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Intermediate_report

VIEWS: 4 PAGES: 34

  • pg 1
									                                        Intermediate Report
                      Economic and Cultural Heritage Development in Hai Duong


1. TECHNICAL SECTION

A. Summary
The first year of the project has involved numerous challenges but also significant
successes.

A disproportionate amount of time has, necessarily, been spent on ensuring that all the
partners understand and comply with the EU record keeping and reporting requirements.
The fact that all but one of the partners (the Irish) are outside the Euro-zone has
compounded the difficulties. This has delayed the submission of the midterm audit and
interim report. The start of many activities was also delayed due to staffing shortages within
Hackney council which led to delays in the issuing of partner contracts and funding. The
project has also had to devote a significant amount of time to overcoming language, cultural,
institutional and administrative barriers. As a result of these problems the project is about 3
months behind schedule.

Despite these difficulties however the project has managed to achieve many of its
anticipated outputs:

    Two successful transnational meetings and study tours/capacity building visits have
    been organised.(London and Hai Duong)
   A consultancy study of the potential for tourism and handicraft development in Hai
    Duong has been undertaken and printed in English and Vietnamese.
   A Project website has been set up (www.haiduong.info) and an electronic newsletter
    disseminates information to over 100 people at least 4 times per annum.
   A building in Hai Duong has been renovated and converted into a very attractive Craft
    Centre which was lauched at a major event on 4th November 2002.
   The Craft Centre has been equipped and staffed and now provides an exhibition
    space/shop for local handicrafts.
   Business advisors have been appointed and have started to provide advice and support
    to local handicraft businesses.
   A Craft Development Board has been established, with representatives from the
    municipality and local businesses.
   Two training workshops have been held in Hai Duong for municipal staff and businesses
    on Tourism and Marketing.

Much remains to be done, but an active partnership between the three cities has been
established and solid foundations have been laid from which to build on and develop the
planned activities for year 2.


B. Working conditions

Describe the overall internal and external conditions of the project implementation?
Vietnam is developing a market economy with a socialist orientation. In recent years the
economic pattern has been changing towards that of a more industrial and service oriented
economy. Tourism and the craft production industry have expanded rapidly. Currently, much
inbound tourism into Vietnam makes use of facilities developed by foreign owned consortia.
This leads to considerable foreign leakages, and thus the development of locally owned and
locally produced goods and services would enhance the foreign exchange retention rates.




                                                                                 Page 1 of 34
                                          Intermediate Report
                        Economic and Cultural Heritage Development in Hai Duong
Local craft producers and the local government in Hai Duong are beginning to adjust to the
increasingly open market approach and the project is trying to assist in this development.
However, the project experienced some difficulties at the points where Vietnamese state
regulations conflict with EC regulations (exchange rate and audit law) or when decision
making at the local government level is only possible in consultation with the province of Hai
Duong.

The project also faced difficulties at the European end, resulting from relatively slow
administrative processes at London Borough of Hackney (LBH) and at London Metropolitan
University. LBH has been drained of resources and is currently undergoing a restructuring
process, which, as far as the project was concerned, sometimes resulted in delays and loss
of efficiency in the day-to-day management of operations because of staff shortages.
London Metropolitan University was created as a result of the merger between the University
of North London and London Guildhall University. Although the merger did not have a direct
impact on the project, implementation in terms of staff restructuring has complicated financial
procedures.

Internally, the project has been under strain in the area of project management. Long
distance communication and language barriers as well as the reporting requirements of the
different partner organisations and the EC have stretched the skills and know-how of the
management team in Hai Duong to their limits. Cultural barriers as well as different attitudes
and understanding of how organisations work underlined the difficulties1.




1
 The difficulties are explained in greater detail in F Assessment of the project: What lessons, both
positive and negative can be drawn from the experience of the project to date?

                                                                                         Page 2 of 34
                                         Intermediate Report
                       Economic and Cultural Heritage Development in Hai Duong



C. Reporting Tables

      Plan of Action for year one
Most of the actions, planned in year one, have been carried out, but some were delayed due
to the late signing of contracts between the partner organisations and the London Borough
of Hackney. Therefore some of the actions planned for the end of year one are postponed to
the beginning of year two.

 Activity   Year     Activity planned                                Activity achieved                Comments
 table
 number
 1          Month    Preparatory work for the recruitment of         Recruitment procedure
            -2       Project Managers in Hackney and Hai Duong       organised
                     starts as soon as grant agreed.
 2          Month    Signing of contract with EU and sub-            All contracts are signed         Delays in
            1        contracts with partners.                                                         signing of
                                                                                                      contracts
 3                   Agreement of final workplan                     Workplan agreed and to
                                                                     great extent implemented
 4                   Local Steering Groups start meeting             Local Steering Groups set up
                                                                     in all three countries
 1                   Project Managers in Hai Duong + Limerick        Vietnam Project Manager
                     appointed.                                      employed from 11.02.02
                                                                     Limerick Project Manager is
                                                                     part of contribution form
                                                                     Limerick City Council
 5                   Preparations begin for first transnational      First transnational meeting
                     meeting in Hai Duong                            organised
 6                   Preparations begin for work on Cultural         Research outlined and
                     Tourism and Crafts Dev. Plan (i.e. research     organised
                     brief, interview and meetings schedule etc)
 7                   Preparatory work for the recruitment of Craft                                    Delayed
                     Board Development Manager starts
 8          Months   Admin, finance systems and website set up       System implemented
            1-3
 9          Month    Craft Board Development Manager                                                  Delayed
            3        appointed and starts work on setting up and
                     developing the board
 10                  Design and buildings renovation schedule        Schedule drawn up
                     drawn up for Craft Promotion Centre
 11         Month    Work on conversion and renovation of Craft      Craft Promotion Centre re-
            4-8      Promotion Centre                                designed and renovated
 12         Month    First Transnational Meeting held in Hai         Meeting held
            4        Duong
 13                  Evaluators and auditors appointed and           Evaluator appointed, Auditor
                     monitoring processes agreed                     in Vietnam and Ireland
                                                                     delayed
 14                  Partners work with Hai Duong staff and other    Appraisal carried out
                     agencies on researching and developing
                     Cultural Tourism and Crafts Development
                     Plan
 15                  First capacity building programme for Hai       Held during first
                     Duong staff                                     transnational visit
                                       nd
 16                  Preparation for 2 transnational meeting in      Meeting organised
                     UK + study visits and capacity building
                     programme in UK
 17         Month    Preparatory work for the recruitment of         Recruitment procedure
            5        Business Liaison Officers starts                organised
 18                  Work continues on development of Cultural       Appraisal written, printed and
                     Tourism and Craft Development Plan              translated into Vietnamese


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                                       Intermediate Report
                     Economic and Cultural Heritage Development in Hai Duong

Activity   Year      Activity planned                         Activity achieved            Comments
table
number
                      nd
19         Month 6   2 Transnational Meeting + study          Meeting and capacity
                     visits and capacity building             building programme held
                     programme for Hai Duong staff            in July in London
                     held in London
20                   Equipment and furniture ordered for      Craft Promotion Centre
                     Craft Promotion Centre                   equipped and furniture in
                                                              place
21         Month 7   Constitution and membership of           Membership of Craft
                     Craft Development Board finalised        Board set up, delays in
                                                              design of constitution
22                   UNL/Hackney to Hai Duong for             Appraisal launched at
                     launch of Board and Plan                 opening of Craft
                                                              Promotion Centre
23                   Staff development/capacity building      Staff development started,   Needs
                     needs of Craft Board staff identified    needs identified, some       improvement
                     and consultancy support provided         consultancy support
                                                              provided
24                   Business Liaison Officers appointed      Business Liaison Officers
                     and start outreach work to local         appointed
                     craft businesses
25                   Preparatory work for the                 Recruitment procedure
                     recruitment of Craft Shop/Centre         organised
                     Manager starts
26                   Craft Development Board holds first      First meeting held
                     meeting
27         Month 8   Preparation for local visits and staff   Staff development            Local visits
                     development programmes                   organised                    delayed to
                                                                                           year two
28         Month 9   Renovation of Craft Promotion            Craft Promotion Centre
                     Centre completed and                     opened in November
                     equipment/furniture installed. Staff
                     move in.
29         Month     Visits and Staff Development             Two London
           10        Programmes in Vietnam                    representatives visited
                                                              centre, staff development
                                                              day held
30         Month     Preparation for study visit to EU +                                   Delayed to
                      rd
           11        3 Transnational meeting                                               year two
31         Month     Work on interim report begun             Production of report
           12                                                 started




