress report


Teacher training for those involved in delivery to disadvantaged groups completed December 2002.

4. Access For Women And Minority Students

Evaluate the results.

Participants’ evaluation report

Evaluation should be conducted in 3rd, 4th, and 5th year of project implementation

Formative evaluation of pilot programs completed. Training provided to key school staff for summative evaluation.

Tuition fees for regular students

Decree empowering MOLISA to collect tuition fees


Being implemented according to a March 1998 decree. After the signing of the Loan Agreement, the Government promulgated the Education Law in 2005.

5. Cost Recovery and Sustainability of the Project

Revenues from short-term training programs

Decree empowering MOLISA to collect fees for career guidance and job placement services


Addressed issues of vocational education. Under the new education law, it is not necessary to issue a fresh decree on fee collection. After interministerial consultation, MOLISA issued a circular for a revised cost-recovery and fee-collection system.

Appendix 2

22


Revenues from production units

Decree empowering MOLISA to collect fees for production- related activities

Within 12 months of loaneffectiveness

Production unit established and marketing plans for each key school developed.

PSC and advisory committees established

Before loan effectiveness

PSC was set up on 6 May 1999. 48 curriculum development committees established for 48 occupations. National curriculum appraisal boards established. School advisory committees established at each key school. School-industry advisory council introduced at each key school as a permanent unit, and program-industry advisory committees for each occupation set up all key schools in 2005.

6. Private Sector Participation

Establish project steering committee (PSC) and advisory committees of the key schools.

Committees' reports

Every 3 months of project implementation

The PSC had 12 meetings, on 23 April 2001, 14 August 2001, 17 January 2002, 28 January 2003, 25 April 2003, 5 June 2003, 19 August 2003, 4 June 2004, 25 March 2005, 10 November 2005, 30 June 2006, and 7 June 2007

Source: ADB. 1998. Report and Recommendation of the President to the President to the Board of Directors on a Proposed Loan to the Socialist Republic of Viet Nam for the Vocational and Technical Education Project. Manila.

Appendix 3 23

OCCUPATIONS AND TRAINING LEVELS FOR 15 KEY SCHOOLS (March 2008)

School Name Occupation (Title of Program) Training Levela Welder 2–3 Vinh Technical Teacher Training University Metal Cutting Machine Mechanic 2–3 Marine Engine Repair Mechanic 3 Mechanical Technician 3

Vinh Long Technical Teacher Training College

Industrial Electrical Repairer 2–3 Nursing 2–3 Midwife 2–3 Pharmacist 2 Traditional Assistant for Doctor 2–3

Dien Bien Health Care Secondary School

Medical Lab Technician 2 Food Crop Grower 2–3 Tree Fruits Grower 2–3 Fruit and Vegetable Processor 2–3 Brewing Production Technology 2–3

Agricultural and Forestry College

Cattle and Poultry Breeder 2 Consumer Electronics Repairer 2–3 Household and Consumer Electrician 2–3 Automotive Repair Mechanic 2–3

Hue Industrial College

Metal Cutting Machinist 2–3 Computer Repairer 2–3 Computer Network Administrator 2–3

Da Nang Vocational College

Database Administrator/Manager 2–3 Coffee Processor 2–3 Civil Carpenter 2 Wood Carver 2

Central Highland Youth Ethnic Minorities Vocational College

Traditional Dressmaker 2 Commercial Vegetable Grower 2 Commercial Flower Grower 2 Landscaper 2

Da Lat Vocational College

Computer Programmer 2–3 Industrial Electronics Repairer 2–3 Can Tho Vocational College Sewing 2

Total Asian Development Bank 32 Petrochemical Equipment Operator 3 Petroleum Products Analyst 2–3 Petroleum Products Producer 3 Natural Rubber Products Producer 2

Ho Chi Minh City University of Industry

Basic Chemical Equipment Operator 2–3 Dong Nai Vocational College Refrigeration and Air Conditioning

Mechanic 2–3

Construction Machinery Mechanic 2–3 Steel Structure Processor/Installer 2–3

Construction Vocational College No. I

Interior Installation Electrician 2–3 Hai Phong Industrial Vocational College Industrial Equipment System Mechanic 2–3 Total Agence Française de Developpement 10

Sheet Metal Mechanic 2 Hanoi University of Industry Electrical Control Equipment Repairer 2 Road Construction Machinery Operator 2 Road Construction Machinery Repairer 2 Road Construction Material Testing Technician

2

Central Transport Vocational College 1

Specialized Driver 2 Total Japan International Cooperation Agency 6 Total 48 Occupations

a Level 2 = secondary level, and Level 3 = college level.

Before After Before After Before After Before After Before After Before After Before After

Bac Giang 6 9 8 10 8 10 960 1,710 1,440 4,040 300 1,330 105 1,200 1,365,957 748,261 203,513 21,821 84,724 106,545 2,424,276

Can Tho 5 7 5 6 5 7 1,795 2,179 818 3,596 1,078 1,544 96 285 1,649,920 129,994 108,040 16,224 125,878 142,102 2,030,056

Da Nang 4 4 0 17 4 17 1,851 5,100 1,400 3,500 185 4,700 0 360 2,000,000 1,875,000 147,907 23,016 11,223 34,239 4,057,145

Dak Lak 7 11 13 16 13 16 1,947 3,200 1,739 3,000 1,388 1,500 40 40 1,318,058 1,062,695 151,664 14,914 58,623 73,537 2,605,954

Da Lat 0 8 0 5 0 13 1,050 1,657 0 1,843 350 623 0 352 3,187,500 21,688 127,095 23,016 71,175 94,191 3,430,473

Dong Nai 16 14 25 6 41 20 2,919 3,900 1,466 1,466 6,182 12,262 48 48 881,667 17,403 0 18,910 84,025 102,935 1,002,005

Hai Phong 10 20 12 18 12 20 1,568 3,116 882 882 2,853 9,660 28 60 237,588 139,785 0 16,633 20,769 37,402 414,775

Ha Noi 20 50 29 72 30 72 5,638 13,500 6,372 26,372 10,792 15,367 720 1,190 812,500 3,993,416 153,125 3,298 8,406 11,704 4,970,745

Da Nang 16 15 40 50 40 55 25,000 43,762 8,000 22,364 25,000 47,621 1,500 2,565 471,250 15,413 139,246 8,958 95,298 104,256 730,164

