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IFAD strategic framework

IFAD's core strategy in Viet Nam should be to develop and testinnovative approaches to poverty reduction that can be replicated and scaled up by government and/or Official Development Assistance (ODA) agencies within the CPRGS framework. In doing this, IFAD should continue to emphasize the area-based, multi-sectoral and single province approach that has been central to its country programme to date.In line with regional incidence of poverty, priority regions should include the northern uplands;the north central coastal region; the central highlands; and the Mekong Delta region. In terms of target group, priority should be given to ethnic minorities, households living in remote (often upland) areas with a poor natural resource base, households living in coastal areas that are more prone to adverse climatic events, woman-headed households, disabled households, migrants and the landless. In addition, women and unemployed youth are identified as priority target groups not only because of their relatively disadvantaged positions within society, but also for their strategic role as agents of change in the development process.In line with IFAD's strategic framework and regional strategy, major thrusts to be included in future IFAD interventions in Viet Nam are outlined below.

Increased access to human and social assets by:

*building the capacity of poor households and grass-roots institutions to enable them to take the lead in the development process and more effectively address poverty;

*improving the role and status of women by introducing programmes that take affirmative action to improve women's position in the household and community, and enhance their capabilities as agents of change; and

*increasing food security for the poorest and most vulnerable households by diversifying rural incomes and increasing rural employment with particular emphasis on the development of microenterprises and provision of improved access to vocational training opportunities.

Increased access to productive assets and technology by:

-increasing access of the poor to productive resources, particularly land, credit and forest resources;

-improving the management of productive resources by enabling the poor to access knowledge and technology, so they can generate income on a sustainable basis; and

-improving village-level/community-based infrastructure as an entry point for social and economic development in poor areas.

Cross-cutting thrusts that:

-promote good governance, with emphasis on implementation of decentralized project management and promotion of grass-roots democracy; and

-share lessons learned in the implementation of the IFAD-funded country programme to influence national policies and programmes, in collaboration with like-minded ODA agencies.

Opportunities for strategic partnerships

The United Nations Development Programme (UNDP) and the Swedish International Development Authority (SIDA) have been involved in cofinancing technical assistance (TA) and training costs in previous IFAD projects in Viet Nam with considerable success, and both have expressed their commitment to continuing this collaboration. The Italian Ministry of Foreign Affairs General Directorate for Development Cooperation (DGCS) is currently discussing with the Government and IFAD the possibility of providing support for development in the central highlands.

Policy dialogue

IFAD is committed to facilitating the transfer of lessons learned to relevant national agencies as an input to the national policy/programme formulation process. The UNDP project, TA to the IFAD programme, will play a central role in coordinating this process not only with the Government but also with major financiers such as the World Bank and the Asian Development Bank.

Borrower's assessment

Despite its overall satisfaction with IFAD's country programme, considered a model for other ODA agencies, the Government has invited IFAD to enhance its role during project implementation, so as to ensure more effective supervision of its projects and a higher level of implementation support. During a videoconference held in September to discuss the draft COSOP, the Government proposed the use of UNDP as the cooperating institution (CI) responsible for the supervision of the whole IFAD portfolio in Viet Nam. On that occasion, the World Bank offered office space on its premises should IFAD decide to increase its field presence through recruitment of a Hanoi-based permanent staff member.