International cooperation in skills development The Vietnam case

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International co-operation in skills
development - The Vietnam case -
Working Group for International Co-operation
in Skills Development

• Dr. Ngo Huy Liem
• Happel Foundation
• Hong Kong
• February 165.-16.2007

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Contents

• Vietnam in brief
• Skills development in the Vietnam context
• International cooperation in SD and interactions
• National agencies
• International agencies (multilateral and
  bilateral/NGOs)
• Issues ahead

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Preliminary remarks

• SD understanding in Vietnam ( narrow)
• No specific agencies and/or projects (see Annex 1
  Michel Cartons paper) and/or see
• Study Vu Bich Thuy and Alex Dormeier Freire
  How do national and international actors interact
  in SD Strategies The analysis of Vietnam under
  Doi Moi (1986-2004)_ Geneva 2004
• Focus on Interactions among actors (view from
  inside)

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VN Achievements by 2006

• Poverty
• Strong reduction of poverty incidence (1993 59
  2004 19) MDG 1 achieved in 2000
• By Year 2010
• GDP growth rate for 2006-2010 7.5-8 and
  expected to be higher than 8)
• GDP per capita 1050-1100) (current price)
  GDP shares by sectors by 2010
  Agriculture 15-16
  
  Industry and construction 43- 44
  Service 40- 41

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• Economic development
• Annual increases of 7 8 Strong economic
  growth benefiting all (more or less)
• Governance
• Reform agenda is advanced on all ends - legal
  basis is being established
• Process of dialogue between Government and civil
  society is improving
• National Parliament is becoming more outspoken
  and vocal and thus powerful

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GDP Growth and GDP/capita
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• Harmonisation
• Strong planning tradition, which went in parallel
  to the CDF / CPRGS e.g. was mutually beneficial,
  and needed little convincing
• Harmonisation agenda was early on the list and
  perceived as necessity by VN Government -gt VN
  perceived as spearheading the process (Hanoi Core
  Statement)
• Open and transparent planning processes SEDP /
  ODA strategy

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Labor market and challenges for skills development

• Administrative reform and restructuring economy
• Foreign direct investment
• Labor export
• WTO and skills development
• Poverty reduction and skills development

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Top 20 FDI
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FDI by sector (as of December 2006)
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FDI by location
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Poverty map and foreign direct investments (FDI)
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• CG 12/2006 4.4 Billion USD commitments
• Adhesion to the WTO
• Labor export (Total 400.000 persons, 2007 80000
  persons) mainly Korea, , Taiwan, Malaysia, Japan
  brings 1.6 Billion USD/year

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Inequality is growing
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Percentage of ethnic among the poor
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Poverty rate vs. poverty density
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Technical and Vocational Training
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A current working definition of SD
wouldencompass the following points

• 1. it is to be seen as systems (formal and
  informal)
• 2. it is related to professional skills, and life
  skills with a social component
• 3. it includes soft skills, TV and non-TV skills
• 4. it also includes elite skills.
• In other words, the working definition of SD in
  Vietnam has a rather broad scope.

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Evolution of growth, higher education and TVET,
and ODA1986-2004 (index number 1986 100)
(Adapted Statistics on E T 1945-1995 published
by MOET on ODA published by UNDP and on growth
byGSO)
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Skills development linked strategies for 2010
(by level of skills)
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Skills development linked strategies for 2010 (by
sector)
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Key actors in Skills development

• National (public and private)
• International ( multilateral, bilateral, private
  sector, NGOs)

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Interactions among national actors

• National Targeted Program for Education
• National Targeted Program for Poverty Reduction
• National Targeted for Vocational Training
• -gt Inter-ministerial circulars

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SE Asian recipients of ODA
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ODA by sector
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DONORS strategies

• Most of western donors involve in all the 3
  approaches (Development, poverty reduction and
  governance)
• Example
• Multilateral WB, ADB
• Bilateral BMZ (Germany) and CIDA (Canada)

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GOVERNANCE
DEVELOPMENT
GROWTH
POVERTY REDUCTION

PRO-POOR Growth
GROWTH and EQUITY
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WESTERN
GOVERNANCE
ASIAN
DEVELOPMENT
GROWTH
POVERTY REDUCTION


PRO-POOR Growth
NGOs
GROWTH and EQUITY
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DONORS Interactions

• Targeted Budget Support for Education for All
• National Targeted Poverty Reduction
• Program for Socio-economic Development of
  Mountainous Areas (P 135)
• Hanoi Core Statement (Harmonization)
• Many other Partnerships Programs related to
  sectoral development, poverty reduction and good
  governance