Hue 2 2 10 21 10 21 1,212 2,987 1,279 1,406 3,300 5,200 60 942 353,760 116,583 171,936 5,158 102,811 107,969 750,249

Dien Bien 2 2 1 3 3 5 288 2,635 150 1,538 0 508 36 142 925,481 1,875,000 194,422 972 53,417 54,389 3,049,292

Transport 6 8 4 6 6 10 1,292 2,050 589 5,995 7,018 3,040 70 70 5,494,121 6,441,928 0 712 35,818 36,530 11,972,579

Viet Xo 10 14 10 14 10 14 1,543 1,699 4,832 5,589 4,892 5,677 24 68 593,750 62,837 0 16,293 141,624 157,917 814,504

Vinh 5 6 6 7 10 13 2,848 15,718 1,848 1,848 5,952 12,052 286 886 2,273,188 159,625 95,213 8,313 191,743 200,056 2,728,081

Vinh Long 3 3 3 4 6 7 2,700 9,200 2,300 5,160 3,850 3,850 150 600 1,512,500 329,375 59,097 16,661 187,722 204,383 2,105,354Total 112 173 166 255 198 300 52,611 112,413 33,115 88,599 73,140 124,934 3,163 8,808 23,077,240 16,989,003 1,551,255 194,899 1,273,256 1,468,155 43,085,653

Source: Project BME data.ADB = Asian Development Bank, AFD = Agence Française de Développement, JICA = Japan International Cooperation Agency, NDF = Nordic Development Fund.

Civil Works Equipment Instructional Materials

Staff Development

in-country

Staff Development

Overseas

Total Staff

Development

Total InvestrmentKey School

Dormitories Workshops LibrariesShort Term Long Term Occupations Covered Classrooms

SUMMARY OF INPUTS PROVIDED TO KEY SCHOOLS

Number of Training Program School and Office Buildings (m2) Total Investment, ADB+AFD+JICA+NDF+Counterpart Funds ($)

24 A

ppendix 4

Appendix 5 25

TRENDS IN INDICATORS ACROSS KEY SCHOOLS, 2001–2007

1. The key output indicators show substantial growth over the period of the Vocational and Technical Education Project (the Project) in the number of students (equivalent full time), long courses, graduates, teachers (equivalent full time), and expenditure and revenue. The percentage of female students has increased substantially, and there are more partnerships with industry. The ratio of students per teacher has remained constant, while the average expenditure per student (equivalent full time) has increased over the project life mainly because of rising prices for training equipment and materials. The graduate employment rate averaged 85% per year for the life of the Project.

Figure A5.2: Number of Long Courses

0

100

200

300

400

500

600

700

1 2 3 4 5 6 7

Source: Project BME data.

Year

Figure A5.3: Number of Graduates

0 5,000

10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000

1 2 3 4 5 6 7

Source: Project BME data. Year

Figure A5.1: Number of Students

0 20,000 40,000 60,000 80,000

100,000 120,000

1 2 3 4 5 6 7


Figure A5.4: Number of Female Students

05,000

10,00015,00020,00025,00030,00035,00040,00045,00050,000

1 2 3 4 5 6 7Year

Figure A5.5: Number of Teachers

0 500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

1 2 3 4 5 6 7


Figure A5.6: Revenue and Expenditure

0

200,000400,000

600,000800,000

1,000,000

1 2 3 4 5 6 7

RevenueExpenditure



Appendix 5

26

2. Descriptive Data

Table A5.1: Basic Indicators on Key Schools, 2001-2007

Item 2001 2002 2003 2004 2005 2006 2007 Total

Students

60,717

63,081

73,395

83,030

87,402

104,023

107,000 578,648

Female students

20,083

20,912

26,256

28,223

35,111

45,221

46,437 222,242

% female students 41 42 43 48 49 50 52 46

Wastage (dropout) Rate

2,336

2,504

5,777

3,597

3,517

4,116

4,222 26,069

Graduates 19,622 20,911 28,838 30,789 33,844 37,156 38,900 210,060

Revenue 142,867 178,696 215,297 256,675 365,233 438,621 484,671 2,082,060

Expenditure 121,844 135,674 192,041 232,411 299,771 394,505 432,773 1,809,019

Teachers 1,700 1,814 2,200 2,272 2,348 3,583 3,617 17,534

Nonteacher 708 687 738 723 848 1,137 1,111 5,952

Teachers with degree 1,068 1,237 1,294 1,582 2,018 3,380 3,429 14,008

Long-term courses 241 301 317 460 515 565 597 2,996 Notes: 1. Students are the total estimated equivalent full time of students across all courses (including short courses and new demand courses). 2. No. of graduates is the total number of graduates across all courses. 3. Revenue is the total school revenue from all sources (1 unit = D1,000,000). 4. Expenditure is the total school recurrent expenditure (1 unit = D1,000,000). 5. Teachers are the total estimated equivalent full time of teachers working in the school. 6. No. of long-term courses is the total number of formal courses (excluding short courses of less than 12 months duration) with enrolled students. 7. The indicated year is the applicable census year, with information collected for that year or measured at 31 December, and normally reported in the following year. Source: Project BME data.

Figure A5.7: Students per Teacher

0

10

20 30

40

1 2 3 4 5 6 7Source: Project BME data. Year

Figure A5.8: Expenditure per Student

0.000

2.000

4.000

6.000

1 2 3 4 5 6 7Source: Project BME data. Year

Appendix 5 27

3. Internal Efficiency

Table A5.2: Internal Efficiency Indicators on Key Schools, 2001-2007

Item 2001 2002 2003 2004 2005 2006 2007

Students per Teacher 36 35 33 37 37 29 30 Teachers: Non-teachers 2 3 3 3 3 3 3 Unmet Demand 2 2 2 2 3 3 3 Wastage (dropout) rate (%) 4 4 8 4 4 4 4 Teacher with Degree (%) 63 68 59 70 86 94 95

Cost /student 2.007 2.151 2.617 2.799 3.430 3.792 4.045 Notes: 1. Students:Teacher is the ratio of the equivalent full time of students per equivalent full time of teachers. 2. Teacher:Nonteachers is the ratio of the number of teachers per non-teacher. 3. Unmet Demand is the ratio of applicants to entrants (> 2.0 indicates strong demand; < 1.0 indicates applicant records not kept). 4. Wastage Rate is the number of dropouts as a percentage of entrants. 5. Teachers with Degrees is the percentage of teachers holding (at least) a university degree. 6. Cost/Student is the per capita school cost (total expenditure per equivalent full time student) in Dmillion. Source: Project BME data.

