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{u'en': u'Vietnam', u'it': u'Vietnam'}

Vietnam

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> Far East Asia

Info

Population
92,701,100  
Population growth
1.07 %  
GDP
$202,615,893,443.00  
GDP per capita
$2,185.00  
Source: World Bank, latest available data

Italian Cooperation in the country

The Italian Development Cooperation has been present in Vietnam since 1990, when the first Financial Technical Agreement of Cooperation between the two Countries was signed. Since 1998 the Italian development cooperation has an office in Hanoi, which since 2007 is responsible for cooperation activities also in Cambodia and Laos. Starting from January 2016 – as a result of the reform of Italian development cooperation (Law 125/2014) – the office in Hanoi has become part of the Italian Development Cooperation Agency (AICS), with financial and administrative autonomy.

Italy supports Vietnam in its new challenges as Lower Middle Income Country with a cooperation programme for a total amount of more than 100 million Euro. Most programmes and projects are run by local entities, to allow a stronger link between funding and executing agencies, thus improving effectiveness and ensuring sustainability. On one hand, Italy’s support to Vietnam reflects Vietnam’s priorities of balancing the need for sustained economic development with the social and environmental pillars of Sustainable Development, as outlined in the Vietnam Government’s 2016-2021 Social Economic Development Plan (SEDP). On the other hand, it is also aligned with the Strategic Planning Document 2016-2018 of AICS, which highlights the emerging focus on Human Resources Development, Health, Water and Sanitation, Environment and the cross-cutting theme of Inequalities, but also on the opening of new areas where Italy can offer its expertise, such as in the field of Sustainable Energy.

The Sustainable Development Goals (SDGs) are key guidelines for the economic and social development policies promoted by the Italian Cooperation, both at the global level and in Vietnam.

Strategic development document in the country

None

The Italian strategy and the areas of intervention

Italy recognizes that the evolving needs at this stage of development require an even stronger presence on key areas in order to foster the sustainable and equitable development of the Country. In over a quarter of century of cooperation, the Italian Development Cooperation, and its Vietnamese partners, have deepened their knowledge of the varied and changing demands and challenges, and accumulated a wealth of experience on how to best respond to them.

AICS Hanoi is now adapting to the crucial needs of the country for economic restructuring and enhancement of the role of private sector, in particular Small and Medium Enterprises (SMEs), for Human Resources (Vocational Training) who are better protected from and prepared against Health threats as well as able to provide capable workforce, and for a better use of resources, such as Water and Natural Resources in general, in the effort to contribute in the mitigation on the effects of Climate Change and Natural Disasters.  Building on the successes and lessons learned from our past and continuing activities in the sectors of Water and Sanitation, Environment and Health, we intend to boost support on the Environment, developing new interventions in the sectors of Sustainable Energy and Water Resource Management in a more holistic and multi-sectoral approach that can effectively address the complex issues faced by the country, while utilizing Italy’s distinguishing expertise, in a new phase of cooperation. Just as more efficient and clean energy production, distribution and consumption is crucial not only for the Environment but also for sustainable economic development, a good management of Water Resources, in particular around the two main river basins of the Red-Thai Binh River and Mekong Delta, will be key to create the right conditions for people to prosper in those areas and beyond, preventing natural disasters as well as food security and health risks, thus enhancing community resilience.

Considering Italian limited financial resources for development assistance and the relatively high income of Vietnam, soft loan is the main financial instrument of the Italian activities. Moreover, being a relatively small donor, Italy prefers the financing and implementation of specific programs, rather than sector support or state budget support, where its action would be less effective. 

Alignment with the local government strategy and harmonization with donor community interventions

Vietnam sees the presence of numerous Italian actors. The Italian Development Cooperation works together with several Italian NGOs: GVC, UCODEP, Centro ELIS, AIFO and AISPO, promoting their projects of social and environmental development. Moreover, other NGOs are present in the Country though other financial sources: GVT, CIAI e CARE THE PEOPLE. The Embassy of Italy is in contact with these organizations for thematic and geographic coordination and for future collaborations. Moreover, there is a large and growing presence of the Italian private sector, of which ICE (Institute for Foreign Trade) records 32 active firms with investments and joint ventures and 29 firms present with representative offices or exploratory missions. The Italian Cooperation is active in channeling the resources and the potential of these actors in its programs. For example, the Italian Cooperation finances an UNIDO program, which also aims at promoting twinning between Italian and Vietnamese SMEs. Over the years affected by this policy framework, the involvement of the private sector is expected to further increase in additional programs of: promotion of the private sector, vocational training and infrastructural development through soft loans. The same applies to academic institutions, active in Vietnam with 35 Universities and 68 cooperation agreements. The University of Sassari and the Polytechnic of Milan are already directly involved in Italian Development Cooperation programs. Greater interaction with academic institutions is foreseen in the in period of 2013-2015, for the activation of joint Italian and Vietnamese programs of higher education and vocational training. Finally, the regions of Veneto, Marche, Trentino Alto Adige and the autonomous provinces of Trento and Bolzano are present in Vietnam, through the funding of various initiatives in the humanitarian and cultural cooperation.

Goals and expected results

Hereafter is the list of Italian priority sectors and the related expected results: 

Endogenous and sustainable economic development and Education (EUR 20 Mln):
• Production and marketing capacity building for SMEs’ and strengthening of human capital.
• Improvement of vocational training in the technical and industrial fields.
• Improvement of the access for SMEs to investments and foreign markets.
• Improvement of training in archaeological and monumental fields.
• Promotion of rural development through: improvement of the management of agricultural and forest resources by small farmers; development of supply chains, of marketing and of agro-tourism.

