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.

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.

Strategic development document in the country

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