Docstoc

English - ARD SPS_ 2007-2012

Document Sample
English - ARD SPS_ 2007-2012 Powered By Docstoc
					Government of Vietnam
Ministry of Foreign Affairs, Denmark
Danida




Agriculture                   and      Rural
Development
Sector Programme Support
ARD SPS 2007 - 2012
Programme Document




November 2007




Jr. Nr: 104.Vietnam.805-200




                                1
ARD SPS 2007-2012                                      2




 Table of Contents
 List of Abbreviations                                 4

 1        Executive summary                            9

 2        Introduction                                12

 3        Agriculture and Rural Development in
          Vietnam                                     15
 3.1      Poverty in Rural Areas and Government of
          Vietnam’s Eradication Efforts               15
 3.2      Key Sector Institutions                     18
 3.3      Donor Supported Programmes                  21

 4        Agreed Assistance - the Strategic ARD SPS
          Framework                                   24
 4.1      Vision and Overall Objectives               24
 4.2      The ARD SPS Approach and methodology        24
 4.3      Poverty                                     31

 5        Components                                  33
 5.1      Central Component                           33
 5.2      Provincial Component                        37
 5.3      Technical Assistance Support and Exit
          Strategy for Advisers                       47
 5.4      Target Group Involvement                    48

 6        Budget                                      50
 6.1      Provincial Component                        53
 6.2      Unallocated Funds                           54

 7        Management and Organisation                 55
 7.1      Overall Coordination                        55
 7.2      Central Component Management                55
 7.3      Provincial Component Management             58


                                           2
ARD SPS 2007-2012                                               3




 8        Financial Management and Procurement                 62

 9        Monitoring, Reporting, Reviews and
          Evaluations                                          67

 10       Assessment of Key Assumptions
          Sustainability Issues and Risks                      72
 10.1     Key Assumptions                                      72
 10.2     Sustainability                                       73
 10.3     Main Risks                                           74

 11       Implementation Plan                                  76
 11.1     Pre-inception Phase                                  76
 11.2     Inception Phase                                      77



 Table of Appendices
 Annex1
 Annex 1            Organizational Charts
 Annex 2 Detailed budget of Central Component and Provincial
        Component
 Annex 3 Job Descriptions/Terms of Reference for Long-term
        Technical Advisers
 Annex 4 Tentative Indicators




                                            3
ARD SPS 2007-2012                                                                     4




 List of Abbreviations

 ASPS           Agricultural Sector Programme Support
 ARD            Agriculture and Rural Development
 CEM            Committee for Ethnic Minorities
 CCU            Component Coordination Unit
 CPRGS          Comprehensive Poverty Reduction and Growth Strategy
 DANIDA         Danish International Development Assistance
 DARD           Provincial Department of Agriculture and Rural Development
 DCC            District Coordination Committee
 DIF            Department of International Finance
 DOF            Provincial Department of Finance
 DKK            Danish Kroner
 DPC            District Peoples Committee
 DPI            Provincial Department of Investment
 DONRE          Provincial Department of Natural Resources and Environment
 DOST           Provincial Department of Science and Technology
 DST            Department of Science and Technology
 EOD            Embassy of Denmark
 FIG            Farmer Interest Group
 FFC            Farmer Field Classes
 FMS            Farm Monitoring System
 FU             Provincial Farmers' Union
 GAP            Good Agricultural Practice
 GSO            Government Statistics Office
 GOV            Government of Vietnam
 HHO            Household Observatory
 HIV            Humane Immune deficiency Virus
 IPM            Integrated Pest Management
 IPSARD         Institute for Policy and Strategies for Agricultural Rural Develop-
                ment
 ISG            International Support Group
 JICA           Japan International Cooperation Agency
 M&E            Monitoring and Evaluation
 MARD           Ministry of Agriculture and Rural Development
 MOF            Ministry of Finance
 MOU            Memorandum of Understanding
 NAEC           National Extension Advisory Council
 NGO            Non Governmental Organisation
 NTFP           Non Timber Forest Products
 MPI            Ministry of Planning and Investment
 NTFP           Non Timber Forest Products
 ODA            Overseas Development Assistance
 PEAC           Provincial Extension Advisory Councils
 PMU            Programme Management Unit
 SEDP           Socio-Economic Development Plan
 SFE            State Forest Enterprises
 SOE            State Owned Enterprise
 SPS            Sector Programme Support
 VDF            Village Development Fund


                                                   4
ARD SPS 2007-2012                                          5




 VAAS           Vietnam Academy of Agricultural Sciences
 VASS           Vietnam Academy of Social Science
 TOT            Training of Trainers
 VNFU           Vietnam Farmers Union
 VDG            Vietnam‟s Development Goals
 VND            Vietnam Dong
 WU             Women Unions




                                                 5
ARD SPS 2007-2012                                                           6




 AGRICULTURE AND RURAL DEVELOPMENT                            SECTOR
 PROGRAMME SUPPORT DESCRIPTION

 Country:                         Vietnam
 Sector:                          Agriculture and Rural Development
 Title of SPS Document:           Agriculture and Rural Development
                                  Sector Programme Support (ARD
                                  SPS), 2007-2012
 Implementing Agency:             MARD, Provincial People‟s Commit-
                                  tees, Dien Bien, Lao Cai, Lai Chau,
                                  Dak Lak and Dak Nong
 Duration:                        2007-2012
 Start Date:                      July 1st, 2007
 General Budget Framework:        DKK 230.00 million

 Description:
 The Agricultural and Rural Development Sector Programme Support in-
 cludes a Central and a Provincial Component. The provinces supported
 under the programme are Dien Bien, Lao Cai and Lai Chau Provinces in
 Northern Vietnam, and Dak Lak and Dak Nong Provinces in the Central
 Highlands. The main aim is to increase the income level and food secu-
 rity for poor upland farmers, in particular women and ethnic minorities,
 in a sustainable way, and hence reduce poverty.

 The ARD SPS has a clear division between the central policy and strat-
 egy guidance responsibilities and the field implementation level. The
 consequence of this approach is a central (national) component and a
 component implemented at provincial and lower levels.

 The Central Component consists of two outputs: (i) Policy and Strategy
 Development, and (ii) Innovative Approaches for Sustainable Upland
 Livelihoods.

 The Provincial Component includes support within four sub-components:
 (i) Demand based extension, information and training of farmers, (ii)
 Production, Storage, Processing and Marketing, (iii) Local Planning and
 Capacity building, iv) Land allocation (primarily in the Central High-
 lands).

 The expected result of the programme component will be an improved
 economic development for ethnic minorities in upland areas resulting
 from: 1) Dynamic policy development due to increased participation and
 consultation with ARD grass root organisations outside MARD. 2) New
 knowledge and insight from focussed and innovative need based research
 for improving the entrepreneurship and production technologies for up-
 land farming and in particular for ethnic minorities




                                                6
ARD SPS 2007-2012                                                             7




 At the end of the programme period the poorest segment of the rural
 population in the selected districts within the programme provinces are
 able to manage their farms and other rural enterprises in a sustainable
 manner and with satisfactory profitability and food security.

 All relevant districts in the five cooperation provinces have been exposed
 to these new and innovative demand based approaches to agricultural and
 rural development as well as the achieved impacts.

 Finally, qualified feed back to the central policy level has been provided
 on issues relevant for upland poor farmers.

 General conditions
 Obligation to report on changes and irregularities
 The Government of Vietnam is obliged to immediately inform the Em-
 bassy of Denmark if any changes, including overspending of budget
 lines, or irregularities in the management of funds are foreseen or have
 occurred. The two parties of the component shall have to discuss and
 agree on the dealing with these changes and irregularities.

 Anti-corruption clause
 ALL persons involved in ARD SPS activities, be they MARD or DARD
 staff or support staff funded by the ARD SPS programme budget, are
 under strict obligation to report any suspicion on or actual cases of:

     -   Fraud
     -   Misuse of funds
     -   Corruption
     -   Breach of contracts
     -   Court cases involving a larger amount of money
     -   Loss of funds
     -   Possible loss of funds
     -   Qualifications or criticism in audit reports
     -   and other instances or misuse of funds not mentioned here

 to the Embassy of Denmark with attention to the Finance Counsellor and
 CC to the Ambassador immediately. Reports can be made via mail, email
 hanamb@um.dk or telephoned to 04 823 1888, ext. 124 (English) or ext.
 125 (Vietnamese). Reports can be made anonymously.

 The report should include the following information:

     -   In which part of the organisation the case has taken place
     -   Date (-s).
     -   Description of the case, the extent of the case, and the how the
         case has developed
     -   Information on steps, which have been taken (reported to the po-
         lice, audit investigation, suspension, removed, dismissed,
         changed control procedures etc.).
     -   Assessment of the responsibility for the case



                                                 7
ARD SPS 2007-2012                                                     8




 Child labour
 Activities to be supported under the ARD SPS programme must not in
 any way involve the use of child labour.



 _____________________                    ____________________

 Government of Vietnam                    Government of Denmark




                                            8
ARD SPS 2007-2012                                                               9




 1        Executive summary
 The Agricultural and Rural Development Sector Programme Support
 (ARD SPS) includes a Central and a Provincial Component. The Provin-
 cial Component supports Dien Bien, Lao Cai and Lai Chau Provinces in
 Northern Vietnam, and Dak Lak and Dak Nong Provinces in the Central
 Highlands.

 These Provinces are all dominated by hillside agriculture and the major-
 ity of the rural population is from different ethnic groups, implying a par-
 ticular challenge to develop adequate responses to the need of these
 farmers. Within each of these provinces two-three poor upland districts
 have been selected for pilot activities.

 The development objective of the ARD SPS is:

 "Reduction of rural poverty, especially among the ethnic minorities,
 through sustainable agricultural and rural development focusing on the
 uplands"

 The immediate objective of the ARD SPS is:

 "Sustainable growth in upland rural household welfare arising from im-
 provements in resources management, agricultural production and mar-
 keting, with focus on the poor upland farmers, in particular women and
 ethnic minorities"

 The Central Component of the ARD SPS will strengthen the capacity
 for evidence based policy development in ARD for ethnic minorities in
 upland areas. It will be linked to the provincial component by focussing
 the development of research instruments and support research that is di-
 rectly related to the rural livelihood in the ARD SPS five cooperation
 provinces.

 It will support the establishment of a “think tank” at MARD with the
 necessary instruments (reliable data collection and management, feed-
 back mechanisms, dissemination strategies), to strengthen the capacity
 for policy research and policy briefing in ARD related to upland areas
 with emphasis on the five ARD SPS cooperation provinces.




                                                  9
ARD SPS 2007-2012                                                                  10




 Support is also provided to cutting research themes with creation of mul-
 tidisciplinary consortia of ARD research institutions/universities for spe-
 cific ARD research with peer reviews from international research organi-
 sations and representation from five ARD SPS cooperation provinces.

 The Central Component will focus on co-ordination and strengthening
 of:

        Policy research within Agriculture and Rural Development
        Policy Development based on lessons learned - in particular in the
         ARD SPS co-operation provinces
        Feed back to the national policymakers and researchers from pro-
         vincial and local level on: i) impacts of agricultural and rural devel-
         opment policies and legal frameworks; and ii) their perceived short-
         comings
        Innovative research on agricultural and rural development in upland
         areas
        Dissemination of information on upland cultivation and national re-
         sources management from source to farm level

 The component implementation will be sensitive to the requirement of
 gender focus and the special situation for the ethnic minorities. The envi-
 ronmental issues will be integrated through capacity building and train-
 ing in environmental issues and environmental impact assessments (EIA)
 for specific interventions. Furthermore, mainstreaming of climate change
 into implementation of the programme and a Strategic Environmental
 Assessment (SEA) of MARD operations will be carried out in the pro-
 gramme. The component will support MARD in preparing an HIV/AIDS
 strategy for the agricultural sector.

 The Provincial Component of the ARD SPS includes support within
 four sub-components: (i) Demand based extension, information and
 training of Farmers, (ii) Production, Storage, Processing and Marketing,
 (iii) Local planning and Capacity Building and, iv) Land allocation (pri-
 marily in the Central Highlands). It furthermore includes some support to
 preparation activities and TA.

 The basic strategy is the improvement of demand-based agricultural and
 rural development services, given on a group basis to secure maximum
 outreach, and with a heavy emphasis on Training-of-Trainers and
 Farmer-to-Farmer methodology. It furthermore has a strong emphasis on
 a series of cross cutting issues as environment, ethnicity, gender and
 HIV/AIDS.

 The target groups in the selected districts will be involved through the
 planning procedures, which will start at farmers groups and village level.
 Special emphasis will be made to ensure that the services systems will
 become more responsive to the farmers‟ needs. As the larger part of the
 target groups will belong to ethnic minority groups, there will also be
 various measures to ensure that language barriers do not prevent them
 from being involved and receive demands based services.



                                                   10
ARD SPS 2007-2012                                                             11




 A main thrust will be to build capacity in the public sector to facilitate
 the private sector to become service providers of farmer group organisa-
 tion e.g. training and provision of extension services of a technical na-
 ture.

 Local farmers already possess a wealth of knowledge in relation to farm-
 ing and forestry and the provincial component will try to integrate this
 knowledge in their information and training. It is important that this
 knowledge is acknowledged by the trainers, “activated” and transformed
 into a modern context.

 The inputs are four long-term international agricultural and rural devel-
 opment advisers, short-term consultancies, and funds for training, funds
 for village development funds, extension, research, facilitation and basic
 equipment. The budget for five year is 230 million DKK.

 The programme will have an overall Monitoring Committee, which will
 monitor the overall progress of the programme, while the main manage-
 ment responsibility will rest with six Steering Committees.

 There are five Provincial Steering Committees, one in each province,
 with a Vice-Chairman of the PPC as Chairman and a management unit
 (as requested by Vietnamese law) in DARD, and one Central Component
 Steering Committee with a Vice-minister MARD as Chairman and with a
 management unit (the Component Coordination Unit) hosted by
 IPSARD.

 Funds will be channelled through a special account in MOF to the im-
 plementing agencies during the initial period of one and a half year.
 Thereafter it will be channelled through the Treasury system, if an as-
 sessment of the system is found positive.

 There will be an emphasis on monitoring, using the Vietnamese system
 as far as possible and where other measures are found necessary it should
 be pilots for incorporating into the Vietnamese system, such as a system
 using household observatories.




                                                11
ARD SPS 2007-2012                                                            12




 2        Introduction
 Vietnam and Denmark have cooperated in the agricultural and rural de-
 velopment sector since the early 1990s. A programmatic approach to this
 co-operation in the form of the Agricultural Sector Programme Support
 (ASPS) was launched in 2000 with a budget of DKK 450 million for a
 five-year period. Later the programme has been extended until mid 2007.

 The ASPS has been complex having six comprehensive and ambitious
 components with altogether 14 sub-components and 2 “special projects”.
 Geographically, the ASPS activities have been dispersed covering as
 much as 34 provinces, while management was anchored at the national
 level.

 As a first step towards the identification of the next generation Sector
 Programme Support, Ministry of Agriculture and Rural Development
 (MARD) and Danida initiated a joint assessment of the first phase of the
 cooperation in the beginning of 2005. The mission identified a scope for
 improvement within the following areas: Directly targeting the poor,
 women and ethnic minorities; Documentation of impacts and improved
 visibility; Building ownership including use of Vietnamese systems; Es-
 tablishment of more clear and efficient management guidelines; Focusing
 and limiting the levels of ambitions and/or interventions as well as
 within; and Synergy and coordination between components, part-
 ners/departments and provinces.

 However, the assessment mission also highlighted positive lessons
 learned on which to build the next phase of the cooperation. In summary,
 the previous co-operation has been successful in introducing participa-
 tory and bottom-up approaches at all levels, building relevant and appro-
 priate capacity, changing attitudes, focusing on the longer-term process
 of change, and patiently, but steadily contributing to the policy reform
 process.

 Based on some of these key findings, the Minister of Agriculture and Ru-
 ral Development recommended a stronger focus at the provincial and
 lower level for the next cooperation programme.

 It was decided between the GoV and Danida to operate within the Viet-
 namese system, to have a stronger emphasis on poverty alleviation, and
 to have a special emphasis on ethnic minorities in the highlands, which



                                                12
ARD SPS 2007-2012                                                               13




 still have a very high poverty rate. It was further decided that the next
 generation of the cooperation programme would have a clear division
 between the central policy and strategy guidance responsibilities and the
 field implementation responsibilities. The consequence of this approach
 was to aim for a central component and a component implemented at
 provincial and lower levels.

 After visiting a number of provinces it was decided to include the follow-
 ing five provinces in the programme: Dak Lak, Dak Nong, Dien Bien,
 Lai Chau and Lao Cai. These provinces are among the poorest in the
 country and they all have a large proportion of poor ethnic minorities.
 Most of the poor farmers and among them especially the ethnic minori-
 ties are undertaking upland cultivation, but some are also dependent on
 other sources of incomes.

 In the support of the formulation process five thematic studies have been
 conducted in these provinces concerning some of the key issues for up-
 land poor farmers i.e.: Agricultural marketing; farmer organization; natu-
 ral resources management; upland cultivation & food security, and exten-
 sion and information services on dry land farming. A study in the flow of
 funds was also undertaken in Dien Bien province.

 From November 2005 till January 2006, identification missions were
 fielded to the central level and to the cooperation provinces to identify
 relevant options for the Agriculture and Rural Development Sector Pro-
 gramme Support, 2007-2011.

 Based on the above-mentioned preparatory activities, formulation mis-
 sions were undertaken at the central level and in all the cooperation prov-
 inces from March to May 2006. The missions met with a wide range of
 stakeholders at province, district and commune level. In line with the on-
 going coordination and dialogue with national partners, there has been
 conducted a meeting with all partners in Hanoi.

 Coordinating Committees and Working Groups have been established in
 each province consisting of involved institutions and lead by the Provin-
 cial Peoples Committees. These committees and working groups have
 been working closely with the identification and formulation missions.

 To consolidate the result of the formulation missions the Embassy con-
 ducted follow-up visits in June to all provinces and had extensive meet-
 ings with both the coordinating committees and working groups.

 An appraisal mission visiting Vietnam in September 2006 found that
 clarification of the activities with the central cooperating institutions in
 MARD and provincial authorities was needed. The internal structure at
 MARD was rapidly changing, indicating new developments to be inte-
 grated in the formulation. Another round of follow-up visits to the prov-
 inces took place in November and December 2006 and studies on poten-
 tial service providers in each province were conducted. Furthermore,
 cross-cutting issues have been promoted in the programme document and


                                                  13
ARD SPS 2007-2012                                                      14




 an environmental screening performed to accommodate the quality as-
 surance of Danida.




                                              14
ARD SPS 2007-2012                                                               15




 3        Agriculture and Rural Development in
          Vietnam

 3.1      Poverty in Rural Areas and Government of
          Vietnam’s Eradication Efforts
 Poverty is a widespread phenomenon in rural areas: 77% of the Vietnam-
 ese population and 90% of the poor currently live in rural areas of Viet-
 nam; and 70% of the income of rural dwellers comes from agricultural
 activities. Therefore, agricultural and rural development is a crucial ele-
 ment of Vietnam's previous Comprehensive Poverty Reduction and
 Growth Strategy (CPRGS) and in the present Socio Economic Develop-
 ment Plan 2006-10 (SEDP).

 Vietnam's poverty reduction target - as articulated in the CPRGS and re-
 cently in the SEDP - is to reduce the poverty rate according to the inter-
 national poverty line by two fifths by 2010 and according to the food
 poverty line by three fourths by 2010 as compared to the level of 2000.

 Within agriculture and rural development the overall policies and meas-
 ures to achieve the poverty reduction targets can be summarised as:

        Develop agriculture and the rural economy to achieve fast pov-
         erty reduction

 In general, Vietnam has achieved impressive results in poverty reduction
 from 58.1 percent in 1993 to 19.5 percent in 2004. Poverty reduction has,
 however, not been evenly distributed. The Northwest stands out as being
 particular poor with 59 percent of the population being poor and the
 North Central Coast and the Central Highlands have over 30 percent.
 One important sub-group of the population, the ethnic minorities, have
 experienced a much slower fall in poverty than the Kinh (Vietnamese)
 and Chinese population. In 2004, 14 percent of Kinh and Chinese were
 living in poverty while as many as 61 percent of the ethnic minorities
 were still below the poverty line. In other words, though ethnic minori-
 ties account for only 13 percent of the total population, the representation
 of ethnic minority groups among the poor was in 2004 alarmingly high at
 38 percent. Finally the poverty of the ethnic minorities is also considera-
 bly deeper than the poverty for other groups.




                                                  15
ARD SPS 2007-2012                                                               16




 Consequently, Vietnam's poverty reduction efforts give special priority to
 stabilize and raise the living standards of ethnic minorities, which is also
 emphasized in the SEDP for 2006-2010.

 In order to meet these challenges, a new 5-year Agricultural Develop-
 ment Plan 2006 to 2010 has been developed. The Plan reflects well the
 CPRGS and recent SEDP. It emphasizes that poverty reduction should
 always be linked to quality growth i.e. solving poverty issue in the rural
 areas by: (i) investments to support directly the poor; and (ii) investments
 into sectors, regions from which the poor can directly benefit.

