KOICA ODA Policy and Strategy for Vietnam

Past, Present and the Future

2011. 12. 12

Outline

Introduction

• History of KOREA’s ODA

• KOICA at a Glance

• Roadmap of ODA

Performance

Analysis

• Budget Distribution Status

• Overview of KOICA Activities in Vietnam

• Country Activities by Sector

Future

• Towards VIETNAM-KOREA Country Partnership Strategy

• Suggestions for Priority Areas of Cooperation

Korea’s Experience

Quote by James Gustave Speth, Former Administrator of UNDP

"The Republic of Korea is a prime example of a country that has climbed out of poverty and rapidly joined the ranks of the developed countries....Korea is a solid model for many other countries to follow...We have common goals and a common

Korea's transformation from extreme poverty to an OECD member

Mounting calls from the international community to share

experience more widely

The Republic of Korea is a prime example of a country that has climbed out of poverty and rapidly joined the ranks of the developed countries.. Korea is a solid model for many other countries to follow.

History of KOREA’s ODA

1. Economic & Social Change

1953 2007 Remarks

GDP (bil. US$)

1.3 969.9 746 fold

GNI per

Capita (US$)

67 20,045 299 fold

GNP/capita 1970’s $254 ⇒ In 2007, $20,045

The experience

as a ‘Poverty Cutter’.

History of KOREA’s ODA

Donor Country $63 per capita

income in 1950s

Received

grant aid in the

form of consumer

goods by 1960

- $ 3 billion

Changes in the

composition of

development

assistance

– loans &

technical cooperation

Received aid

between 1960

and 1970

- $1.76 billion

Weak Economic

Structure

Korea’s

transformation

to a donor country

Five-Year

Economic

Development Plans

Recipient Country

Accelerated

transformation to

a donor country

in the1990s

GDP soared to

$1,467 billion in

2010 from

$ 1.3 billion in

1953.

History of KOREA’s ODA

Korea’s Unique Stance and Strengths

in Development Cooperation

Development Experience

A Good Understanding of Partners’ Needs

Skill & Technology

Able to Play a Bridging Role among Countries

A recipient – turned donor country

No vested interest in the current aid architecture

G20 DWG co-chair as well as HLF-4 Host

History of KOREA’s ODA

Classification Korea DAC Average

ODA Scale(2009) $815mil < $5,200mil (Total: $119.6bil)

ODA/GNI (2009) 0.1% < 0.31%

Loan share (2008) 36.3% > 12.6%

Untying Status(2008) 35.8% < 86.5%

Source: PM’s Office(‘11.3.24)

Korea’s ODA : Features and Evaluation

ODA Policy by KOREA

About three times increase

ODA/GNI 0.25%

ODA/GNI 0.1%

Source: PM’s Office(‘11.3.24)

Road Map of Korea’s ODA

75% 1.9 times increase

38.7%

Source: PM’s Office(‘11.3.24)

Road Map of Korea’s ODA

Staff & Budget

KOICA Staffs : 247

As of June 2011, KOICA has 247 regular staffs

(Head Quarter 179, Overseas Offices 68)

Budget

Year '01 '02 '03 '04 ‘05 ‘06 '07 '08 ’09 ’10 ’11

Total 66 66 140 185 210 193 270 277 368 370 431

Increase(%) 83.3 0 112.1 32.1 13.5 ▼8.1 39.9 2.5 32.8 19.3 14.7

KOICA at a Glance

(million USD)

Organization (as of June 2011)

Headquarters : 1 President, 1 Auditor, 4 Vice Presidents,

7 Departments and 27 Teams

Overseas Offices: 46 Offices in 44 Countries

CIS (2)

Africa (15)

Middle East (4)

OECD (1)

Asia (16)

Latin America (8)

11

KOICA at a Glance

KOICA at a Glance

Partner Countries : 62 Countries

46 Offices in 44 Countries

Asia(17) 16 offices

Nepal, Laos, Mongolia, Bangladesh, Vietnam, Solomon, Sri Lanka, Afghanistan(2),

Indonesia, Timor-Leste, Cambodia, Philippines, Pakistan, China, Myanmar

[Butan, Fiji, India, Malaysia, Maldives, Papua New Guinea]