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                                                                 Economic and Cultural Heritage Development in Hai Duong


     Activity Tables
Activity Table No 1: Recruitment of Project Managers
Responsible Partner: LBH in conjunction with UNL (Project Manager UK) and Hai Duong Municipality (Project Manager Vietnam)
Task                              Expected          Indicators                  Deviation from Plan of      Time schedule/ month
No Description                    results                                       Action
                                                                                                            1 2        3    4      5   6      7     8     9   10   11   12
1a   Preparatory work for the        Appointment of      Staff recruitment procedures     Recruitment took longer
     recruitment of Project          Project Manager     as required by University of     than originally planned due
     Managers in Hackney starts as   in Uk               North London (UNL)               to targeting of suitable
     soon as grant agreed.                               (including: job advertisement,   organisations/people in the
                                                         writing of job description,      UK.
                                                         person specification and
                                                         contract, short-listing,
                                                         interviews, post negotiations)
                                                         Interviews were held 20
                                                         February 2002. The project
                                                         manager in the UK started
                                                         work on the 18 March 2002.
1b   Preparatory work for the        Appointment of      Staff recruitment procedures     Due to delays in signing the
     recruitment of Project          Project Manager     (contacting of Expat             contract between Hai Duong
     Managers in Hai Duong starts    in Hai Duong        community networks in            and LBH a formal work
     as soon as grant agreed.                            Vietnam, writing of job          contract between the local
                                                         description, person              authority in Hai Duong and
                                                         specification and contract)      the Project Manager Huong
                                                         The project manager in Hai       was signed in May 2002.
                                                         Duong started work on the 11
                                                         February 2002.
1c   Preparatory work for the        Appointment of                                       Delays in the appointment of
     recruitment of Project          Project Manager                                      the PM in Ireland occurred
     Managers in Hai Duong and       in Limerick (part                                    because this issue was only
     Limerick starts as soon as      of her job at                                        raised at the first
     grant agreed.                   Limerick City                                        transnational steering
                                     Council)                                             committee meeting in April




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                                                                                  Intermediate Report
                                                                Economic and Cultural Heritage Development in Hai Duong


Activity Table No 2 - Project Contracts and Partnership Agreements
Responsible partner: LBH and UNL
                                    Expected results     Indicators                             Deviation from Plan of Action                                    Time schedule/ month
No       Description
                                                                                                                                                                 1 2 3 4 5 6 7 8 9 10   11   12
2a      Signing of contract between   Signed contract, which   Contract was signed on the 11
        London Borough of Hackney     regulates project        January 2002 and project
        (LBH) and EU - Asia Urbs      implementation and       started on the 12 January 2002
        Programme section             responsibility of
                                      contract partners
2b      Signing of sub-contract and   Signed contract, which   The contract and partnership     Approval of the contract by the legal department at LBH took
        partnership agreement with    regulates                agreement were signed in         longer then expected
        UNL                           responsibility of        March 2002
                                      contract partners
2c      Signing of sub-contract and   Signed contract, which   The contract and partnership     The main contract partner in Vietnam -UNDP- had to drop
        partnership agreement with    regulates                agreement were signed in June    out because their administrative systems proved to be
        Hai Duong local authority     responsibility of        2002                             incompatible with the EU requirements. After negotiations
                                      contract partners                                         with Hai Duong before and during the first transnational visit
                                                                                                (April 2002) the Municipality of Hai Duong took on the tasks
                                                                                                originally designed for the UNDP. Further delays occurred
                                                                                                because Hai Duong municipality encountered administrative
                                                                                                problems with the opening of a Bank account and the
                                                                                                translation of documents took longer then expected.
2d      Signing of sub-contract and   Signed contract, which   The contract and partnership     The signing of further sub-contracts was delayed because of
        partnership agreement with    regulates                agreement with An Viet were      the late signing of the contract between London Borough of
        An Viet                       responsibility of        signed in November 2002          Hackney (LBH) and Hai Duong Municipality, which had
                                      contract partners                                         priority among all other sub-contracts.
                                                                                                Further delay occurred because of staff shortages at LBH
2e      Signing of sub-contract and   Signed contract, which   The contract and partnership     See 2d
        partnership agreement with    regulates                agreement with Limerick City
        Limerick City Council         responsibility of        Council were signed in
                                      contract partners        November 2002
2f      Signing of sub-contract and   Signed contract, which   The contract and partnership     See 2d
        partnership agreement with    regulates                agreement with Shannon
        Shannon Development           responsibility of        Development was signed in
                                      contract partners        November 2002
2g      Signing of sub-contract and   Signed contract, which   The contract and partnership     See 2d
        partnership agreement with    regulates                agreement with Renaisi were
        Renaisi                       responsibility of        signed in December 2002
                                      contract partners



                                                                                                                                                                 Page 6 of 34
                                                                                  Intermediate Report
                                                                Economic and Cultural Heritage Development in Hai Duong


Activity Table No 3 - Agreement of final workplan
Responsible: UNL
                                     Expected results          Indicators                         Deviation from Plan of Action                                      Time schedule/ month
No       Description
                                                                                                                                                                     1 2 3 4 5 6 7 8 9 10   11   12
3a      Agreement on workplan for    Overall plan of actions   Understanding of all partners      Delays occurred because of language barriers and long
        the whole project            agreed by all partners    how project objectives are going   distance communication problems (Vietnamese prefer to
                                                               to be implemented                  communicate by personal contact and European partners
                                                                                                  work on email based communication) However, most of the
                                                                                                  activities set out in the plan of action for the first 12 months
                                                                                                  had been achieved at the end of the first year of the project’s
                                                                                                  duration.
3b      Development of detailed      Detailed workplans        Discussion of workplans at         Revision of some details had been undertaken for example
        workplans for the            and timeframe for         every Transnational Steering       with changing the date for the opening of the craft centre
        forthcoming months for       activities                Committee Meetings and             because we wanted to ensure that as many project
        partners and timeframe for                             revision of plans if necessary     associates as possible could attend the opening.
        activities




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                                                                 Economic and Cultural Heritage Development in Hai Duong


Activity Table No 4: Local Steering Groups meetings
Responsible partner: Local Authority Partners in London, Limerick and Hai Duong
                                    Expected results     Indicators                                Deviation from Plan of Action                                     Time schedule/ month
No       Description
                                                                                                                                                                     1 2 3 4 5 6 7 8 9 10   11   12
4a      Setting up of steering group   Steering group which     Involvement of all local project   The Hackney steering group started work after the delegation
        in UK                          will act as local        partners in Steering Group         had returned from the first transnational meeting. This delay
                                       decision body for the    Agreement in regular meetings      was followed on from the delays with the contract situation.
                                       project in Hackney       and meeting procedures             The legal contract with Hai Duong had to have priority over
                                                                (minute taking, time schedule of   any other activity at this time.
                                                                meetings)
                                                                First meeting took place in May
                                                                2002.
4b      Setting up of steering group   Steering group which     Involvement of all local project   After the second transnational visit (July 2002) the
        in Vietnam                     will act as local        partners in Steering Group         Vietnamese partners took the initiative to set up a
                                       decision-making body     Agreement in regular meetings      management board which regulates the management
                                       for the project in Hai   and meeting procedures             structure for the project in Vietnam. Time delays in setting up
                                       Duong                    (minute taking, time schedule of   the management board occurred because of
                                                                meetings)                          misunderstanding of the importance of such structures at the
                                                                First meeting of the steering      beginning of the project. However this problems was easily
                                                                group took place in July 2002.     solved during the transnational meeting and the board
                                                                                                   started working soon after.
4c      Setting up of steering group   Steering group which     Involvement of all local project   The project partners in Limerick and Shannon form the
        in Ireland                     will act as local        partners in Steering Group         smallest group with just two members, who meet regularly on
                                       decision body for the    Agreement in regular meetings      a more informal basis.
                                       project in Limerick      and meeting procedures
                                                                (minute taking, time schedule of
                                                                meetings).
4d      Ensuring active involvement    Participation in         Regular meetings of steering
        in project activities          decision making          groups take place in all three
                                       process                  countries and information is fed
                                                                back to transnational steering
                                                                committee meetings and the
                                                                Project Manager UK.