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• Summary Table Annex 1 International cooperation
  for Skills development

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National and International donors interactions
in Vietnam

• - The case of Mixed patterns of Skills
  Development -

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• Hunger Eradication and Poverty Reduction (HEPR)
• Socio-Economic Development Plan (SEDP)
• Paris Declaration on Aid Effectiveness
• Hanoi Core Statement (HCS)
• Partnership Group on Aid Effectiveness (PGAEF)
• High level Forum on Harmonisation (HLF)
• High level Forum on Aid Effectiveness (HLF-2)
• Consultative Group Meeting for Vietnam (CG)
• Harmonisation Action Plan (HAP)
• Vietnqam Harmonisation Action Plan (V-HAP)
• Comprehensive Capacity Building Program (CCBG)
• Like-minded Donors Group (LMDG)
• Millennium Development Goals (MDGs)
• Vietnam Development Goals (VNDs)
• Comprhensive Poverty Reduction and Growth
  Strategy (CPRGS)

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From C-PRGS to SEDP
Millennium Declaration
Harmonisation
10 year Strategy 2001-2010
5 year SEDP (2006-2010)
GOV
5 year SEDP
AP
1st Decree17
Rev. Decree17
"Renovation"
I-CPRGS
HEPR
ODA Strategy
CPRGS
1995
2002
1986
2000
2001
2003
2004
2005
2006
Attacking poverty
HCS
V-HAP I
VDG
UN Reform VN Pilot
1 st CG Meeting
Poverty report
ODA
PRSC I
CDF Pilot
Partnerships
PGAE
Poverty Task Force
Participatory Consultations
LMDG
HAP 04 - 06
MDG Report
UNDAF II
UNDAF I
Source adapted from SDC
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Differences between traditional and modern
planning (2006-2010)
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Institutional and political aspects of PRS
monitoring

• Decree on Formulation of 5 Year SEDP 2006-2010 (
  Decree 33 of 23.9.2004) among others, focus on
  broader participation of all stakeholders
• To support Decree 33, a wide range of activities
  were initiated
• International conference on Asian experiences
• Conferences/workshops at regional level and
  ministries level
• Thematic research studies (11)
• Capacity building on how to integrate CPRGS
• a) in Plans of selected ministries (Agriculture,
  Labor, Health, Education)
• b) in the 5 Year SEDP (2006-2010) of selected
  provinces

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From C-PRGS to SEDP
5 year SEDP (2006-2010)
GOV
???
"Renovation"
2004
Source adapted from SDC
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Traditional versus Modern planning

• C-PRGS principles is being integrated in the
  5-Year Socio-economic development plan
• Growth and poverty
• Economic and social integration
• Participatory (Decree 33 with a wide range of
  local consultations)
• Results-based planning ( moving from traditional
  inputs/outputs to outcomes/impacts ? strong ME
  system
• Linking planning with budget

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Links between C-PRGS and Planning
CPRGS
Integrated
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The Vietnam case

• SD should be seen in the context of development
  level of each country
• Pragmatic approach in international cooperation
  comparative advantages of partner country
• Strong motivation to learn and take over the
  transfer of knowledge and skills

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• The typology of 3 approaches provides useful
  conceptual framework for SD and for international
  cooperation in SD
• The focus on which approach and the sequence
  depends on specific situation in a specific
  period of time
• The evolution from one approach to another
  depends on the development staring point.

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• Keeping in mind the vulnerable groups
• Knowing the motivation and the interests of
  individual international agency, Vietnam is
  trying to operationalize the Hanoi Declaration on
  Harmonization and Aligment.
• Requirement for capacity-building to take the
  driver-seat (ownership, participation,
  transparency and accountability)
• Need strong coordination among international
  agencies

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Thank you
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Issues ahead

• Need a clear definition of Skills development
• SD strategies currently not located clearly in
  the national goals.
• The participation of meso-levels (provinces) in
  the design and implementation of strategies in SD
  field should be promoted.
• Actors from the non-state sector have to be
  integrated in SD strategies
• SD is a cross-cutting theme
• Soft skills need to be included together with
  technical skills.
• There is a lack of awareness in SD none of the
  international agencies represent clear leadership
  in this issue (except, to a certain extent, ADB)
• Poverty reduction and skills development no
  clear link
• Adhesion to the WTO and skills development
  positive thinking but still unequal access
  (Winners and loosers)