 Relevant sector policies, strategies and plans approved by the GOV are
 summarised below:

 The Comprehensive Poverty Reduction and Growth Strategy ap-
 proved 2002, which addressed the relevant development objectives and
 policy measures for economic development in general and in agricultural
 and rural development in particular. One of the three objectives of the
 CPRGS is to develop agriculture and the rural economy thereby reducing
 poverty and creating opportunities for the poor. A number of policy
 measures were included in the CPRGS to meet this objective.

 Vietnam‟s Socio Economic Development Plan 2006-2010 (SEDP) has
 followed the CPRGS. The Government of Vietnam decided to integrate
 the future poverty reduction strategy in the preparation of the Socio Eco-
 nomic Development Plan 2006-2010. This was a welcome development,
 which led to a considerable modernization of the traditional 5-year plan-
 ning process at all levels.

 The SEDP defines the overall objectives for the Vietnamese society in
 the next five years and identifies specific development targets and in-
 struments to be used in reaching the objectives. The overall goals are to
 boost the economic growth rate and achieve fast and sustainable devel-
 opment and reduce poverty. The GDP/capita target is to reach a level of
 USD 950 from the present USD 600 and to reduce the poor household
 rate (according to internationally recognized criteria) from 26 to 16 %.
 This is to be achieved through strengthened economic, administrative and
 legal reforms and improved social security. Improvements of the institu-
 tions supporting a market economy including the fight against corruption
 will also be important measures in achieving the goals of the SEDP.

 The plan has overall economical, social and political tasks accompanied
 by a number of precise targets and indicators linked to the Millennium
 Development Goals. The SEDP clearly defines development orientation
 for all sectors and fields and outline necessary policy measures and in-
 vestments in the following sectors and areas: Agriculture, industry, ser-
 vices, international economic integration, human resource development,
 science and technology, environment, population control, labour and em-
 ployment, social security, health, minority groups, religious freedom,
 gender etc. The SEDP has integrated the principles of the Poverty Reduc-
 tion Strategies by setting clear goals for poverty reduction and social de-


                                                  16
ARD SPS 2007-2012                                                                 17




 velopment and by allocating resources from the state budget for its im-
 plementation. The national plans are supplemented with socio-economic
 development orientations for each of the country‟s regions.

 In the area of agricultural development the plan outlines the following
 objectives: diversification of the agricultural production, improvements
 in productivity and quality, transformation of agricultural and rural eco-
 nomic structures, application of scientific and technological advances,
 and development of modern rural infrastructure. More specifically, the
 plan aims at ensuring national food security through production increases
 as well as diversifying agricultural production and preserving and devel-
 oping native crop varieties and biodiversity in ethnic minority areas. In-
 frastructure development is prioritised along with decentralisation of
 production.

 With regard to ethnic minorities, it is planned to ensure that all com-
 munes have essential public works and to gradually narrow the „dispari-
 ties in terms of material and spiritual life‟ among ethnic groups. More
 specifically, this latter objective is to be achieved through policies of land
 allocation, processing of agricultural goods, training farmers through ex-
 tension services and prioritising access to education for ethnic minority
 people. It is mentioned, however, that poverty rates remain high among
 ethnic minority people.

 The plan and the sector strategies provides an overall basis for develop-
 ment co-operation for Denmark and other donors and will serve as the
 point of departure for alignment with the Government of Vietnam‟s
 overall development priorities and within the relevant sectors. There is
 also a special emphasis on providing residential and production land for
 ethnic minorities locally.

 Five-Year Plan (2006-2010) of Agriculture and Rural Development
 has as one of its specific objectives to improve the agricultural sector‟s
 capacity to successfully compete and integrate into the international mar-
 kets. Preparing to fully join WTO and implementation of accession
 commitments by the end of 2006 will have major implication for the sec-
 tor and MARD. Among the Plan‟s priority activities, there are some most
 relevant to the ARD SPS Program: (i) Focus investment to science and
 technology and agricultural-forestry extension services including the in-
 vestment to post-harvest and processing technologies to increase the
 competitiveness of the export agricultural products; (ii) Increase invest-
 ment to trade promotion for enhanced marketing capacity of agriculture;
 (iii) Promote off-farming activities in rural areas to transform labour
 structures from agriculture-based to off-farming. There is an emphasis on
 ensuring national food security and paying a special interest to the ethnic
 minorities in the mountainous and remote areas.

 The Public Administration Reform promotes further decentralisation
 from central to local governmental agencies. The Resolution No.
 08/2004/NQCP issued by the Prime-minister in June 2004 on “Speeding-
 up State Management Decentralisation from the Central Government to


                                                   17
ARD SPS 2007-2012                                                                18




 Local Government of Centrally-affiliated Cities and Provinces” shows
 the strong commitment of the Government to further promote decentrali-
 sation in its public administration reform. The Resolution‟s main objec-
 tive is to improve the effectiveness of state management to better meet
 the needs and benefits of the people.

 Furthermore, recent policies also addresses the need to support the de-
 velopment of civil society and to set up an institutional framework for
 different parts of the civil society such as NGOs and mass organisations
 and for the private sector in providing services that used to be delivered
 by government to farmers. The services can cover a whole range from
 agricultural and rural extension to legal support services. The new De-
 cree 56 CP on Agricultural Extension promotes the concept of decentrali-
 sation, participation and pluralism in extension delivery system.


 3.2      Key Sector Institutions
 Ministry of Agriculture and Rural Development (MARD) includes
 agriculture, forestry, salt industry, irrigation/water services and rural de-
 velopment, public services and State Owned Enterprises.

 MARD is implementing the policies directed by the Minister and the de-
 partments are developing the strategies and frameworks for the imple-
 mentation.

 MARD is divided into six functional departments (Legal, Planning, Sci-
 ence & Technology, International Cooperation, Finance, Organisation
 and Personnel) and twelve professional or technical departments, which
 provide regulation, inspection, quality control of services and products in
 relation to crops, livestock, veterinary services, plant protection, coopera-
 tive development, salt processing, dyke management, water, and forestry.

 MARD research institutes, National Agricultural Extension Centre
 (NAEC), and Information Technology and Statistics Centre for Agricul-
 ture and Rural Development (ICARD) are the prime public service insti-
 tutions under MARD.

 Department of Science and Technology (DST) is - within the sector -
 overall responsible for science, technology and product qualities. It in-
 cludes formulation of strategies and plans, development, guidance and
 implementation of standards, insurance of quality of science and technol-
 ogy research, monitoring and reviews of research results, management of
 genetic resources, registration of new crop varieties and animal breeds,
 international cooperation in science and technology, and overseeing the
 Agricultural Science and Technology Council.

 Agricultural Extension Service is at national level coordinated by the
 National Agricultural Extension Centre. The extension service operates
 on a least four levels:




                                                  18
ARD SPS 2007-2012                                                               19




 National   National Agricultural Extension Centre (public service insti-
            tution under MARD)
 Provincial Provincial Agricultural Extension Centre (Reports to
            DARD)
 District   District station (Reports to either District people committee
            or to DARD)
 Commune Commune extension worker (contract employed)

 The delivery of extension services has a strong technical orientation with
 the same delivery mechanism to all types of farmers. The new Decree 56
 from 2005 on agricultural extension opens up for stronger target group
 orientation in the delivery of extension services, so new demand oriented
 area specific models for co-operation between extension service and
 farmers can be developed.

 Provincial Extension Advisory Councils (PEAC) are going to be estab-
 lished in 40 provinces, including all the ARD SPS cooperation provinces.
 The PEAC purpose is to:
     -   Further strengthen the socialization of extension service
     -   Increase the active role of the local level, farmers, mass organiza-
         tions and international/domestic extension organizations in defin-
         ing the extension needs, priorities, and suitable technical innova-
         tions
     -   Develop extension orientations, policies and plans, suited to each
         locality‟s unique characteristics, organizing market information
         systems and agricultural business promotion to farmers.

 Research institutes
 Institute of Policy and Strategy for Agriculture Rural Development
 IPSARD was established in 2005, as part of the reorganisation plan for
 MARD research institutes. Its main function is to undertake research,
 provide strategic information, training, consulting, and transferring tech-
 nology. It is the intention to develop the institute into the think tank of
 the ministry.

 MARD is in the process of restructuring its research institutes. In addi-
 tion to IPSARD there will be 5 institutes organised along commodities
 and themes for crops (VAAS), engineering and post harvest, forestry,
 livestock, and water.

 There are many other ARD research institutions outside MARD compris-
 ing universities under the Ministry of Education, institutes under Viet-
 nam Academy of Social Science (VASS) and institutes under other min-
 istries, which have the same think tank function as IPSARD.

 Local Government and Institutions
 The province, district and commune have an elected assembly, the Peo-
 ple‟s Council, and an executive authority, the People‟s Committee, which
 is appointed by the People‟s Council. The planning and budgeting are
 hierarchical under which the commune and districts governments are ac-
 countable to its upper level. A dual system exists, whereby provincial


                                                  19
ARD SPS 2007-2012                                                                 20




 departments, districts and communes report both to their local People‟s
 Committee and to the relevant parent sector ministry. The people‟s
 Committee undertakes coordination.

 At province level there are generally 25 departments, which to a large
 extent reflect the ministries at the central level, but the Provincial Peoples
 Committee coordinates them. Important departments are Provincial De-
 partment of Agriculture and Rural development (DARD), Department of
 Finance (DOF), Department of planning and Investment (DPI), Depart-
 ment of Natural Resources and Environment (DONRE), Department of
 Labour, Invalids and Social Affairs (DOLISA) in addition to the Com-
 mittee for Ethnic Minorities (CEM), Farmer‟s Union and Women‟s Un-
 ion. CEM is advising provincial offices on issues of ethnic minorities and
 religion. They manage projects for ethnic minorities within province and
 are executive member of national programmes of socio – economic de-
 velopment for ethnic groups.

 The ARD SPS will rely much of its support at the district level. After the
 restructuring of the local government by the Decree no. 172 September
 29, 2004, all Vietnam‟s districts have a fairly similar structure.

 The district is coordinated and managed by the People‟s Committee. In
 most rural districts1 there will be the following 13 professional agencies
 working under the DPC:

 1. The Offices of the district-level People’s Councils and People’s
    Committees assist the People‟s Councils and People‟s Committees.
 2. The Section of Home Affairs, Labour, War and Social Affairs is re-
    sponsible for home affairs as well as labour, war invalids and social
    affairs
 3. The Finance-Planning Section is responsible for finance, planning,
    investment and business registration
 4. The Natural Resources and Environment Section is responsible for
    land resources, water resources, mineral resources and environment
 5. The Economic Section is responsible for agriculture, forestry, fisher-
    ies, sedentarisation, new economic zones, science and technology,
    industry, cottage industry and handicrafts, trade, tourism and coop-
    eratives
 6. The District Inspectorates perform the administrative inspection
    tasks and powers within the state management scope of the district-
    level People‟s Committees
 7. The Education Section is responsible for district level regular educa-
    tion centres and general technical-vocational orientation centres
 8. The Committees for Population, Family and Children is responsible
    for population, family and children
 9. The Culture, Information, Sports Section is responsible for culture,
    information, physical training, sports, radio broadcasting and televi-
    sion


 1
     Urban districts also have the Economic Infrastructure Section


                                                         20
                          ARD SPS 2007-2012                                                                                    21




                            10. The Health Section is responsible for care for, and protection of,
                                people‟s health
                            11. The Justice Section is responsible for elaboration of legal documents,
                                examination of legal documents, law dissemination and education,
                                execution of civil judgments, authentication, civil status, legal assis-
                                tance, reconciliation at grassroots level and other judicial work.
                            12. The Nationality Section - or Committee for Ethnic Minorities - deals
                                with consolidation of the apparatuses performing ethnic work under
                                the People‟s Committee
                            13. The Religion Section dealing with the consolidation of the appara-
                                tuses performing religious work under the People‟s Committee
                                (sometimes merged with Nationality section).

                            Most of these sections will be involved with the programme.


                            3.3       Donor Supported Programmes
                            The World Bank, ADB, Danida, SIDA, DFID and GTZ are the main do-
                            nors in the agriculture and rural development sector in Vietnam.

                            The major ARD development programmes are listed below:

                                                                                                                     Amount
Project Title             Duration     Source       Objectives                                                       ($ Mil-
                                                                                                                     lion)
Agriculture Sector De-    2002–2006    ADB          Support the Government's policy and institutional reforms        90.0
velopment Program                                   to develop a favourable environment for market-based agri-       (Loan)
                                                    cultural growth and agro-industry development
Tea and Fruit Develop-    2000–2006    ADB          Increase farm income and raise the value of agricultural         40.2
ment Project                                        production through tea and fruit development                     (Loan)

Strengthening Agricul-    2006-2008    ADB          Appropriate procedural documents for strengthened AST            0.7
ture Science and Tech-                              management system                                                (Grant)
nology Management                                   Improved knowledge and capacity of key stakeholders in-
                                                    volved in AST management
                                                    Improved coordination between agricultural research and
                                                    extension
                                                    Appropriate M&E and reporting systems for AST activities
Collaboration for Agri-   Ongoing      AusAID       Increase productivity and competitiveness of smallholder         7.0
culture and Rural De-     from 2004                 agriculture and rural enterprises through support for agricul-   (Grant)
velopment (CARD)                                    tural research and development
Rural Income Diversifi-   Ongoing      IFAD         Support for villages of ethnic minority population in upland     20.9
cation Project in Tuyen   from 2002                 areas to improve their access to rural infrastructure, health    (Loan)
Quang Province                                      services, and finance.
Support to IPSARD         2005         Ford Foun-                                                                    0.2
                                       dation                                                                        (Grant)




                                                                                    21
                           ARD SPS 2007-2012                                                                                 22




                                                                                                                   Amount
Project Title              Duration    Source      Objectives                                                      ($ Mil-
                                                                                                                   lion)
SIDA MARD Coopera-         2006-2011   SIDA        Support the implementation of the CPRGS into the sector of      5.0
tion Programme                                     agricultural and rural development through institutional        (Grant)
                                                   capacity building within the MARD and its various partner-
                                                   ships. The programme will be with International Coopera-
                                                   tion Department. The programme will enhance the capacity
                                                   of MARD for policy dialogue and coordination of donor
                                                   support in order to further strengthen the integration and
                                                   implementation of related aspects during the new 5-year
                                                   socio-economic development plan of the sector of agricul-
                                                   ture and rural development
CHIA SE (Poverty Al-       2003-2008   SIDA        The programme supports activities in the provinces: Ha          41.5
leviation Programme)                               Giang, Quang Tri, and Yen Bai with future inclusion of          (Grant)
                                                   Ninh Thuan and Soc Trang. The executing agency is MPI
Support to Public Ad-      Ongoing     UNDP/       Improve public administration in the Ministry of Agricul-       3.9
ministration    Reform     from 2001               ture and Rural Development through capacity strengthening       (Grant)
                                       Nether-
Program                                lands       in the use of information and communications technology

Agriculture Diversifica-   1998-2005   World       Help diversify and intensify agricultural production, thereby   66.9
tion Project                           Bank        increasing farm income and rural employment through             (Loan)
                                                   promotion of rubber smallholders and improved livestock
                                                   production
Northern    Mountains      Ongoing     World       Promote community-based development activities through          132.5
Poverty Reduction pro-     from 2001   Bank/       improvement of social and rural infrastructure.                 (Loan/
ject                                   DFID                                                                        Grant)

Community Develop-         2006-10     Danida/VN   Increasing efficiency of the ethnic minorities farming in
ment Among Ethnic                      FU/ADDA     mountain areas (Hoa Binh, Son La, Lai Chau, Dien Bien,          (Grant)
Minorities                                         Nghe An and Ha Tinh)



                             The Agricultural Sector Development Programme provides a loan of
                             60 mill US$ from 2003-2006 is funding investments in research, exten-
                             sion and agro-business development. The programme also supports pol-
                             icy and institutional reforms in MARD related to research reorganisation
                             and development of participatory extension methods to reach poor and
                             women farmers and ethnic minorities. The programme also supports the
                             setting up of Provincial Extension Advisory Councils (PEAC) in 40 prov-
                             inces, including all 5 ARD SPS provinces. The establishment is supported
                             for two years until the council will be under the provincial budget.

                             The second phase of the Targeted Programme 135, was approved in
                             January 2006 for implementation from 2006 to 2010. The first phase
                             cowered in the end a total of 2410 disadvantaged communes. The in-
                             vestment was largely focused on developing commune level infrastruc-
                             ture based by allocating 500 millions Dong to the communes every year.
                             The second phase of P135 has been expanded so in to the same disadvan-
                             taged communes it also cover the poorest villages in slightly less disad-


                                                                                   22
ARD SPS 2007-2012                                                           23




 vantaged communes. The programme will have four components: infra-
 structure development, production and livelihoods support, promotion of
 basic services and capacity building. It aims to shift the focus towards
 production and livelihoods promotion, although about 70% of the in-
 vestment will focus on infrastructure development at commune and vil-
 lage level. GOV funds covers 90% of the expenses and a consortium of
 donors will cover 10%. The programme will include communes and vil-
 lages in all districts supported by the ARD SPS programme.

 There is thus a potential and a need for synergy between Programme 135
 and ARD SPS.




                                               23
ARD SPS 2007-2012                                                              24




 4        Agreed Assistance - the Strategic ARD
          SPS Framework

 4.1      Vision and Overall Objectives
 The vision for the Agriculture and Rural Development Sector Pro-
 gramme Support (ARD SPS), 2007-2012, is to support Vietnam in its
 efforts to reduce poverty and improve the living conditions of the rural
 population, with emphasis on the upland poor and vulnerable groups, e.g.
 ethnic minorities and women headed households.

 The development objective of the ARD SPS is:

 "Reduction of rural poverty, especially among the ethnic minorities,
 through sustainable agricultural and rural development focusing on the
 upland"

 The immediate objective of the ARD SPS is:

  "Sustainable growth in upland rural household welfare arising from im-
 provements in resources management, agricultural production and mar-
 keting, with focus on the poor upland farmers, in particular women and
 ethnic minorities"

 The immediate objective is the development objective of the ARD SPS
 Central and Provincial Components.


 4.2      The ARD SPS Approach and methodology
 As the poorest segments of the upland farmers are facing a number of
 crucial livelihood challenges that often are interlinked, a household based
 approach must be applied when meeting these challenges. There are no
 simple solutions to the challenges they are facing. These marginalized
 groups must optimise both natural and human resources management in
 order to obtain food security and escape poverty. The approach to upland
 rural development - and consequently also the strategy of the ARD SPS -
 reflects this.




                                                 24
ARD SPS 2007-2012                                                             25




 The focus of the ARD SPS is, therefore, on upland natural and human
 resources management and the programme activities will have an inte-
 grated approach to agriculture and rural development with a very strong
 emphasis on food security.

 The ARD SPS has been developed according to the Government's priori-
 ties and plans as reflected in e.g. the CPRGS and the Socio-Economic
 Development Plan 2006-2010, a number of central, regional and provin-
 cial development plans and the 5-Year Plan for Agriculture and Rural
 Development for the Period 2006 –2010, and their related provincial and
 local plans.

 The ARD SPS supports these plans and has a focus on poverty reduction
 and coordination at the provincial and lower level as per the new Viet-
 nam-Denmark Partnership Strategy for Development Cooperation 2006-
 2010.

 The ARD SPS has a clear division between the central policy and strat-
 egy guidance responsibilities and the field implementation level. The
 consequence of this approach is a central (national) component and a
 component implemented at provincial and lower levels.

 It is, furthermore, the intention of ARD SPS to operate in and through the
 existing structures and to avoid parallel structures.

 The immediate objectives of the Central Component are:

        "Research, policy formulation and information dissemination on
         upland agricultural and rural development is qualified and coor-
         dinated.

        Innovative approaches to sustainable upland livelihoods are de-
         veloped and applied in the provinces.

 MARD is in the process of change. Most of the traditional tasks that have
 currently been carried out, will no longer suit the challenges of a fast
 growing economy. Policy development and impact assessments will be
 given an increasing importance. The newly established Institute for Pol-
 icy and Strategy for Agriculture and Rural Development (IPSARD) is
 seen as the think tank and instrumental for these changes in MARD.

 Furthermore, there is a lack of relevance of past and ongoing ARD re-
 search for ethnic minority and upland areas. To assist GOV to improve
 the situation, the ARD SPS Central Component for 2007-12 will
 strengthen the capacity for developing evidence based policy and innova-
 tive livelihood models and approaches for upland areas and upland mi-
 norities. Furthermore the component will support the Department of Sci-
 ence and Technology (DST) to broaden the scope of research to fund
 ARD research with institutes outside MARD, and to encourage research,
 which incorporate both social and technical topics. Furthermore, Village
 Development Plans could incorporate appropriate research results to as-


                                                25
ARD SPS 2007-2012                                                               26




 sure demands-based approach to research and take into account local
 conditionalities.

 The vision of the Central Component is a two-way effective feedback
 mechanism for agriculture and rural development policy and strategy de-
 velopment that stretches from the ethnic minorities in upland areas
 through the provinces to the national policy level.