                                                                                                                                                                     Page 8 of 34
                                                                                  Intermediate Report
                                                                Economic and Cultural Heritage Development in Hai Duong


Activity Table No 5 - Preparations begin for first transnational meeting in Hai Duong
Responsible: UNL and Hai Duong Municipality
                                     Expected results        Indicators                              Deviation from Plan of Action   Time schedule/ month
No        Description
                                                                                                                                     1 2 3 4 5 6 7 8 9 10   11   12
5a       Travel preparation for       All members of           Provision of letter of invitation,
         delegation                   delegation received      Visas and travel documents
                                      travel documents.        organised on time.
                                                               Hotel reservation made.


5b       Preparation of local craft   Participation of craft   Participation and development
         businesses for involvement   businesses in visit      of interest/ motivation for project
         in project                                            objectives.
5c       Preparation for project      Appointment of project   Administrator started work on
         administrator appointment    administrator            11 April 2002 in Hai Duong.
5d       Preparation of meeting       Meeting schedule         Organised field trips.
         schedule                                              Organised meetings with Hai
                                                               Duong municipality, Hai Duong
                                                               province and craft businesses.

5e       Translation of meeting       Documents available      Documents ready at the first
         agendas, schedule and        in Vietnamese and        meeting.
         contract                     English




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                                                                  Economic and Cultural Heritage Development in Hai Duong


Activity Table No 12 – First transnational meeting (visit) held in Hai Duong
Responsible: Hai Duong Municipality
                                      Expected results        Indicators                          Deviation from Plan of Action   Time schedule/ month
No        Description
                                                                                                                                  1 2 3 4 5 6 7 8 9 10   11   12
12a      Getting to know each other      Development of trust    Share of social activities.
                                         and understanding       Discussion about wider work
                                         between all partners.   related issues.
12b      Contract negotiations and       Agreement on main       Positive statements from all
         explanation of project          project ideas and       project partners about the
         objectives to partners          objectives.             issues.
12c      Exchange of knowledge on        Knowledge about local   Common level of understanding
         how local authorities work in   authorities in Europe   of terminology.
         all three participating         and in Vietnam.         Every local authority partner
         countries                                               gave presentation about the
                                                                 work of their local authority.




                                                                                                                                  Page 10 of 34
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                                                                        Economic and Cultural Heritage Development in Hai Duong


Activity Table No 6, 14 and 17- Preparations begin for work on Cultural Tourism and Crafts Dev. Plan (i.e. research brief, interview and meetings +Partners work with Hai Duong staff and
other agencies on researching and developing Cultural Tourism and Craft Development Plan
Responsible: UNL and Hai Duong Municipality
                                     Expected results      Indicators                    Deviation from Plan of Action                           Time schedule/ month
No        Description
                                                                                                                                                 1 2 3 4 5 6 7 8 9 10 11 12
6a       Research brief                    All actors involved in      Training of research actors.
                                           the research know           Desk research (Identification of
                                           what they are doing.        primary and secondary
                                                                       literature).
6b       Research organisation             Interview schedule.         Prepared and informed
                                           Locations, transport        interviewees and interviewer,
                                           and facilities              organisation of translator for
                                           organised.                  interviews.
6c/14    Field work                        Getting as much             Carried out interviews with craft
                                           appraisal information       businesses, administrators and
                                           about craft businesses      stakeholder organisations in Hai
                                           in Hai Duong as             Duong and Hanoi.
                                           possible.
6d       Writing up of first draft         First draft of appraisal.   Information analysis of
                                                                       interviews and secondary
                                                                       material.
6e/14    Partner commenting on draft       Agreement on content
                                           of appraisal.
6f/18    Writing up of final draft                                     Incorporating comments and
                                                                       suggestions from partners.
6g/18    Translation of final draft into   Vietnamese version of       Cross check with Vietnamese
         Vietnamese                        Appraisal.                  partner about translation of
                                                                       appraisal.
6h/18    Layout and printing of            English and
         versions in both languages        Vietnamese version of
                                           appraisal.




                                                                                                                                            Page 11 of 34
                                                                                    Intermediate Report
                                                                  Economic and Cultural Heritage Development in Hai Duong


Activity Table No 7, 9, 21 and 26: Craft Development Board
Preparatory work for the recruitment of the Craft Board Development Manager starts, Craft Board Development Manager appointed and starts work on setting up and developing the board,
Constitution and membership of Craft Development Board finalised, Craft development Board holds first meeting
Responsible Hai Duong Municipality
                                      Expected results     Indicators                  Deviation from Plan of Action                      Time schedule/ month
No        Description
                                                                                                                                          1 2 3 4 5 6 7 8 9 10 11 12
7a       Preparatory work for the        Organised recruitment   Job advert                         Best candidate does not fulfil key criteria of being local
         recruitment of the Craft        procedure.              Selection procedure                person, Second advert did not produce any good candidates
         Development Officer                                     (Shortlisting,                     No CBDM appointed, post partly filled by other local staff
                                                                 Interviewing)                      (Business Liaison Officer and Project Administrator)
                                                                                                    BLO was promoted to CBDO

9        Craft Board Development         Appointed Craft Board   Former BLO and new CBDO
         manager appointed and           Development Manager     started work on the 11. October
         starts work on setting up and                           2002 in Hai Duong
         developing the board
20       Constitution and                Constitution            Meeting with all partners -        Delays occur because staff and local businesses busy with
         membership of Craft             developed and           decision to set up Board.          other urgent matters.
         Development Board finalised     membership in place     Preparatory meeting with HD        Constitution is not developed because CDB was understood
                                                                 staff about CDB, ensure local      to be local steering group in the first instance.
                                                                 business participation.
26       Craft Development Board         Established Craft       First meeting held, participants   Delays continued because of misunderstanding (see 20),
         holds first meeting             Development Board       nominated                          work on constitution not started yet.
                                                                 Drawing up of terms of
                                                                 reference for CDB




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                                                                  Economic and Cultural Heritage Development in Hai Duong


Activity Table No 8: Admin, finance systems and website set up
Responsible partner: all partners
                                     Expected results    Indicators                                  Deviation from Plan of Action                                     Time schedule/ month
No        Description
                                                                                                                                                                       1 2 3 4 5 6 7 8 9 10   11   12
8a       Administrative system for all   Administrative system   Management structure
         partners developed              in place                including: Action Plan, Staff
                                                                 structure, Evaluation, Audit,
                                                                 Legal aspects of the project are
                                                                 discussed with partners and set
                                                                 up according to monitoring
                                                                 guidelines of the EC.

8b       Finance system for project      Finance system in       Financial systems such as           Due to different record keeping systems of partner
         set up                          place                   bookkeeping and budgetary           organisations and EC requirements a separate system was
                                                                 control installed and tested with   installed which follows the EC rules but could only be cross
                                                                 all partners.                       checked with system of partner organisations with difficulties.
                                                                 Responsibilities for finances       In Vietnam the financial management is seen as a big
                                                                 defined (Finance departments        challenge and sometimes conflicts with Vietnamese
                                                                 of partner organisations set up     administrative rules therefore delays occurred in setting up
                                                                 project accounts and oversee        the system and delivering sufficient information.
                                                                 the bookkeeping).                   In Vietnam the budget is under constant review due to staff
                                                                                                     changes in the project team (difficulties to find the people
                                                                                                     with required qualifications)
8c       Development of project          www.haiduong.info       Establishment of website which      Time delays occurred because priority was given to other
         website                         was launched 04         contains main project               urgent issues such as legal set up of the project
                                         November 2002           information and keeps visitors
                                                                 updated about project
                                                                 development.
8d       Maintenance of website          Updated website         Setting up of administrative
                                                                 tools.
                                                                 Training of PM UK to use
                                                                 administrative tools.