Africa(21) 15 offices

Ghana, Ethiopia, Ruwanda, Nigeria, Mozambiq, Uganda, Cameroon, Congo(Dem. Rep.),

Kenya, Tanzania, Egypt, Morocco, Algeria, Senegal, Tunisia,

[Cote d’lvoire, Madagascar, Sudan, Zambia, Angola, Zimbabwe]

Latin

America(12)

8 offices

Bolivia, Peru, Paraguay, Colombia, Guatemala, Haiti, Ecuador, El Salvador

[Dominican Republic, Honduras, Jamaica, Nicaragua]

CIS(6) 2 offices

Uzbekistan, Azerbaijan

Kazakhstan, Kyrgyz Republic, Turkmenistan, Ukraine, [Iran]

Middle East(6)

4 offices

Iraq(2), Jordan, Palestine

[Iran, Yemen]

Organizational Chart

President

Vice President

Overseas Offices

Assistant to the President

Office of the Auditor

Auditor

Vice President Vice President Vice President

Int’l Development Cooperation Center

Evaluation Office

Public-Private Partnership Office

Policy Planning Department

Management Department

Policy Planning & Coordination Team

Social Development Team

Economic Development Team

Southeast Asia Team I

Southeast Asia Team II

Southweast Asia Team

Procurement Contract Team

Financial Accounting Team

Management Support Team

Africa Department East Africa Team

West Africa Team

Middle East & Latin America Department

Middle East & Afghanistan Team

Latin America Team

World Friends Korea Administrative HQ

WFK Planning Team

WFK Recruitment & Training Team

WFK Program Operation Team

Climate Change Office

KOICA at a Glance

Humanitarian Aid Office

Planning & Budget Office

Public Relations Office

Personnel Affaires Office

Asia Department I

Asia Department II Central Asia & CIS Team

Capacity Development Department

Capacity Development Planning Team

Capacity Development Program Team

MOFAT Policy & Decision Making of

Grant aid programs

KOICA Implementation, Coordination of

overall grant aid programs

World Friends Korea World Friends Advisor

Other Ministries and Governmental Organization

Project Type Cooperation, Training Programs,

NGO cooperation programs

Propose Projects & Training Program to KOICA

Ask approval for annual plans, new programs

Approve and consult KOICA on new programs, and major policies

Headquarter

KOICA at a Glance

Korean Embassy

KOICA overseas office

Partner Countries

KOICA programs

Proposals(application forms) for programs and support

Ask approval for ODA(grant program) related issues

Approval and Consult KOICA on new programs, major policies

Local Offices

KOICA at a Glance

Project Formulation

Feasibility Survey (F/S Team dispatch)

Submit Proposal

Appraisal & Approval ( Budget, Programs)

Implementation (Bidding, Contract, Monitoring)

Completion & Evaluation

Agreement (Record of Discussion, Note verbal)

Screening

Environment Impact Assessment

Environment Assessment

Initial Environment Examination

Environmental Guideline

All project

All project

Category A

Category B

Annual ODA Budget

Total ODA support : 135.45 Million USD

Budget

Year '01 '02 '03 '04 ‘05 ‘06 '07 '08 ’09 ’10

Total 4.81 4.70 3.52 9.79 9.29 7.87 11.90 9.96 18.27 27.37

Increase(%) - - 2.3 - 25.1 278.1 - 5.1 - 15.3 151.2 - 16.4 183.4 149.8

(million USD)

KOICA in Vietnam 1991-2010

KOICA in Vietnam 1991-2009

(USD)

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

20,000,000

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

KOICA in Vietnam 1991-2009

2006 2007 2008 2009 2010

1 Iraq Iraq Cambodia Afghanistan Afghanistan

2 Indonesia Sri Lanka Mongolia Vietnam Vietnam

3 Vietnam Vietnam Vietnam Indonesia Mongolia

4 Sri Lanka Indonesia Sri Lanka Mongolia Philippines

5 Philippines Peru Indonesia Philippines Cambodia

23 Projects 7 Country-Specific Training Programs (105 ppl)

Establishment of the Korea-Vietnam College of Technology (2010-13/& 10 million)