 The Central Component of the ARD SPS will focus on co-ordinating and
 strengthening of:

        The function of IPSARD as a “think tank” at MARD with the
         necessary instruments (reliable data collection and analyses,
         feedback mechanisms, and dissemination strategies), to
         strengthen the capacity for policy research in ARD related to up-
         land areas with emphasis on the five ARD SPS cooperation prov-
         inces.

        Policy research within agriculture and rural development.

        Policy development based on lessons learned – in particular in
         the ARD SPS co-operation provinces.

        Feed back to the national policymakers and researchers from
         provincial and local level on: i) impacts of agricultural and rural
         development policies and legal frameworks; and ii) their per-
         ceived shortcomings.

        Applied research on innovative models and approaches on upland
         livelihoods.

        Support MARD Research Fund with a special programme for
         ethnic minority and upland areas.

        Support to cross cutting research themes with creation of multid-
         isciplinary consortia of ARD research institutions/universities for
         specific ARD research with peer reviews from international re-
         search organisations.

        Dissemination of information on upland cultivation and national
         resources management from source to farm level

 The Central Component will be linked to the Provincial Component by
 focussing on the development of research instruments, dissemination of
 information and support research that is directly related to the rural live-
 lihood in the five provinces.

 IPSARD will be the key partner in the Central Component with guidance
 from DST, who has the state management responsibility for science and
 technology for agricultural and rural development. With its independent
 position IPSARD can service professional and functional departments in


                                                  26
ARD SPS 2007-2012                                                             27




 MARD in research related to specific policy formulation and impact
 studies, but also through its network of ministerial research institutes
 provide services for other ministries with mandates in rural development.
 IPSARD is well positioned to be the “Think Tank” for the minister.



 The immediate objective of the Provincial Component is:

 "Improved food security and standard of living of poor upland farmers,
 especially ethnic minorities and female headed households, through im-
 proved natural and human resources management and upland farming
 techniques"

 In the efforts to achieve this objective, the following key issues will in
 particular be addressed:
 •   Clear strategies on how to reach the target groups and secure impact
     at farm level
 •   Mainstream gender equality and ethnic minority concerns in project
     planning and log-frames
 •   Capacity building
 •   Participatory and appreciative methods to human resource manage-
     ment
 •   Local level planning including village plans
 •   Demand based extension services
 •   Farmer Interest Groups
 •   Farmer Field School and Farmer Field Classes
 •   Farmer to Farmer training
 •   Farming systems approach
 •   Sustainable natural resources management, organic farming and en-
     vironmental awareness methods
 •   HIV/Aids awareness raising
 •   Food security
 •   Market access for poor farmers and ethnic minorities
 •   Private sector involvement
 •   Feed back to the national policymakers and researchers (Central
     Component) on: i) impacts of present agricultural and rural devel-
     opment policies and legal frameworks; and ii) their perceived short-
     comings.

 The implementation strategies, outputs and related activities are grouped
 in four sub-components, which are clusters of interrelated outputs and
 can serve as entities in coordination and learning between the provinces.



                                                27
ARD SPS 2007-2012                                                              28




 Sub-component 1: Demand based extension, information and training
 of Farmers
 This component will be arranged around Farmer Interest Groups (FIGs)
 and Farmer Field Classes (FFCs).

 The FIGs consist of 10-25 members who share an interest related to agri-
 cultural production, processing and marketing or natural resources man-
 agement and have needs for training. FIGs shall in principle be organised
 by the farmers themselves. The key principles guiding the extension and
 provision of training of FIGs are: (i) the training shall be demand-driven;
 (ii) the training shall to a high degree be based on Training of Trainers
 (ToT); (iii) farmers shall be trained as trainers using Farmer to Farmer
 (FtF) methodology and (iv) training shall discover valuable local knowl-
 edge and positive experiences of farmers.

 In the Central Highlands there will in addition to the FIGs also be general
 farmers, so-called Farmer Field Classes (FFC). FFC consist of about 25
 members from the same village. Professionals will train them and the
 farmer trainers will emerge in the groups during the training.

 Special attention will be given to gender issues. Gender will be main-
 streamed into the training programmes, including separate training ses-
 sions on gender issues. Priority will be given to securing women‟s par-
 ticipations in the FIGs and FFCs. As a way to make sure women‟s par-
 ticular needs are taken into account, technical themes particularly rele-
 vant for women, according to the prevailing division of work in the
 farmers families, shall be grouped together (e.g. small live-stock and hor-
 ticulture (“home gardening”)). Consequently the groups can be gender
 segregated or mixed.

 Sub component 2: Production, Storage, Processing and Marketing

 The group-based approach and integrated farming system will be overall
 guidance for this sub-component‟s activities.

 In close dialogue with advanced and innovative FIGs and FFCs, the
 Component will support development and testing of new approaches to
 production in different agro ecological zones. These approaches might be
 new in the provinces while they could be well proven in other parts of
 Vietnam or in the region. If they are found applicable for the local condi-
 tions they should (together with improved practices) be introduced to
 other areas and incorporated into planning.

 The approach to agricultural extension and development of improved
 farming systems will be to look at the farm as an integrated unit, and take
 point of departure in the farming system rather than in a single crop or
 livestock. This implies a holistic view on the present farming activities,
 how these interact and how new methods, livestock and crops influence
 on these systems, including the production of food for seasonal house-
 hold availability of labour.



                                                 28
ARD SPS 2007-2012                                                               29




 Sub-component 3: Local Planning and Capacity Building

 The village planning will be overall guidance for this sub-component‟s
 activities.

 The provinces have little experience and weak capacity at district, com-
 mune and village levels, related to participatory bottom-up planning and
 delivery of demand-based services. Therefore, capacity building at pro-
 vincial, district and commune levels will include participatory methods,
 training needs assessments, appreciative inquiry methods, bottom-up
 planning and delivery of demand-based services as well as understanding
 the effectiveness of the methods and tools. Officials will be trained to
 comply with the needs for services as articulated by the poor farmers and
 interest groups e.g. in the commune and village development plans.

 During the main implementation stage village level planning will become
 a cornerstone in programme implementation. The planning process will
 start at the village level or among the various interest groups, then be in-
 tegrated into the Village Development Plan, the Commune and District
 Development Plans and finally into the Province Development Plan.
 Consequently, planning will be coordinated with the overall planning
 calendar so local and village plans can be integrated in commune and
 provincial plans.

 Village Development Funds will be established for funding of post train-
 ing activities at the village level. For practical reasons, the village will
 have an account at commune level for the fund, which will be managed
 by the villages in cooperation with the commune. The Village Develop-
 ment Fund is a supplement to assistance already given to the participat-
 ing villages from e.g. various government sources and shall not lead to
 any reduction in such support.

 Sub-component 4: Support to Land Allocation (in the Central High-
 lands

 This component will focus on participatory land allocation.

 In the Central Highlands lack of agricultural land and forest allocation is
 a major obstacle for capturing the production potential of local communi-
 ties. The process of classifying and allocating land has been slower than
 anticipated due to a number of technical and social reasons.

 The Provincial Component will support an accelerated land allocation
 process through support to training, information sharing as well as provi-
 sion of technical assistance. The focus will be on introducing participa-
 tory processes and procedures for land allocation to ethnic groups.

 To avoid further misunderstandings it is deemed necessary, that all land
 allocation shall be done through a participatory process where: i) the lo-
 cal population and the appropriate local customary institutions are in-
 volved and ii) rights and obligations as well as alternative possibilities


                                                  29
ARD SPS 2007-2012                                                                30




 for land ownership such as communal ownership, group ownership etc.
 are clearly explained.



 Stages

 Implementation will fall in four stages: 1) an inception stage of 6 months;
 2) an early implementation stage of one year before the planning and
 budgeting procedures are in place; 3) the main implementation stage, and
 finally 4) the phasing out stage.

 During the Inception stage (autumn 07) the activities will be planned,
 detailed implementation plans developed, the final procedures for the
 further implementation set up, identification of training institutions and
 training of core groups of implementers will be undertaken. Many of
 these tasks will be undertaken by consultants, who for convenience will
 be hired by the Embassy, but after approval in the steering committees.
 The provinces will be important units and decisions will be undertaken at
 province level. The coordination committees at district level will be set
 up, and the final division of labour between province and district will be
 settled. Research institutions in the Central Component will be selected.

 During the early implementation stage (January 2008), activities will
 start based on plans and budgets approved by the Steering Committees.
 This stage will in the provinces be dominated by a very intensive training
 of the farmer trainers.

 At this stage training needs related to the identified village/group re-
 quirements and their opportunities for development as well as the capac-
 ity building needs of the participating institutions and organisations can
 be determined.

 Following this (June 2008), there will be training of villagers. The ac-
 tivities will start in communes selected where both poverty figures, per-
 centage of ethnic minorities, and readiness to work within the pro-
 gramme will be important. While a part of the activities will be under-
 taken on the basis of perceived needs, village planning (and fully demand
 driven activities) will start under this stage, including the complete set of
 procedures of planning activities ranging from village to commune to
 district. There will be a large emphasis on identifying and training ser-
 vice providers. Important in activities at this stage will be the District
 Coordination Committee, representatives from the participating adminis-
 trative sections and service providers like Farmers Union, Women‟s Un-
 ion, CEM, training institutions and possible institutions.

 The programme will introduce itself in the villages/groups and present
 the programme vision and objectives. It is advisable to go through the
 village leadership in respect of traditional structures and customs. A very
 basic socio-economic survey should be undertaken by the Districts col-



                                                  30
ARD SPS 2007-2012                                                               31




 lecting basic livelihood information, customs, ethnicity etc., necessary
 for later differentiation of the approach.

 During the main implementation stage, village planning will be an ex-
 tremely important vehicle for implementation. Decision making has been
 delegated from district to commune level in some instances.

 Village Plans will be developed in a growing number of villages, while
 commune and district authorities will be increasingly capable at support-
 ing these.

 For the village planning a participatory resource assessment is a central
 part of the process and will include determination of all the resources
 available to the village/group (livestock, land cover and land use, infra-
 structure etc.) in order to gain an overview of the “assets” and therefore
 opportunities available to the beneficiaries, and to start the appropriation
 by the villagers of planning skills.

 Capacity building of extensionists, private service providers and mass
 organisations will support the plans.

 As the conditions for joint donor arrangements are not yet present (i.e. a
 Sector Wide Approach (SWAP) to agricultural and rural development)
 coordination and cooperation with relevant donors will be on bilateral
 basis, and there will be an emphasis on alignment to Vietnamese proce-
 dures and cost norms. The adoption of a SWAP to agriculture and rural
 development in Vietnam will be closely monitored as SWAP provides an
 opportunity for all major donors in the sector to harmonise efforts and
 approaches.


 4.3      Poverty
 With the SEDP 2006-10 the Vietnam Development Goals (VDGs) and
 many other plans, the policy framework and plans for the coming 5 year
 in Vietnam places an emphasis on poverty reduction and poverty allevia-
 tion. The ARD SPS programme follows this trend.

 The programme is directly poverty oriented by focussing on some of the
 poorest districts in Vietnam, and within them on the poorest communes.

 The strategy will be poverty oriented, acknowledging that the poor and
 the ethnic minorities are marginalized in relation to mainstream society.

 The programme is directed particularly towards improving farming prac-
 tices relevant for poor farmers, as e.g. dry-land farming, small-scale irri-
 gation, and small livestock. In addition their collection of non-timber for-
 est products, forestry activities and diversification into handicrafts will
 also be supported. This will be done at a small scale with inexpensive
 technologies that can be managed by poor farmers. Presently extension
 models have a bias towards high input crops that necessitate a high de-
 pendence on marketed inputs of seed and fertilizer


                                                  31
ARD SPS 2007-2012                                                             32




 Many surveys have shown that the extension system and many other ser-
 vices do not reach the poor – and especially the poor ethnic minorities.
 The formation of farmer interest groups at village level for increased
 visibility of poor farmer needs will change this situation. An accessible
 extension package with a menu of options that relates to the realities of
 poor upland farmers should be developed from existing and new training
 materials. The awareness of extension demands of the poor upland farm-
 ers will be increased through a decentralized participatory planning proc-
 ess.

 Similarly community participation in the planning processes will be
 strengthened for more effective poverty reduction.




                                                32
ARD SPS 2007-2012                                                              33




 5        Components

 5.1      Central Component
 As defined in chapter four, the immediate objective of the Central Com-
 ponent is:

 "Research, policy formulation and information dissemination on upland
 agricultural and rural development is qualified and coordinated"


 5.1.1 Component Structure, Strategy and Main Outputs
 There is a lack of sufficient relevance of past and ongoing ARD research
 for ethnic minorities in upland and remote areas. To assist GOV to im-
 prove the situation, the ARD SPS Central Component for 2007-12 will
 strengthen the capacity for evidence based policy development in ARD
 for ethnic minorities in upland areas. The component will focus on the
 following:

  Developing the Institute for Policy and Strategies for Agricultural Ru-
 ral Development (IPSARD) to be a “think tank” at MARD with the nec-
 essary instruments (reliable data collection and management, feedback
 mechanisms, and dissemination strategies) and strengthening of
 IPSARD‟s capacity for policy research in ARD related to upland areas
 with emphasis on the five ARD SPS cooperation provinces

  Supporting the Department of Science and Technology (DST) in
 MARD to develop cross cutting research themes with the creation of a
 collaborative and multidisciplinary consortium of ARD research institu-
 tions/universities for research on sustainable upland livelihoods with peer
 reviews from international research organisations.

 The central component is closely linked to the Provincial Component by
 focussing on the five cooperation provinces when developing research
 instruments and supporting research that is directly related to the liveli-
 hood of the poor upland household.

 The vision of the component is a two-way effective feed back mecha-
 nism for agriculture and rural development policy and strategy develop-
 ment that stretches from the ethnic minorities in upland areas through the
 provinces to the national policy level.


                                                 33
ARD SPS 2007-2012                                                             34




 The expected result of the component will be improved economic devel-
 opment for ethnic minorities in upland areas. This will come from an im-
 proved policy development with increased participation and consultation
 with ARD grass root organisations outside MARD and from the devel-
 opment of new knowledge and insight from focused research in order to
 make policies responsive to the special needs in upland areas and also
 innovative research to improve the entrepreneurship and production
 technologies for upland farming.

 The derived result of the component is the creation of the provincial dia-
 logue facility serving as the link to the national level with Science and
 Technology Advisory Board, to the district and commune level and
 sideward links to relevant departments at province level.

 To achieve these results the Central Component will - within the context
 of upland rural development - provide support to the national research,
 policy formulation and information network. The component has two
 outputs.

 -   Output 1 aims at supporting Policy and Strategy Development
     within MARD.

 -   Output 2 supports Innovative Approaches for Sustainable Upland
     Livelihoods.

 The following activities will support relevant MARD Departments, espe-
 cially the Institute for Policy and Strategies for Agriculture and Rural
 Development (IPSARD) and the Department of Science and Technology
 (DST), Agricultural and Rural Development Universities within the cen-
 tral component. For a more elaborate description of the activities than
 summarized below, please refer to the Central and Provincial Component
 programme document.


 Activities related to Output 1: Policy and Strategy
 Development
 This output seeks to strengthen capacity of IPSARD to serve as a "think
 tank" for MARD in formulating and communicating policies in the agri-
 cultural and rural development, particularly with regards to upland areas
 and ethnic minorities. To this end, the following activities are designed
 and are summarised below:

 Activity 1.1. Develop Institutional Development Strategy and Upgrade
 Research facility and Human Resources for IPSARD.

 Activity 1.2: Conduct Policy-related research

 Activity 1.3: Set up Policy dialogues and linkages

 Activity 1.4. Develop and disseminate policies and strategies by MARD
 Departments


                                                 34
ARD SPS 2007-2012                                                               35




 Activity 1.5. Support to the establishment of a rural households database
 at MARD for policy purpose. This consists of i). Rural households sur-
 veys and ii) Farm monitoring systems (FMS)

 Activity 6: Support to Component Coordination Unit (CCU) at IPSARD
 to coordinate the activities of the Central Component and to facilitate the
 activities of the Programme Monitoring Committee.

 Support to institutional development strategy and upgrade research facil-
 ity and human resources for IPSARD will include institutional diagnostic
 analysis of IPSARD as well as a needs assessment of IPSARD focusing
 on policy research and analytical skills. Based on the results of the analy-
 sis, a strategy and action plan for IPSARD will be supported together
 with necessary upgrading of research facility and capacity building of
 human resources.

 Support specific to policy-related research at IPSARD will include provi-
 sion of fund to finance such research. It is envisaged that IPSARD will
 team up with policy and strategy research institutes in other ministries
 (the Network of Policy and Strategy Institutes) and the private sector to
 conduct research supported in this output. As Vietnam's economy is
 growing and integrating more and more into the global economy, the
 range of topical issues vis-à-vis ARD policy research becomes more
 complicated and multidimensional in nature. Therefore, linkages with
 institutes outside MARD and private sector are vital to leverage capaci-
 ties for research and result dissemination.

 Support specific to policy dialogues includes setting up a provincial facil-
 ity for policy dialogue, information, knowledge exchange and dissemina-
 tion in each of the five cooperation provinces. IPSARD will set up and
 provincial authorities will gradually take over. The intention is that les-
 sons are learned from policies implemented and local practices. The les-
 sons will provide essential inputs to MARD for the next policy formula-
 tion cycle as well as feedbacks from households and government offi-
 cials.

 Support given to MARD departments to disseminate and scale up the
 positive lessons learnt from the implementation of the current ASPS and
 to further the reform of the extension system, e.g. Sustainable Upland
 Seed and Breed Development Strategy; the IPM programmes and the
 Post Harvest Strategy as well as other best participatory agricultural ex-
 tension practises for upland and remote areas.

 Support specific to establishment of a rural households database at
 MARD include two activities. One is a Rural Households Survey con-
 ducted every other year departing from 2006 in the five cooperation
 provinces and conforms to the survey by General Statistics Office. The
 other is a Farm Monitoring System (FMS) to be piloted in two coopera-
 tion provinces. The vision is to capture data more regularly and to be able
 to gauge farmers‟ responses to changed agricultural policy and external
 influences like natural disasters, climate change, diseases or price fluc-


                                                  35
ARD SPS 2007-2012                                                             36




 tuations. In the long term, the FMS will be transferred to provinces for
 management; however, the analytical work is still to be done by IPSARD
 for policy purpose. The analyses derived from the rural surveys will be
 essential information to policy makers and researchers and stakeholders
 in the provinces and at central level.

 Support specific to the Component Coordination Unit (CCU) located at
 IPSARD will entail a budget lines for running costs and salary for two
 positions namely an accountant and an interpreter. The staff will com-
 prise of five nationals and a long-term international adviser. CCU is ex-
 pected to provide support to coordinating the Component activities and
 facilitating the functions of the Programme Monitoring Committee.


 Activities related to Output 2: Innovative Approaches for
 Sustainable Upland Livelihoods


 Two main activities are designed to establish research facilities and pro-
 mote information on innovative approaches for sustainable upland liveli-
 hoods. These activities mainly involve the Department for Science and
 Technology (DST) and the Science and Technology Advisory Board
 (S&TAB) within MARD.

 Activity 2.1: Support to Upland Livelihood Research Programme on in-
 novative livelihoods approaches for upland areas and ethnic minorities.
 This activity will include the establishment of a Research Fund for Up-
 land Livelihoods and dissemination of Research Results.

 Activity 2.2. Support to the functioning of the Science and Technology
 Advisory Board (S&TAB) and DST on its secretariat role.

 Support to Uplands Livelihoods Research programme will focus on in-
 novative livelihood approaches for upland areas and ethnic minorities.
 Relevant ARD centres and institutes, inside and outside MARD will be
 invited to join the programme or to bid with research proposals for the
 Upland Livelihoods Research Fund. The Science & Technology Advi-
 sory Board functions as an advisory board to MARD Minister and the
 S&TAB will approve research proposals to be supported by the Research
 Programme.




                                                36
ARD SPS 2007-2012                                                                 37




 Support to DST also include upgrading of the management of the Re-
 search Programme and the Research Fund, preparation of guidelines for
 management of the framework agenda and establishing a peer review
 panel with international participation to secure a high quality of research.
 Finally, dissemination of results to policy makers and through profes-
 sional channels and to stakeholders in the provinces will raise awareness
 of issues pertaining to upland livelihoods. The S&TAB is in the process
 of restructuring to be more responsive to the needs of the ARD sector. Its
 secretariat located in DST will support the working modalities and key
 activities. The Component will support DST in functioning as the secre-
 tariat of S&TAB.


 5.1.2 Inputs to the Central Component
 Inputs from Danida will be long and short-term technical assistance, cost
 of facilitation (meetings, workshops, translation), skills training of staff
 in counterpart organisations, funds for research and simple equipment for
 research.

 The inputs of the Government of Vietnam will be counterparts, support
 staff, secretariat in IPSARD and DST personnel remuneration (all sala-
 ries and allowances) and administrative expenses (utilities, communica-
 tion, electricity etc.) of all counterpart staff. Furthermore duties and taxes
 on imported equipment and vehicles, and tax relief for international ad-
 visers and their imported personal belongings, if requested.