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Activity Table No 10, 11, 20 and 28: Craft Promotion Centre
Design and buildings renovation schedule drawn up for Craft Promotion Centre board and work on conversion and renovation of Craft Promotion Centre, Equipment and furniture ordered
for craft promotion centre, LONDON MET/Hackney to Hai Duong for launch of Board and Appraisal, Renovation of craft promotion centre completed and equipment/furniture installed, Staff
moves in
Responsible partner: Hai Duong Municipality

                                      Expected results           Indicators                            Deviation from Plan of Action                                    Time schedule/ month
No      Description
                                                                                                                                                                        1 2 3 4 5 6 7 8 9 10   11   12
10      Planning of Design and        Schedule drawn up          Decision on which building            During the planning of the renovation a second option for
        Building renovations          and builders booked        should be used                        another building was discussed but in the end a decision was
                                      and under contract         Call for three design proposals       made to go back to the original idea
                                                                 Selection procedure
                                                                 Appointing of contractor
                                                                 Set up of time schedule
                                                                 Contract with builder signed
11      Conversion and renovation     Completed renovation       Building work (Toilets, kitchen,      Building work was delayed because it was hard to find the
        of Craft Promotion Centre     on time and within         removal of walls, entrance area,      right contractor for a relatively small project, budget
                                      budget limitations         stairs and rooms are ready            calculations for building too tight, amendments of building
                                                                 beginning of October                  renovation was decided by Project Manager in Vietnam
                                                                 Decoration of rooms and
                                                                 outside area completed end of
                                                                 October
20      Equipment and furniture       Craft Promotion            Meeting with staff on work plan       Delays carried forward due to delays in building work
        ordered for Craft Promotion   Centre equipped with       for equipment
        Centre                        furniture and office for   Signed contract with designer
                                      craft centre staff set     Plans are approved by mayor
                                      up                         Equipment and furniture
                                                                 ordered
22      LBH/London Met visit to Hai   2 representatives          Organisation of visit (tickets,       Since the launch of the board already took place in August
        Duong for launch of           travel to Hai Duong        visa, letter of invitation),          and the launch of the appraisal was scheduled for the
        appraisal and Board                                      preparation of speeches               opening of the centre it was agreed that the next visit to Hai
                                                                                                       Duong would be scheduled for the opening of the craft
                                                                                                       promotion centre
28      Renovation of craft           Opening of Craft           Installation of equipment and         Delays carried forward due to delays in building work
        promotion centre completed    Promotion Centre on        furniture for office and other
        and equipment/furniture       the 04 November            rooms in the centre
        installed, Staff moves in     2002                       Selection of craft examples for
                                                                 display and creation of image
                                                                 for CDCentre, display of craft
                                                                 products at the centre, open
                                                                 craft fair in front of the building

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Activity Table No 13: Evaluator and auditor appointed and monitoring process agreed
Responsible partner: LBH and LONDON MET

                                    Expected results         Indicators                           Deviation from Plan of Action                                      Time schedule/ month
No      Description
                                                                                                                                                                     1 2 3 4 5 6 7 8 9 10   11   12
13a     Securing the start of the   Appointed Evaluator      Agreement on evaluation              Appointment of evaluator was delayed because of delayed
        evaluation of the project                            objectives with partners             contract procedure at the beginning of the project
                                                             Writing of tender documents
                                                             Agreement on selection
                                                             procedure for tendering process
                                                             Selection procedure (advert,
                                                             selection of interview
                                                             candidates, interviews, contract
                                                             negotiations with evaluator)
13b     Monitoring process          Agreement of             Discussions with evaluator
                                    monitoring process       about monitoring process and
                                                             set up of the evaluation
                                                             Establishment of evaluation
                                                             procedure according to tender
                                                             documents
                                                             Start of work of evaluator
13c     Auditor                     Appointment of auditor   District auditor of LBH will audit   The auditors’ appointment is delayed because of the
                                                             books of all partners based in       following issues:
                                                             London. An independent auditor       LBH's district auditor is not allowed to audit books outside the
                                                             will audit books in Ireland and      UK.
                                                             Vietnam                              Negotiations with Pricewaterhousecoopers as auditor for all
                                                                                                  three countries fail because PWHC could not meet budget
                                                                                                  limitations.




Activity Table No 15 and partly No 19: Capacity building programme for Hai Duong staff
Responsible partner: LBH, LONDON MET and Hai Duong Municipality

                                    Expected results         Indicators                           Deviation from Plan of Action                                      Time schedule/ month
No      Description
                                                                                                                                                                     1 2 3 4 5 6 7 8 9 10   11   12

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15a   Capacity building          Running of first part of   Training sessions and
      programme                  the programme in Hai       discussions held during first
                                 Duong                      transnational visit about needs
                                                            and expectations of Hai Duong
                                                            municipality
                                                            Exchange of functions and roles
                                                            of local authorities in Vietnam,
                                                            UK and Ireland
      Continuation of Capacity   Running of second          Further Training sessions on the
      building programme         part of the programme      vision of the project with
                                 in London                  facilitator, several case study
                                                            visits to Hackney regeneration
                                                            projects and introductory visits
                                                            to craft marketing agencies
                                                            such as Hidden Art and the
                                                            Craft Council as well the Design
                                                            2002 exhibition at the Business
                                                            Design Centre
                                                            Introductory presentation of
                                                            business support agencies such
                                                            as Renaisi and Business Link in
                                                            London




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Activity Table No 16 and 19: 2rd transnational meeting in the UK
Responsible partner: all London based partners and Hai Duong Municipality
                                     Expected results      Indicators                                                           Deviation from Plan of Action         Time schedule/ month
No       Description
                                                                                                                                                                      1 2 3 4 5 6 7 8 9 10   11   12
16a     London visit preparations in    Well planned visit by      Translation of travel documents, booking of air tickets,     Visit was delayed for some days due
        Hai Duong                       the Vietnamese             complete visa procedure, arrange meeting schedule            to flight availability
                                        partner                    with partners, meeting with craft businesses to
                                                                   understand their expectations
16b     Visit preparations in London    Well planned visit from    Organisation of visits programme, including setting up
                                        the point of view of       of capacity building programme, presentations and
                                        Hackney                    receptions with, for example, the Lord Mayor of London,
                                                                   City Fringe Partnership, Hidden Art, Business Link, the
                                                                   Mayor of Hackney, transnational steering committee
                                                                   meetings, entertainment events, translation, food,
                                                                   accommodation (see schedule attached)
19      Second transnational visit in   Successful visit for all   All the activities took place as planned in the schedule.
        London                          partners                   The visit was perceived as useful and informative for all
                                                                   the partners, the meetings clarified different perceptions
                                                                   and positions of the partners and a good working
                                                                   atmosphere was developed which was built on in later
                                                                   visits




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Activity Table No 18 and 24: Business Liaison Officer
Responsible partner: all London based partners and Hai Duong Municipality
                                   Expected results     Indicators                                                   Deviation from Plan of Action          Time schedule/ month
No       Description
                                                                                                                                                            1 2 3 4 5 6 7 8 9 10   11   12
18      Preparatory work for the   Post paper work ready    Job description, advert in local paper,                  Delay in the recruitment procedure
        recruitment of Business                             selection procedure (short-listing, interviewing,        occurred because of late signing of
        Liaison Officer (BLO)                               nomination of officer, salary approval)                  partner contract and delays in money
                                                                                                                     transfer
24a     Start of work of BLO       Appointed Business       Negotiations with final candidate, the officer was
                                   Liaison officer          appointed on 11 August 2002
24b     Start of outreach work     Become the first point   Establish contacts with craft businesses and undertake
                                   of contact for craft     preliminary study of business needs in Hai Duong,
                                   businesses               information fed back to Craft Development Board,
                                                            organise work of Craft Development Board and draw up
                                                            work plan for the future




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Activity Table No 23: Staff development/capacity building needs of craft board identified and consultancy support provided
Responsible London Met, LBH and Hai Duong
                                    Expected results      Indicators                      Deviation from Plan of Action                                            Time schedule/ month
No        Description
                                                                                                                                                                   1 2 3 4 5 6 7 8 9 10   11   12
23a      Staff development/capacity      Needs analysed and     Collect suggestions from board     Misunderstanding occurred between Hai Duong and London
         building needs of craft board   listed                 members and collect comments       office about how to define the work of the board, the board
         identified                                             on Appraisal which would reflect   members and the local craft businesses -needs clarification
                                                                the needs of board members,        at the next visit of Project Director in January
                                                                analyse and identify needs,
                                                                write up proposal
23b      consultancy support             Improvement of                                            Delayed to year two (see 23a) due to time pressure in month
         provided                        capacity building                                         10and 11 (opening of the centre)
                                         programme and staff
                                         development needs