4. External Efficiency

Table A5.3: External Efficiency Indicators on Key Schools, 2001-2007

Item 2001 2002 2003 2004 2005 2006 2007 Graduate Employment rate (%) 92 84 83 84 85 87 86 Female Graduate Remuneration 8,356 9,062 9,433 10,193 10,921 11,416 12,013 Male Graduate Remuneration 8,556 9,253 10,083 11,038 11,710 12,281 12,827 Notes: 1. Employment rate is the percentage of graduates gaining relevant employment within 12 months of graduation. 2. Remuneration by gender is the average annual salary of graduates 3 years following graduation (‘000VND); (the average remuneration across all key schools and genders was 8,088 in 2002; and 11,010 in 2003). Source: Project BME data.

28 Appendix 6

o SchoolEstimated Amount

of Package and Building Design Approval Date

Bidding Documents

Approval Date

Evaluation Result Approval

Obtained and Contract Signing

Contract Execution (Status at

PCR)

ADB AFD CentralGovernment

Local Government Total

Dien Bien Health Care Secondary School Sep-01 Apr-02 Jul-02

7/02-6/04 Completed 650 - - 105 755

Central Highland Youth Ethnic Minorities Vocational College

Aug-02 Aug-02 Oct-027/02-6/04

Completed 495 - - 111 606

Da Lat Vocational College Feb-02 Jul-02 Sep-029/02 - 01/06 Completed 855 - - 75 930

Vinh Technical Teacher Training University Feb-02 May-02 Jul-02

7/02-6/04 Completed - - 450 560 1,010

Vinh Long Technical Teacher Training College Jan-01 Jun-02 Oct-02

10/02 - 03/06 Completed - - 450 358 808

Agriculture and Forestry College Dec-00 Dec-02 Feb-03

10/01 - 6/04 Completed - - 389 389

Da Nang Vocational College Aug-01 Aug-01 Sep-01 10/01 - 6/04

Completed - - 300 1,233 1,533

Hue Industrial College Jun-01 Jul-01 Aug-019/01 - 6/04

Completed - - 300 56 356

Can Tho Vocational College Nov-01 Dec-01 Jan-02

3/02 - 6/04 Completed - - 951 951

2,000 - 1,500 3,838 7,338

Construction Vocational College No. I Aug-02 Sep-02 Feb-03

2/03 - 6/05 Completed - 253 - 13 267

Ho Chi Minh City University of Industry Nov-01 Nov-01 Jun-02

8/02 - 6/04 Completed - 425 - 967 1,392

Hai Phong Industrial Vocational College Jan-02 Jun-02 Jul-02

8/02 - 6/04 Completed - 300 - 123 423

Dong Nai Vocational College May-02 Jun-02 Sep-02

9/02 - 6/04 Completed - 300 - 137 437

1,278 1,241 2,519

ADB = Asian Development Bank, AFD = Agence Française de Développement, PCR = Project Completion Report.


a Not including two JICA-funded key schools.

CIVIL WORKSa

AFD funded schools

Schools funded by ADB and Government

Source of Funds ($'000)

Number of Actual

Participants

RRP SDMP Completed RRP SDMP Completed RRP SDMP Completed RRP SDMP Completed

1. Labor market monitoring

50 30 14 30 20 20 20 11 560 250 42 240 630 300 76 281

2. Development of curricula and instructional materials

90 76 36 76 30 40 180 40 1,800 475 173 464 1,920 591 388 580

3. Upgrading competencies of teachers

200 60 28 60 40 82 372 82 15,000 2,160 1,249 2,077 15,240 2,302 1,649 2,219

4. Planning and policy making in technical education

25 34 16 34 10 9 9 10 0 150 25 141 35 193 50 185

5. Management and administration of technical schools and revenue generating activities

15 79 37 77 10 19 25 6 235 225 38 211 260 323 100 294

6. Career guidance and job placement

50 10 5 10 10 5 5 5 500 50 8 48 560 65 18 63

7. Accreditation and skill standards, testing and certification processes

10 30 14 30 5 18 22 18 1,500 250 42 238 1,515 298 78 286

8. Project implementation, educational management information systems, and benefit monitoring

10 56 24 55 2 14 18 14 10 655 121 615 22 725 163 684

9. Pre-departure Activities 120 360 117 120 360 117

Total 450 375 173 372 127 207 651 186 34,605 6,052 2,303 4,151 20,182 4,917 2,881 4,709

compared to SDMP targets ===> 99% 90% 96% 96%

PM = person month, PTD = person training days, RRP = report and recommendation of the President, SDMP = Staff Development Master PlanNote: Part of external study tours was implemented at the Government's own arrangement (under procurement mode of Force Account). In this arrangement, there was no contractor engaged. Government has agreed to cancel phase 2 of the SDMP under the current loan utilization period and package no. 24 (3FADB1.2).Source: Asian Development Bank estimates.

PMs

Note: PMs = PTD/30

Title of Training

Local Short-Term Training

Number of Participants

PMs

Number of Actual

Participants

Number of Actual

Participants

STAFF DEVELOPMENT PLAN




External FellowshipsExternal Study Tours

PMs PMs

TotalNumber of

Actual Participants

Appendix 7 29

30 Appendix 8

Foreign Cost

Local Costa Total

Foreign Cost

Local Costa Total

A. Base Costsa

1. Staff Developmenta. In-service Training 0.00 3.84 3.84 0.00 1.68 1.68b. External Training 3.70 3.79 7.49 4.13 0.54 4.67c. In-country seminars/workshop 0.00 2.18 2.18 0.00 0.09 0.09

Subtotal (1) 3.70 9.81 13.51 4.13 2.31 6.442. Consultants Services

a. International 6.30 0.74 7.04 5.93 0.00 5.93b. Domestic 0.00 0.66 0.66 0.00 0.32 0.32