 5.2      Provincial Component
 As defined in chapter four, the immediate objective of the Provincial
 Component is:

 "Improved food security and standard of living of poor upland farmers,
 and especially ethnic minorities, through improved natural and human
 resources management and upland farming techniques"


 5.2.1 Component Structure, Strategy and Main Outputs
 The provincial component will focus on decentralised support to agricul-
 tural and rural development. The component will be anchored in the Peo-
 ple‟s Committee of the cooperation provinces and selected target dis-
 tricts. The five-year development plans 2006-2010 (both for each prov-
 ince in general and for the agriculture and rural development sector)
 serve as key guidance for the initiatives to be supported at local level.
 Within these provincial priorities, the component activities will be tar-
 geted at 2-3 poor districts in each province.

 The overall strategy of the Provincial Component is that all activities
 supported will be integrated in the general planning for the Province and
 the participating districts, communes and villages. In other words, the




                                                   37
ARD SPS 2007-2012                                                                38




 services provided under the programme would be demand based in line
 with local development plans.

 The target districts are dominated by upland agriculture and the majority
 of the rural population is from different ethnic groups. A special effort
 will be given to develop adequate responses to the need of these farmers.
 The main thrust of the Component is in organisation and training at
 farmer level. In Dak Lak and Dak Nong, the Provincial Component will
 assist and facilitate an accelerated agricultural land and forest allocation,
 as this area is crucial for the enhancement of the production potential of
 farmer groups and local communities.

 The main action of the programme will be in training of local farmers
 and rural entrepreneurs in technical and in marketing and planning is-
 sues. Training of planning and management staff at village, commune,
 district and province level will be carried out in order to accommodate
 interfacing between local level and higher level planning.

 The component supports the five target provinces through the existing
 Provincial Government structures, with the aim of improving services
 delivered to the poorest rural population.

 The component will strengthen:

 •   Local communities‟ ability to define and demand appropriate ser-
     vices from governmental as well as from private sector suppliers of
     know-how and technical in-puts

 •   Private and public service providers‟ abilities to support farmers‟
     and other rural entrepreneurs‟ demands in relation to business and
     market development, farming systems development, marketing, im-
     plements and other inputs etc.

 The planning process will ideally start at the village level or among the
 various interest groups, then be integrated into the Village Development
 Plan, the Commune and District Development Plans and finally into the
 Province Development Plan. At each level programme activities shall be
 fully coordinated with other activities to achieve optimum benefit from
 the total range of activities and exploit possible synergy effects. It shall
 be stressed that programme support shall not exclude the participating
 villages from other support – rather it shall be used to maximise benefit
 from such support. The planning will be in accordance with the general
 planning calendar of the Vietnamese government system.

 It is expected that working in FIGs rather than as individuals will facili-
 tate and strengthen the farmers access to a broad range of services includ-
 ing training and extension. Through these processes different groups of
 ethnic minorities have become more active participants in Vietnam‟s
 economy, and local planning system.




                                                  38
ARD SPS 2007-2012                                                                39




 Furthermore, activities at local level can be linked to new innovative re-
 search projects and, thus, establish the first opportunity for feedback to
 policies made at the central level.

 The expected situation at the end of the programme period is one in
 which the rural – mainly minority - population in the selected districts
 within the programme provinces are able to manage their households and
 farms, and other rural enterprises in a more sustainable manner and with
 enhanced profitability and food security. This is achieved by male and
 female farmers having organised themselves in farmer groups trained in
 technical and managerial aspects. They are visible to the authorities, par-
 ticipate actively in bottom-up planning and competitively utilize a
 broader range of service providers from both inside and outside the gov-
 ernment sector. They practice an improved natural resources manage-
 ment, crop production, animal husbandry, agro- forestry and forestry -
 also employing their successful local (indigenous) knowledge. They un-
 derstand better how to operate and increase production in fragile upland
 environments through knowledge of local landscape dynamics. They util-
 ize better marketing of the products and some traditional products are
 branded and labelled. They have reduced post harvest losses and have
 higher quality products, which are easier to market. They have an im-
 proved handicraft production and a more diversified income. They are
 better to plan and participate with their respective communes in the
 yearly planning activities, resulting in a more demand-driven planning
 process from village to provincial levels. In the central highlands people
 have been trained in land use classification and can undertake participa-
 tory land allocation. They have obtained land use certificates for forest-
 land and fallow lands.

 The province, district and commune authorities have an enhanced capac-
 ity to facilitate the utilization of the private and other service providers.
 These authorities, as well as other involved agencies, appreciate diversity
 in ethnicity, gender, environment and local knowledge and integrate
 these in facilitation and bottom-up planning.

 Men and women are involved in demand-driven planning and rural de-
 velopment activities according to their capacities and division of labour
 in the households. Take the diversity of farmers and their different needs
 and demands into account when planning of extension – and other ser-
 vices: Ensure that female-headed households, HIV/AIDS affected house-
 holds and land-poor households participate in training needs assessments
 and planning of extension activities in the villages – on equal terms with
 better-off farmers, and a budget is allocated to their special training and
 extension services. Allocate minimum 50% of the total village budget for
 female farmers‟ activities, and approximately 10% for HIV/AIDS af-
 fected and other vulnerable households‟ specific needs.

 The programme has thus contributed to the transformation from house-
 hold based farms, managed with inadequate technical knowledge, with
 fragmented and un-linked operations and with little attention to long term
 planning into a more modern, coherent household/group based rural en-


                                                  39
ARD SPS 2007-2012                                                              40




 terprises fully engaged in and operating under market conditions. Fur-
 thermore, it is expected that present overexploitation of natural resources
 for short term gains will decrease and that hitherto unprofitable forest
 lands will be managed in a more sustainable and profitable manner.

 Leaders and staff at all levels have been supported to upgrade technical
 and managerial skills.

 To meet the immediate objective of the Provincial Component and based
 on the Component strategy four Sub-components have been defined:

 1   Demand based Extension, Information and Training of Farmers

 2   Production, Storage, Processing and Marketing

 3   Local Planning and Capacity Building

 4   Support to Land Allocation (primarily in the Central Highlands)


 The main impact of the Component is

 -   Poverty in the Component districts reduced by 50 % from 2002 to
     2012 according to the new poverty line.

 -   Improved achievements of the calorie needs in the families, resulting
     in stunted children under 5 reduced by 50 % from 2002 to 2012.

 The overall achievements of the four sub-components are:

 1. At least 50,000 poor upland households in the target districts have
    organised themselves for training, for better visibility, and for com-
    mon action, and have been trained in agriculture, forestry, gender
    policy and natural resources management.

 2. At least 70,000 poor upland households in the target districts of the
    five provinces have improved their food security and achieved higher
    and stable income through improved natural and human resources
    management (e.g. more appropriate cultivation technology, sustain-
    able cultivation and forest management methods, introduction of
    more suitable and/or diversified crops, improved management of
    small livestock, improvement of local plant and livestock species).

 3. At least 5,000 poor upland households have improved their income
    from traditional and new products by reducing post-harvest losses
    and by improving quality, branding and market channels for their
    products. At least 30 new products have been labelled.

 4. At least 120 Province, 300 District and 1,000 commune staff in the
    five provinces have increased their capacity and participated in short-
    term and long-term bottom-up planning. At least 75,000 households


                                                 40
ARD SPS 2007-2012                                                              41




     have participated in the development of at least 300 local yearly
     commune plans and/or 900 village plans.

 5. At least 140 service providers (including WU and FU) have been
    trained at province level at least 300 at district level and 600 at com-
    mune level, and have improved their capacity in servicing, training
    and organising the farmers.

 6. At least 1,000 village leaders in the five provinces have increased
    their capacity and participated in short-term and long-term bottom-up
    planning for 900 villages, and are able to co-manage VDF with the
    commune staff.

 7. In Dak Lak and Dak Nong Province, administrative staff is able to
    carry out participatory forest land allocation and - land use certifi-
    cates for a total area of 10,000 ha have been issued on an intensive
    pilot basis, and as an up-scaling process – land use certificates for
    additional 30,000 ha have been issued. Farmers and other rural entre-
    preneurs can manage their natural resources safely within the law and
    have been introduced to all relevant administrative procedures in re-
    lation to e.g. change of land use classification, transfer of ownership
    etc.

 The following activities have been identified in order to achieve the de-
 fined outputs. A number of the activities will be interrelated and will be
 implemented accordingly. All activities will be revised and further tai-
 lored to meet the defined outputs during the component implementation
 and in particular during the inception phase.


 Outputs and Activities related to Sub-component 1: Demand
 based extension, Information and training of farmers
 The ARD SPS Provincial Component has a strong emphasis on strength-
 ening the capacity of both farmers and local government staff from vil-
 lage level to provincial level in agriculture and management of human
 and natural resources using bottom up and participatory approaches. To
 this end, the following outputs are expected:

 Output 1.1: The farmer groups have increased their capacity based on
 their expressed needs;

 Output 1.2: Local knowledge of natural resources management is pre-
 served;
 Output 1.3: The farmer groups have increased their capacity to read and
 write and perform simple arithmetic;

 Output 1.4: Information and training materials and libraries are made
 available to villagers;




                                                 41
ARD SPS 2007-2012                                                                42




 Output 1.5: Capacity of provincial and district authorities to deliver de-
 mand-based extension increased;

 Output 1.6: Local service providers at provincial, district, commune and
 village levels (including FU and WU) have increased their capacity / out-
 reach to provide demand based services to farmers;

 Output 1.7: Programme participants aware of crosscutting issues.


 The use of the bottom up approach requires that the capacity building for
 farmers start from forming farmer groups, in the ARD SPS context
 Farmer Interest Groups (FIGs). When organised in groups, farmers are
 ready to voice up their demands and increase their visibility to both pub-
 lic and private service providers. FIGs will serve as convenient set up for
 organising training events. Local mass organisations like FU and WU
 will assist the formation and function of FIGs and other groups.

 The farmers organised in FIGs will go through assessment of training
 needs, elaboration of training plans and materials. Training topics will
 include various technical issues such as basic crop production, animal
 husbandry and forestry together with literacy training, simple arithmetic
 and crosscutting issues. For non-Kinh speakers (the ethnic minorities)
 scripts are made available in their own language when necessary, so they
 can participate effectively. In addition, this issue can be effective dealt
 with, as the training shall to a high degree be based on training of trainers
 (ToT) and farmers to farmers (FtF) methodology.

 In the Northern provinces, competent farmers emerging from FIGs- both
 males and females of preferably local ethnic minority groups - will be a
 selected to be trained as trainers. In the Central Highlands young, dedi-
 cated male and female farmers of mainly ethnic minority origin, engaged
 in full time farming, will be trained as “master trainers” in all basic agro-
 nomic subjects including farm management.

 Gender issues and other cross cutting concerns such as HIV/AIDS, man-
 agement of natural resources in fragile environments will be supported.
 Trainers with relevant knowledge will be deployed to inform the farmers
 and farmer trainers of these various issues. The farmers and service pro-
 viders will be encouraged to take these concerns into consideration
 throughout the local planning process.

 Village and commune libraries will be established, and materials will be
 updated and procured. Materials regarding local knowledge related to
 farming and forestry will be compiled and documented.

 In addition, to help services of the government, mass organizations and
 private providers towards more demand-based and sustainable services,
 the Component will support capacity building in bottom-up planning,
 facilitation skills and participatory approaches for officers at the relevant
 local agencies and, to a lesser extent, business people.


                                                  42
ARD SPS 2007-2012                                                                  43




 Outputs and activities related to Sub-component 2:
 Production, Storage, Processing and Marketing
 This output seeks to improve the productive, management and marketing
 capacity of households and small-scale enterprises in the cooperation
 provinces. Therefore it aims at increasing profitability and incomes of the
 upland farmers. The following outputs are expected:

 Output 2.1: Improved models of technical practices based on a farm sys-
 tem approach and applicable to local conditions have been developed and
 tested in the target districts

 Output 2.2: Marketing chain and market potential of produces and prod-
 ucts from the target districts are identified and promoted

 Output 2.3: Post-harvest handling and storage improved

 Output 2.4: Traditional handicraft production has improved in quality
 and quantity

 Output 2.5: Improved production and income practices especially bene-
 fited to the poor are supported through the support from Commune or
 Village Development Funds

 Output 2.6: The operation and maintenance of small-scale irrigation in-
 frastructure in the cooperation districts has improved

 This sub-component take the group-based approach and integrated farming
 system as a point of departure in designing its outputs and associated activi-
 ties. Productive, management and marketing capacity of the target groups
 will be upgraded through the introduction of technologies, "models" and
 practices that work well in other parts of the country. Potential technologies,
 "models" and practices will be selected and piloted in the local conditions
 regarding climate, topography, soil quality, transportation and other socio-
 economic and cultural aspects. Improved practices and „models‟ may in-
 clude areas such as natural resources management, farming systems, for-
 est management, varieties, breeds, post harvest handling.

 Specific support vis-à-vis marketing includes commissioning marketing
 feasibility studies, training of farmer groups in market related subjects
 and in business development and branding of produces and products
 which may include local rice varieties, maize, soy bean, plums, chutney
 processing, pineapple processing, tea, non timber forest products, wood
 processing, local pig, poultry, cattle breeds, and handicraft. Support spe-
 cific to small-scale businesses may include forming cooperation in pro-
 duction and marketing, building up of trade marks and brands, trade
 promotion and support to local marketing initiatives for promising agri-
 cultural products, forest products and handicrafts. Support specific to
 post-harvesting may include group training and training of individuals,
 support to post harvest handling including storage facilities and on-farm


                                                   43
ARD SPS 2007-2012                                                              44




 processing through the FIGs, FFCs and CDF or VDF and dissemination
 of successful models by incorporation into local planning. Experiences
 from the ASPS post-harvest component and the ARD SPS central com-
 ponent will be disseminated to farmers, local authorities and other in-
 volved agencies and integrated into planning as appropriate.

 Support specific to local traditional handicraft includes study on existing
 skills and market potentials, retrieving existing handicraft skills and us-
 ing them in the training and combining with outside technologies (bam-
 boo knit, weaving, brocade, etc) and provision of tools and equipment for
 the groups (from the CDF or VDF).

 Support specific to the operation and maintenance of small-scale irriga-
 tion infrastructure includes establishment of user groups with their inter-
 nal regulations and user fees and training of the members.

 Dissemination of successful technologies, "models" and practices will be
 made by incorporation into local planning process.

 Outputs and activities related to Sub-component 3 – Local
 Planning and Capacity Building

 This output seeks to facilitate the active participation and ownership of
 the farmers into the implementation process of the Component through
 local planning via CDFs and VDFs. As this is a new approach, capacity
 building for local government officers and farmers is an essential part of
 this sub-component. Expected outputs include:


 Output 3.1: Government officers at all levels (from village, commune,
 district and province) have increased its capacity, particularly in bottom-
 up planning.

 Output 3.2: Demand-driven planning implemented at all levels and up-
 graded every year.

 Output 3.3: Planning capacity at household level improved. [Only in the
 Central Highlands].

 Output 3.4: Lessons learnt and experiences are disseminated

 Support specific to capacity building, particularly in bottom-up planning
 for government officers at all levels include training needs assessment,
 training in bottom–up planning and participatory approaches, study tours
 to other communes, districts or provinces to learn from experiences in
 natural resources management, agriculture and forestry bottom-up plan-
 ning will also be supported. The communes‟ equipment can be upgraded
 after an assessment. In addition, bottom-up planning procedures at local
 level, regulations for approval and overall guidance of the provincial
 planning authorities will be developed together with a system for feed-
 back of information from communes, villages, FIGs and FFCs. In paral-


                                                 44
ARD SPS 2007-2012                                                               45




 lel, CDF and VDF will be established together with their rules and pro-
 cedures for application, approval and use of the fund. The operations of
 the CDFs and VDFs will be incorporated into the local planning system.
 .

 Lessons learnt and experiences should be documented and disseminated
 via organising study tours among the 5 provinces and conduct workshops
 with other provinces and with research institutes and MARD‟s depart-
 ments.



 Outputs and Activities related to Sub-Component 4 - Support
 to land allocation (in the Central Highlands)
 This sub-component support the acceleration of land allocation process
 in Dak Lak and Dak Nong provinces through support to training, infor-
 mation sharing as well as provision of technical assistance. Expected
 outputs include

 Output 4.1: Farmers knowledge in participatory land allocations and leg-
 islation related to natural resources management and land uses manage-
 ment improved

 Output 4.2: Land use certificates allocated to small landholders

 Specific support to training and information sharing includes short train-
 ing in the legal and administrative framework and procedures provided to
 all interested households. It includes introduction to laws and regulations
 for environmental protection, forest protection, land use classification
 etc. The training will also introduce relevant administrative procedures
 relating to change of land use purposes, temporary or permanent transfer
 of ownership or user rights, inheritance etc. In addition, training of farm-
 ers and local technical staff on the economic potential of agricultural and
 forest land allocation, various ownership forms and participatory land
 allocation procedures including identification and allocation of individual
 plots, demarcation, mapping etc.

 Support specific to technical assistance in piloting allocation of land use
 certificates to small landholders includes identification of potential land
 (including fallow land) for allocation, demarcation and registration of
 5,000 ha land allocated in a participatory approach. If the pilot land allo-
 cation is successful a further 15,000 ha will be allocated. Development of
 a manual for participatory land allocation based on experiences gained
 through the pilot phase and revise official procedures for land allocation
 and registration.




                                                  45
ARD SPS 2007-2012                                                              46




 5.2.2 Inputs to the Provincial Component

 Inputs of Danida:
 Sub-Component 1: Funding for facilitation of farmer groups; training of
 FIG by farmer trainers; training of FIG and FFC by professional trainers
 in technical fields and crosscutting issues as well as training material.

 Training needs assessment and subsequent conduction of training pro-
 grammes for existing and potential local service providers will be
 funded. Gender consultants will be recruited to plan and conduct gender
 sensitivity training and to train local gender specialists. HIV/Aids con-
 sultants will be recruited to assess the need for HIV/Aids awareness, ac-
 tivities and local capacity building. Environmental awareness, e.g. on
 forest protection and land degradation, will be inherent in the training.


 Sub-Component 2: Funding for testing, piloting and documenting im-
 proved technical practices; feasibility studies and other studies; Com-
 mune or Village Development Funds.

 Funds will also be made available for developing training materials for
 the most successful technologies to be introduced on a larger scale. With
 regard to irrigation schemes in the target districts, irrigation management
 consultants will be funded to carry out surveys to identify potential
 schemes for establishment of user groups and subsequently to train the
 group members.

 Sub-component 3: Funding for facilitation of bottom-up planning and
 participatory approaches, study tours, improvement of equipment, shar-
 ing experience initiatives.

 Sub-component 4: Funding for training, consultancy in land classification
 & registration, pilot demarcation and registration of 10,000 ha land and
 another 30,000 ha land if pilot is successful.

 Substantial Technical Assistance (TA) will be mobilised from national
 resources, mainly outside the province (and possibly some by interna-
 tional TA). Preference will be given to use of national consultants re-
 cruited under contracts with institutions or consultancy firms. During the
 inception phase provinces and especially districts need substantial tech-
 nical assistance from national and international short-term consultants.

 Initially, and subject to assessment after one year, in each province one
 Support Officer, who will support the Province Co-ordinator, an ac-
 countant and a secretary cum interpreter will be funded. In each district
 one District Support Officer will be funded. The salaries will follow the-
 salary structure of the Government of Vietnam.

 In the Provincial Component's there is budgeted with 50 person-months
 international and regional consultancies. There can be some more inter-



                                                 46
ARD SPS 2007-2012                                                                 47




 national – and especially regional consultancy or training inputs to the
 training, capacity building and piloting.

 There will be a few local consultancies undertaken by consultants under
 individual contracts – often linked to the regional and international con-
 sultancies, while most local consultants and trainers will be contracted
 through institutions, and such contracts will constitute a large part of the
 budgets for training and capacity building.

 Inputs of the Government of Vietnam:
 Duties and taxes on imported equipment and vehicles, and tax relief for
 international advisers and their imported personal belongings, if re-
 quested.

 At the provincial and district level Peoples Committees at province and
 district level will provide:

 Office facilities in DARD for the adviser and the Steering Committee
 management unit, personal emoluments (all salaries and allowances) and
 administrative expenses (utilities, communication, electricity etc.) of all
 counterpart staff.


 5.3      Technical Assistance                  Support         and      Exit
          Strategy for Advisers
 The Central Component's technical advisory inputs are a long-term inter-
 national agriculture and rural development sector adviser and short-term
 international and local consultancies.

 The Provincial Component's technical advisory inputs are three long-
 term international rural development advisers and short-term interna-
 tional and local consultancies. It is assumed that there will be a fairly
 heavy input of local and national consultants in preparing administrative
 and financial procedures, training accountants etc. Furthermore it is fore-
 seen that the provinces and especially districts may need technical assis-
 tance from national and international short term advisors in devising ad-
 ministrative procedures, preparing Terms of Reference for the various
 activities, assessing proposals and carry out internal monitoring and qual-
 ity control.

 The role of the international TA is principally to facilitate international
 best practices to the areas, which generally are rather isolated and has
 relatively little experience with participative methodologies, demand-
 based training and technical assistance, and participation of the private
 sector. It is considered that this TA will be crucial to make sure that the
 support will not simply be “business as usual”, just with more funding,
 but that it will also imply a qualitative lift in the activities. An important
 role for the adviser will be to help the province identify suitable short-
 term TA, international, regional and national.