Activity Table No 25: Preparatory work for the recruitment of craft Shop/Centre Manager starts
Responsible London Met, LBH and Hai Duong
                                    Expected results       Indicators                   Deviation from Plan of Action                                              Time schedule/ month
No        Description
                                                                                                                                                                   1 2 3 4 5 6 7 8 9 10   11   12
25a      Preparatory recruitment work    Recruitment            Write job description, organise    Process is delayed because need to employ a cleaner and a
         for Shop/Centre Manager         procedure organised,   advert, organise interview         security person arose during the renovation of the centre and
                                         shop manager           process, shortlist candidates      it was treated as a priority
                                         employed                                                  Shop manager was employed on 11. November 2002)

25b      Creation of two new posts       Cleaner and security   Revision of budget                 This action was not planned.
         (cleaner and security           person appointed       Organise recruitment procedure
         person)                                                and appoint candidates
                                                                Both new staff started work on
                                                                the 11. August 2002




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Activity Table No 27 and 29: Preparation for local visits and staff development programmes in Vietnam, Visit and Staff development Programme in Vietnam
Responsible Hai Duong Municipality
                                     Expected results        Indicators                 Deviation from Plan of Action                       Time schedule/ month
No        Description
                                                                                                                                            1 2 3 4 5 6 7 8 9 10                       11   12
27a     Preparation for local visits   Visits to other projects,   Establish links with other
                                       craft related places of     networks and with Asia Urbs
                                       interest                    network, invitation to HD
                                       Participation of other      workshops follow up invitation to
                                       projects at Hai Duong       other project events such as
                                       workshops                   "Habitat Project" in Vinh and
                                                                   "Natural reservation project of
                                                                   UNDP"
27b     Staff development              Organised workshop          Develop programme for training
        programmes in Vietnam          and training                session, write up briefing notes
                                       programme                   for trainer, set up work plan for
                                                                   organisation of training session,
                                                                   organise facilities, experts and
                                                                   organise local visits to other
                                                                   craft villages and towns
29      Visit and Staff development    Training session for        Training session was held on 05     Work plan was not developed but discussion and exchange
        Programme in Vietnam           municipality staff and      November 2002                       about project objectives and future implementation of project
                                       craft centre staff          Development of work plan for        took place
                                                                   next few month




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Activity Table No 30: Preparation for study visit to EU + third transnational visit
Responsible London Met in collaboration with all partners
                                     Expected results        Indicators                               Deviation from Plan of Action                                  Time schedule/ month
No        Description
                                                                                                                                                                     1 2 3 4 5 6 7 8 9 10   11   12
30       Preparation for study visit to   Visit organised        Provision of Letter of invitation,   The visit is postponed to May 2003 because of delays in the
         EU + third transnational visit                          organisation of travel and           preparation of financial records due for the intermediate
                                                                 accommodation                        report and due to concerns of Vietnamese partners about
                                                                 Preparation of schedule for          temperature and weather
                                                                 visits to LSC meetings
                                                                 Organisation of programme in
                                                                 London and in Limerick

Activity Table No 31: Intermediate report
Responsible: all partners
                                     Expected results            Indicators                           Deviation from Plan of Action                                  Time schedule/ month
No        Description
                                                                                                                                                                     1 2 3 4 5 6 7 8 9 10   11   12
31       Work on intermediate report      Written Intermediate   Collection of data for               Project partners were unable to deliver data and information
         begun                            report                 intermediate report from all         on time
                                                                 partners                             Extension granted from EC, new deadline 15. March 2003
                                                                 Production of draft for technical
                                                                 report, collection of comments
                                                                 and suggestions from partners
                                                                 and production of draft for
                                                                 financial report, incorporating
                                                                 comments from partners
                                                                 Production of final version of
                                                                 report




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D. Partnership

What has been the role of each partner in implementing the project?
The project benefits from the strong commitment of all partners to the aims and objectives of
the project. At the beginning the partnership existed largely on paper only but since then a
common understanding has developed. The transnational visits in particular carried forward
the dialogue among the partners and enhanced opportunities to get to know each other and
help to develop tolerance and acceptance of the partners' cultural and working habits.

During the first transnational visit the role of the project partners was discussed at length and
an agreement was reached on the different roles of the seven partners involved. The
European partners will focus on the developments in their countries and try to support the
project from their end with, for example, the exchange of expertise in tourism and craft
industries between Hai Duong, London and Limerick. In addition they will try to secure future
funding for the project. Hai Duong local authority is the main partner to develop and
implement the project in Vietnam. They are focusing on the support of the local craft
businesses and trying to combine tourism and craft development in Hai Duong, which is not
one of the mainstream tourist attractions of Vietnam.

The project as a whole is a combined exercise of all partners but every partner brings in
special expertise, which is detailed below:

The London Borough of Hackney acts as the lead partner and oversees the management of
the project as a whole and heads up activities carried out in the Borough together with the
An Viet Foundation. LBH brings in special expertise of working with the Vietnamese
community in the Borough and is actively involved in exchange of knowledge and ideas on
capacity building of local authorities between Hai Duong and Hackney.

London Metropolitan University focuses on the research side of the project and supports
LBH in the management of the project. For example members of staff from the University
carried out the appraisal and acted as project consultants. The University brings in expertise
in tourism development and especially concentrates on the relationship of craft production
and tourism development in South East Asia. In this respect it works closely with the Craft
Promotion Centre in Hai Duong. In London, the University is currently carrying out a baseline
study which focuses on the needs of Vietnamese and Turkish businesses and which also
analyses how culture influences business practice.

Shannon Development, one of the Irish partners, brings in special expertise in the
development and the support of craft businesses and it also supports the project with
consultancy expertise in tourism development. This was demonstrated during the first
transnational visit and during the production of the appraisal.
Limerick City Council works closely with Shannon Development. In addition to the above, it
brings in expertise of managing European projects with associated member states and other
countries in South East Asia. The involvement of the Irish partners will increase in the
second year in which a transnational visit takes place in Limerick.

The An Viet Foundation is the central contact point for the Vietnamese community in London
and it links the Vietnamese community in Hackney with the community in Hai Duong. They
have been excellent hosts and guides for all our Vietnamese visitors and they bring in
special expertise in cultural practice and traditions of Vietnamese habits, attitudes and
patterns of behaviour.


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Renaisi manages the delivery of regeneration programmes for the benefits of local
communities and adds special expertise to the project as it advises on development projects
and capacity building activities in LBH, which offers a broad knowledge base to our
Vietnamese partners and to the Vietnamese community in Hackney.

The Municipality of Hai Duong is one of the main beneficiaries of project activities in Vietnam
and manages the delivery of project activities locally. Hai Duong brings in local expertise and
development needs in the economic and cultural heritage development sector of its town. It
aims to develop the cultural and economic potential of Hai Duong citizens.

Did you experience any difficulties?
Difficulties arose right at the beginning of the project with one of the possible project partners
UNDP in Vietnam. UNDP had to drop out because their administrative systems proved to be
incompatible with the EC requirements. In the original set up of the project most of the
project finances and the local project staff would have been administered by UNDP. Since
this option was no longer available Hai Duong Municipality took on the administration of all
finances and human resources for Vietnam.

Since the municipality has no experience in the administration of EC projects this has proven
to be a challenging task. For example record keeping in another language demands special
attention. Further problems occurred because of differences in law between the EU and
Vietnam. For example, our Vietnamese partners have to make use of the Vietnamese
national standard (law) Euro exchange rate, which is set nationally and revised daily and is
different to the European rate. Therefore the Vietnamese partners in Hai Duong cannot use
the monthly exchange rate issued by the European Central Bank.