Subtotal (2) 6.30 1.40 7.70 5.93 0.32 6.263. Surveys and Studies

a. Labor Market Surveys 0.00 0.25 0.25 0.00 0.27 0.27b. Research Studies 0.00 0.05 0.05 0.00 0.06 0.06

Subtotal (3) 0.00 0.30 0.30 0.00 0.33 0.334. Instructional Materials

a. Instructional Materials 2.00 6.50 8.50 3.65 1.18 4.83b. Computer Courseware 2.00 2.00 4.00 1.51 0.00 1.51

Subtotal (4) 4.00 8.50 12.50 5.16 1.18 6.345. Equipment and Furniture

a. Equipment 49.89 5.84 55.74 42.98 3.65 46.63b. Furniture 0.04 0.15 0.19 0.19 0.00 0.19c. Service Vehicles for PIU 0.07 0.08 0.14 0.49 0.00 0.49

Subtotal (5) 50.00 6.07 56.07 43.67 3.65 47.316. Civil Works

a. Renovation of Facilities 0.00 8.30 8.30 0.00 14.21 14.21Subtotal (6) 0.00 8.30 8.30 0.00 14.21 14.21

7. Implementationa. PIU Staff Salaries 0.00 0.07 0.07 0.00 0.08 0.08b. Staff Salaries 0.00 0.05 0.05 0.00 0.11 0.11c. Incremental Operating Expenses 0.00 7.24 7.24 0.00 1.46 1.46

Subtotal (7) 0.00 7.36 7.36 0.00 1.65 1.658. Taxes and Dutiesb 0.00 4.80 4.80 0.00 2.90 2.90

Subtotal (8) 0.00 4.80 4.80 0.00 2.90 2.90Subtotal (A) 64.00 43.70 107.70 58.89 26.56 85.45

B. Contingencies1. Physicalb 3.40 2.20 5.60 0.00 0.00 0.002. Pricec 3.10 2.10 5.20 0.00 0.00 0.00

Subtotal (B) 6.50 4.30 10.80 0.00 0.00 0.00

C. Service Charges 1.50 0.00 1.50 0.84 0.00 0.84Subtotal (C) 1.50 0.00 1.50 0.84 0.00 0.84Total 72.00 48.00 120.00 59.73 26.56 86.29

60% 40% 100% 69% 31% 100%PIU = project implementation unit.Note: Totals may not add up due to rounding.a Base costs were as of August 1998.b Taxes and duties on all imports have been estimated at 5%.c Physical contingencies have been estimated at 5%.Source: Asian Development Bank's and Executing Agency's records.

Component

ActualAppraisal

PROJECT COSTS($'000)

Foreign Cost

Local Costa Total

Foreign Cost

Local Cost Total

Foreign Cost

Local Cost Total

Foreign Cost

Local Cost Total

Foreign Cost

Local Cost Total

Foreign Cost

Local Cost Total

Foreign Cost

Local Cost Total

Foreign Cost

Local Cost Total

Foreign Cost

Local Cost Total

Foreign Cost

Local Cost Total

A. Base Costsa

1 Staff Developmenta. In-service Training 0.00 2.84 2.84 0.00 1.40 1.40 0.00 0.00 0.00 0.00 0.14 0.14 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1.00 1.00 0.00 0.14 0.14b. External Training 3.70 0.38 4.08 3.79 0.00 3.79 0.00 0.00 0.00 0.34 0.00 0.34 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.54 0.54c.

0.00 1.18 1.18 0.00 0.09 0.09 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1.00 1.00 0.00 0.00 0.00Subtotal (1) 3.70 4.40 8.10 3.79 1.49 5.28 0.00 0.00 0.00 0.34 0.14 0.48 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2.00 2.00 0.00 0.68 0.68

2 Consultants Servicesa. International 6.30 0.74 7.04 5.78 0.00 5.78 0.00 0.00 0.00 0.16 0.00 0.16 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00b. Domestic 0.00 0.66 0.66 0.00 0.32 0.32 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Subtotal (2) 6.30 1.40 7.70 5.78 0.32 6.10 0.00 0.00 0.00 0.16 0.00 0.16 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.003 Surveys and Studies

a. Labor Market Surveys 0.00 0.25 0.25 0.00 0.27 0.27 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00b. Research Studies 0.00 0.05 0.05 0.00 0.06 0.06 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Subtotal (3) 0.00 0.30 0.30 0.00 0.33 0.33 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.004 Instructional Materials

a. Instructional Materials 2.00 4.50 6.50 3.54 0.54 4.08 0.00 0.00 0.00 0.11 0.00 0.11 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2.00 2.00 0.00 0.64 0.64b. Computer Courseware 2.00 2.00 4.00 1.51 0.00 1.51 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Subtotal (4) 4.00 6.50 10.50 5.05 0.54 5.60 0.00 0.00 0.00 0.11 0.00 0.11 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2.00 2.00 0.00 0.64 0.645 Equipment and Furniture

a. Equipment 13.89 0.00 13.89 11.66 0.00 11.66 6.00 5.84 11.84 5.80 3.65 9.44 6.00 0.00 6.00 6.35 0.00 6.35 24.00 0.00 24.00 19.17 0.00 19.17 0.00 0.00 0.00 0.00 0.00 0.00b. Furniture 0.04 0.00 0.04 0.19 0.00 0.19 0.00 0.15 0.15 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00c. Service Vehicles for PIU 0.07 0.00 0.07 0.41 0.00 0.41 0.00 0.01 0.01 0.08 0.00 0.08 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Subtotal (5) 14.00 0.00 14.00 12.26 0.00 12.26 6.00 6.00 12.00 5.88 3.65 9.53 6.00 0.00 6.00 6.35 0.00 6.35 24.00 0.00 24.00 19.17 0.00 19.17 0.00 0.00 0.00 0.00 0.00 0.006 Civil Works

a. Renovation of Facilities 0.00 2.00 2.00 0.00 1.99 1.99 0.00 0.00 0.00 0.00 1.95 1.95 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 6.30 6.30 0.00 10.27 10.27Subtotal (6) 0.00 2.00 2.00 0.00 1.99 1.99 0.00 0.00 0.00 0.00 1.95 1.95 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 6.30 6.30 0.00 10.27 10.27

7 Implementationa. PIU Staff Salaries 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.06 0.06 0.00 0.08 0.08b. Staff Salaries 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.50 0.50 0.00 0.11 0.11c.