Environmental protection and development (EUR 59 Mln and EUR 8 Mln of funds drawn from a debt swap program): 
• Construction of water supply facilities and of urban renewal infrastructures in 6 provinces of the Country.
• Integrated management and sustainable development of river basins.
• Improving the quality of forecasting bulletins, to improve the management of hydropower reservoirs, also under the impact of natural hazards in the river basins.
• Modernization of the flood warning system in the central provinces of the Country.
• Activation of initiatives aimed at environmental protection and development by local authorities, NGOs and international organizations in the central provinces of the Country.

Health (EUR 14 Mln):
• Improvement of the health services of the central areas of the Country.
• Improvement of the capacities of diagnosis and treatment of respiratory diseases in central Vietnam.

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Aid in numbers

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8 Show projects list

AICS development projects

€ 361,333

Total resources committed

€ 32,516

Total resources used

What is it spent for?

The purpose/sector of destination of a bilateral contribution should be selected by answering the question “which specific area of the recipient’s economic or social structure is the transfer intended to foster”. The sector classification does not refer to the type of goods or services provided by the donor. Sector specific education or research activities (e.g. agricultural education) or construction of infrastructure (e.g. agricultural storage) should be reported under the sector to which they are directed, not under education, construction, etc. read more close

By means of?

The typology identifies the modalities that are used in aid delivery. It classifies transfers from the donor to the first recipient of funds (e.g. the recipient country, a multilateral organisation, or a basket fund).  It does not track the end uses of the funds, which is addressed in the sector classification and to some extent through the policy objective markers. read more close

Main ongoing projects

Recipient € Used resources
SUPPORT SME AND TWINNINGS PROMOTION AMONG INDUSTRIAL CLUSTER. EXPERT FUND. VN 3,000,000
COOPERATION OFFICE HANOI - SALARIES TO STAFF VN 2,024,501
PROJECT TO SUPPORT AGRICULTURE AND IMPROVEMENT OF THE WATER SYSTEM, PHU VANG DISTRICT, PROVINCE OF THUA VN 1,511,802
PROMOTION OF ENVIRONMENT PROTECTION IN VIET YEN,YEN DUNG E HIEP HOA DISTRICTS VN 1,417,520
COOPERATION OFFICE HANOI - TOOLS VN 1,217,285
IMMR-INTEGRATED AND SUSTAINABLE WATER MANAGEMENT OF RED-THAI BINH RIVER SYSTEM IN A CHANGING CLIMATE VN 997,443
ORGANIZATION OF A TRAINING AND RESEARCH CENTER FOR THE CONTROL OF RESPIRATORY INFECTIONS IN VIETNAM DEDICATED TO CARLO URBANI VN 994,145
Organization of a research and didactic center for the control respiratory infections in Central Vietnam, dedicated to the memory of Dr. Carlo Urbani VN 838,490
CREATION OF A CENTRE FOR THE TRAINING OF PERSONNEL AND EQUIPMENT FOR THE TECHNICAL ASSISTANCE OF HANOI MEDICAL INSTRUMENTS VN 765,162
Assistance to minors victims of traffic in selected Special Economic Zones in the bounderies between Vietnam, Cambogia and Laos VN 600,000
VOCATIONAL TRAINING TO COMBAT YOUTH UNEMPLOYMENT VN 574,861
PRO. SOS. - Sustainable production of healing herbs, Son Dong District, Vietnam VN 503,327
Increase youth employment by linking school industry in the Province of Bac Ninh- Vietnam OGB VN 491,716
Strengthening of training and managerial capacity International Institute Biomedical research Biotechnology Hue' College VN 473,952
SUPPORT TO BALANCE PAYMENTS AND WATER SECTOR PROGRAM AID. Financing to recipient government institutions VN 469,600
COOPERATION OFFICE HANOI VN 360,038
SUPPORT FOR PROGRAMS OF PHYSICAL REHABILITATION &SOCIAL INCLUSION OF PEOPLE WITH DISABILITIES IN 3 PROVINCES-CENTRAL REGION VN 234,745
IMPROVEMENT OF HEALTH SERVICES IN SELECTED AREAS OF CENTRAL VIETNAM AND HUE COLLEGE OF MEDICINE AND PHARMACY VN 220,890
PROGRAMME COORDINATION AND MANAGEMENT FUND VN 188,019
Vietnamese Debt Swap Programme - Local Fund VN 125,000
COOPERATION OFFICE HANOI - SALARIES TO LOCAL STAFF VN 113,264
VIETNAM - Technical assistance to water supply projects VN 92,415
BINH THUAN WATER SECTOR PROJECT VN 60,000
HEALTH SECTOR PLANNING INITIATIVE AIMED TO IDENTIFYNG AND FORMULATING INITIATIVES IN HEALTH SECTOR VN 59,960
VOCATIONAL TRAINING PROGRAM FINANCED TRHOUGH THE SOFT LOAN - EXPERT FUND VN 59,418
URBAN SANITATION AND WATER SUPPLY IN CA MAU CITY VN 54,000
SEWERAGE SYSTEM CONSTRUCTION AND ENVIRONMENTAL SANITATION PROJECT IN NUI THANH URBAN AREAS OF THE QUANG NAM PROVINCE VN 54,000
PROJECT TO SUPPORT AGRICULTURE AND IMPROVEMENT OF THE WATER SYSTEM, PHU VANG DISTRICT, PROVINCE OF THUA VN 46,715
PROMOTION OF ENVIRONMENT PROTECTION IN VIET YEN,YEN DUNG E HIEP HOA DISTRICTS. SOCIAL SECURITY CHARGES AND INSURANCE FOR VOLUNTEERS VN 44,766
Local Found Promotion of Vietnamise SMEs' competitiveness VN 42,000