These issues have caused some confusion among the partners and they have complicated
communication. For the Vietnamese partners it is not easy to understand how the EU as a
union of different states operates and they therefore have struggled to distinguish between
the EC as the grant awarding body and the project partners who commit themselves to
implement the project according to EC rules. The European Partners struggle with the
understanding of rules and regulations implemented by the communist government in
Vietnam.

Furthermore, communication difficulties have been reinforced by the different approaches to
communication. While the European partners feel comfortable with daily email
communication, the Vietnamese partners prefer a monthly reporting structure, weekly emails
and face-to-face conversations.




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E. Links with other projects and programmes

The project has explored and developed links with a number of other projects during the first
year of the project duration.

Other Asia Urbs Projects
The Asia Urbs Network in the UK acted as first contact point within this process. Exchange
of ideas and management issues were discussed with the Asia Urbs project "Sylhet
Partnership" in Tower Hamlets and with the project "Environmental Management and Waste
Strategy for the Textile Dyeing Industry" in Leicester. Initial contact was made with the Asia
Urbs project "Prioritising the Cultural Heritage: Urban Management and Economic
Diversification in the Sub-Metropolitan City of Lalitpur and the Village Development Area of
Kohokana, Kingdom of Nepal" in Chester.

The Asia Urbs Vietnamese Network provides not only exchange of information but is also a
good opportunity to share support and technical expertise. Some of the other Asia Urbs
projects in Vietnam attended the opening of the craft centre and participated in a workshop
run in Hai Duong for the craft businesses. The office in London has also sought advice from
the project manager of the project "Sustainable Socio-economic Urban Development of the
City of Hanoi/Vietnam based on the Renewal of the Water and Waste Water System of the
West Lake Network Area" in management related issues.

Research projects
Following discussions with all the partners and especially within the London steering group a
need to know more about Vietnamese businesses in Hackney as well as in Greater London
was identified. As a result a series of research projects were developed which compliment
the project objectives of our Asia Urbs project.

Vietnamese Businesses in London
The first study "Vietnamese Businesses in London" focuses on the number of businesses
that exist in the Greater London area. It determines the proportion of total businesses
belonging to each industrial sector and it identifies the challenges/issues affecting growth of
Vietnamese businesses. This study is funded by "Business Link for London", the London
support agency for small and medium sized enterprises. The second study will focus on the
influence of culture on Vietnamese Business Practice and aims to provide support agencies
with background knowledge and it also aims to supply the data required to make the case for
funding bodies for specific programmes designed to support Vietnamese businesses and the
community as a whole. For this study the University applied for funding to the Nuffield
Foundation.

Urban Explorers and Multicultural Neighbourhoods of European Cities
In addition the university carried out the study "Urban Explorers and Multicultural
Neighbourhoods of European Cities". This research looked at cultural quarters (in East
London/UK "Banglatown" in Spitalfields, "Green Street" in Newham and the "Old Jewish
Quarter" of Kazimierz in Cracow/Poland) and examines their potential as best practice
examples for successful marketing as tourist destinations. The study will be published in "the
Journal of Urban Studies" next year and is funded by the University. It is envisaged that this
study will inform the development of the Vietnamese quarter in Hackney.

Other Projects
The Vietnam Arts Curriculum Development Programme


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In September a field trip brought a group of Vietnamese arts producers from the "The
Vietnam Arts Curriculum Development Programme" to our project office in Hai Duong,
exploring handicraft and heritage development in Hai Duong as a best practice example.
This four year project aims to develop an art management curriculum for arts institutions in
Vietnam and currently offers training sessions for Vietnamese art managers. It is funded by
the Ford Foundation in collaboration with the Vietnamese Ministry of Culture.

Craft producers exchange programme
Currently the project office in London is exploring the possibility of a craft producer exchange
programme between London and Hai Duong. This idea emerged as a direct result of the two
transnational visit in London. It aims to bring together craft producers and designers from the
two different cultures and to enable them explore different traditions of craft production and
design. The project is developed together with Hidden Art, a service agency for craft
producers in the East of London.

While most of the research projects are designed to expand and compliment the scope of
the project with background information, the project idea of an exchange programme of craft
producers directly works to ensure the sustainability of the project beyond its’ two year
duration. Therefore future funding possibilities are being explored and we are looking
particularly at the EU Asia -IC &T and EU Asia Invest programmes.

Trading Chain Survey
The ILO consultants and the Asia-Urbs's project team in Hai Duong are currently organising
a joint initial survey of a trading chain, which exports handicrafts from northern Vietnam and
Hai Duong will be used as case study. The roles of the various exporters and other
intermediate traders will be identified, in particularly with respect to services provided to
small-scale producers and information flows about product designs. The number of
exporters and other traders will be estimated, and a few case studies (Hai Duong handicraft
producers) will be developed, to illustrate key points about the trading chain. The main
objective of the study is to identify opportunities to enhance the services provided by traders
to small-scale producers. Opportunities to assist exporters in finding new markets may also
be identified.




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F. Assessment of project
What has been the initial impact of the project?
Project offices in Hai Duong, Limerick and London
The first step of project implementation was the setting up of the project offices in the three
countries and the establishment of the management structure (including administrative and
financial system). It led to a mutual understanding of project objectives and project
management procedure in the first instance. It was also seen as an initial start to develop
sustainable links between the 3 municipalities (London Borough of Hackney in the UK, the
Municipality of Hai Duong in Vietnam, and Limerick City Council in Ireland).

The development of an Appraisal of the Potential for Tourism and Handicraft Development in
Hai Duong
One of the first key activities in the year was the development of an appraisal of the potential
for Tourism and Handicraft Development in Hai Duong (formerly Cultural Tourism and Craft
Development Plan). This plan provides a framework for initiatives designed to promote the
town to tourists and in particular for linking the development of the local handicraft sector to
a tourism strategy. It identifies issues that need to be considered to ensure successful
economic development of the craft sector in Hai Duong. It is understood to be the first
comprehensive document written in English and translated into Vietnamese about the
linkage of craft production and tourism in Hai Duong. The appraisal was launched at the
opening of the craft promotion centre. Despite the fact that Prof. Mike Hitchcock is named as
the single author, the document has been a combined effort from all project partners who
commented and made suggestions on the appraisal. It summarises information from
discussions with stakeholders, government officials, local community groups and craft
producers.

Craft Promotion Centre
One of the milestones of project implementation was the establishment of the Craft
Promotion Centre in Hai Duong. The municipality of Hai Duong lent the project the building
for a duration of two years. It has been re-designed, renovated and newly equipped. The
Centre is designed as a multipurpose building that also houses the Craft Development
Board. It includes exhibition space, a shop, a training room and office space for the centre
staff.
Today it provides a place for craft producers to meet and obtain advice, training and
information about craft developments and to exhibit their work.

Craft Development Board
In an initial meeting the Craft Development Board was founded as a single body at city level
which aims to develop a co-ordinated approach to support enterprises involved in producing
cultural crafts and in exploiting the tourist potential and local economic development potential
of these crafts. The board aims to hold monthly meetings and to ultimately establish itself as
an independent legal entity with its own constitution. It includes representatives from the
municipality, and local businesses. Other local organisations such as the women’s
organisation are also invited to participate. Currently the board is developing a future work
plan, which will outline the provision of technical and marketing support for craft businesses
and will show how the board could help the businesses to obtain funding to upgrade their
premises to accommodate visitors wanting to see products being made. The Business Liaison
Officer and the Craft Development Officer have conducted a survey of all the local craft
businesses on behalf of the craft board, which will be used as basic information document
about the craft businesses based in Hai Duong and the surrounding area. The survey data will
be developed in a business database that indicates the needs and concerns of the
businesses.

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Capacity building
During the first twelve months of the project duration a number of capacity building activities
took place, which aimed to develop the skills and capacity of staff from all three local
authorities/municipalities. Special help was provided to the Municipality in Hai Duong so that
they can develop local economic development and tourism strategies, plans and projects for
the town.

During the first transnational visit a workshop was held which focused on the structures and
functions of local authorities in London, Limerick and in Hai Duong. This workshop provided
a forum for sharing experience of different urban management strategies.
During the second transnational visit to London meetings with staff from the London Borough
of Hackney, An Viet, Hidden Art and Renaisi as well as with Business Link were held.
Participants discussed good practice examples to support craft industries and visited craft
producers in Hackney. In a workshop with all the partners the vision and the capacity of the
project in Hai Duong was discussed with the result that municipality awareness was
strengthened, particularly on issues related to economic development and community
participation in urban development and strategic planning.

