1. Social Impacts of public investment in Viet Nam
Vu Tuan Anh

2. Appraisal of investment project
Economic Impact
Assessment of economic efficiency
SIA
Development Project
Environment Impact
Social Impact
Political, security and defense impact
EIA

3. Contents Social efficiency of public investment in Viet Nam
Assessment of social impact of public investment projects
Restructuring public investment from the view of social development

4. Social efficiency of public investment in Viet Nam
Economic targets
Sustainable development
Social targets
Environment protection

5. GDP growth and investment ratio1 2 3 4 5 6 7 8 9 10
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010 15 20 25 30 35 40 45
GDP growth
Investment ratio

6. Investment by economic sector (trillion dong, 1994 price)

7. Investment structure by economic sector

8. Public Investment by sector
Investment for economic sector accounts for 75-80% of total public investment
Investment for social sector accounts for 20-25% (science, education, healthcare, culture, sport, state administration, security and national defense, party and union)

9. Public investment structure

10. National target programs, 2011 - 2015
1. Employment and vocational training;
2. Sustainable poverty reduction;
3. Clean water and sanitation environment in rural areas;
4. Healthcare;
5. Population and family planning;
6. Food hygiene and security;
7. Culture;
8. Education and Training;
9. Anti-narcotics;
10. Prevention of crime;
11. Efficient and cost-saving use of energy;
12. Coping with climate changes;
13. Developing new rural;;
14. Prevention of HIV/AIDS;
15. Disseminating information of mountainous, disadvantage, border and island areas;
16. Surmounting pollution and improvement of environment.

11. National Target Programs, 2011-2020
(National Assembly Resolution 13/2011/QH13 on 09/11/2011)
Total implemented amount: VND 276,372 billion

12. Orientation of sustainable poverty reduction 2011-2020
On 19/05/2011, the Government issued Resolution 80/NQ-CP directing the sustainable poverty reduction during  
By 2020, income per capita of poor households increase by 3.5 times;
Overall poverty rate reduces by 2 percentage points per annum; for poor commune: by 4 percentage points according to periodical poverty standards;
Living conditions of the poor improve significantly, particularly healthcare, education, living water and housing;
Economic and social infrastructure in poor districts and communes, and disadvantaged villages, communes is the focus of investment under the new rural criteria, especially on essential infrastructure such as transportation, electricity and living water. 

13. Orientation of sustainable poverty reduction 2011-2020
6 groups of policy supporting the overall poverty reduction, including:
Supporting the production, vocational training, on-the-job training and increasing income for the poor;
Education and training support;
Healthcare and nutrition support;
Housing support;
Supporting the poor in accessing to legislative consulting services;
Supporting the poor in accessing to culture and information. 
Besides, special poverty reduction policies for special disadvantaged, secured and borer-related areas.

14. Policies supporting the mountainous areas and ethnic minorities
Mountainous areas account for 3/4 of the natural areas, there are 53 ethnic minorities amounting to 12.3 million people, accounting for 14.27% total population.
During 2006 – 2012, policies for mountainous areas and ethnic minority group were institutionalized with nearly 160 legislative documents.
The Government has arranged financial resources for programs and policies for mountainous and ethnic areas with the total amount of VND billion.
Program 135, Fast and sustainable poverty reduction for 62 poor districts, supporting policies for living lands, living water for ethnic minorities, credit policy for production; settlement supporting policy

15. Program 135
Implemented since 1998, the Socio-economic development for special difficult mountainous and ethnic minorities (P135) has been on 2 phases:
Phase 1 ( ): Investment capital of VND 10 trillion, on average of VND 500 million (1,870 special difficult communes and border communes), construction and usage of 25 thousand essential works of various types
Phase 2 ( ): Investment capital of VND 20 trillion for 5 years, on average of VND 5.2 billion/1 commune and VND 0.65 billion/1 village (1,848 communes and 3,274 special difficult villages of 50 provinces, 356 districts).

16. Program 135
Phase 3:
- Investment on the completion of essential infrastructures for production and living conditions, particularly transportation, irrigation system, electricity, schools, kindergarten, community halls.
Partial support for seed, plant protection and veterinary medicines.
Improving knowledge on economic development for households, application of advanced technology, establishing new model of production, access to credit, market information, efficient use of land for changing habit of production, and overcoming poverty sustainably.

17. Social progress
Positive results of education for ethnic minority group:
99.5% of commune has primary school,
93.2% of commune has secondary school,
12.9% of commune has high school.
Rapid development of healthcare network, more attention and investment for provincial and district hospitals and communal healthcare stations
99.39% of commune has healthcare station,
77.8% of commune has certified national standard.
To 2011, 94.2% of village has healthcare staffs.
Ethnic culture is preserved. Broadcasting infrastructure, communication is paid attention:
Broadcasting of over 90%
Television broadcasting coverage of nearly 80%,
98.7% of commune has cultural posts.

