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Vietnam Environmental Export Market Plan
Chapter 13 - Sources of Financing

Overseas development assistance from multilateral institutions, such as the World Bank and the Asian Development Bank, remains the largest source of financing for environmental initiatives in Vietnam (Tables 13.1 and 13.3). While loans for environment-improvement projects have been approved and signed, implementing the projects and disbursing funds rarely proceed on schedule.

Vietnam has had a particularly poor track record of aid absorption for numerous reasons, including an entangled bureaucracy and extremely slow decision-making procedures. Local managers responsible for implementing projects must get approval for the smallest decisions along an entire chain of command. Major spending or disbursal decisions often must be approved by the local People's Committee, numerous agencies affiliated with the project, parent ministries in Hanoi, and, occasionally, the prime minister.
Chart 13.1 Pipeline Commitments in Vietnam, by Main Grant Donors (millions of dollars)



Note: Full names of donor organizations are given in the abbreviation list. Dollar figures have been rounded.
Source: U.N. Development Program.

The government has issued an inter-ministry decision (Decree 87/CP) on speeding up ODA disbursements and on decentralizing decision making. Implementation of this decree is a work in progress, however. Bidders on projects should expect delays in procurement schedules.

U.S. Funding Sources

The United States has not yet provided bilateral aid in the form of loans or grants to the environment sector. However, the Overseas Private Investment Corporation (OPIC) provided its first financial support to a U.S. investment project in Vietnam in December 1999, a $2.3 million loan to V-Trac Infrastructure Company, the sole authorized dealer of Caterpillar equipment in Vietnam. OPIC is a federal agency that provides investment services to small and medium-sized companies in overseas markets.
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Key Sources of Overseas Development Assistance in Vietnam

Asian Development Bank
23 Phan Chu Trinh
Hanoi
Tel: +84 (4) 733-0923
Fax: +84 (4) 733-0925
Web: www.adb.org
E-mail: adbhanoi@netnam.org.vn
Project officer: Mr. Le Dinh Thang

United Nations Development Program
27-29 Phan Boi Chau
Hanoi
Tel: +84 (4) 942-1495
Fax: +84 (4) 825-9267
Resident representative: Edouard Wattez

World Bank
63 Ly Thai To
Hanoi
Tel: +84 (4) 934-6600
Fax: +84 (4) 934-6597
E-Mail: nthanh@worldbank.org
Web: www.worldbank.org.vn
Project officer: Mr. Cong Thanh

Overseas Development Assistance Partnership
32 Le Thanh Ton St.
Ho Chi Minh City
Tel: +84 (8) 823-8988
Fax: +84 (8) 822-4009
E-Mail: odap@hcm.vnn.vn
Program Coordinator: Ms. Le Dieu Anh

Select Bilateral Aid Agencies

Australian Agency for International Development
Australian Embassy
8 Dao Tan St.
Hanoi
Tel: +84 (4) 831-7754
Fax: +84 (4) 831-7706
E-mail: ausaid@fpt.vn
Web: www.ausinvn.com

Belgian Administration for Development and Cooperation
216 Nguyen Dinh Chieu
Ho Chi Minh City
Tel: +84 (8) 930-0407
Fax: +84 (8) 930-0211
Project Manager: Mr. Benoit Legrand

Finland International Development Agency (FINNIDA)
Embassy of Finland
31 Hai Ba Trung St.
Central Building
Hanoi
Tel: +84 (4) 826-6788
Fax: +84 (4) 826-6766
E-mail: finnemb@netnam.org.vn
Web: www.global.finland.fi
Program Officer: Le Quoc Hung

Japan Bank for International Cooperation (JBIC)
63 Ly Thai To St.
Hanoi
Fax: +84 (4) 824-8937
E-mail: jbic@hn.vnn.vn
Web: www.jbic.go.jp
Chief Representative: Koki Hirota

Dutch Development Aid Agency
Royal Netherlands Embassy
Daeha Office Tower
6th Floor, 360 Kim Ma St.
Hanoi
Tel: +84 (4) 831-5650
Fax: +84 (4) 831-5655
E-mail: nlgovhan@netnam.org.vn
Commercial officer: Mr. Geoffrey van Leeuwen

Japan International Cooperation Agency (JICA)
Daeha Business Center
11th Floor, 360 Kim Ma
Hanoi
Tel: +84 (4) 831-5005
Fax: +84 (4) 831-5009
E-mail: jicavietnam@fpt.vn
Chief representative: Jibiki Takanori

Danish International Development Agency (DANIDA)
19 Dien Bien Phu St.
Hanoi
Tel: +84 (4) 823-1888
Fax: +84 (4) 747-0167
E-mail: ambadane@hn.vnn.vn
Chief representative: Toiben Bellers

Swedish International Development Agency (SIDA)
2 Nui Truc St.
Hanoi
Tel: +84 (4) 845-4824
Fax: +84 (4) 823-2195
E-mail: per.lundell@sida.se
Consular for Development Cooperation: Per Lundell

