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Improving Market Participation of the Poor
Ha Tinh and Tra Vinh Province
The goal of the Programme is to contribute to sustainable improvement of incomes of poor people from rural areas in Viet Nam. The purpose of the Programme is to facilitate the rural poor’s access to and participation in markets in HT and TV, with relevance elsewhere in Viet Nam.
The Programme shall consist of the following Components:
A. Commune Market Opportunities Support
The objective of this component shall be the livelihoods enhancement of the poor through more effective interaction with markets and ensuring the participation of the poor in those markets through the following sub-components and activities:
(i) Developing Capacity and Market Awareness
a. Market information/studies/analysis of the market knowledge base of each commune, combined with participatory mapping of poverty/social characteristics.
b. Market-focused capacity building through establishment and training of Programme support teams and committees, training of commune and village leaders about markets, market-based planning and the poor’s role in markets.
c. Awareness creation of available opportunities, access to different markets and resources available under the Commune Market Opportunities Budget.
(ii) Commune Market Opportunities Planning
a. Conduct of participatory planning processes by the Commune Programme Support Team, assisted by the District Programme staff and PCU-based Commune Planning Unit.
b. Development of a commune market opportunities plan, including the commune’s proposal for allocation of investment funds available under the Commune Market Opportunities Budget and an assessment of demand for other support and services.
(iii) Commune Market Opportunities Budget
Commune market opportunities budget funding available for three types of investments within the commune: (i) economic infrastructure, (ii) training, capacity building and market-oriented advice, and (iii) financing for women’s savings and credit groups.
B. Job/Enterprise Facilitation and Market Development
In order to improve the ability of households in poor communes to participate in labour, commodity and finance markets through increased access of the rural poor to jobs and increased added value to their production, the Programme shall support the following sub-components and activities:
(i) Job Linkage and Skills Improvement
a. Preparatory activities for awareness creation in each Programme Commune of skills training programmes and of job opportunities available through the Programme; labour needs/demand assessment; development of skills training courses with outreach training; and training-of-trainers from the participating vocational training centres (VTCs).
b. VTC-managed training for poor jobseekers from Programme Communes, with no less than 50% women participation and, in those areas in TV with Khmer populations, proportional representation of Khmer in the courses; provision of training equipment with focus on equipment for outreach training.
c. Enterprise-based training, run in partnership with enterprises. The Programme shall ensure that at least 50% of participants are women and in those areas in TV with Khmer populations, that a proportional representation of Khmer is secured in all courses. Participating enterprises shall commit to provide jobs to successful trainees.
(ii) Market Development and Business Support
a. Market analysis and knowledge base: Studies, assessments and analyses of market chains within each Province; commodities with potential for profitable pro-poor investment; and provincial business environment.
b. Business and Market Linkage Support: Provision of business development services (BDS) to facilitate household-based micro-enterprises within Programme Communes and SMEs linked with Programme Communes.
c. Market Environment Support: (i) Training for providers of BDS services; (ii) Formation and operation of a Provincial Business Consultative Board; (iii) Organisation of a Trade and Investment Fair; and (iv) Establishment of a Trade and Investment Directory.
C. Enterprise Financing
In order to increase availability of financial services to match needs of Micro/Household enterprises and of small to medium-sized enterprises (SMEs) which benefit the rural poor, the Programme shall support the following:
(i) Line of Credit for Micro/Household Enterprises and Small and Medium Enterprises
a. Establishment of line of credit, including a VBARD contribution, in each Province through the relevant VBARD Provincial Branch.
b. Training and Technical Assistance for VBARD loan officers to facilitate implementation of the line of credit;
c. Assisting VBARD extend its SME strategy in both Provinces.
(ii) Pilot Venture Capital Fund Establishment of pilot venture capital fund with equity investments ranging between
USD 20 000 and USD 200 000 for each eligible enterprise used to establish a minority equity participation (up to 49% of voting equity) in each such enterprise.
D. Programme Coordination
In order to ensure that the Programme is effectively managed and provides the basis for replication of successful Programme approaches and interventions elsewhere in the territory of the Borrower, the following activities shall be supported:
(i) Programme Coordination
Establishment of the Project Coordination Units (PCUs) at provincial level, District Programme Support Teams (DPSTs) in each of the districts and Commune Programme Support Teams (CPSTs) in the Programme Area.
(ii) Cross-cutting Activities
a. Establishment of an effective M&E system.
b. Literacy training for Khmer in TV.
c. Gender-focused initiatives, including: (i) courses, seminars, workshops and studies for the PCU to respond to specific gender issues and constraints, and (ii) partnership with the Women’s Union to support women’s savings and credit groups in Programme Communes.
(iii) Knowledge Management Unit (KMU)
Implementation support (specialised technical and advisory services); support for establishing/guiding pilot venture capital fund; monitoring support, evaluation and lesson learning; knowledge management and knowledge sharing; communication, advocacy and policy dialogue; and aid coherence and effectiveness.
E. Performance Incentive Budget
The objective of this component shall be to promote efficiency in managing Programme resources, through increased budget to be disbursed following the Mid-Term Reviews, for any well-performing Programme activity that has had a substantial impact in enabling the poor to participate more actively and profitably in market activities.
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