18. Poverty fell continuously, albeit high
The poverty rate of mountainous areas is still high: In 2012, North West – 28.55%, North East – 17.39%, Central Highlands %, North Central – 15.01%, the national average of 9.64%.
Phase 2 of Program 135:
Poverty rate fell from 57.5% to 49.2% as compared to the target of 30%.
Only 41% households have income per capita above VND 3.5 million/year, while the target is 70%.
The entrance rate of primary and secondary at the right age is much lower than the planned figures (85.4% vs. 95%; 70.9% vs. 75%).
Despite high investment, infrastructure system is still weak and in shortage, some are often damaged by natural disasters. Low quality of human resources.

19. 2. Assessment of social impacts of public investment project
Assessment of social impacts is the process of forecasting, analyzing and recommending solutions for the consequences of the development project that can have on the people to obtain the harmonized and sustainable socio-economic-environment outcomes
Assessment of social impacts is the mechanism to foresee opportunities, challenges, impacts and social risks incurred by the project so that the investment project can be adjusted.
Assessment of social impacts is a dialogue between different stakeholders (authorities, enterprises, communities, households and individuals)
It should be implemented during or with Assessment of environmental impacts.

20. Types of social impacts
Impact on the physical aspect of life (eating, wearing, working, traveling, schooling).
Impact on the spiritual aspect of life (information, communication, emotional activities).
Impact on health and living environment.
Impact on culture (changing of habit, social values, religion…)
Impact on community activities (exchange, community service, common activities)

21. Purposes of SIA Define and minimize negative impacts.
Forecast, analyze the impacts of development programs, projects on people (community, households, social groups, individuals).
Define and minimize negative impacts.
Increase the socio-economic benefits of development programs, projects.
Support the administration of social changes

22. Principles of SIA
Ensuring the objective approach of direct and indirect impacts of the project on community, household and individual.
Analyze the equality of impacts: Clearly define the advantaged and disadvantaged people; special attention should be paid to disadvantaged and vulnerable groups.
Mobilize widely the participation of being-affected people in the planning, decision-making and implementation of the investment project.

23. Contents of SIA
Determining the types of social impacts (lifestyle, culture and habits, social values, religion, community relationship, quality of life, safeness, the ability to live together, ensuring future, health, spirit and feeling of happiness).
Assessing the scope of social impacts (space, time, target groups, level of impacts, consequences)
Analyzing the reasons (change of residential location, population, livelihood, infrastructure, public services, living environment, institutions).
Proposing the solutions and developing action plan for minimizing the negative impacts.
Developing monitoring mechanism and schedule.

24. Some key questions in SIA
Who is affected?
Does the project take into account the demand, benefits and ability of beneficiaries?
Is there any factor affecting those people?
Is there any group that need special attention (women, old people, children, ethnic group,…)?
Is there any plan or solution for preventing and mitigating the negative impacts?
Does the project need to change anything for ensuring the benefits and the people’s participation?
Which solutions should be for improving the coping strategies of the people and other related partners?

25. Steps in SIA
Prepare plan, taken into account the participation of community.
Preliminary describe the context and contents of expected program, projects.
Define the types and scope of main social issues incurred  social criteria
Forecast and evaluate the expected impacts, trends and its impact intensity.
Analyze reasons and solutions.
Develop and implement the solutions an action plan for minimizing negative impacts.
Develop and implement the monitoring schedule.

26. Choosing the information system for assessing social impacts is the prerequisite
Indices
Indicators
Statistics
Data
Information

27. Access to economics + society + environment: Measuring the quality of life

28. Access to economics + society
Human Development Index (HDI)
UNDP 1990: comprising of 3 pillars: economic condition (GDP per capita), education and health (life expectancy). The value of HDI ranges from 0 (min) to 1 (max)
Economic (K): GDP per capita at PPP: from $100 (=0) to $ (=1)
Education (G): [adult (>15 years) literacy rate x 2/3] + [gross enrollment ratio at all levels x 1/3]: from 0% (=0) to 100% (=1)
Health (S): Life expectancy from 25 (=0) to 85 (=1)
HDI = (1/3 x K) + (1/3 x G) + (1/3 x S)

29. Access to society + environment: MDGs
Millennium Development Goals Composition of 8 groups of criteria (social and environmental ones), including 18 ratios and 48 criteria:
1. Poverty reduction
2. Universal primary education
3. Gender equality
4. Reduction of child mortality rate
5. Improving maternal health
6. Combating HIV/AIDS, malaria,..
7. Environmental protection
8. Global partnership for development

30. Happy Planet Index (HPI)
Introduced by New Economic Foundation (UK). Comprising of criteria:
= (Experienced well-being x Life expectancy) : Ecological Footprint
= It ranks (country, region,…) on how many long and happy lives they produce per unit of environmental input.
 Implication: Happiness does not mean being rich and more consumption.

31. Bhutan: Gross National Happiness (GNH)
In 1972, Bhutan (1 million people) proposed the definition of “Gross national happiness” (GNH) than only the GDP.
Four components of GNH include: (1) sustainable socio-economic development, (2) cultural preservation, (3) environmental protection; and (4) good national governance.
The four components is disaggregated into 9 sectors: (1) psychological well-being, (2) health, (3) education, (4) Time use, (5) Cultural diversification, (6) Good governance, (7) Community vitality, (8) Environmental protection, and (9) standard of living.
Comprise of 33 indicators

32. Defining the group of criteria and main ratio in assessment of social impacts
Demographics (population, ethnic, gender, age, migration…)
Community’s resources (land, natural resources, infrastructure, business ability, market…).
Livelihoods, living conditions, demand of household.
Community organizations (capacity of authorities and local communities, tradition and habit, social organizational, linkage capacity, …).
Development institution (plans, schedules, demands,…).