                                                   47
ARD SPS 2007-2012                                                                48




 The advisers will in particular support the processes of local level plan-
 ning, exchange of information and experiences between provinces and
 between the provinces and the central level. However, one key task will
 also be to motivate all counterparts to take responsibility and interest in
 the culture and indigenous knowledge of the ethnic minorities.

 It is a key responsibility of all long-term advisers that they see their role
 as giving technical assistance and act as facilitators in the processes sup-
 ported by the ARD SPS.

 Due to the complexity of the introduction of new processes of bottom up
 planning and demand based public and private service deliveries all three
 long-term advisers are deemed needed for the full period.

 The adviser in the central component will support IPSARD in a capacity
 building process which includes: developing the institute‟s strategy, hu-
 man resource development of staff, and investment in new ARD policy
 and strategy research mechanism and instruments.

 The adviser will also support DST to introduce new modalities of re-
 search as collaborative research management across institutions inside
 and outside MARD and focussed research on policy and strategy devel-
 opment under the Science and Technology Advisory Board.

 Such functions and mandates are new to Vietnam. However, DST and
 IPSARD management have clear views and strong aspiration to develop
 IPSARD into an ARD policy and strategy “Think Tank” and to develop
 collaborative research programmes for upland faming, which can be sup-
 plemented and turned into action with the assistance of an international
 adviser.

 The adviser could stay up to 4-5 years to support for the programme and
 then be phased out. ASR will do an assessment of this after 3 years.

 It is thus envisaged that all four advisers will be needed for the full pe-
 riod, the central adviser could, however, be phased out after four years.
 The annual review during the 3rd year of implementation will look espe-
 cially at the issue of the exit strategy for the central adviser and at the
 scope of work for the advisers in general.


 5.4      Target Group Involvement
 The target groups will be involved through the planning procedures,
 which will start at farmers groups and village level. Special emphasis
 will be made to ensure that the services systems will become more re-
 sponsive to the farmers‟ needs. As a large part of the target groups will
 belong to ethnic minority groups, there will also be various measures to
 ensure that language barriers do not prevent them from being involved.
 Thus training material will take into account that only a small proportion
 of the main target groups speak and understand Vietnamese sufficiently
 well to benefit from conventional training. Furthermore, many, especially


                                                  48
ARD SPS 2007-2012                                                               49




 women, are illiterate. Training and information material used by the pro-
 gramme must take this into account and in most instances new material
 will be produced or translated.

 On the other hand extension workers and trainers must acknowledge that
 local farmers possess a wealth of knowledge in relation to farming and
 forestry and try to integrate this knowledge in their information and train-
 ing. It is important that this knowledge is acknowledged by the trainers,
 “activated” and transformed into a modern context.

 In order to support consultations involving all otherwise, marginalized
 groups, the component will emphasise planning at the village level,
 where the villages, even in ethnic complex communes, often will consist
 of one ethnic group and consist of people who are ready to cooperate,
 although some segmentation exists also at this level. The village must be
 seen as the basic unit for community involvement, in order to promote
 participation.

 The formation of the FIGs is an important element of the implementation
 strategy. Being organised in these groups driven by of common interests
 will empower the poor farmers to formulate their demands for services
 and to receive the training they are demanding. In other words, it is ex-
 pected that working in FIGs rather than as individuals will facilitate and
 strengthen the farmers access to a broad range of services including train-
 ing and extension.

 Through its group approach linked to bottom-up planning, the ARD SPS
 emphasises to make marginalized groups visible and give them voice in
 relation to the local government at commune and district level.




                                                  49
ARD SPS 2007-2012                                                              50




 6         Budget
 The total budget of ARD SPS is 230 million DKK. Main budget lines are
 as follows.

 OVERALL PROGRAM, ARD SPS 2007 – 2012

 PROGRAM                        Mill DKK   Mill USD       Mill VND     % of Total

 Central Component                 28.11           4.53      72,542         12.22
 Provincial component             162.04      26.14         418,168         70.45
     Dak Lak                       32.88           5.30       84,852        14.30

     Dak Nong                      25.86           4.17       66,735        11.24

     Lao Cai                       32.64           5.26       84,232        14.19

     Lai Chau                      33.65           5.43       86,839        14.63

     Dien Bien                     37.01           5.97       95,510        16.09

 International Advisers            20.00           3.23      51,613          8.70

 Program level

 Monitoring Committee and
                                    0.30           0.05         774          0.13
 Program management unit
 Annual review and monitoring       3.00           0.48       7,742          1.30

 Special auditing                   0.70           0.11       1,806          0.30

 Consultancies                      1.05           0.17       2,710          0.46

 Unallocated                       14.80           2.39      38,194          6.43

 TOTAL BUDGET                     230.00      37.45         593,548           100




                                              50
ARD SPS 2007-2012                                                                                        51




 The Annual planned expenditure is as follows

 OVERALL PROGRAM, ARD SPS 2007 – 2012

 Million DKK
  PROGRAM                           2007      2008      2009         2010         2011       2012        Sum

  Central Component                   1.34      9.31         5.88          5.73     3.28       2.58            28.11

  Provincial component

      Dak Lak                         3.05      7.77         8.63          6.58     4.92       1.93            32.88

      Dak Nong
                                      2.27      7.20         6.76          5.16     3.79       0.67            25.86
      Lao Cai                         2.51      7.79         8.32          6.81     5.35       1.85            32.64

      Lai Chau                        2.71      7.87         8.58          6.86     5.52       2.11            33.65

      Dien Bien                       2.90      8.85         9.17          7.13     6.05       2.91            37.01

  International Advisers              2.00      4.00         4.00          4.00     4.00       2.00            20.00

  Program level

  Monitoring      Committee   and
                                      0.05      0.05         0.05          0.05     0.05       0.05             0.30
  Program management unit

  Annual review and monitoring        0.50      0.50         0.50          1.00     0.50                        3.00

  Special auditing                    0.10      0.10         0.10          0.10     0.10       0.20             0.70

  Consultancies                       0.00      0.30         0.30          0.30     0.15                        1.05

  Unallocated                                                                                                  14.80

  TOTAL BUDGET                       17.43     53.74        52.29      43.72       33.71       14.3           230.00



 The contribution to the budget from the Vietnamese Government will
 mainly be in terms of salary for personnel as well as expenditures for of-
 fices and maintenance. The Ministry of Finance will reconcile and allo-
 cate counterpart funds for the programme annually.

 The counterpart funds for the overall programmes are:

                                    Provincial comp.         Central comp.                 Total Budget (Mill)
                                      VND        DKK              VND             DKK           VND            DKK

  Personnel remuneration             12,905          5.00        1,329.5          0.51        14,234.5          5.51

  Administrative expenses             8,684          3.37        2,965.5          1.14        11,649.5          4.51

  Total                              21,589          8.37        4,295.0          1.65         25,884          10.02




                                                            51
                ARD SPS 2007-2012                                                                       52




                 Central Component

                 The budget for 2007 to 2012 is 28.11 million DK as shown below. De-
                 tailed budget is in Annex 2).

                 Budget for Central component, ARD SPS 2007- 2012


Outputs                                                        Mill DKK    Mill USD         Mill VND           %
Output 1-Policy and strategy development                          16.20           2.61        41,806           56
Output 2- Innovative approaches for sustainable upland live-
                                                                    7.53          1.21        19,432           28
lihoods

Implementation                                                      2.33          0.37         6,013            8

Total activities and implementation                               26.06           4.21        67,251           92

Contingency (10%)                                                   2.06          0.33         5,316            8

Total                                                             28.11           4.53        72,542          100



                 Budget for Central Component by year, ARD SPS 2007-
                 2012

                                                                                                       Budget
Sub-components & Outputs                          2007     2008   2009     2010      2011      2012    Mill DKK
Sub-component 1- Policy and strategy
                                                  0.88     5.53    3.05    3.35      1.63      1.78          16.20
development

Sub-component 2- Innovative approaches
                                                  0.38     2.70    1.80    1.30      0.98      0.38           7.53
for Upland livelihoods

Implementation& administrative support            0.03     0.58    0.53    0.58      0.38      0.23           2.33

Consultancies                                         -    0.30    0.30    0.30      0.15         -           1.05
Annual review                                              0.20    0.20    0.20      0.20      0.20           1.00
Audit & Value for Money Audit                      0.03    0.08    0.03    0.08      0.03      0.03           0.28

Total activities and implementation                1.28    8.81    5.38    5.23      2.98      2.38          26.06

Contingency                                       0.06     0.50    0.50    0.50      0.30      0.20           2.06

Total                                              1.34    9.31    5.88    5.73      3.28      2.58          28.11



                 The Component Coordination Unit (CCU) budget covers only running
                 costs while staff cost will be paid by IPSARD, except one accountant and
                 interpreter positions will be financed from the ARD SPS programme.




                                                                   52
                                 ARD SPS 2007-2012                                                                                53




                                     The budget is based on estimated cost of technical assistance and activi-
                                     ties related to facilitation and research grants to achieve the two outputs.
                                     The budget is indicative and therefore the actual disbursement will be
                                     based on annual work plans with detailed cost estimates calculated on the
                                     basis of cost norms agreed between GOV and EOD.

                                     The counterpart funds of the central component:

                                                                    IPSARD                    DST                   Total Budget (Mill)
                                                                  VND     DKK            VND          DKK              VND             DKK
                                      Personnel remuneration       600.5   0.23           729.0        0.28           1,329.5           0.51
                                      Administrative expenses    1,721.9   0.66         1243.6         0.48           2,965.5           1.14
                                      Total                      2,322.4   0.90         1,972.6        0.76           4,295.0           1.65




                                     6.1       Provincial Component
                                     The budget for 2007 to 2012 is 162.04 million DKK as shown below.


                               Dak Lak           Dak Nong         Lao Cai         Lai Chau           Dien Bien              Budget
                             Mill.     % of     Mill.   % of    Mill.   % of    Mill.    % of       Mill.     % of       Mill          % of
Sub-components               DKK       Total    DKK     Total   DKK     Total   DKK      Total      DKK       Total      DKK           Total
Sub-Component 1:
Demand based Extension,
                             8.89      27.04    7.14    27.61   10.43   31.95   11.48    34.12      13.78     37.23      51.72         31,92
Information and Training
of Farmers
Sub-Component 2: Pro-
duction, Storing, Process-   10.67     32.45    8.28    32.02   11.70   35.85   11.72    34.83      11.79     31.86      54.16         33,42
ing and Marketing
Sub-Component 3: Capac-
ity Building and Local       3.64      11.07    2.60    10.05   2.35    7.20    2.33         6.92   2.45      6.62       13.37         8,25
Planning
Sub-Component 4: 4 Sup-
port to Land allocation
                             1.20       3.65    1.14     4.41     -       -       -           -       -         -         2.34         1,44
(primarily in the Central
Highlands)
Preparation activities       0.60       1.82    0.60     2.32   0.60    1.84    0.60         1.78   0.60      1.62        3.00         1,85

TOTAL ACTIVITIES             24.99     76.00    19.76   76.41   25.07   76.81   26.13    77.65      28.62     77.33      124.57        76,88

Implementation and ad-
                             4.90      14.90    3.75    14.50   4.60    14.09   4.47     13.28      5.03      13.59      22.75         14,04
ministrative support

Contingency                  2.99       9.09    2.35     9.09   2.97    9.10    3.06         9.09   3.36      9.08       14.73         9,09
TOTAL Mill DKK               32.88      100     25.86    100    32.64   100     33.65        100    37.01     100        162.04        100
                                     Detailed budget in Annex 2




                                                                                        53
                         ARD SPS 2007-2012                                                             54




                          Budget for Provincial Component, ARD SPS 2007- 2012


                          The yearly expenditure will only be provided in the provincial annexes.

                          The counter funds of the provinces are:

                    Dak Lak       Dak Nong       Lao Cai         Lai Chau       Dien Bien    Budget (Mill)
                 VND DKK        VND DKK        VND DKK        VND DKK         VND DKK         VND DKK
Personnel re-
muneration       2,039   0.79   2,384   0.92   4,037   1.56   2,279   0.88    2,166   0.84    12,905   5.00
Administrative
expenses         1,461   0.57     891   0.35     294   0.11   3,699   1.43    2,339   0.91     8,684   3.37
Total            3,500   1.36   3,275   1.27   4,331   1.68   5,978   2.32    4,505   1.75    21,589   8.37



                          6.2       Unallocated Funds
                          DKK 14.80 million will remain unallocated at the start of the ARS SPS.
                          The unallocated funds are reserved for new activities. It has been the ex-
                          perience that a set-up like the present ASPS has been able to respond
                          very fast to specific needs in combating the Avian Influenza. The unallo-
                          cated funds can also be used to respond rapidly on eventual instant needs
                          in the future similar to way the present programme has been able to fight
                          the avian influenza.

                          The Programme Monitoring Committee decides over the unallocated
                          funds.




                                                                         54
ARD SPS 2007-2012                                                              55




 7        Management and Organisation

 7.1      Overall Coordination

 Management of the ARD SPS will take place on an overall level and on
 daily level. The Monitoring and Steering committees are overall
 structures, whereas Programme Management Units (PMU), District
 Coordination Units, Commune Coordination Units and Village
 Development Councils are daily management structures.

 Monitoring Committee
 A Monitoring Committee consisting of MARD leadership (co-chair), the
 Ambassador EOD (co-chair) and representatives from MPI, MOF and the
 5 participating provinces will monitor the programme.

 The monitoring committee will only be responsible for overall monitor-
 ing of the progress, distributions of unallocated funds and possible real-
 location of funds between the components and between the provinces.
 Reallocation between provinces will only take place in critical situations.

 The Monitoring Committee will meet at least once per year.

 In accordance with the Government of Vietnam requirements, MARD
 establishes a Programme Management Unit (PMU) to manage, coordi-
 nate and implement the program on a daily basis at the central level. This
 PMU is í the same as the Component Coordination Unit (CCU) and will
 be referring to MARD for both the central and provincial components.


 The CCU will support the committee and will be responsible for compil-
 ing necessary documentation for monitoring of progress and for decision-
 making regarding essential changes and critical situations.


 7.2      Central Component Management

 Central Component Steering Committee
 Basically all management issues will be decided at component level, only
 essential changes of the component shall be taken to the overall ARD


                                                 55
ARD SPS 2007-2012                                                              56




 SPS Monitoring Committee. Such changes could be reallocation of
 budgets between components due to different paces of progress. Reallo-
 cations between components will only take place in critical situations.

 A Vice-Minister of MARD will co-chair the Central Component Steering
 Committee together with EOD and the Director of IPSARD will be sec-
 retary. Members of the Steering Committee shall include representatives
 from MARD, IPSARD, ARD SPS Provinces, HAU, MoNRE, MOST,
 and Committee for Ethnic Minorities (CEM). The Steering Committee
 shall as a minimum meet twice a year.

 The Mandate of the Steering Committee is to:

 •   Provide overall guidance to the central activities based on the Com-
     ponent Description and in line with national and provincial devel-
     opment plans.

 •   Be responsible for and take all major decisions related to the imple-
     mentation of the Central ARD SPS Component including:

     -    Semi-annual and annual progress plans
     -    Yearly activity plans and budgets
     -    Major revisions and alterations of existing plans e.g. realloca-
          tion of budgets between sub-components depending on imple-
          mentation capacity
     -    Monitoring of yearly activity plans and budgets
     -    Accumulate from districts and provide feedback to the central
          policy level


 Central Component Coordination Unit
 The director of IPSARD will be the Central Component Coordinator and
 host the Component Coordination Unit (CCU) that serves as a secretariat
 for the Central Component Steering Committee and the Monitoring
 Committee as well as the coordination unit for DST. CCU will prepare
 annual work plans (with inputs of IPSARD and DST for their respective
 managed Outputs), and will be responsible for reporting and monitoring
 for the Central Component. CCU will also be responsible for the aggre-
 gation of work plans and consolidated budgets from the ARD SPS prov-
 inces to present in monitoring reports, progress reports, to the monitoring
 committee and on request. CCU has no responsibility for the quality of
 the input from provinces. Assigned regular staff of IPSARD will operate
 the unit.

 The CCU will be responsible for coordination of the planning and im-
 plementation of all activities in the Central Component. One international
 adviser (terms of reference in annex 3) will assist IPSARD and DST with
 implementation and capacity building.

 Technical assistance will be made available to IPSARD, DST or other
 MARD department for advisory purposes only. In practical terms, short-


                                                 56
ARD SPS 2007-2012                                                             57




 term technical assistance (national and international) will be provided
 upon Vietnamese request supported by specific terms of reference.

 The management structure is outlined below:

 -   The Central Component ARD SPS Steering Committee will approve
     progress reports, annual work-plans and budgets prepared by CCU.
 -   Take appropriate action on audit reports.
 -   Accounts are prepared by IPSARD for output 1 and DST/DOF in
     MARD for output 2 and consolidated by CCU before submission to
     MOF.
 -   The CCU will collect and aggregate the monitoring reports, semi-
     annual progress reports, annual reports, quarterly consolidated fi-
     nancial reports, indicators and other programme level documentation
     for both the Central Component agencies and Provincial Component
     Provinces. The CCU only collects and aggregates these inputs, while
     the individual provinces have the responsibility for the quality and
     timeliness of inputs.
 -   The CCU will facilitate annual Planning of activities of the Central
     component.
 -   The CCU can facilitate activities that are general to both the Central
     and Provincial Component
 -   The research programme for the Upland Livelihoods Research
     Group (ULRG) is submitted by the ULRG for approval by Science
     and Technology Advisory Board and the funds allocation will follow
     Science and Technology Advisory Board‟s normal procedures. Ap-
     proved activities are managed directly by the relevant department or
     leading collaborative research institute.


 In Annex 1 the organisational chart for whole ARD SPS is presented.


 Content Management
 The Central Component will have two distinct sub-components. While
 there are some differences in the contents and nature, the modality of op-
 eration shares several common issues, especially regarding research for-
 mulation and implementation process. This commonality of two sub-
 components makes it reasonable to design a unified mode of manage-
 ment as follows:

 Most of the activities in the component will be closely related to
 IPSARD capacity building and policy support within MARD. Therefore,
 IPSARD is the focal point for the central component management. The
 Department of Science and Technology will also be involved.

 IPSARD will be in charge of Output 1. The Department of Science and
 Technology will be in charge of Output 2. For Output 2.2, the Science
 and Technology Advisory Board will undertake research guidance, ap-
 proval and evaluation.



                                                57
ARD SPS 2007-2012                                                               58




 7.3       Provincial Component Management
 A Steering Committee will be set up in each province for the overall
 management of the component. A Vice-Chairman of the Peoples Provin-
 cial Committee will co-chair the Steering Committee together with EOD.
 Members of the Steering Committee shall include representatives from
 DARD, DoNRE, DOST, DPI, DOF, CEM, the Province Treasury, FU,
 WU and the Chairpersons of the participating districts. The Department
 of Agriculture and Rural Development shall function as administrative
 secretariat of the Steering Committee. The Steering Committee shall as a
 minimum meet twice a year.

 The Mandate of the Steering Committee is to:

 •     Provide overall guidance to the provincial activities based on the
       Provincial Component Description and in line with national and
       provincial development plans.

 •     Be responsible for and take all major decisions related to the imple-
       mentation of the Provincial ARD SPS Component including:
       -   Yearly activity plans and budgets
       -   Major revisions and alterations of existing plans e.g. realloca-
           tion of budgets between sub-components and between districts
           depending on implementation capacity

 •     Monitoring of yearly activity plans and budgets

 •     Approve progress reports and take appropriate action on audit re-
       ports

 •     Accumulate from districts and provide feedback to the central policy
       level

 •     Facilitate participation of other provinces in activities on issues of
       general interest, e.g. lessons learned.


 Provincial Programme Management Units

 In accordance with the Government of Vietnam requirements, DARD
 establishes Programme Management Units (PMU) to manage, coordinate
 and implement the program on a daily basis at the provincial level.

 Staff:
 DARD shall assign staff for daily management of all activities in the
 provincial component in coordination with the central component and the
 other provinces. The staff will be assigned according to the commitment
 by counterpart funds but will not be limited to this amount.




                                                  58
ARD SPS 2007-2012                                                               59




 Detailed management structure for each province is described in the an-
 nexes and further in the organizational manual for ARD SPS.

 The secretary for the Steering Committee, typically the Director or Vice-
 director of DARD will serve as the leader of the PMU and be the ARD
 SPS Province Coordinator.

 Support staff:
 Based on the training needs assessment findings, each province is offered
 the initial support of an accountant, a support officer and a secretary cum
 interpreter. After one year an assessment will be made to establish
 whether the support of the staff reimbursed by the program should con-
 tinue. In addition to this the program will fund an international adviser to
 support implementation.

 A key task for the support officer will initially be to help strengthening
 the existing monitoring and evaluation system at province and district
 level.

 The accountant shall assist a chief accountant appointed by the province.

 The secretary cum interpreter will mainly support the adviser and fulfil
 other supporting functions.

 DARD shall employ the three staffs under ordinary national contracts but
 salaries shall be reimbursed by the Component.