Norway Agency for International Development (NORAD)
56 Ly Thai To
Hanoi
Tel: +84 (4) 826-2111
Fax: +84 (4) 826-0222
E-mail: noramb@hn.vnn.vn
ambassade-hanoi@ud.dep.telemax.no
First Secretary: Svein Damsgaard
Table 13.1 Largest Ongoing Development Projects in Vietnam, 2000
Sector
Donor
Project Title
Duration
Executing Agency
Annual Average Budget*
Total Budget*
Energy EfficiencyWorld BankTransmission, Distribution & Disaster Rehabilitation Project1998-2002Electricity of Vietnam49,750199,000
Energy EfficiencyWorld BankPower Sector Rehabilitation & Expanison Project1997-2000Electricity of Vietnam55,000165,000
Urban PlanningOverseas Economic Cooperation Fund (Japan)Hanoi Urban Infrastructure Development Project1997-2002PC Hanoi21,400107,000
Urban PlanningWorld Bank/IDAThree Cities Sanitation Project (Ha Long, Danang and Hai Phong)1999-2004PCs in three cities16,10080,500
Disaster ManagementAsian Development BankIrrigation & Flood Protection Rehabilitation Project1994-2000MARD12,75076,500
Urban PlanningAsian Development BankSecond Provincial Towns Water Supply & Sanitation1997-2002MOC13,80069,000
Urban PlanningOverseas Economic Cooperation Fund (Japan)Hanoi Drainage Project for Environment Improvement1995-2002PC Hanoi9,76468,349
WatershedAsian Development BankRed River delta Water Resources Sector Project1995-2000MARD12,00060,000
FisheriesAsian Development BankFisheries Infrastructure Improvement Project1996-2002MOFish9,50057,000
ForestryAsian Development BankForestry Sector Project1997-2003MARD5,50033,000
ForestryWorld BankForest Protection & Rural Development Project1998-2003MARD6,45832,290
Disaster ManagementWorld Food Program (United Nations)Rehabilitation & Upgrading of Sea Dikes in Northern Vietnam1996-2000MARD6,65726,631
Rural DevelopmentEuropean UnionCao Bang/Bac Can Rural Development Project1999-2004MARD4,29521,476
Rural DevelopmentEuropean UnionSon La/Lai Chau Rural Development Project1999-2004MARD4,00020,000
ForestryBMZVietnam Forestation1997-2002KfW3,92019,600
ForestryEuropean UnionSocial Forestry & Natural Resources Conservation in Nghe An Province1997-2003MARD3,21219,273
Institutional StrengtheningInternational Fund for Agriculture DevelopmentStrengthening Tuyen Quang Province to Implement Participatory Resource Management1996-1999PC Tuyen Quang6,00018,000
Total, all projects$1,072,619
* Thousands of U.S. dollars.
Source: U.N. Development Program

Table 13.2 Largest Pipeline Projects in Vietnam 2000
Sector
Donor
Project Title
Duration
Executing Agency
Annual Average Budget*
Total Budget*
Energy EfficiencyWorld BankRural Energy Project2000-2004EVN37,500150,000
Rural DevelopmentWorld BankNorthern Mountains Poverty Reduction2001-2006MPI20,000100,000
Urban Planning & Pollution ControlAsian Development BankPhuoc Hoa Multipurpose Water Resources2000-TBATBA80,000
Urban Planning & Pollution ControlAsian Development BankHCMC Environmental Improvement1999-2001PC HCMC34,00068,000
Protection of Mangroves & WetlandsWorld BankCoastal Wetlands Protection & Development Project1999-2006MARD9,31465,200
WatershedAsian Development BankSecond Red River Water Resources2001-TBATBA60,000
Urban Planning & Pollution ControlAsian Development BankThird Provincial Towns
Water Supply & Sanitation		2001-TBATBA60,000
FisheriesDANIDAFisheries Sector Program Support1999-2004MOFish7,36736,838
Urban Planning & Pollution ControlEuropean UnionUrban Environmental Planning Program1999-TBATBA20,480
Marine ProtectionUNDP/GEFPrevention & Management of Marine Pollution in the East-Asian Seas, Phase 21999-TBAIMO16,289
Protection of Mangroves & WetlandsJICAReforestation of the Coastal Sandy Soil Areas in Quang Nam, Quang Ngai, Phu Yen & Khanh Hoa Provinces2000-2004MARD3,93915,758
Disaster Management & PreparednessJICAUpgrade of Typhoon Operation of the Hydro-meteorological Services2000-2003HMS5,20215,608
Urban Planning, Pollution Control, & Health IssuesJICAUrgent Equipment Supply for Waste Management in Hanoi2000-2002PC Hanoi5,46610,933
Protection of Mangroves & WetlandsDANIDACoastal Wetlands Protection & Development Project1999-2006WB1,50510,541
Total, all projects$709,647
* Thousands of U.S. dollars.
Source: U.N. Development Program.

Table 13.3 The 15 Largest Donors for Ongoing Projects in Vietnam, 2000
Rank
Donor
Number of projects
Total Budget*
Average Length (years)
Average Annual Budget*
1
World Bank
7
482,820
3.6
134,116
2
Asian Development Bank
7
298,182
4.4
54,932
3
Japan Bank for International Cooperation
2
175,349
6.0
31,164
4
European Union
18
67,544
3.2
13,947
5
World Food Program (UN)
2
42,496
4.0
10,624
6
Bundesministerium fur Wirtschaftliche Zusammenarbeit und Entwicklung (Germany)
5
38,985
4.4
10,723
7
Swedish International Development Cooperation Agency
11
38,312
2.5
12,598
8
Japan International Cooperation Agency
6
32,654
1.8
18,195
9
International Fund for Agriculture Development
2
30,800
3.5
9,200
10
Government of the Netherlands
13
29,405
3.0
7,595
11
Swiss Development Cooperation
8
25,072
3.4
7,327
12
Agence Francaise de Developpement (France)
2
24,900
6.0
4,150
13
United Nations Development Program
14
18,722
2.8
6,930
14
Danish International Development Assistance
6
11,752
3.7
3,690
15
Canadian International Development Agency
7
10,695
4.7
2,269
Total
110
1,327,688
* Thousands of U.S. dollars.
Source: U.N. Development Program.

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