Preparation of a Development Strategy for the Central Region of Viet Nam (TA 2959-VIE)

This project addressed the issue of equitable growth, both between the three-macro regions in Vietnam and between the communities within the Central Region, through the preparation of a holistic development strategy. The goal was to increase income levels through the promotion of agricultural productivity, agro-processing and other dispersed rural industry and tourism in the short/medium term. The recommended strategy was built up from surveys of key social, economic, environmental and financial components of the region. The strategy also ensured that the more vulnerable in the Region (including ethnic minorities) benefited from the recommended development strategy, and for detailed recommendations on budget reforms to benefit services in the region.  Work included a needs assessment of provincial and local government capacity building and extensive recommendations were made for capacity building at provincial level especially. The recommendations focused on the processes of medium-term and annual planning. Extensive discussions were held with provincial and district staff, community groups, business interests and universities throughout the region.

The objective of the project was to assist the Government of Viet Nam to:

1. reorient its approach to development and poverty reduction from a concentrated growth strategy to a strategy of dispersed growth that is better balanced regionally and between rural and urban areas;
2. shift from a command economy approach with detailed physical planning at the regional level to a more indirect approach where State intervention is restricted to policy reforms, institution building and key public investments that are necessary to create an enabling environment for market-based regional development; and
3. create capacity within Government to sustain this modified approach to development, in particular the capacity to prepare market-based regional development strategies.

A secondary objective of this TA included identification of key measures for promoting harmonious urban growth and environmentally sustainable development.