BAC GIANG Upgrading Technical Infrastructure and Strengthening Vocational Training for the Comprehensive Training School of Quang Tri (2011-13/$ 4.7 million)

QUANG TRI

Modification of Hue City’s Master Plan (2011-13/& 3.5 million)

Establishment of the Central General Hospital (2006-12/$ 3.5 million)

DA NANG

Water Supply and Sanitation (2007-10/& 2.4 million)

KIEN GIANG

Research Capacity Building for Waste Recycling Technology Development and Transfer (undetermined)

Strengthening Environmental Protection Capacity for Key Industries (undetermined)

Strengthening Capacity of Food Hygiene Safety Management (2010-11/$ 0.5 million)

NATIONWIDE

VIETNAM

Country-Specific Training Programs

Health Care ◈ Community Health Care Development (4.3-4.22/15ppl)

Public Administration

◈ Benchmarking of Trade & Investment Promotion Policy (6.16-7.2/15ppl) ◈ E-Procurement (undetermined/15ppl)

Industrial Energy

◈ Advanced Railway Operation (5.12-5.28/15ppl) ◈ Housing and Urban Development (7.14-7.30/15ppl)

Education ◈ Workshop and Advanced Vocational Training for Vietnamese Instructors (8.14-9.3/15ppl)

Environment ◈ Environmental Management (8.21-9.7/15ppl)

As of 2011. 7. 11

Vietnam Projects for 2011

Korean-Vietnamese Vocational Training (1994-98/$ 2.5 million)

BINH DINH

N

C

C

PM

PM

Strengthening the Capacity for the National Drug Control Coordinating Institutions (2009-11/$ 2.39 million)

Improvement of Vietnamese Judges’ Training School (2008-11/$ 3 million)

Sharing Korean Development Experiences (2009-11/$ 3 million)

Supporting the Establishment of the National Skill Testing and Certification System (2010-12/$ 1.5 million)

Establishment of Integrated Information Management System for Vietnam Competition Administration Department (2011-12/$ 1.24 million)

Improved Health Insurance Legislation and Capacity Building in Management and Implementation of Health Insurance Policy (2011-13/$ 0.8 million)

Establishment of E-Procurement Pilot System (2007-08/$ 3 million)

Supporting the Establishment of the National Skill Testing and Certification System (2010-12/$ 3 million)

Strengthening CLMV Capacity for ASEAN-ROK Cyber University (2010-12/$ 3.78 million)

Upgrading Vocational College for Young Central Highland Ethnic Minorities (2012-16/$ 5 million)

Research Capacity Building, Waste Recycling Technology Development and Transfer (2012-14/ $1.5 million)

Strengthening Research Capacity on Method Development for Testing Chemical Residues in Environmental Water, Soil and Biological Matrices (2012-13/ $ 2.5 million)

Enhancing Development Capacity of the Occupational Safety ad Health Training Center (2012-14/ $ 3.4 million)

Establishment of G&T High School (undetermined)

HA NOI

C

C

C

C

C

C

N

N

PM

R C Continued Projects from last year New Projects

Preliminary Projects PM Post Management Projects

Requested Projects for 2012 N

P

N

R

R

R

R

R

P

P

C

New Rural Development in Dien Xuan Commune, Dien Chau District (2012-14/$ 9.72 million)

NGHE AN

R

KOICA Activities in Vietnam (By Sector)

1991-2005 2006 - 2009

Education

Education

Healthcare

Healthcare ICT ICT

Industrial Energy

Industrial Energy

Environment Environment

Rural development

Rural development

Public administration

Public administration

Emergency Relief

Emergency Relief

1. Education 2. ICT 3. Healthcare

1. Healthcare 2. ICT 3. Education

Country Partnership Strategy (CPS) for Vietnam 2011-2015

Priority Areas Environment & Green Growth

Human Resources Development

Transportation

Vietnam’s Socio-Economic Development Strategy (SEDS) - Modern Industrialized Country -

More than 70% on Priority Areas among KOICA’s assistance to Vietnam

Goal

Action Plan

Examples of Recent KOICA Activities (2010- present)

Priority Areas Project year/

USD (mil.)