 To ensure that the PMU can work effectively and efficiently it may need
 the assistance of local, national and international consultants in preparing
 administrative and financial procedures, preparing Terms of Reference
 for the various activities, assessing proposals and carry out internal moni-
 toring and quality control.

 The international adviser, which in all cases except Dien Bien will be
 shared with another province, shall refer to the Province Coordinator.

 Responsibilities:
 1. The PMU will manage, coordinate and implement the four sub-
    components of the provincial component and its activities.

 2. The PMUs are responsible for preparing the work plans, the progress
    reports, consolidated financial reports, monitoring reports, etc. The
    Central Component Unit (CCU) will aggregate these reports, but the
    provincial PMUs have the responsibility for the quality and timeli-
    ness of the inputs.

 3. It is also the responsibility of the PMU to ensure participatory moni-
    toring of ARD SPS and to ensure gender and ethnic minorities eq-
    uity, environmental issues and practice good governance. It must also
    be a priority of the PMU to ensure an equal participation of males
    and females from stakeholder organisations/units in the monitoring


                                                  59
ARD SPS 2007-2012                                                              60




     activities and decision-making meetings on all levels. The PMU
     should coordinate and harmonise with other programs, donors, GoV
     departments, NGOs and service providers on monitoring and evalua-
     tion systems in order to avoid duplication and be more effective.

 4. The PMU shall assist the Steering Committee as well as the Districts
    Coordination Committee (DCC) in planning, reporting, development
    of standards and procedures, monitoring, evaluation, consolidation of
    accounts etc.

 5. The PMU provides the Steering Committee‟s members with meeting
    agenda, relevant documents at least one week before the meeting
    date.

 6. The PMU is responsible for recording the minutes of the Steering
    Committee meetings and send the minutes to the members within 7
    working days after the meeting date.

 District and Local Level
 At district level a District Coordination Committee (DCC) (correspond-
 ing to a District Programme Management Unit) shall be set up in each of
 the participating districts. The DCC shall be headed by the chairperson or
 Vice-chairperson of District Peoples Committee and include a leader of
 the Economic Section (function as District Coordinator), a chief account-
 ant, representatives of the participating communes, Financial and Plan-
 ning Section, District Extension Centre, DoNRE, Farmers Union,
 Women Union and a support officer for initial support (continued support
 to be assessed after one year). Except one initial support officer is reim-
 bursed from the programme using the government salary structure, other
 positions of the DCC is paid from the counterpart funds.The recommen-
 dations of the training needs assessment will be incorporated in the de-
 tailed ToR for the DCC staff.

 The DCC shall be responsible for coordination and aggregation of com-
 mune and village plans and initiate, manage and monitor activities re-
 lated to these plans. Furthermore, the DCC is responsible for preparing
 district wide inputs to the PMU and Provincial Steering Committee. The
 DCC shall meet every month or if necessary more often. Detailed re-
 sponsibilities, work procedures etc. shall be developed during the pre-
 inception phase.

 Furthermore, the DCC shall facilitate communication between vil-
 lage/commune level and the district level, and between the district level
 and the province level. The DCC shall also provide relevant feedback to
 the Central Component/national policy level. The international adviser
 will spend most of his/her working time by providing assistance to the
 district DCCs. Furthermore, it is anticipated that the DCC may need
 technical assistance from national and international short-term consult-
 ants in devising administrative procedures, preparing Needs Assessments
 for the various activities and carry out internal monitoring and quality
 control.


                                                 60
ARD SPS 2007-2012                                                           61




 It is assumed that the local administration at village and commune level
 shall be able to accommodate planning and execution of component ac-
 tivities. It is foreseen that the communes shall create a commune based
 coordination committee. At the village level, a Village Development
 Council could be established to coordinate village development plans,
 farmer interest groups and other interests of the village people.

 All management and administrative units involved in the Provincial ARD
 SPS Component will be managed strictly according to national rules and
 regulations. These entities will not in anyway involve Danida and will
 only in exceptional cases obey special rules (possibly within procure-
 ment).

 Management charts are attached in Annex 1.




                                               61
ARD SPS 2007-2012                                                            62




 8           Financial                   Management                and
             Procurement
 With two exemptions, it is the goal to budget and channel the funds un-
 der the ARD SPS through the Vietnamese financial system as described
 below. The exemptions are international and individual local consultants
 that are recruited by the EOD to support for the programme.

 Danida‟s anti-corruption policy2 must be adhered to. Mismanagement of
 funds as defined in Danida‟s policy shall be refunded by the relevant
 government institution and brought to the Central Steering Committee
 for mismanagement on the Central component and to the relevant Pro-
 vincial Steering Committee for mismanagement on the Provincial com-
 ponent for possible further action. The overall ARD SPS Monitoring
 Committee must be informed about all such cases and follow-up action
 taken.

 Funds will be transferred through the Vietnamese financial system i.e.
 funds will be transferred to the Central State Treasury and from there to
 IPSARD‟s and Office of MARD‟s (for DST) account in Treasury and
 Provincial State Treasury in the five provinces respectively.


 Budget approval Procedures

 ARD SPS will follow the Vietnamese system i.e. the budget should be
 incorporated into MARD‟s budget and thus be part of the state budget.
 Due to the Vietnamese budget cycle, where the budget process starts in
 March, it will only be possible for the ARD SPS budget to be fully in-
 corporated into the normal state budget planning and approving cycle as
 of 2009 until then the budget will be considered as additional budget.

 During the first six months of the Inception period of the Programme
 (end of 2007 and beginning of 2008), the programme will not have ap-
 proved work plans. The work plans and budget for the inception period
 and the budget of 2008 including counterpart funds will be prepared in
 the pre-inception period, and then approved by the first Steering Com-
 mittee meetings in the different components and provinces. After the ap-
 proval in the Steering Committee the budgets will be consolidated into

 2
     Danida Action Plan to Fight Corruption, 2003-2008


                                                         62
ARD SPS 2007-2012                                                            63




 the programme budget by the CCU and sent to MARD – Department for
 Finance that will then send to the Ministry of Finance for subsequent ap-
 proval by the Vietnamese Government.

 The CCU and Provincial PMU should update the budget at least twice a
 year and submit the budget to the steering committees for approval.

 The annual budgets will be prepared in VND. However, the total budget
 in VND for the whole programme period cannot exceed the committed
 programme funds in DKK.


 Accounts, Flow of Funds and Financial Reporting
 Central State Treasury (CST) will open a capital account for the whole
 programme. Funds will be transferred to capital accounts within CST
 with regards to IPSARD and DST and within Provincial State Treasury
 with regards to the provinces. During the inception funds can be trans-
 ferred to the accounts awaiting the process of approving the additional
 State Budget Plan.

 The procedure for transfer and flow of funds through the Vietnamese
 Government system is as follows:

     1. The Embassy of Denmark will transfer funds to Central State
        Treasury (CST) semi-annually based on the approved budgets.
        The fund transfer will be made in VND. After receipt CST will
        transfer funds to the relevant Provincial State Treasury (PST).

     2. CST will make the actual payments of the IPSARD‟s and DST‟s
        expenses based on payment vouchers approved by the depart-
        ment and forwarded to CST. CST will control and pay if the ex-
        penses are within the approved budget. With regards to the prov-
        inces PST will perform the same duties as CST.

     3. Accounting and budget control for the received funds will be the
        responsibility of components and the provinces respectively. An
        accounting system, compatible with the requirement of the Viet-
        namese Authorities and the Embassy of Denmark must be used
        for all recording of expenses.

     4. Financial reporting is to be made quarterly.

     5. Over the life of the programme, financial and compliance audit
        shall be carried out every year at all levels, following interna-
        tional standards.

 Counterpart funds shall be included in the budgets for approval biannu-
 ally at the Steering Committee meetings and shall be included in the
 quarterly budgets and budget control reports.




                                                63
ARD SPS 2007-2012                                                                64




 Any interest earned from the deposit of Danida funds will be returned to
 the Embassy.

 Detailed financial management guidelines (FMM) will be developed in
 the pre-inception phase. For province component the guidelines will in-
 clude the operations of the Village Development Funds. For the Central
 component guidelines will include the operations of the Policy Research
 Consortium and the Upland livelihoods Research Fund through IPSARD
 and DST respectively.

 Procurement of goods
 Up to the end of February 2008 procurement will follow the Danida
 guidelines. Small procurements up to VND 125,000,000 will follow the
 existing government procurement system.

 As of 1st March 2008 the programme will follow the Vietnamese Law on
 Procurement. However, the components and the provinces will be sub-
 jected to procurement audit.

 The Province Component
 The expected procurement of goods can be divided into two categories:
 (i) some minor (initial) investment in equipment as part of the capacity
 building effort from Commune to Province level; and (ii) the Village De-
 velopment Fund, which will be administered by the communes.

 Ownership and Handing-over of Danida-financed Equipment

 Danida-financed equipment used in programme implementation, e.g. ve-
 hicles, computers etc. will remain the property of Danida during pro-
 gramme implementation. However before or at the end of the 5-year im-
 plementation period, Danida and GoV will jointly agree on the handing-
 over and future ownership of assets, which are not foreseen used in a
 next phase of the ARD SPS. Equipment, required for continuing activi-
 ties in a next phase, will continue to be the property of Danida and serve
 the purpose of the ARD SPS.

 Procurement of Services in the Province Component
 All delivery of services will be based on demand and needs of the bene-
 ficiaries. The District Coordination Committee (DCC) and Provincial
 PMUs will in cooperation with prospective beneficiaries develop Terms
 of Reference including detail description. The DCC and the PMUs may
 need the assistance of the advisers or consultants in formulating TORs.

 The extension systems and other provincial and district authorities and
 eventually lower levels will be used to facilitate competitive (bidding
 where possible) services provided by public and private service provid-
 ers.

 Tendering for major services should be used where feasible. If the nature
 of the service indicates that only a single institution will be able to carry



                                                  64
ARD SPS 2007-2012                                                                65




 out the work at a sufficiently high professional level, direct negotiations
 shall be initiated.

 Prospective service providers include local and regional universities, na-
 tional and regional training and research institutions, NGOs and private
 companies/consultants. International institutions and companies may be
 included for specific purposes, including curriculum development, ToT,
 quality assurance etc. It must be assured that service providers are inde-
 pendent of any other interest that may affect their performance.

 The contracting agency/department cannot be service provider. Procure-
 ment of services will follow local (if have) and national rules and proce-
 dures to the extend possible e.g. thresholds will be according to Danida
 procurement rules until full appliance with government public financial
 management system. Costs must follow Vietnamese cost norms.

 For individual national short-term consultants the EU-UN cost norms
 (dated 1.9.07) apply until further notice. For contracting international
 short term consultants Danida guidelines will apply, and EOD will make
 the contracts.

 Studies should generally be contracted and paid for by the Province level.

 Cost Norms
 The support will follow local costs norms and it is assessed that this
 should be viable. In some areas precise costs norms are lacking and have
 to be established. Possible revisions of the costs norms should be general,
 not limited to the Danida support.

 Audits
 The Programme is subject to a financial and compliance audit once a
 year. The audit shall be carried out at all levels. The external auditor will
 also perform unannounced visits to the different levels in order to check
 the cash and bank holdings (incl. reconciliation) and other assets; verify
 if the procedures are followed according to the Financial Manual and
 other regulations; and the accounts including budget are up-to-date. The
 first review shall recommend whether this auditing shall be taken over by
 the Vietnamese State Auditors.

 In addition to the financial and compliance auditing it is recommended
 that at least one of the activities shall be selected for a thorough “value
 for money” auditing and tracking studies every year. “Value-for-money”
 audit is currently not standard practise in the institutions but shall be
 sought incorporated into the auditing and evaluation system of MARD.

 The audit will be performed in accordance with the Terms of Reference
 of the audit services, which will be approved by the SC. These will in-
 clude a requirement for the auditor to prepare a management letter, de-
 scribing weaknesses and other issues identified with the audit and pro-
 posing practical solutions. The auditor, which has to come from a recog-
 nized company, will be appointed through tender process.


                                                  65
ARD SPS 2007-2012                                                        66




 As procurement will be according to the Vietnamese Law on Procure-
 ment it is recommended, that each sub-component and province will be
 subjected to procurement audit. The audit will be performed by a pro-
 curement specialist or a consultant appointed by the Embassy of Den-
 mark through tender process.




                                             66
ARD SPS 2007-2012                                                            67




 9        Monitoring, Reporting, Reviews and
          Evaluations
 The monitoring of the defined ARD SPS targets, also being the objec-
 tives of the new 5-year Agricultural Development Plan, will be aligned
 and coordinated with the national system of SEDP and VDG monitoring
 and evaluation. Impact and outcome will be monitored through bi-annual
 surveys, which follow a baseline survey undertaken in 2006 in conjunc-
 tion with household surveys in the BSPS.

 The monitoring and evaluation of SEDP is planned to include 3 main
 points: (i) monitoring and evaluating the effectiveness of economic
 growth and poverty reduction; (ii) progress made in resource mobiliza-
 tion and implementation; (iii) assessment of impact of policies and pro-
 grams on poverty reduction; and socio-economic impact of programs that
 affect the poor.

 Based on their analysis and assessment, MARD, research institutes and
 provinces will prepare and make public thematic and summary reports of
 the 5-year plan implementation within their sectoral or provincial scope.
 The monitoring of the ARD SPS targets will in particular be aligned with
 and support these activities in the cooperation provinces. However, this
 monitoring will need to be supplemented by baseline surveys and moni-
 toring activities directly targeting and measuring poverty reduction im-
 pact in the target communes of the provincial component.

 The ASPS plans in cooperation with the BSPS to establish a baseline for
 the ARD SPS target provinces through an additional household survey in
 2006.

 The M&E system will be developed in the inception phase and it will
 include a needs assessment of M&E staff for both Central and Provincial
 component.

 Central Component

 The monitoring system for the component will be a sub-set within the
 ARD SPS monitoring system as described in the programme document.
 The indicative component monitoring indicators will be identified before
 the inception phase of the component.




                                                67
ARD SPS 2007-2012                                                                 68




 The central component will also as one of its outputs coordinate the es-
 tablishment of a representative household/farm network for qualitative
 observation and reporting on upland farming. This network will be estab-
 lished in cooperation with the 5 provinces as a pilot. If successful MARD
 will through IPSARD make it into a general monitoring network.

 The central component will prepare an inception report within three
 months and subsequently report progress in semi-annual progress reports
 and annual reports and prepare a draft final report 6 months prior to
 completion. The component will submit quarterly financial reports to the
 Steering Committee.

 Province component

 The Steering committees at Province Level will have the overall respon-
 sibility for securing that activities are monitored.

 The monitoring will be an integrated part of the existing general monitor-
 ing system for the village, commune, district and province levels.

 At present a large number of data is collected by the various administra-
 tive levels at a regular basis and used for regular monitoring by the au-
 thorities. These data may be included in the Programme‟s monitoring
 system. However, existing monitoring is mainly focussing on number of
 activities completed and not on the quality and the impact. A system for
 quality monitoring shall be sought integrated in the contracts with the
 service providers (in case of training, e.g. in the form of tests of trainees,
 trainees‟ evaluation reports etc.) and results aggregated by the district.
 Minor independent evaluations done by district staff may be needed to
 supplement this.

 A system for impact monitoring, focussing on impact of the main activi-
 ties shall be created and impact monitoring be carried out at regular in-
 tervals. To facilitate impact monitoring, a fixed baseline-group of some
 2-3% of the participating households shall be identified and used as main
 source for impact information. These households will be part of the
 above mentioned representative household/farm network for qualitative
 observation and reporting on upland farming. The same data shall be col-
 lected each year from the same baseline group in order to follow actual
 development in the group‟s social and economic situation and thus indi-
 cate the impact of the Programme‟s activities. Survey data shall be
 tightly connected to the identified programme indicators and include in-
 formation on population, production and income, access to resources etc.
 Part of the information collected will be reflected in regular local and
 national surveys, e.g. the National Census which may function as general
 reference. Once developed and tested, the impact monitoring shall be
 sought included in the regular monitoring system of the Province.

 Some additional data, not collected systematically at present, may need
 to be collected and consolidated, e.g. on the village groups FIGs and



                                                   68
ARD SPS 2007-2012                                                             69




 FFC. It is important, however, that also this additional data collection
 gradually is integrated in the general monitoring system.

 As a principle, the village groups, FIGs and FFC will periodically have to
 make an evaluation of the training carried out, and these evaluations
 should be consolidated at District level and be used, when making new
 contracts with service providers to secure the quality of the training.

 As part of the regular yearly planning process, a review and evaluation
 workshop shall be organised at each of the relevant administrative levels.
 Results of the evaluation shall be reflected in the planning of future ac-
 tivities.

 A particular system for reporting and evaluating the Farmer Trainers ac-
 tivities should be established, and an annual inventory should be made of
 the Farmer Trainers and their capacity and activity level. This system
 may be initiated by the District Coordination Committee but should
 eventually be maintained by the District Extension Station.

 Indicators

 The indicators have only been fixed at a conceptual level indicating the
 direction of change. They will have to be elaborated in more detail dur-
 ing the pre-inception phase, including the expected quantitative change
 (when possible), and the possibilities for verifying the indicators will
 have to be analysed. The result of this analysis may in some cases be
 either a change of indicator or inclusion of concrete activities to make
 possible the verification in an institutionalised monitoring system.

 A general base line study will be undertaken in 2006 and the findings
 will be available before the start of the programme. The general indica-
 tors are based on the Vietnamese Government 5 year Agricultural and
 Rural Development Plan.

 The overall indicators of the Province component are indicators for the
 fulfilment of the development objective of the provincial component em-
 phasising poverty reduction and improved standard of living. The overall
 indicator for the central component is inputs to policy formulation.

 General

 -   Poverty in the Component districts reduced by 50 % from 2002 to
     2012 according to the new poverty line.

 -   Stunted children under 5 reduced by 50 % from 2002 to 2012.


 The main indicators for the Central Sub-components are:

 Sub-Component 1: Policy and Strategy Development



                                                69
ARD SPS 2007-2012                                                              70




 -   At least one policy or strategy to facilitate rural development or ag-
     ricultural extension for upland farmers, particularly ethnic minorities
     and women developed and disseminated per year.

 Sub-Component 2: Innovative Upland Models and Approaches
 -   Number of innovative approaches for upland livelihoods developed
     and applied in the provinces.

 The main indicators for the Provincial Sub-components are:

 Sub-Component 1: Demand based extension, information and training of
 farmers.
 -   At least 70,000 poor upland households in the target districts of the
     five provinces have improved their food security and achieved
     higher and stable income.

 Sub-Component 2: Production, Storage, Processing and Marketing
 -   At least 5,000 poor upland households have improved their income
     by 30% from traditional and new products.

 Sub-Component 3: Local Planning and Capacity Building
 -   Demand driven planning is endorsed and integrated in ordinary
     planning and monitoring system every year in 14 districts, 151
     communes and 920 villages in component provinces.

 Sub-Component 4: Support to Land Allocation (primarily in the Central
 Highlands)
 -   In Dak Lak and Dak Nong Provinces, at least 10,000 ha of forested
     upland has been successfully allocated to rural households or com-
     munities and managed safely within the law.

 Reporting

 Programme report will follow regulations in the Decree 131 and copy to
 the Embassy.

 For the central component, an inception report will be prepared within
 three months and subsequently report progress in semi-annual progress
 reports and annual reports and prepare a draft final report 6 months prior
 to completion. The component will submit quarterly financial reports to
 the Steering Committee.

 Similar requirement will be applied for the provincial component.

 The overall semi-annual and annual report of the programme will be ag-
 gregated by the CCU with inputs from IPSARD, DST and all provinces.
 The reports will include both financial and narrative reports, using the
 established monitoring system.




                                                 70
ARD SPS 2007-2012                                                            71




 Reviews

 The programme will normally be reviewed every second year, and tech-
 nical reviews will, when deemed necessary, be undertaken as a prepara-
 tion for the reviews. The EOD will take the initiative to the reviews,
 while technical reviews will be prepared in cooperation between the cen-
 tral and different provincial management units and the Embassy. The
 reviews, including the technical reviews will normally include several of
 the provinces.

 A more thorough mid-term review will be carried out in the first half of
 2010.




                                                71
ARD SPS 2007-2012                                                                 72




 10       Assessment of Key Assumptions
          Sustainability Issues and Risks

 10.1     Key Assumptions
 Some of the basic assumptions for the Programme are as follows:

 •    MARD and provincial authorities fully accept and support local
      level implementation.

 •    Modalities for transfer of funds within the Vietnamese system,
      which are acceptable to both parts, can be found.

 •    IPSARD continues to receive government support to fulfil its man-
      date. It is assessed that this will be fulfilled. The assessment is based
      on the fact that the restructuring of MARD research institutes is
      gaining more momentum, which demonstrates the GOV commit-
      ment to support the new institutes resulting from this process.

 •    MARD‟s plan for Science and Technology Advisory Board estab-
      lishment remains and that its charter is revised to broaden the scope
      of the board beyond approval of research projects, so it can have an
      advisory role in relation to extension and policy development.

 •    The formal extension services are willing to shift their services to-
      ward a demand responsive and facilitating role

 •    Other service providers are able to take up the role assigned to them

 •    The modalities for local management are at provincial level

 •    Traditional ways of undertaking extension can be replaced by the
      practices of demand-led services, bottom-up planning, ToT and FtF
      methods

 •    The farmers will be empowered though being organised in interest
      groups

 These assumptions will be monitored carefully throughout the Pro-
 gramme implementation.