A short training sessions for the centre staff and the staff from the municipality was held in
Hai Duong after the opening of the craft promotion centre, which focused more on the
supporting of small businesses development and planning strategies for future work in the
craft promotion centre.

Developing Support for Businesses
The Centre has started to build up a database of contacts with local businesses. It is
currently updating a map of craft businesses in the province of Hai Duong and it has also
started to identify businesses’ needs in this area. The development of a business training
programme is under way. However the work with the craft businesses focuses very much on
the wish of the businesses to increase their export capacities into the European market.
Therefore the centre wants to establish a quick-win example that demonstrates that craft
products could be successfully sold to, for example, the UK and Ireland. In addition a
collection of several surveys that focus on the support of Small and Medium Size Enterprises
(SME) have been collected. Those key documents are available either in English or
Vietnamese in the London and the Hai Duong Project Office (see attachment, List of
Surveys). The development of businesses support will be paid a more attention in the
second year of the project.

Communication and Dissemination Activities
During the first months of the project duration a comprehensive communication and
dissemination strategy was developed to ensure that the local communities from all three
municipalities are directly involved in the development of the project. It includes:

Publicity
The project office in London produces newsletters, at least four to six per year, in English.
These newsletters are translated into Vietnamese and circulated widely in all three
communities. In the meantime more then 100 project associates and friends receive the
newsletter electronically.

Local and national press coverage has been achieved for all transnational visits and for the
opening of the craft promotion centre (see annex).

The project website was developed as an internal management and communication tool and
as a key promotional vehicle for the project. The website is designed with an administration
tool, which enables the project manager in the UK to update the website on a regular basis.

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It was launched in November at the opening of the craft promotion centre and has received
overwhelming positive responses from a variety of people and organisations.

Events
During the transnational visits a series of events was held to promote the project activities to
a wider audience. In the first year the following event were arranged which triggered
supporting responses from participants:

In Hai Duong                          In London
 A presentation at the                Reception at Hackney Town Hall for all
    headquarters of Hai Duong             project partners and project associates
    Province during the first             with the Chief Executive of LBH, the
    transnational visit                   Mayor of Hackney and Councillors of
 The grand opening of the                LBH
    Craft Promotion Centre             Reception in the Marketing Suite at
                                          Mansion House for all project partners
                                          and project associates with the Lord
                                          Mayor of London
                                       Reception with the British Ambassador
                                          to Vietnam at the An Viet Foundation

In addition the project was presented and promoted at the following events:
 Reception of the Lord Mayor of London for financial sector representatives from Hanoi
 Reception at the British Council/Visiting Arts for the Vietnam Arts Curriculum
    Development Programme in London
 Reception at the Foreign and Commonwealth Office for the Vietnam Arts Curriculum
    Development Programme in London
 Away Day of the International Institute for Culture, Tourism and Development in London
 Hidden Art Annual Conference in London
 Hidden Art Open Studio in London

What are the potential areas of project success?
The potential areas for project success have been developed as a continuation of the
implementation process of the project objectives to date and have been identified in the
following areas:

Business development
The transnational visits have shown that Hai Duong craft products could attract lots of
interest on the European market. However products need to be professionally marketed and
marketing strategies need to be developed among the craft community in Hai Duong.
Therefore business training will be provided which will assist with the development of
business networks and focus on marketing and promotion activities of craft products.

Capacity building
The workshops, seminars and training sessions held so far indicate that the municipality staff
has engaged in the capacity building process and has experienced a steep learning curve to
date. It is estimated that this will continue into the second year of the project duration and
that it will show an impact on how economic development is organised in Hai Duong in the
future.

In addition the Municipality of Hai Duong took on the difficult task of managing the project
locally without help from an experienced aid organisation as originally planned. This involves
dealing with issues such as marketing and finances according to EC regulations, which
turned out to be a main challenge in comparison with Vietnamese City Council regulations

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and led to an intensive capacity building programme which followed the approach of
"learning by doing". The municipality has developed a unique system that links the
recording requirements of the EC and the Vietnamese government.

Sustainable links
Hai Duong Municipality has approached London Borough of Hackney to think about a
twinning partnership, which would ensure that the project’s merits are carried forward into
different areas.

One of the main assets of the project is the craft promotion centre, which ought to continue
working after the project ends. Therefore in the second year the focus will be to develop a
three-year business plan for the centre and to ensure future income for the centre. This
could for example be achieved with income from selling craft products online directly to
European and American customers, selling products to tourists who visit Hai Duong and with
future funding from other relevant funding programmes, which are currently being
investigated.

Dissemination of information
The positive reactions following the launch of the website and the newsletter dissemination
have shown that there is not only a demand for information, but there is also a necessity to
promote project development as widely as possible. This has already supported, for
example, business development and capacity building activities during the project’s duration.
In the second year the development of a website for the craft promotion centre is planned
which will give the centre a direct communication channel with most of the import businesses
abroad. All in all the dissemination of information is seen as one main tool to sustain
business development and capacity building activities beyond the project duration.

What lessons, both positive and negative, can be drawn from the experience of
the project to date?
Positive
The project has become a learning experience for all project partners in which values,
attitudes and norms of the different local cultures are challenged and a notion of tolerance
acts as driving force in the project implementation. This includes the development of an
understanding of different approaches to time, work and financial management. One of the
most productive moments in the project duration was when project partners worked together
either in workshops or to meet deadlines, such as during the preparations for the opening of
the craft promotion centre.

Furthermore, the exchange of knowledge and the available opportunity to work together and
to observe partners in their every-day work has enhanced the understanding of all project
partners. In addition the exchange of cultural tradition and heritage including customs and
behaviour have contributed to a more tolerant view of differences of working patterns among
project partners.

Negative
The project encountered difficulties in communications, which were partly caused by
language barriers or misunderstandings in wordings and definitions of terms as well as by
the lack of IT facilities and IT skills in Vietnam.

Another cause of concern are the differences in salaries between local project staff at the
centre (they are paid according to market rates of foreign aid agencies, which are up to ten
times higher then the local municipality rates) and the staff in the Municipality in Hai Duong.




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Further difficulties have been observed in the technical skills of staff employed by the
Municipality in Hai Duong, which caused delays with project management issues such as the
delivery of sufficient financial information to the UK office.

In addition, a number of legal issues have been raised by the Vietnamese project partners,
which cause concern:
     The request from the EC for a local audit of the project in Vietnam, which is not
        compatible with Vietnamese law
     The use of the Euro exchange rate issued by the European Central Bank once a
        month conflicts with the Vietnamese-set Euro exchange rate

Finally we have had difficulty hiring an evaluator with experience of both EU projects and
Vietnam. The lack of choice led to us hiring someone who failed to understand the aims,
and objectives of the Asia Urbs Programme and its operational constraints. Whilst some
aspects of the evaluation were useful it was generally not a constructive experience and all
the partners agreed that the evaluator’s contract should be terminated. We have since
identified other networks of more experienced evaluators and hope to be able to hire a more
competent evaluator for the remainder of the project.

What action will be taken as a result?
As a result of the project evaluation the project management structure was reviewed and the
following revisions recommended:
Revision of communication structure (one email per week to Vietnam and back and a
monthly report from Vietnamese partners)
Revision of project action plan (adding of more training for local project staff in Hai Duong
especially in project management, E-commerce and IT)
Revision of Vietnamese partner’s budget for year two (staff costs)
Concerning the legal issues raised by the Vietnamese partners the Asia Urbs programme
team was consulted and advised on the issues.

H. Report on Logical Framework

Project purpose; are there changes in the project purpose?
There are no significant changes in the project purpose, although the emphasis has shifted
slightly. The municipal staff and businesses in Hai Duong are still interested in developing
initiatives which would exploit the cultural tourist potential of the town, but feel there is
greater potential for developing export markets for local crafts rather than focusing primarily
on the passing tourist trade which is still very small.
There is active support from all partners for the development of the craft centre and the craft
board, both of which have been established. The craft board currently has representatives
from the Municipality of Hai Duong and from the local businesses. It has yet to pursuade
other local agencies to get involved as they have limited time and some expect to be paid to
attend meetings. We hope to find a way round this in year 2.
Basic data on the local craft businesses in Hai Duong has been collected.