0.00 1.00 1.00 0.00 0.16 0.16 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 6.25 6.25 0.00 1.30 1.30Subtotal (7) 0.00 1.00 1.00 0.00 0.16 0.16 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 6.80 6.80 0.00 1.49 1.49

8 Taxes and Dutiesb 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 4.80 4.80 0.00 2.90 2.90Subtotal (8) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 4.80 4.80 0.00 2.90 2.90

Subtotal (A) 28.00 15.60 43.60 26.89 4.84 31.73 6.00 6.00 12.00 6.48 5.74 12.22 6.00 0.00 6.00 6.35 0.00 6.35 24.00 0.00 24.00 19.17 0.00 19.17 0.00 21.90 21.90 0.00 15.98 15.98B. Contingencies 0.001. Physicalb 3.40 0.16 3.56 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2.04 2.04 0.00 0.00 0.002. Pricec 3.10 2.04 5.14 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.06 0.06 0.00 0.00 0.00

Subtotal (B) 6.50 2.20 8.70 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2.10 2.10 0.00 0.00 0.00

C. Service Charges 1.50 0.00 1.50 0.84 0.00 0.84 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Subtotal (C) 1.50 0.00 1.50 0.84 0.00 0.84 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Total 36.00 17.80 53.80 27.73 4.84 32.57 6.00 6.00 12.00 6.48 5.74 12.22 6.00 0.00 6.00 6.35 0.00 6.35 24.00 0.00 24.00 19.17 0.00 19.17 0.00 24.00 24.00 0.00 15.98 15.98

50% 38% 45% 32% 6% 38% 8% 13% 10% 8% 7% 14% 8% 0% 5% 7% 0% 7% 33% 0% 20% 22% 0% 22% 0% 50% 20% 0% 19% 19%PIU = project implementation unit.Note: Totals may not add up due to rounding.a Base costs were as of August 1998.b Taxes and duties on all imports have been estimated at 5%.c Physical contingencies have been estimated at 5%.Source: Asian Development Bank's and Executing Agency's records.

Component

At Completion At Appraisal At AppraisalADB AFD

At CompletionAt CompletionNordic Development Fund

At Appraisal At Completion At AppraisalAt Appraisal

Incremental Operating Expenses

In-country seminars/workshop

PROJECT COSTS AND FINANCING PLAN($'000)

At CompletionGovernment of Viet NamJICA Financing

Appendix 8 31

32 Appendix 9

Year Quarter Amount Cumulative

1999 IV 0.100 0.100

2000 I 0.000 0.100II 0.000 0.100III 0.000 0.100IV 0.877 0.977

2001 I 0.000 0.977II 0.005 0.982III 0.000 0.982IV 0.634 1.616

2002 I 0.000 1.616II 0.561 2.177III 0.679 2.856IV 1.256 4.112

2003 I 0.580 4.692II 1.977 6.669III 0.606 7.275IV 1.686 8.961

2004 I 0.621 9.582II 0.619 10.201III 0.149 10.350IV 0.879 11.229

2005 I 0.815 12.044II 0.489 12.533III 1.858 14.391IV 4.606 18.997

2006 I 2.022 21.019II 2.277 23.296III 1.063 24.359IV 0.667 25.026

2007 I 0.697 25.723II 0.412 26.135III 1.737 27.872IV 0.500 28.372

2008 I 1.887 30.259II 1.228 31.487III 1.083 32.570

Total 32.570Source: Project BME data.

ADB

BREAKDOWN OF ANNUAL DISBURSEMENTS($ million)

1. Staff DevelopmentSelect Trainees

` Implement In-Country Training

Implement External Training

Organize Workshops/Seminars

2. Consultant ServicesShortlist

Select/Appoint

Fielding of Consultants

3. Survey and StudiesDesign Methodology and InstrumentsCollect and Analyze Data: Establishment SurveysCollect and Analyze Data: Tracer Studies

4. Facilities and MaterialsDesign and Document

Tender/Contract

Construction Work

Develop and Select Topic

Duplicate and Distribute

5. Equipment and FurnitureAssess Needs

Specify and Document

Tender and Award Contracts

Supply, Installation, Use and Maintenance

6. Monitoring and EvaluationInstall Benefit Monitoring System

Review Progress of Implementation (Midterm Review)

2008IMPLEMENTATION SCHEDULE

Qtr 1 Qtr 22007

Qtr 1 Qtr 2 Qtr 3 Qtr 42004

Qtr 2 Qtr 3 Qtr 42003

Qtr 2Qtr 12002

Qtr 2 Qtr 3 Qtr 41999 2000 2001

Qtr 2Qtr 2 Qtr 3 Qtr 4 Qtr 4Qtr 3Qtr 1 Qtr 4Qtr 3 Qtr 4Component Qtr 4 Qtr 1 Qtr 2 Qtr 1 Qtr 12005

Qtr 1 Qtr 3 Qtr 42006

Qtr 1 Qtr 2 Qtr 3

Appendix 10 33

2008Qtr 1 Qtr 2

2007Qtr 1 Qtr 2 Qtr 3 Qtr 4

2004Qtr 2 Qtr 3 Qtr 4

2003Qtr 2Qtr 1


1999 2000 2001Qtr 2Qtr 2 Qtr 3 Qtr 4 Qtr 4Qtr 3Qtr 1 Qtr 4Qtr 3 Qtr 4Component Qtr 4 Qtr 1 Qtr 2 Qtr 1 Qtr 1



A. Improving the Market Orientationof the TVET SystemsEstablishing a Labor Market Signalling SystemImproving Curriculum and Instruction

Developing Teaching and Learning Resources vImplementing Curriculum and Instructions

B. Developing Model Technical SchoolsTraining of Staff of TTCs and Key SchoolsUpgrading Buildings and Equipment of TTCs and Key Schools

C. Strengthening Institutional CapacityUpgrading Competencies of TVET TeachersEnhancing Career Guidance and Job Placement ServicesDeveloping an Accreditation System

Policy Formulation and Strategic PlanningStrengthening TVET Management

Key Planned

ActualTTC = teacher training college, TVET = technical and vocational education and training.Source: Project BME data.