Environment & Green Growth

★ Strengthening Research Capacity on Method Development for Testing Chemical Residues in Environmental Water, Soil and Biological Matrice ★ Research Capacity Building, Waste Recycling Technology Development and Transfer in Vietnam

2012-13/$ 2.5 2012-14/$ 2

Human Resources

Development

★ Project for Establishing the Korea-Vietnam College of Technology in Bac Giang Province ★ Upgrading the Secondary Vocational Training School of Quang Tri Province

2010-13/$ 10 2011-13/$ 4.7

SWOT Analysis of ODA to Vietnam

STRENGTH WEAKNESS

◈ Experiences which progressed drastically from a recipient to a donor country ◈ Realistic approach since the development experiences are fairly recent ◈ The 2nd largest bilateral partner country to Vietnam next to Japan

◈ Short history of aid activities ◈ Lack of systematic research on Vietnam and “Koreanized” development experiences ◈ Lack of professionals, local experts and management personnel

OPPORTUNITY THREAT

◈ Expansion of cooperation opportunities and increasing interest on international development issues ◈ Vietnam’s interests in Korea’s experiences ◈ Similarities between Vietnam’s and Korea’s ODA strategy and focus areas ◈ More development cooperation due to a

◈ Decrease in international aid due to economic development of Vietnam ◈ Increasing fragmentation in ODA due to diversification of donor entities

Upcoming Tasks in Vietnam

• Complete Comprehensive (Grant+Loan) Country Partnership Strategy 2011-2015

(Led by Prime Minister’s Office)

• Intensify Program-based Approach (PBA)

• Increase Cooperation/Harmonization with Other Development Partners

• Identify/Prepare New Schemes in line with Priority Areas in CPS

We Would Appreciate Your Support

From KOICA to Vietnam Alumni Association

Practical advice and consulting on local KOICA operations, especially those on priority areas

Active and effective advertisement on KOICA business, goals and vision to Vietnamese people

Enhancement on mutual partnership and cooperation between KOICA and Vietnam – towards better understanding of Korean culture and spirit

Thank you!

Organizational Structure of ODA

KOICA at a Glance

Committee for International Development

Cooperation Chair : Prime Minister

Working level Committee Chair: Vice Minister of Government

Planning Affairs

• Grant

Contribution to Int’l Orgs

MOSF

• Loan

• Subscription to Int’l Institutions

Integrated ODA Operation System

KOICA at a Glance

KOICA at a Glance

Establishment & Mission

• April 1, 1991

• Established under the ministry of Foreign Affairs and Trade as

the implementing agency of grant aid and technical cooperation

Establishment

• Korea International Cooperation Agency Act (1991) Legal Basis

• Promote cooperative and friendly relations with developing countries and to contribute to the social and economic

development of developing countries Mission

Budget Distribution Plan for 2011

◆ Budget Increase - Increase in national cooperation program budget according to growing implication on regional sectors

-Asia-Pacific region: 2.16 billion won increase

◆ More Support for Priority Partner Countries 2010 2011

(in billion won)

13% increase

1.13 1.28

About Vietnam CPS Process

Ministry of Foreign

Affairs and Trade

KOICA

(Grant Aid)

Prime Minister’s

Office

(Coordination and

Intervention when

necessary)

Ministry of Strategy

and Finance

EDCF

(Loan) Working-level consultation/Draft CPS

- Other Ministries/

Govt. Agencies

- External Advisors

(Academics, other

experts/stakeholders…)

Tentative Timetable for Vietnam CPS 2011-2015

2011

Policy Dialogue for

Completion of CPS

2013

Joint Review of CPS/

Revision if necessary

2015

Final Evaluation of CPS/

Preparation for the next CPS

Towards Enhanced Partnership with Vietnam

• What We Would appreciate:

- More proactive information sharing on

Social Economic Development Strategy / Plan

National Sectoral Programs

- More consultation with policy makers