Expected results; are the expected results being achieved/were achieved?
Where they achieved in the planned time?
The project has made good progress towards achieving the expected results, although it is
behind schedule due to delays in finalising partner contracts and transferring money to
Vietnam.
A cultural tourism and crafts development strategy has been produced and printed in English
and Vietnamese.



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The Craft Development Board has been established, although its membership still needs to
be broadened. It has yet to adopt its own legal constitution and this is likely to take longer
than anticipated due to the Vietnamese legal system and its lack of experience in developing
constitutions for this type of organisation.
A building has been renovated and opened as a Craft Promotion Centre.
The process of identifying continuation funding for the centre has begun, but this is likely to
prove a major challenge for the project.
Local businesses and municipal staff have been actively involved in all the project activities

Activities and means; were the planned activities implemented? If not why?
The planned activities are all being implemented. A project management structure is in
place, the craft strategy has been developed and a craft board and centre have been set up.
Work has focused primarily on completing these infrastucture activities in year one, and less
resources have been devoted to capacity building activities (consultancy and training
programmes) for the municipal staff, than was originally planned. This is partly due to the
excessive amount of time required to ensure administrative and financial systems were in
place and working properly (there has been a lot of capacity building on EU systems !) and
partly because practical activities with more concrete outputs are more appealing to our
partners.
In year 2 we plan to devote more resources to capacity building for both the municipal and
project staff, and extend the project's links to other related initiatives in both Vietnam and the
EU. There will also need to be a particular emphasis on securing ongoing funding if the
project is to continue when the Asia Urbs funding ends.

Assumptions; have the assumptions made reavealed true?
The project has not had the support from the UNDP as originally envisaged as funding was
not available for the continuation of the UNDP provincial cities programme in Vietnam.
However the UNDP project's national co-ordinator was recruited by us to be our project
manager and this has provided the necessary continuity, but not the match funding
anticipated from the UNDP. The ILO have also begun to provide some support and this
should increase in year 2.
The municipal staff have been actively involved in the project, but whilst a large number of
other agencies attended the launch of the Craft Centre it has been harder to involve them in
the craft board as expatriate staff tend to be based in Hanoi and local people have limited
time and resources.
It has been hard to find local staff with both English and the necessary technical skills, but
we have managed to recruit staff whom we feel have the potential to develop these skills
and the project will be working on this in its year 2 capacity building activities.

I. Annexes
Schedule for 1st and 2nd transnational visits


J. Attachments
A4 Project description
Appraisal in English and Vietnamese
Newsletters (old and new layout)
Web-site www.haiduong.info (printed version of the web-site attached)
Press-releases and press coverage of transnational visits (more to come from Huong)
Video from opening of craft promotion centre
List of surveys of SME in Vietnam (key documents) in 2002




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2. Financial Section
The project expenditure is underspent largely due to the late signing of contracts with the
partners and the related delayed transfer of funds which delayed the start of activity in
Vietnam. Reasons for underspend in specific budget items is given in the table below.

It should also be noted that there are small differences between figures in the F tables and
the audited accounts which are due to the different exchange rate differences. The banks
where the grant money has been held do not use the same exchange rate as the EU.

The main budget heading which is significantly underspent is “Other costs and services.”
And an explanation for this is given below:

Reason for underspend of "Other costs and services (F7)"

5.1.1 Newsletter                         Electronic format, no printing costs
5.1.3. Marketing and publicity           Not yet developed, delay in programme development
material (local businesses)
5.1.4. Design of project and craft       Cheaper than originally thought, web-page in Hai
centre web-page                          Duong not yet developed
5.1.5. Management of project web-        Managed by Project manager (UK) with no extra
page                                     costs
5.3. Auditing costs                      Not yet invoiced
5.4 Evaluation costs                     Not yet invoiced
5.5.1. Translation costs in Vietnam      Most of the translations done by staff but will change
(3rd visit split into several visits     in year two
Translation of project web-page in       delayed
Vietnam
Translation of project reports           Appraisal not invoiced yet and other reports are
                                         delayed to year two
Legal advice in VN (constitutions)       Delayed to year two
Training material (2800 matched
from UNL)
Catering

In addition there have been some slight changes in the use of the budget in Hai Duong and
reasons for this and underspend are given below.
1          Human resources
1.1        Salaries (local staff)
1.1.4      Figure changed to reflect experience of appointed staff.


1.1.5     Figure change compromised a suggestion of evaluators in order to appreciate the value
          of municipal staffs contribution
1.1.7     Figure changed to reflect experience of appointed staff.




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1.1.7.1    Work in the office to date has shown the need for extra security and this can not really
           be included in the main post job description but due to saving the funding from 1.1.7
           from this budget head we can also fund a security officer for 20 months with a rate of 65
           Euros per month.




1.1.7.2.   As above the need for a cleaner has been established as it is a waste of the time of
           other officers to do this. The salary for this 45 Euros per month

1.1.8      Business liaison officer was recruited for 2 months at the rate designed and has been
           trained to take another position. A suitable replacement nominated with designed rate
           until end of year one and will redesign to 500 euros per month in year two onward due
           to the local market rate.

1.1.9      The driver is now proposed for 19 months. The car is now purchased (5/11/02) but used
           driver before this with Mayors car for last few months (since Sep). Salary stays at 100
           per month from EU.



1.1.10     There has been difficulty getting a person to fill this post. Decision has been to reduce it
           to a part time post so might be able to attract someone already working elsewhere.
           Need expert. Decision to reduce to 70% of previous funding with monthly rate 500
           euros.
1.1.11     The shop keeper has time scale of 19 months (100%) but at rate of 135 Euros per
           month due to local market rate.

1.1.12     In year one there was not many activities need constants support. Therefore,
           consultant's budget will be used more in year two. Daily rate is changed to 67 Euros to
           matched a local market rate


1.1.13     With above mentioned reason. Daily rate is changed 50 Euros to matched a local
           market rate

2          Travel cost
2.1        figure estimated base on possible contribution of local handicraft businesses in 3rd
           transnational visit
2.2        Figure estimated base on the contribution of local handicraft businesses and other
           agencies in year two


3.2        Pentium computer + software
3.2.1      This budget was not sufficient with project office need (5 Staffs need at least 4 PCs in
           order to work). Therefore budget had been shifted from 3.2.6 to meet the need. In year
           two budget proposal there is still some money need for at least one more PC.

3.2.2      Three printer had been bought but still need a budget for scanner in year two




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3.2.6   The budget is not enough to buy photocopier, therefore municipality decided to lease
        one photocopier to project with price of 40 Euros per month and use this budget to cover
        the shortage of budget 3.2.1

3.3     Spare part/equipment for machine, tools
3.3.1   This budget has not been used in year one because project car were bought at the end
        of Nov. and it is brand new car.

3.3.2   Printers had been bought in Oct and Nov. Therefore remaining budget will be use in
        year two
3.4     Other

4       Local office/Project cost
4.1     Car bought in Nov. and the rest of project time in year one we use municipal car so this
        budget under spend in year one. Based on the cost of the last few months and activities
        in year two proposal budget is 100 euros/ month


5       Other cost and Services

5.1.3   In year one, we haven't done much for partner contribution but in practice it will be very
        difficult to provide eligible evidences for this match funding. In year two we redesign this
        budget in which allow 40% is grant money in order to mobilise matching fund (60%)

5.5     Same reason
5.5.3   Same reason


6       Real Estate Work

6.1.1   Actual expenditure base on VN regulation in which design cost for renovation is very low
        therefore the money allocated had shift to 6.1.2 and 6.1.4
6.1.2   Actual expenditure base on VN regulation. Building cost was a major cost of renovation
        work therefore the money allocated for 6.1.1 had shifted to this budget line
6.1.3   The same reason mentioned above with 6.1.1
6.1.4   The same reason mentioned above with 6.1.2
6.1.5   Actual expenditure based on market rate. Under-spend amount had shift to 6.1.2
6.1.6   The same reason mentioned above in 6.1.1




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