34 Appendix 10

Appendix 11 35

STATUS OF COMPLIANCE WITH LOAN COVENANTS

NO. COVENANTS REFERENCE STATUS

1. The Borrower shall cause the Project to be carried out with due

diligence and efficiency and in conformity with sound administrative, financial, engineering, environmental and educational practices.

Loan Agreement Section 4.01 (a)

Complied with

2. In the carrying out of the Project and operation of the Project facilities, the Borrower shall perform, or cause to be performed, all obligations set forth in Schedule 6 to this Loan Agreement.

Loan Agreement Section 4.01 (b)

Complied with

3. The Borrower shall make available, promptly as needed, the funds, facilities, services, land and other resources which are required, in addition to the proceeds of the Loan, for the carrying out of the Project and for the operation and maintenance of the Project facilities.

Loan Agreement Section 4.02

Complied with

4. In the carrying out of the Project, the Borrower shall cause competent and qualified consultants and contractors, acceptable to the Borrower and the Bank, to be employed to an extent and upon terms and conditions satisfactory to the Borrower and the Bank.

Loan Agreement Section 4.03(a)

Complied with

5. The Borrower shall cause the Project to be carried out in accordance with plans, design standards, specifications, work schedules and construction methods acceptable to the Borrower and the Bank. The Borrower shall furnish, or cause to be furnished, to the Bank, promptly after their preparation, such plans, design standards, specifications and work schedules, and any material modifications subsequently made therein, in such detail as the Bank shall reasonably request.

Loan Agreement Section 4.03(b)

Complied with

6. The Borrower shall ensure that the activities of its ministries, departments and agencies with respect to the carrying out of the Project and operation of the Project facilities are conducted and coordinated in accordance with sound administrative policies and procedures.


Complied with

7. The Borrower shall make arrangements satisfactory to the Bank for insurance of Project facilities to such extent and against such risks and in such amounts as shall be consistent with sound practice.


Complied with

8. Without limiting the generality of the foregoing, the Borrower undertakes to insure, or cause to be insured, the goods to be imported for the Project and to be financed out of the proceeds of the Loan against hazards incident to the acquisition, transportation and delivery thereof to the place of use or installation, and for such insurance any indemnity shall be payable in a currency freely usable to replace or repair such goods.


Complied with

Appendix 11

36


9. The Borrower shall maintain, or cause to be maintained, records and

accounts adequate to identify the goods and services and other items of expenditure financed out of the proceeds of the Loan, to disclose the use thereof in the Project, to record the progress of the Project (including the cost thereof) and to reflect, in accordance with consistently maintained sound accounting principles, the operations and financial condition of the agencies of the Borrower responsible for the carrying out of the Project and operation of the Project facilities, or any part thereof.


Complied with

10. The Borrower shall (i) maintain, or cause to be maintained, separate accounts for the Project; (ii) have such accounts and related financial statements audited annually, in accordance with appropriate auditing standards consistently applied, by independent auditors whose qualifications, experience and terms of reference are acceptable to the Bank; (iii) furnish to the Bank, as soon as available but in any event not later than twelve (12) months after the end of each related fiscal year, certified copies of such audited accounts and financial statements and the report of the auditors relating thereto (including the auditors' opinion on the use of the Loan proceeds and compliance with the covenants of this Loan Agreement as well as on the use of the procedures for imprest account and statement of expenditures), all in the English language; and (iv) furnish to the Bank such other information concerning such accounts and financial statements and the audit thereof as the Bank shall from time to time reasonably request.


Complied with

11. The Borrower shall enable the Bank, upon the Bank's request, to discuss the Borrower's financial statements for the Project and its financial affairs related to the Project from time to time with the Borrower's auditors, and shall authorize and require any representative of such auditors to participate in any such discussions requested b the Bank, provided that any such discussion shall be conducted only in the presence of an authorized officer of the Borrower unless the Borrower shall otherwise agree.

Loan Agreement Section 4.06(c)

Complied with

12. The Borrower shall furnish, or cause to be furnished, to the Bank all such reports and information as the Bank shall reasonably request concerning (i) the Loan, and the expenditure of the proceeds and maintenance of the service thereof; (ii) the goods and services and other items of expenditure financed out of the proceeds of the Loan; (iii) the Project; (iv) the administration, operations and financial condition of the agencies of the Borrower responsible for the carrying out of the Project and operation of the Project facilities, or any part thereof; (v) financial and economic conditions in the territory of the Borrower and the international balance-of-payments position of the Borrower; and (vi) any other matters relating to the purposes of the Loan.


Complied with

Appendix 11 37


13. Without limiting the generality of the foregoing, the Borrower shall

furnish, or cause to be furnished, to the Bank quarterly reports on the carrying out of the Project and on the operation and management of the Project facilities. Such reports shall be submitted in such form and in such detail and within such a period as the Bank shall reasonably request, and shall indicate, among other things, progress made and problems encountered during the quarter under review, steps taken or proposed to be taken to remedy these problems, and proposed program of activities and expected progress during the following quarter.


Complied with

14. Promptly after physical completion of the Project, but in any event not later than three (3) months thereafter or such later date as may be agreed for this purpose between the Borrower and the Bank, the Borrower shall prepare and furnish to the Bank a report, in such form and in such detail as the Bank shall reasonably request, on the execution and initial operation of the Project, including its cost, the performance by the Borrower of its obligations under this Loan Agreement and the accomplishment of the purposes of the Loan.


Complied with

15. The Borrower shall enable the Bank's representatives to inspect the Project, the goods financed out of the proceeds of the Loan, and any relevant records and documents.


Complied with

16. The Borrower shall ensure that the Project facilities are operated, maintained and repaired in accordance with sound administrative, financial, engineering, environmental, and maintenance and operational practices.


Complied with

17. It is the mutual intention of the Borrower and the Bank that 'no other external debt owed a creditor other than the Bank shall have any priority over the Loan by way of alien on the assets of the Borrower. To that end, the Borrower - undertakes (i) that, except as the Bank may otherwise agree, if any lien shall be created on any assets of the Borrower as security for any external debt, such lien will ipso facto equally and ratably secure the payment of the principal of, and service charge and any other charge on, the Loan; and (ii) that the Borrower, in creating or permitting the creation of any such lien, will make express provision to that effect.