                                                   72
ARD SPS 2007-2012                                                                73




 10.2     Sustainability
 There are sustainability issues at farmer, farmer group and at different
 institutional levels.

 At all levels there are questions of technical, financial and organisational
 /institutional sustainability.

 At farmer level it essential that introduced methods and technologies are
 sustainable. This implies that they are not dependent on subsidies which
 will not be available in the longer run, that the inputs needed – including
 technical assistance - are available at a regular basis at market price, that
 the market channels are established and functioning on a sustainable ba-
 sis. This will be kept in mind when detailed activities are planned.

 At Farmer Group level the sustainability depends on the role of the
 group, which should not only be to function as vehicle for the training
 activities. Group sustainability depends on the group‟s ability to take
 broader responsibilities i.e. as management of collective assets, as inter-
 mediary for supply of inputs, as intermediary for collection of harvest, as
 provider of technical assistance, as a vehicle to give marginalized farm-
 ers visibility etc. The training of the individual farmer group will, there-
 fore, along the way be adapted to the actual role the group is expected to
 take on in the future.

 At institutional level, the provincial component gives considerable sup-
 port to elevate the capacity at all levels: village, commune, district and
 province level, with the main emphasis at commune level. Here the main
 problem will be related to financial sustainability, as the financial capac-
 ity of the districts and the provinces and not least the communes is lim-
 ited. Taking into account the rapid economic growth that the country is
 experiencing, this capacity will probably increase even within these
 poorer provinces. But even so, it is not expected that the province and the
 districts will be able to provide training and technical assistance to the
 farmers at the level planned for the present support. This is, however, not
 a major problem as long as sustainability is achieved at farmer and at
 Farmer Group level. Thus it emphasises the large importance of the
 farmer groups for the sustainability of the processes.

 At central level the capacity building process is an investment to develop
 IPSARD to function as an innovative policy and strategy research insti-
 tute and “Think Tank”. The institutional sustainability is established, as
 the institute is a result of the ongoing reform of the research institutes
 under MARD. The financial sustainability will be achieved through op-
 erating with autonomy and independence as a result of Decree 115 with
 its supporting legislation.

 As regards the research, the result of research should have a higher social
 and economic value than the cost. However, the sustainability and in par-
 ticular replicability should also be considered in relation to maintaining a
 focus to invest in research for poor farmers in upland areas with limited



                                                  73
ARD SPS 2007-2012                                                               74




 market access. The return from this investment has to be considered in
 longer-term perspective.

 The Programme will be implemented within the existing structures, thus
 not leaving separate structure to be “maintained” after completion. Coun-
 terparts will not receive special allowances for working with the compo-
 nents, as their activities are planned and financed within the existing
 government structure. Therefore the sustainability of the components de-
 pends on whether the implementation is done with sufficient high quality
 to inspire leaders to mainstream the component outputs into the normal
 operations.


 10.3     Main Risks
 The main risk for the success of the Programme described below will be
 monitored very carefully throughout the Component implementation. If
 the risks turn into a treat to the success of the Programme, the Compo-
 nent must initiate efforts to eliminate these risks.


 Commitment at Central Level
 There is a risk that the overall progress will be slow due to the general
 progress in preparing the necessary institutional and administrative re-
 forms in the public sector for decentralisation. This risk can be mitigated
 by close monitoring and with a high degree of flexibility in planning and
 implementation.

 There is a risk that some of the activities may not materialise due to limi-
 tations in the Government cost norms. However, it is envisaged that staff
 training by international trainers and hiring international consultants for
 research and peer views will be under contracts made by EOD.

 Awarding contracts to research institutes outside MARD may not be pos-
 sible under the regulations of the budget law. There is still a grey area of
 responsibilities between MOST (and its newly proposed changes) and
 MOF. If this is not possible, the research fund will not be supported.


 Commitment of the Provincial and District Level
 The Province and District authorities have articulated their sincere inter-
 est and capability in changing the traditional way of extension, i.e. em-
 bracing the principles of demand-led extension based on bottom-up plan-
 ning.




                                                  74
ARD SPS 2007-2012                                                              75




 Should this not be the case, the risk is that the objectives will not be
 achieved. To mitigate this risk, a strong technical assistance, national
 and international, is planned for the inception period. This technical as-
 sistance shall support the local authorities in following these new princi-
 ples as outlined in the "Grass Root Democracy Decree" and also in the
 increasing willingness of the government at all levels to follow local
 level planning procedures.


 Capacity Building of Farmers
 There is a risk that some of the minority farmers do not have the capacity
 for the required radical changes involving thinking, doing, and evaluating
 with respect to achieving an immediate increase in household income,
 particularly within the scope of existing resources available to the house-
 hold.

 To mitigate this risk, a strong focus is put on demand based service de-
 liveries securing that the pace and volume is known to / defined by the
 farmers.

 There is a risk that farmer groups could be formed because the Compo-
 nent Description defines a need for them, and not so much because the
 farmers request them.

 To mitigate this risk the Component will include group formation dy-
 namics in the general training of staff in both the public and private sec-
 tor. Mass organisations and farmers will be made aware of the opportuni-
 ties and advantages of forming groups.


 Implementation Capacity and Provincial and District Level
 The Provincial Component implies a shift in the way support is provided,
 as the support will be channelled through the local government structures
 using existing procedures and regulations. Some flexibility will be lost
 and it will be difficult to disburse funds rapidly at the beginning of the
 programme until capacity has been developed at district and commune
 level and amongst potential suppliers of services.

 As the Provincial ARS SPS Component will imply a sudden and large
 increase in funds for Agricultural and Rural development, implementa-
 tion capacity at Province and District level as well as within the private
 sector will be a main constraint.

 It is clearly a limitation in the cooperation provinces that only few ser-
 vice providers are available outside the Province and District Govern-
 ments and the mass-organisations. This will probably constitute a bottle-
 neck for the implementation. The existing cost norms will probably put
 some limitations also on the capacity to attract service providers from
 outside the Province. However, it is assessed that these risks will be re-
 duced significantly as the component implementation gets consolidated



                                                 75
ARD SPS 2007-2012                                                                76




 11       Implementation Plan
 There will be a pre-inception period where as many of the unsettled is-
 sues as possible will be solved so the real inception period can concen-
 trate on the real issues: setting up detailed administrative guidelines and
 procedures, and a detailed plan of implementation.


 11.1     Pre-inception Phase
 During the pre-inception phase a number activities will be initiated to
 support the starting up of the Provincial Component. In particular man-
 agement and administrative guidelines and procedures will be developed
 with financial support directly from the EOD through the present ASPS.

 The most urgent pre-inception activities to be conducted during the sec-
 ond part of 2006 and beginning of 2007 are:

 •    Detailed funding procedures both at programme and at province
      level

 •    Draft financial guidelines and Financial Manual

 •    Draft Management guideline including detailed responsibilities,
      work procedures etc. for the DCCs.

 •    Further refinement of the indicators and the M&E system when the
      Baseline Survey has been undertaken.

 •    Identifying the service providers who can operate in the provinces

 •    In Dak Lak and Dak Nong, conduct a study on how to incorporate
      northern minority immigrants into programme activities.

 •    Training needs assessment of administrative staff from local institu-
      tions and identification of possible training facilities. This would es-
      pecially be relevant for accounting staff at province and district level
      and include procurement capacity assessment and procurement
      course in cooperation with the Danida approved Procurement Agent.

 •    Models for rules and by-laws for the village and commune devel-
      opment funds shall be drafted in order to secure fast and effective


                                                  76
ARD SPS 2007-2012                                                                  77




     implementation (while the actual rules can only be drafted and ap-
     proved just prior to the establishment of the individual Village de-
     velopment funds).

 •   Prepare manuals and guidelines for

     -    Facilitation of Farmer Interest Groups

     -    Training methodology and approach

     -    Use of local knowledge

 •   A study to make collaborative research consortium for innovative
     research in upland with a thematic framework

 •   If requested from MARD a consultancy to develop the proposals for
     policy development with focus on upland areas within Agricultural
     extension, post harvest, IPM, seed sector development and livestock
     development.

 •   As an implementation plan has not been included in the central
     component description, it will be made during the early pre-
     inception period.


 11.2     Inception Phase
 To ascertain that funds are available at the start of the programme where
 initial investments in establishing offices etc. are high, it is suggested that
 the relevant authorities well in advance of programme start shall approve
 the budget for the inception phase. Funds can then be transferred to the
 province right at programme start and disbursed when needed.

 Implementation starts with a six-month‟s inception phase in the second
 half of 2007, where a series of preparation activities are undertaken.
 These activities include:

 Central Component
 The component will have an inception phase for six month to establish
 the management, to develop terms of reference for support to MARD
 Departments, establish the procedures for research funding and make the
 plan for the 5 years, and a detailed plan for the first year

 For output 2 (Innovative Research) 30-50 pct. of the research fund will
 be agreed on already during the inception phase. The other part will be
 decided during the project implementation and on an open bidding basis.
 Research institutions can be inside or outside MARD, public on non-
 public.

 The Scientific Board and the Peer Review Panel (to be appointed during
 the inception phase) will decide which proposal will be approved based



                                                    77
ARD SPS 2007-2012                                                               78




 on criteria set up by a Guidance to be developed at the early stage of the
 project implementation and approved by the Steering Committee

 A clear guidance that maps out priority setting and selection criteria for
 innovative research proposals will be established during the inception
 phase and strictly monitored and evaluated during the program imple-
 mentation.

 Provincial Component

 •   Final preparation of administrative systems.
 •   Final general management procedures could be drafted together with
     regulations and by-laws for the commune and village development
     funds
 •   Preparation of major service providers in order to give them time to
     identify and mobilise possible trainers.
 •   ToT training needs assessments
 •   ToT training of a group of core staff from the province, the districts
     and private sector (including the mass organisations), which will
     then be part of the group of trainers and facilitators in the future.
     This group should include governmental and non-governmental
     staff. As indicative numbers the following should be trained: 30
     from the province level, 15 from each of the target districts and 5
     from each of the non-target districts, for a total of 85 persons. This
     training will be in participative training methodology, FtF method-
     ology (Farmer Field Schools), training planning, bottom-up planning
     and specific technical topics. It will include visits to other provinces
     with positive experiences in these issues.
 •   Elaboration of implementation plans for the whole 5-year period,
     including a detailed plan and budget for 2008. In this elaboration
     and in the refinements of activities and approaches for the different
     outputs the material produced during the preparatory process should
     be used. There are details and specific guidance in the formulation
     reports, and especially in the 5 studies mentioned in the introduction.
     However, it should be kept in mind that some of the proposals for-
     warded in the formulation reports have been altered.
 •   Elaboration of detailed indicators
 •   Setting up of a monitoring system
 •   Selection of communes in the target districts for initiating the pro-
     gramme
 •   Selection of a service provider for starting organisation of FIGs in
     selected communes
 •   Start of the organisation of the FIGs and initiation of the training
 •   Baseline survey 2006/07 for monitoring purposes




                                                  78
ARD SPS 2007-2012                                                          79




 The strategy should be to gradually expand the number of communes
 integrated in the activities, continuously adjusting the implementation
 strategy to the lessons learned.




                                              79
ARD SPS 2007-2012                                                                                                              80




 Annex 1                Organizational Charts
                                             Programme-wide: Overall Management Chart
                                                                   Notifying Approved Budget Plan

                                                                   Notifying Disbursement
                          MPI                                                                                                 MOF
                                                  Appraisal, Approval of Programme
      Budget Planning




                           Budget Planning
                                                                            Agreement
                                                          MARD                                EOD




                                                                                                                                    Disbursement and Financial Control
                                                                                                          Transfer of Funds
                             DAK LAK
                             DAK NONG
                               LAO CAI
                               LAI CHAU
                                DIEN BIEN           Policy Links
                                                                    Planning and Allocation
                                PROVINCE

                                 CENTRAL                                     Disbursement and Financial Control
                                COMPONENT

                                                             Programme Monitoring Committee
                                                               Overall monitoring of the programme
ARD SPS 2007-2012                                                                                                                                               81


                                                    Programme-wide: Management Flow Chart
                                                                                       IPSARD                                              - Research Consor-
                                                                                                             Research                      tium;
                                        MARD                                           S&T Depart              Fund
                                                                                                                                           - MARD institutes;
                                                                                                                                           - Outside institutes;




                                                          Steering Committees - PMUs
                                                                                         Other MARD                                        - Universities;
                                                                                         departments                                       - Induvidual specialists



                                                                                       District                                            Farmer Groups




                                                                                                                Coordination Committees-
                                        DAK LAK
                                                                                        District                                            Farmer Groups
                                        DAK NONG
                                                                                         District                                            Farmer Groups
                                          LAO CAI
                                          LAI CHAU                                         District                                            Farmer Groups
                                           DIEN BIEN                                        District                                             Farmer Groups
    Agreement , six-monthly meetings




                                           PROVINCE
                                                                                             District                                             Farmer Groups

                                           CENTRAL                                            District                                              Farmer Groups
                                          COMPONENT                                                                                                   Farmer Groups
                                                                                                  District




                                       Embassy of
                                        Denmark
ARD SPS 2007-2012                                                                                                             82




 Annex 2 Detailed budget of Central Component and Provincial Component




 Budget for Central component, ARD SPS 2007- 2012


                                                                                                                    Budget
Outputs and Activities                                             2007    2008    2009    2010    2011    2012    Mill DKK




Output 1: Policy and Strategy Development                           0.88    5.53    3.05    3.35    1.63    1.78      16.20
Activity 1.1. Develop Institutional Development Strategy and up-
                                                                   0.25    0.60    0.23    0.23    0.10      -         1.40
grade research facilities and HRD for IPSARD
                    · Develop Institutional Development Strategy   0.03    0.03    0.13    0.13     -       -         0.30
                    . Upgrade research facilities                  0.13    0.38     -       -       -       -         0.50
                    . Training activities                          0.10    0.20    0.10    0.10    0.10     -         0.60

Activity 1.2. Policy-related research conducted by IPSARD          0.25    1.00    0.50    0.50    0.50    0.05        2.80
 ARD SPS 2007-2012                                                                                                         83




                                                                                                                 Budget
Outputs and Activities                                                2007   2008   2009   2010   2011   2012   Mill DKK
                 Conduct an assessment the coherence of
                 prevailing policies related to upland ARD to
                                                                      0.20   0.30    -      -      -      -        0.50
                 identify any weakness in harmonisation and
                 policy gaps
                 Formulated research programmes which in-
                 clude a plan for dissemination of research           0.05   0.20    -      -      -      -        0.25
                 findings
                 Fund for conducting approved research pro-
                                                                       -     0.50   0.50   0.50   0.50   0.05      2.05
                 gramme
Activity 1.3. Policy dialogues and linkages                           0.03   0.28   0.48   0.48   0.48   0.58      2.30

                     Linkages to private sector and policy research
                                                                             0.10   0.30   0.30   0.30   0.30      1.30
                     institutes and universities outside MARD

                     Policy dialogues with 5 cooperation provinces    0.03   0.18   0.18   0.18   0.18   0.28      1.00
Activity 1.4. Policies and strategies developed and disseminated
                                                                        -    1.30   0.35   0.35   0.20   0.10       2.30
by MARD Departments
                     On request develop terms of reference and
                     support implementation of policy aspects of
                                                                       -     0.25   0.25   0.25   0.20   0.10      1.05
                     present ASPS components related to upland
                     cultivation
                     Support to SEA                                     -    0.75    -      -      -      -        0.75
                     Support to HIV/Aids Strategy                      -     0.30   0.10   0.10    -      -        0.50
 ARD SPS 2007-2012                                                                                                         84




                                                                                                                 Budget
Outputs and Activities                                                2007   2008   2009   2010   2011   2012   Mill DKK
Activity 1.5. Support to the establishment of a rural households
                                                                      0.20   2.10   1.35   1.65   0.20   0.90       6.40
database at MARD for policy purpose
                     Rural household survey                                  0.80          0.80    -     0.80      2.40
                     Support of UoC                                          0.70   0.65   0.65    -      -        2.00
                     Farm monitoring system                           0.20   0.60   0.70   0.20   0.20   0.10      2.00
Activity 1.6. Implementation support and Component Coordina-
                                                                      0.15   0.25   0.15   0.15   0.15   0.15       1.00
tion Unit

Sub- Total                                                            0.88   5.53   3.05   3.35   1.63   1.78      16.20


Output 2: Innovative Approaches for Upland Livelihoods                0.38   2.70   1.80   1.30   0.98   0.38      7.53


Activity 2.1. Set up A Upland livelihood Research Programme on
innovative livelihoods approaches for upland areas and ethnic
                                                                      0.20   2.53   1.73   1.23   0.93   0.33       6.93
minorities among agricultural and rural development research
institutes
                     Establish an Upland livelihoods Research
                     Group and conduct field survey in ARD SPS        0.05   0.15   0.05   0.05    -      -        0.30
                     provinces to identify research needs
                     Prepare a guidelines for research application,
                     assessment, financial and accounting man-
                                                                      0.10    -      -      -      -      -        0.10
                     agement, and monitoring and evaluation in
                     accordance with ARD SPS objectives;
 ARD SPS 2007-2012                                                                                                               85




                                                                                                                       Budget
Outputs and Activities                                                2007   2008   2009        2010   2011   2012    Mill DKK
                Establish a research peer review panel with
                an international research organisation, provin-              0.18   0.18        0.18   0.18   0.18       0.88
                cial representation.
                Prepare a framework agenda for an Upland
                livelihood Research Programme for approval
                                                                     0.05    0.20    -           -      -       -        0.25
                of MARD Minister at the recommendation of
                the S&TAB.
                  Earmarked research fund for Upland Liveli-
                                                                             1.00        0.45   0.40   0.10   0.05       2.00
                  hoods Research Group
                  Bidding Research fund (50% for MARD and
                                                                             1.00   1.00        0.50   0.50   0.05       3.05
                  50% for non- MARD institutes)

                  Dissemination of Research Results                                 0.05        0.10   0.15    0.05      0.35

Activity 2.2. Support to the functioning of the Science and Tech-
                                                                     0.18    0.18   0.08        0.08   0.05    0.05       0.60
nology Advisory Board (S&TAB)
                  Support to activities of the Science and Tech-     0.03    0.03   0.03        0.03    -       -        0.10
                  nology Advisory Board
                  Support facilities for DST to carry out its role   0.10    0.05    -           -      -       -        0.15
                  of secretariat to the Board
                  Short training courses on issues required to
                  perform as a secretariat for S&TAB and man-        0.05    0.10   0.05        0.05   0.05   0.05       0.35
                  agement of the research fund
Sub- Total                                                           0.38    2.70   1.80        1.30   0.98    0.38       7.53
 ARD SPS 2007-2012                                                                                  86




                                                                                          Budget
Outputs and Activities                   2007   2008   2009   2010    2011      2012     Mill DKK
Implementation& administrative support   0.03   0.58   0.53    0.58      0.38     0.23      2.33

Consultancies                              -    0.30   0.30    0.30      0.15      -        1.05
Annual review                                   0.20   0.20    0.20      0.20     0.20      1.00
Audit & Value for Money Audit            0.03   0.08   0.03    0.08      0.03     0.03      0.28

Sub- Total                               0.03   0.58   0.53    0.58      0.38     0.23      2.33

Total activities and implementation      1.28   8.81   5.38    5.23      2.98     2.38     26.06

Contingency (10%)                        0.06   0.50   0.50    0.50      0.30     0.20      2.06


Total                                    1.34   9.31   5.88    5.73      3.28     2.58     28.11
ARD SPS 2007-2012                                                                                                                     87




  Budget for Provincial component, ARD SPS 2007- 2012                                                            Million DKK       162.04

  Sub-components & Outputs                                                              DakLak    DakNong    LaoCai    LaiChau    DienBien
                                                                                          32.88      25.86     32.64      33.65      37.01
  Sub-Component 1: Demand based Extension, Information and Training of
                                                                                           8.89       7.14     10.43      11.48      13.78
  Farmers
  Output 1.1: The farmer groups have increased their capacity based on their ex-
                                                                                           4.03       3.36      6.93       8.26       8.85
  pressed needs
  Forming Farmer Interest Groups (FIGs) and Farmer Field Classes FFCs
                                                                                           0.10       0.07      1.02       1.29       1.28
  Training of F/M trainers
                                                                                           0.67       0.67      1.88       1.82       2.44
  Improving capacity for the farmer groups
                                                                                           3.26       2.62      4.03       5.15       5.14
  Output 1.2: Preservation of local knowledge on natural resources management
                                                                                           0.20       0.20      0.20       0.20       0.20
  Output 1.3: The farmer groups have increased their capacity to read and write and
  perform simple arithmetic                                                                0.16       0.14      0.30       0.16       0.16
  Output 1.4: Information and training material and libraries are made available to
  villagers                                                                                1.02       1.03      0.63       0.62       2.33
  Output 1.5: Capacity of provincial and district authorities to deliver demand-based
  extension increased                                                                      2.35       1.51      0.85       0.85       0.90