33. Some methodologies for SIA
Comparison of current context and prospect of having a project.
Trend analysis based on statistics.
Using multipliers in population projection and ratios of employment, housing, income,…
Extrapolation from external experience.
Formulating scenarios based on impact analysis.
Expert consultation.
Application of quantitative forecast models.

34. Some notes in SIA Clearly classify the affected groups.
More attention for impacts on vulnerable groups (the poor, ethnic minorities, disable people,..)
Define the priorities (target group, sector)
Be vigilant with prejudice and previous patterns.
Develop the solutions for minimizing the certain impact (individuals, households, community – types of lost, ...)
Pay attention to different layers of impacts and its spillover effects.
Better livelihoods of the affected people.
Compensation as the last solution.

35. Deepening participation of people on the formulation and implementation of investment project is key to social efficiency
Decree 29/1988 and 79/2003 on the grassroots democracy
Ordinance of the Standing Committee of National Assembly No. 34/2007/PL-UBTVQH11 on 20/4/2007 on the implementation of democracy at ward, commune and town level:
Chapter II: Contents published for the people
Chapter III: Contents discussed by and decided directly by people
1) Discuss and directly decide
2) Discuss and decide by authorized agencies
3) Responsibility of implementing the contents discussed and decided by the people
Chapter IV: Contents proposed by the people before approval by authorized agencies
Chapter V: Contents supervised by the people

36. Main steps in mobilizing the community’s participation in the investment project
Awareness raising for the community
Consultation from the community for the preparation of the project
Mobilization of the community’s contribution in the formulation of the project
Mobilization of the community’s contribution in the implementation of the project
Community’s role in supervising and monitoring

37. 6 steps in community consultation
Step 1. Define the objectives of consultation
Step 2. Choose the consulting method
Step 3. Defining the target group
Step 4. Preparation the detailed action plan
Step 5. Consultation
Step 6. Incorporation of comments and making decision
Objectives
Methodology
Target groups
Planning
Consultation
Decision

38. Impacts of consultation from community
If no consultation from community:
Do not incorporate the real demand of people
Can not exploit local awareness
Can not mobilize local resources in developing and implementing project
No consensus, no participation and opposition from the people
Consultation can helps:
Choosing the appropriate alternatives
Mobilizing more contributions and valuable resources
Gathering all excellent ideas.

39. Some notices on the participation of community
Contribution of community – not only increasing the financial resource but also raising awareness, building capacity for community;
The sooner the participation of community, the better chance for having support
The participation of each people in the community is very different
People’s ideas should be grouped up for things related to their benefits
Can not replace consultation from community by “shortening” way of getting comments from the representatives of organizations.

40. Supervision of community (Ordinance 34/2007/PL-UBTVQH11)
1. Through the operation of People’s Supervision Committee, Community’s Investment Monitoring Committee.
2. Directly supervise through claim, accusing, petition to functional agencies or petitioning via the Viet Nam Fatherland Front, members of communal father front, people’s supervision and investment monitoring unit.
Requirements of responsibility of agency, organizations, individuals in the people’s monitoring.
1. Provide necessary information and documents timely for People’s Supervision Committee, Community’s Investment Monitoring Committee;
2. Reviewing, solving and timely answering the claim, accusing, petition of residents, recommendations of People’s Supervision Committee, Community’s Investment Monitoring Committee and Viet Nam Fatherland Front...

41. 3. Restructuring public investment from the view of social development
“Restructuring public investment could be an self-injured treatment of Vietnam’s economy in the coming time. This reform will stop the term thinking , leading to the “achievement disease” investment and moreover, we need to refresh our mindsets”.
(Vietnamnet 26/10/2011)
The principles of sustainable development: Harmonized development of economic-culture, social-environmental protection.
Incorporate the long-term objectives with pressing demands.
Transparency and widely participation of the people

42. Transparency in public investment for anti-corruption
Corruption Perception Index (CPI) draws on the 13 different surveys (may not be necessary 13 in all countries) of 11 international organizations on the popularity and scale of the corrupted money.
2001
2002
2003
2004
2005
2006
2007
2008
2009
Singapore 4 5 3
Japan 21 20 24 17 18
Korea 42 40 50 47 43 39
Malaysia 36 33 37 44 56
China 57 59 66 71 78 70 72 79
Thailand 61 64 63 84 80
India 83 90 88 85
Viet Nam 75
100
102
107
111
123
121
120
Philippines 65 77 92
117
131
141
139
Indonesia 96
122
133
137
130
143
126
Laos
168
151
158
Cambodia
162
166
150

43. Thank you very much for your attention
People discuss
Sustainable development
People know
People implement
People check
Thank you very much for your attention