Complied with

18. The provisions of paragraph (a) of this Section shall not apply to (i) any lien created on property, at the time of purchase thereof, solely as security for payment of the purchase price of such property; or (ii) any lien arising in the ordinary course of banking transactions and securing a debt maturing not more than one year after its date.


Complied with

Appendix 11

38


19. The term "assets of the Borrower" as used in paragraph (a) of this

Section includes assets of any administrative subdivision or any agency of the Borrower and assets of any agency of any such administrative subdivision, including the State Bank of Viet Nam and any other institution performing the functions of a central bank for the Borrower.


Complied with

20. Except as the Bank may otherwise agree, the Borrower shall establish immediately after the Effective Date, an imprest account at a commercial Bank designated by the SBV and the Ministry of Finance and acceptable to the Bank. The imprest account may be used for eligible expenditures under the .Project. The imprest account shall be established, managed, replenished and liquidated in accordance with the Bank's "Loan Disbursement Handbook" dated June 1996, as amended from time to time, and detailed arrangements agreed upon between the Borrower and the Bank. The initial amount to be deposited into the imprest account shall not exceed the equivalent of $100,000.

Loan Agreement Schedule 3, para. 8

Complied with

21. The statement of expenditures (SOE) procedure may be used for reimbursement of eligible expenditures and to liquidate advances provided into the imprest account, in accordance with the Bank's "Loan Disbursement Handbook" dated June 1996, as amended from time to time, and detailed arrangements agreed upon between the Borrower and the Bank. Any individual payment to be reimbursed or liquidated under the SOE procedure shall not exceed the equivalent of $50,000.

Loan Agreement Schedule 3, para. 8(b)

Complied with

22. MOLISA shall be the Executing Agency for the Project, with overall responsibility for Project implementation. GDVT shall be the Implementing Agency for the Project with particular responsibility for coordination and implementation of Project activities. Seven specific units shall be formed with GDVT for facilitating Project implementation. PIU shall be established within GDVT with the General Director of GDVT as the part time Project Director and with an appropriately qualified and experienced full time Project Manager acceptable to the Bank. The Project Director shall be responsible for planning, organization, management, supervision and coordination of the Project, as well as monitoring progress. The Project Manager shall be in charge of the day to day implementation of the Project and shall assist the Project Director. PIU shall have full time staff who shall have the necessary technical qualifications and experience. PIU shall be responsible for Project planning and scheduling, procurement of all goods and services, Project accounting and arrangement of audits, disbursement of funds and submission of withdrawal applications to the Bank, management of the imprest account, monitoring of activities in the field, and reporting to the Bank on Project progress.


Complied with

Appendix 11 39


23. Within one month of the Effective Date, seven specific units shall be

formed within GDVT, namely: (i) the Information, Planning and Liaison Unit, (ii) the Accreditation and Certification Unit, (iii) the Women, Minorities and Handicapped Unit, (iv) the Career Guidance and Job Placement Unit, (v) the Curriculum and Materials Development Unit, (vi) the Key Schools Coordination Unit, and (vii) the Administration and Finance unit. Each of these units shall have an adequate number of appropriately trained staff.


Complied with minor changes during implementation (MOLISA Decision No. 1551, dated 26 October 2006)

24. Within 12 months of the Effective Date, production units shall be set up in each of the 15 key schools. The production units shall be managed by a separate unit manager who shall be appointed by the Project Director upon the recommendation of the principal of the school concerned. The unit managers shall report directly to the Project Director and shall be responsible and accountable for. The operation of their respective production units.

Loan Agreement Schedule 6, para.3

Complied with

25. PSC shall be headed by the Minister of MOLISA. The Members of the PSC shall include representatives from the Ministry of Planning and Investment, Ministry of Finance, MOET, SBV, Office of the Government, the Viet Nam Women's Union, the Ethnic Minorities Commission, the Viet Nam Chamber of Commerce and Industry, and the Federation of Labor Unions. PSC shall be responsible for (i) setting policy guidelines for implementing the Project, (ii) coordinating with relevant ministries and agencies, (iii) reviewing and approving annual implementation plans for the Project, and (iv) monitoring the progress of Project implementation. PSC shall meet at least once every quarter, or sooner as and when the need arises, and coordination with MOET and the private sector shall be maintained through the meetings and frequent consultations.


Complied with

26. Within 12 months of the Effective Date, the Borrower shall adopt a decree, in substance satisfactory to the Bank, empowering MOLISA to collect fees for providing career guidance, skills training, job placement and business-related activities for the production units. MOLISA shall prepare a fee schedule based on the demand for the services and the ability to pay of users of such services, and the revenues generated from the collection of such fees shall be used to support, in conjunction with the, normal annual budgetary grant, the capital and operating expenses of the Project.


Complied with delay (Decree issued in March 1998 and the Education Law in 2005)

27. Within three years of the Effective Date, the Borrower shall introduce program accreditation and technical certification systems for the VTE schools, which shall be acceptable to the Bank. Before the midterm review of the Project, MOLISA shall prepare an action plan for the introduction of such systems in consultation with the relevant government agencies and the private sector.


Complied with delay

Appendix 11

40


28. Within 12 months of the Effective Date, the Borrower shall prepare

an action plan to attract more females and members of ethnic minority groups to vocational and technical schools, and shall submit the plan to the Bank for review before implementation.


Complied with delay: An action plan was submitted to ADB on 11 Nov 2002.

29. Before the midterm review of the Project, the Borrower shall prepare an action plan, with detailed implementation schedule, for the dissemination of the curricula and training materials developed under the Project to other schools in the VTE subsector, and shall make the action plan available to the Bank for review and comments.


Complied with

30. The Borrower shall ensure that, prior to the award of fellowships, the criteria for selection of candidates is agreed with the Bank. The Borrower shall ensure that, prior to the award of fellowships, MOLISA shall provide to the Bank for approval a list of (i) nominated candidates, (ii) candidate qualifications, (iii) nominated institutions, and (iv) detailed cost of the proposed courses.


Complied with

31. MOLISA shall ensure that bonding agreements are entered into with recipients of overseas fellowships such that they are required to serve twice the length of the fellowship periods in their current positions.