  Output 1.6: Local service providers at provincial, district, commune and village
  levels (including FU and WU) have increased their capacity / out-reach to provide        0.23       0.17      0.59       0.47       0.41
  demand- based services to farmers
  Output 1.7: Programme participants aware of crosscutting issues
                                                                                           0.90       0.74      0.93       0.92       0.92
ARD SPS 2007-2012                                                                                                                88




  Sub-components & Outputs                                                            DakLak    DakNong   LaoCai   LaiChau   DienBien
  Gender awareness and sensitivity training at all levels (including FIGs and FFC).
  Incorporation of gender issues in the yearly village, commune, district and prov-      0.27      0.23     0.26      0.26       0.26
  ince planning process
  Improving knowledge by local population on how to prevent HIV infection and
  how to mitigate the impacts of AIDS improved                                           0.40      0.30     0.40      0.40       0.40
  Environmental &NRM awareness and practical training
                                                                                         0.23      0.21     0.26      0.26       0.26
  Subtotal                                                                               8.89      7.14    10.43     11.48      13.78
  Sub-Component 2: Production, Storing, Processing and Marketing
                                                                                        10.67      8.28    11.70     11.72      11.79
  Output 2.1: Improved models of technical practices based on a farm sys-tem ap-
  proach and applicable to local conditions have been developed and tested in the        1.00      0.80     1.15      1.16       1.16
  target districts
  Output 2.2: Marketing chain and market potential of produces and products from
  the target districts are identified and promoted
  Feasibility studies on marketing
                                                                                         0.74      0.64     0.18      0.19       0.20
  Support to small-scale businesses
                                                                                         0.43      0.35     1.24      1.24       1.28
  Output 2.3: Post-harvest handling and storage improved
                                                                                         0.55      0.36     0.78      0.78       0.80
  Output 2.4: Traditional handicraft production has improved in quality and quan-
                                                                                         0.16      0.16     0.16      0.16       0.16
  tity
  Output 2.5: Improved production and income practices especially benefited to the
  poor are supported through the support from Commune or Village Development             7.60      5.78     8.00      8.00       8.00
  Funds
  Output 2.6: The operation and maintenance of small-scale irrigation in-
                                                                                         0.19      0.19     0.19      0.19       0.19
  frastructure in the cooperating districts has improved
  Subtotal                                                                              10.67      8.28    11.70     11.72      11.79
ARD SPS 2007-2012                                                                                                                  89




  Sub-components & Outputs                                                              DakLak    DakNong   LaoCai   LaiChau   DienBien
  Sub-Component 3: Local planning and Capacity Building                                    3.64      2.60     2.35      2.33       2.45
  Output 3.1: People at all levels (from village, commune, district and province)
  have increased its capacity, particularly in bottom-up planning                          1.52      1.05     1.18      1.16       1.29
  Training and study tours for capacity building in bottom- up planning and par-
                                                                                           1.38      0.95     1.04      1.02       1.16
  ticipatory approaches, equipment upgrade if any
  Develop bottom-up planning procedures at local level
                                                                                           0.09      0.06     0.09      0.09       0.08
  Develop rules and procedures for the Commune and Village Development Funds
                                                                                           0.05      0.04     0.05      0.05       0.05
  Output 3.2: Demand-driven planning implemented at all levels and upgraded
                                                                                           0.90      0.51     0.90      0.90       0.90
  every year
  Output 3.3: Planning capacity at household level improved
                                                                                           0.95      0.77                  -
  Output 3.4: Lessons learnt and experiences are disseminated                              0.27      0.27     0.27      0.27       0.27
  Subtotal                                                                                 3.64      2.60     2.35      2.33       2.45
  Sub-Component 4: 4 Support to Land allocation (primarily in the Central High-
                                                                                           1.20      1.14        -         -            -
  lands)
  Output 4.1: Farmers knowledge in participatory land allocations and legislation
  related to natural resources management and land uses management improved                0.39      0.34        -         -            -

  Training in the legal and administrative framework and procedures that govern
  the use of natural resources                                                             0.14      0.10                  -

  Training of farmers and local technical staff on the economic potential of agricul-
  tural and forest land allocation, various ownership forms and participatory land         0.26      0.23                  -
  allocation procedures
  Output 4.2: Land use certificates allocated to small land holders
                                                                                           0.80      0.80                  -
  Subtotal                                                                                 1.20      1.14        -         -            -
ARD SPS 2007-2012                                                                         90




  Sub-components & Outputs                    DakLak    DakNong    LaoCai   LaiChau   DienBien
  Preparation activities                         0.60       0.60     0.60      0.60       0.60
                                                                                  -
  TOTAL ACTIVITIES                              24.99      19.76    25.07     26.13      28.62
  Implementation and administrative support      4.90       3.75     4.60      4.47       5.03
  Car for adviser                                0.26          -     0.26         -       0.26
  International and regional consultants         1.05       0.85     1.05      1.05       1.05
  Audit & Value for Money Audit                  0.28       0.28     0.28      0.28       0.28
  Implementation                                 3.30       2.62     3.01      3.14       3.43
  Subtotal                                       4.90       3.75     4.60      4.47       5.03
                                                                                  -
  Contingency                                    2.99       2.35     2.97      3.06       3.36
                                                                                  -
  TOTAL                                         32.88      25.86    32.64     33.65      37.01
ARD SPS 2007-2012                                                                    91




 Annex 3 Job Descriptions/Terms of Reference
 for Long-term Technical Advisers


 Job description/Terms of reference for an Agricultural and Ru-
 ral Development Sector Management Adviser for the Central
 Component.
 The adviser will assist IPSARD and DST with
     Achieve the component outputs and plan the relevant activities in line with the
        Component Description and Programme Document and AMG
     Support to Develop the strategy for IPSARD
     The establishment and functions of the Science and Technology Advisory
        Board with DST
     Establishment of provincial policy dialogue facilities in the ARD SPS prov-
        inces
     Establishments of linkages for to private sector and ARD oriented organisa-
        tions outside MARD for improved policy development
     Establish a household/farm economic data sampling/observatory network in
        ARD SPS provinces in cooperation with GSO
     Upgrade facilities for policy research and networking
     Upgrade staff research skills through short-term courses
     On request develop terms of reference and support implementation of policy
        aspects related to upland cultivation
     On request draft terms of reference for short term consultancies to support im-
        plementation
     Facilitate with DST the establishment of the research committee
     Facilitate with DST the formulation of guidelines for research grants
     Facilitate the coordination with other development programmes
     Preparation of inception, progress and annual reports
     Gender, HIV/Aids, environment, and good governance issues receive high
        priority during implementation.
     Liaison between the provincial component and central component of ARD
        SPS
     Documentation and monitoring of component progress
     Support in setting up mechanisms and guidelines for undertaking strategic en-
        vironmental impact assessment
     Liase with other relevant development programmes including SPS in Water
        and Fisheries
     Prepare short term training programmes in policy and economic research skills

 Background
 The adviser shall have a background in agriculture or rural economics with strong
 understanding of the agricultural sector, which is characterised by a strong interac-
 tion between the public and private sector, the social dimensions in rural develop-
 ment, the Agricultural Science and Technology systems with links between
 farmer, extension and research.
ARD SPS 2007-2012                                                                    92




 Job Description for Long-term Technical Advisers for Province
 Component
 Responsibilities
 The International long term (senior) Adviser shall assist and advise the Provincial
 Steering Committee management unit and in particular the District Coordination
 Committees (DCCs) on the overall planning, organisation and implementation of
 Component activities. The Adviser shall provide advisory services to other provin-
 cial and target districts authorities and other involved institutions. The Adviser
 shall advise on strategies and actions either directly or indirectly linked to Compo-
 nent activities and on management and implementation in general. Furthermore,
 the Adviser shall assist the management unit in Component monitoring and report-
 ing according to established requirements and procedures.

 Tasks
 In close collaboration with the management unit, DCCs as well as other provincial
 institutions and the private sector including the mass organisations, the Adviser
 shall with reference to the management unit be responsible for but not limited to
 the following tasks:

 •   Advise and assist the management unit and DCCs in coordination of Compo-
     nent activities, including the preparation of detailed work plans and budgets
     for approval by the Provincial Coordination Committees.

 •   Advise and assist the management unit and DCCs on institutional develop-
     ment issues for Component activities at the provincial, district and lower lev-
     els.

 •   Advise and assist the management unit and DCCs on the preparation and for-
     mulation of approaches for addressing bottom up planning, demand-led exten-
     sion, community development and formation of Farmer Interest Groups
     (FIGs).

 •   Advise and assist the management unit and DCCs to collect, analyse, adopt
     and disseminate experiences related to agricultural and rural development
     models appropriate for upland areas. Especially the experiences gained by the
     Danida supported ASPS 1 and the Fisheries Programme as well as relevant in-
     ternational experiences.

 •   Advise and assist the management unit and DCCs in developing capacity in
     the provincial and district administrations to facilitate involvement of the
     mass organisations, co-operatives and other private sectors in formation and
     training of FIGs.

 •   Advise and assist the management unit and DCCs to build capacity in the pri-
     vate sector to facilitate FIG formation and carry out management training as
     well as extension services on technical issues for these groups.
ARD SPS 2007-2012                                                                 93



 •   Advise and assist the management unit and DCCs in the development of ca-
     pacity in the public sector to plan and implement work plans, training pro-
     grammes, technical guidelines, study tours and other activities.

 •   Advice and assist the management unit and DCCs in identify appropriate pri-
     vate sector service provider partners within and outside the provinces.

 •   Advice and assist the management unit and DCCs to integrate issues concern-
     ing gender, ethnicity, environment, climate change and HIV/Aids in planning,
     training, management and other relevant implementation activities.

 •   Advise and assist the management unit and DCCs in the procurement of ser-
     vices and supplies to the Component. The Adviser shall support the manage-
     ment unit and DCCs in local tender evaluation procedures and advise and
     support the management unit and DCCs in coordination and preparation of
     consultancy inputs.

 •   Support the management unit and DCCs in preparation of the Component in-
     ception report and progress reports throughout the Component implementa-
     tion period. The Adviser shall also assist in the preparation of a Component
     Completion Report for submission to the authorities.

 •   The Adviser will advise and assist the management unit and DCCs in devel-
     oping liaison and coordination with the provincial implementation in the other
     four Danida supported provinces and the Central Component.

 As two of the advisers have to divide their work between two provinces and all
 three have to cover from three to six districts, they have to make yearly outlines
 for their planned activities and quarterly work plans. The Steering Committee
 Chairmen and EOD will monitor the advisers.

 Qualifications
 The Adviser shall have extensive knowledge and experience in the field of rural
 development and upland farming as well as knowledge of design and implementa-
 tion of community based planning and participatory processes.

 The Adviser shall have a solid background in implementation and management of
 donor-supported interventions in developing countries.

 The Adviser must be fluent in English and preferably have a good working knowl-
 edge of Vietnamese.

 Conditions of Employment
 There will be three Advisers. They will be assigned to:

 Lao Cai and Lai Chau
 Dien Bien
 Dak Lak and Dak Nong
ARD SPS 2007-2012                                                                  94



 The contract period is 2 years with a potential extension to the full 5 Year Compo-
 nent implementation period. The Adviser shall be contracted according to Danida
 rules and regulations applicable to long-term advisers.

 Duty Station
 The Duty Stations will be:
 Lao Cai or Sa Pa in Lao Cai Province with frequent travel to Lai Chau Province.
 Dien Bien Phu, Dien Bien Province.
 Buon Ma Thuot, in Dak Lak Province with frequent travel to Dak Nong province.
ARD SPS 2007-2012                                                                              95




 Annex 4 Tentative Indicators


 Description                                                  Key indicators


 Development Objective:                              Poverty in the component
                                                     districts reduced by 50 %
 "Reduction of rural poverty, especially among the from 2002 to 2012 accord-
 ethnic minorities, through sustainable agricultural ing to the new poverty
 and rural development focusing on the upland"       line*.

                                                              Stunted children under 5
                                                              reduced by 50 % from
                                                              2002 to 2012*.


 Immediate Objective:

 "Sustainable growth in upland rural household
 welfare arising from improvements in resources
 management, agricultural production and mar-
 keting, with focus on the poor upland farmers, in
 particular women and ethnic minorities"




 *
  Indicators marked with * are part of the indicators of the five year Vietnamese Government
 Agricultural and Rural Development Plan.
ARD SPS 2007-2012                                                                96




 Central Component

 Immediate Objective:

 Research, policy formulation and in-
 formation dissemination on upland
 agricultural and rural development is
 qualified and coordinated

 Innovative approaches to sustainable
 upland livelihoods are developed and
 applied in the provinces.

 Output 1: Policy and strategy de- At least one policy or strategy to fa-
 velopment                            cilitate rural development, agricul-
                                      tural extension especially for upland
                                      farmers and ethnic minority people
                                      developed and disseminated per year.
 Activity 1.1: Support to implement - IPSARD staff is capable in data
 Institutional Development Strategy        analysis and provide strategic ad-
 and upgrade research facilitates and      vice on rural development policies
 HRD for IPSARD                            for the MARD.

 Activity 1.2: Conduct policy related
 research

 Activity 1.3: Set up Policy dialogues -     Feed-back mechanism between up-
 and linkages                                land areas and national level are es-
                                             tablished.
                                         -   Policy dialogues with private sec-
                                             tor and organization outside
                                             MARD set up.

 Activity 1.4: Support to other -            Policies for upland areas and ethnic
 MARD Departments to develop and             minority developed and dissemi-
 disseminate policies for the upland         nated.
 and remote areas;

 Activity 1.5: Support to the estab- -        Rural household database estab-
 lishment of a rural households data-        lished and managed by IPSARD.
 base at MARD for policy purpose;

 Activity 1.6: Implementation support
 to Component Coordination Unit
ARD SPS 2007-2012                                                            97



 Output 2: Innovative approaches Number of innovative approaches for
 for Upland Livelihoods               upland livelihoods developed and ap-
                                      plied in the provinces
    Activity 2.1: Set up an Upland - All research results are dissemi-
    Livelihoods Research Programme        nated in a form appropriate to re-
    on innovative livelihoods ap-         searchers, relevant agencies and all
    proaches for upland areas and         farmers.
    ethnic minorities.                - Innovative approaches for rural
 Activity 2.2: Support to the Science
                                          livelihoods are implemented in the
 and Technology Advisory Board            cooperation provinces.
 (S&TAB) and DST to manage the Up-
 land Livelihoods Research Fund
ARD SPS 2007-2012                                                                 98




 Provincial Component

 Immediate Objective:

 Improved food security and stan-
 dard of living of poor upland farm-
 ers, especially ethnic minorities
 and female headed households,
 through improved natural and hu-
 man resources management and
 upland farming techniques.

                                       At least 70,000 poor upland households
 Sub-component        1:    Demand     in the target districts of the five prov-
 based extension, information and      inces have improved their food security
 training of farmers                   and achieved higher and stable income
 Output 1.1: The farmers/farmer        - 2,975 functioning FIGs and 730
 groups have increased their capac-        FFCs established
 ity based on their expressed needs.   - 832 farmer trainers trained and func-
                                           tioning in targeted districts.
                                       - At least 72,000 poor upland farmers
                                           (% Female and % male) in the target
                                           districts have participated in training.
                                       - No. of farmers actually changed their
                                           behaviours because of the training.
 Output 1.2: Local knowledge on        - Results are discussed in workshops
 natural resources management is           and included in training material
 preserved
 Output 1.3: The farmer group have -       14,000 farmers can read and write
 increased their capacity to read and      and perform simple arithmetic in tar-
 write and perform simple arithme-         geted districts.
 tic
 Output 1.4: Information and train- -      - 390 Village libraries established
 ing material and libraries are made       and operated
 available to villagers.              -    - Training materials are updated and
                                           developed to be friendlier with mi-
                                           nority people, women users and low
                                           literacy level.
                                     -
 Output 1.5: Capacity of provincial -      120 provincial and 322 district staffs
 and district authorities to deliver       are improved capacity in demand –
 demand-based extension increased.         based extension.
                                     -     Demand –based extension approach
                                           is implemented in the targeted dis-
                                           tricts.
ARD SPS 2007-2012                                                              99



 Output 1.6: Local service provid- -      At least 150 service providers (in-
 ers at provincial, district, commune     cluding WU and FU) have been
 and village levels (including FU         trained at province level at least 285
 and WU) have increased their ca-         at district level and 635 people at
 pacity / outreach to provide de-         commune level, and have improved
 mand based services to farmers.          their capacity in servicing, training
                                          and organising the farmers.
 Output 1.7 Programme participants -      At least 1000 people at province and
 are aware of cross-cutting issues        district level and 28,000 farmers
                                          have improved gender awareness.
                                      -   28,000 people are trained in the
                                          HIV/AIDs prevention
                                      -   28,000 people have improved envi-
                                          ronmental awareness

                                      At least 5,000 poor upland households
 Sub-component 2: Production,         have improved their income by 30%
 storing,        processing    and    from traditional and new products.
 marketing
 Output 2.1: Improved models of       -   No. of technical practices tested and
 technical practices based on a           considered suitable for local applica-
 farming system approach and ap-          tion in targeted districts.
 plicable to local conditions have    -   No. of farmers applying new techni-
 been developed and tested in the         cal practises.
 target districts.
 Output 2.2: Marketing chain and      -   At least 30 new products have been
 market potential of produces and         labelled
 products from the target districts   -   Increase in value and diversity of se-
 are identified and promoted.             lected products in component dis-
                                          tricts compared with other districts
 Output 2.3: Post-harvest handling -      No. of farmers trained or attending
 and storage improved.                    training (disaggregated on gender
                                          and ethnicity),
                                      -   Reduction in post-harvest losses,
                                      -   Improved product quality processing
                                          levels.
 Output 2.4: Traditional handicraft -     Farmer Interest Groups set up within
 production has improved in quality       handicraft (target),
 and quantity                       -     Increase in no. of handicraft produc-
                                          tion units,
                                      -   No of people (disaggregated on gen-
                                          der, age and ethnicity) involved in
                                          production of handicrafts.
                                     -
 Output 2.5: improved production -        No. of people (female/male) bene-
 and income practices especially          fited from the VDF supports
 benefited to the poor are supported
 through the support from Com-
ARD SPS 2007-2012                                                                 100



 mune or Village Development
 Funds.
 Output 2.6: The operation and          -   irrigation systems in the targeted dis-
 maintenance of small-scale irriga-         tricts functioning adequately
 tion infrastructure in the cooperat-
 ing districts has improved.
 Output 2.7: Preservation of local      -   local knowledge/practices have been
 knowledge on natural resources             documented and disseminated.
 management
 Sub-component 3: Local plan-           Demand driven planning is endorsed
 ning and capacity building from        and integrated in ordinary planning
 village to province level              and monitoring system every year in 14
                                        districts, 151 communes and 920 vil-
                                        lages in component provinces.
 Output 3.1: People at all levels       - At least 120 Province, 300 District,
 (from village, commune, district            800 commune and 1,600 Village
 and province) have increased its            staff in the five provinces have in-
 capacity, particularly in bottom-up         creased their capacity and partici-
 planning.                                   pated in short-term and long-term
                                             bottom-up planning.
 Output 3.2: Demand-driven plan         - Demand driven planning is inte-
 implemented at all levels and up-           grated in ordinary planning and
 dated every year.                           monitoring system every year in 14
                                             districts and 151 communes and 920
                                             villages.
 Output 3.3: Rules and procedures       - 318 Commune Development Fund
 for the Commune development                 established to cover 450 villages in
 fund developed                              the 3 Northern provinces and ? in the
                                             Central highland.
                                        - Rules and procedures for the Village
                                             Development Fund developed.
                                        - At least 1,000 village leaders in the
                                             five provinces have increased their
                                             capacity and are able to co-manage
                                             village development funds with the
                                             commune staff.
 Output 3.4: Planning capacity at       - 4200 households are improved ca-
 household level improved. [Only             pacity in the family production plan-
 in the Central Highlands].                  ning.
                                        - 10,000 people are trained in the pro-
                                             duction planning in which 7,000
                                             people can be able to disseminate
                                             and share experience with their
                                             neighbours.
                                        -
 Output 3.5: lesson learnt and ex-      - No. of workshops organised
 periences are disseminated             - No. of training materials developed
 Sub-component 4: Land alloca-          In Dak Lak and Dak Nong Provinces,
ARD SPS 2007-2012                                                             101



 tion (primarily in the Central at least 10,000 ha of forested upland
 Highlands)                         has been successfully allocated to rural
                                    households or communities and man-
                                    aged safely within the law.
 Output 4.1: Farmers knowledge in - 10,000 households are trained in leg-
 participatory land allocation and      islation and natural resources man-
 legislation related to natural re-     agement.
 sources management and land - 10,500 farmers and 400 staff are
 uses management improved.              trained in participatory land alloca-
                                        tion
                                    - In Dak Lak and Dak Nong Province,
                                        administrative staff is able to carry
                                        out participatory forest land alloca-
                                        tion.
 Output 4.2: Land use certificates - Land use certificates for a total area
 allocated to small landholders         of 10,000 ha have been issued on an
                                        intensive pilot basis, and as an up-
                                        scaling process – land use certificates
                                        for additional 30,000 have been is-
                                        sued.

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:14
posted:8/17/2010
language:English
pages:101