Complied with

32. Within 12 months of the Effective Date, the Borrower shall ensure that Advisory Committees (ACs) are set up in each of the 15 keyschools. The ACs shall comprise of representatives from private sector employers and employees, parents, each school's administrative and instructional staff, external members appointed by GDVT, and representatives of the school's supervising authority. The ACs shall meet at least twice a year, and MOLISA shall consult the ACs in developing training programs for the Key Schools.


Complied with

33. The Borrower shall ensure that Annual Operation Plans are prepared for the Project by 1 October of each year after the Effective Date. Such plans shall include (i) data on the proposed budgetary allocations to the VTE subsector; (ii) fully costed proposed Project activities for each subcomponent with performance targets, (iii) the status of policy reforms agreed with the Bank, (iv) details of how the proposed Project activities are to be integrated into the VTE subsector's ongoing programs and related activities; and (v) confirmation that adequate budgetary resources have been allocated for Project implementation and recurrent costs.


Complied with

34. The Borrower shall ensure that, if any or all of the financing to be provided by AFD, NDF and JICA is not available for the Project, other arrangements satisfactory to the Bank shall be made to cover any shortfall of funds for Project implementation.


Complied with

Appendix 11 41


35. The Borrower shall ensure that Annual Operational Reviews for the

Project are prepared at the end of each year of Project implementation, to identify the progress made toward achieving the Project objectives. Baseline data on input and output indicators expressing quantifiable Project targets (project performance indicators) shall be established within four months of the Effective Date, and the results shall be used to determine specific targets for the indicators, in agreement with the Bank The Annual Operational Reviews shall be made available to the Bank as part of the first quarterly report of each year beginning with the second year of Project implementation.


Complied with

36. The Borrower shall undertake a midterm review, in consultation and cooperation with the Bank and other co-financiers, after the second year of Project implementation. GDVT shall prepare a midterm report prior to the joint review, which shall include a participatory evaluation by Project stakeholders. The second Annual Operational Review shall be extended to include a review of. Project scope, design, implementation arrangements, institutional and program processes in the VTE subsector, and other relevant issues under the Project, identify changes needed since the beginning of Project implementation, reassess the impact of the Project with regard to future implementation and sustainability, assess implementation performance against project performance indicators, review and establish compliance with loan covenants, identify problems and constraints, and recommend necessary changes in the design or implementation of the Project. The report from the second Annual Operational Review shall be used as a key input for the midterm review.


Complied with: Midterm review was conducted on 6-17 October 2003

Appendix 12

42

CONSULTING SERVICES

1. The loan component consultancy services consisted of two packages. Contracts for the services were signed on 27 August 2001. Technical assistance for the loan component of the Vocational and Technical Education Project (the Project) commenced on 10 September 2001 with the mobilization of the chief technical adviser. The specialist service of package 1 was confined to system-level inputs to components 1 and 2, while package 2 provided inputs to all three components at both the key school and system level. On 3 February 2005, a contract was signed between Australian ITA Consortium and the General Department of Vocational Training for the provision of consulting services to the Project in the extension period from August 2004 to 31 March 2006. The second extension started on 30 September 2006, to complete by 31 March 2008 a number of components that required longer timeframes than predicted in the original project terms of reference. In the second project extension, the Asian Development Bank agreed to allow the project implementation unit to recruit individual consultants upon termination of their service contract under the firms.

Table A12: Project Consultancy Services

Actual Mobilization at Project Completion

(person-months)

Title/Position

International Consultancy

(person-months)

At Appraisal

National Consultancy

(person-months)

At Appraisal International National

Package 1 Chief Technical Adviser 36 0 44.60 0.00 Labor Market Information Specialist 10 6 11.96 10.75 Program Accreditation Specialist 18 18 15.10 19.59 Benefit Monitoring and Evaluation Specialist 12 14 13.94 21.07 Financial Management Specialist 8 12 8.20 11.92 Technical Education Management Specialist 8 12 14.94 17.71 Job Placement Specialist 10 6 7.03 6.15 Staff Development Specialist 24 18 12.67 13.67 Marketing Specialist 6 6 5.93 12.80 Disadvantaged Persons (Women) Specialist 6 6 5.77 5.66 Package 2 Team Leader 12 0 8.70 0.00 Instructional Design Specialist 18 18 5.70 37.42 Curriculum Content Specialists 43 114 36.20 174.30 Multimedia Development Specialist 30 36 17.27 33.38 Skills Standards, Testing, and Certification Specialist

18 18 20.00 27.02

Equipment Procurement Specialist 18 28 14.40 27.20 School-Industry Partnership Specialist 8 12 10.33 15.29 Mobile Training Specialist 8 3 7.90 8.14 Total 293 327 261 442

Source: Project Implementation Unit, Vocational Technical Education Project.

Appendix 13

43

Assessment of Project Performance

Criterion Weight

(%) Definition Rating

Description Rating Value

Weighted Rating

1. Relevance 0.2 The consistency of the Vocational and Technical Education Project (the Project) in its goal, purpose, and outputs with the development strategy of the Government of Viet Nam, the lending strategy of the Asian Development Bank (ADB) for the country, and ADB’s strategic objectives at the time of approval and evaluation.

Highly Relevant

3 0.6

2. Effectiveness 0.3 The achievement of purpose as specified in the policy goals and the physical, financial, and institutional objectives adopted at project approval, or as formally modified during implementation.

Effective 2 0.6

3. Efficiency 0.3 Comparison of the achievement of project purpose with its use of inputs, based on implementation performance with consideration of the cost effectiveness of the investment.

Efficient 2 0.6

4. Sustainability 0.2 Likelihood that human, institutional, and financial resources are sufficient to support achievement of results and benefits over the economic life of the project.

Likely 2 0.4

Overall Assessment

The overall weighted average of the four criteria. If one of the criteria has a score of 0, the rating to be downgraded to Partly Successful.

Successful 2.2

Rating Value

Relevance Effectiveness Efficiency Sustainability

3 Highly relevant Highly effective Highly efficient Most likely 2 Relevant Effective Efficient Likely 1 Partly relevant Less effective Less efficient Less likely 0 Irrelevant Ineffective Inefficient Unlikely

Rating: Greater than 2.7 = Highly successful Between 1.6 and less than 2.7 = Successful Between 0.8 and less than 1.6 = Partly successful Less than 0.8 = Unsuccessful Source: ADB. 2006. Guidelines for Preparing Performance Evaluation Reports for Public Sector Operations. Manila.

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