THE ITALIAN DEVELOPMENT COOPERATION

The Italian Development Cooperation, regulated by Law n.49 of 26 February 1987  ("Nuova disciplina della cooperazione dell'Italia con i Paesi in via di sviluppo "), falls within the competence of the Ministry of Foreign Affairs. Policies and activities are managed by the Directorate General for Development Cooperation (Direzione Generale per la Cooperazione allo Sviluppo (D.G.C.S.), which is composed of 13 offices, an Evaluation Unit and a Central Technical Unit. The Central Technical Unit is given the task of providing technical assistance in the phases of identification investigation, formulation, management and control of the programmes carried out by the D.G.C.S. The activities in Vietnam are coordinated by Office V, which is responsible for the initiatives in Asia, Pacific and America, and by a local Technical Unit (UTL), established in 1998 within the Italian Embassy in Hanoi. 

Development Cooperation, an integral part of the Italian foreign policy, pursues the objectives of solidarity among people and the fulfillment of fundamental human rights. Italy sets the guidelines of its development cooperation policy within the framework of the International Development Goals expressed in the Millennium Declaration of the United Nations of September 2000 in the fields of poverty and hunger alleviation, food self-sufficiency for everybody, gender equality, reduction of infant mortality, enhancement of maternal health, fight against HIV/AIDS, malaria and other important diseases, environment protection, sustainable development, and promoting a global development partnership. 

Cooperation Agreements 

The two protocols signed in 1990 and 1992 between Italy and Vietnam have been contributing to reach the two fundamental objectives of the Italian Bilateral Assistance, namely poverty alleviation and development of industrial sector. 

In 1997, a Memorandum of Understanding concerning the implementation of the Italian Co-operation Programme was signed in Rome. The Memorandum defines a soft loan package of 51 million euro with very favourable conditions in terms of repayment time and interest rates. 

During the Italy – Vietnam Joint Commission held in Hanoi in December 2000, the Italian Government offered additional soft loans  (8 million euro) and grants (6 million euro) to be allocated to projects in the water sector, support to the balance of payment of Vietnam, poverty alleviation and to facilitate Vietnam’s access to World Trade Organization. On this occasion, the Italian Government committed to cancel a debt of more than 20 million euro

The Italian Cooperation in Vietnam

The main engagement of the Italian Cooperation in Vietnam is provided by the activities carried out within the Bilateral Agreement. At present, the Agreement is under implementation with the identification and financing of projects in the following sectors:

. Infrastructure;

. Health and Sanitation;

. Disaster Preparedness;

. Education and Training. 

The financing mode provided for by the Memorandum is tied aid. The soft loans shall be allocated only to those project’s components for which procurement of goods and services is to be done in Italy through a competitive bid. The Bidding procedures carried out in accordance with Vietnamese law are restricted to Italian companies for goods and services of Italian origin. For information on the bid, please click here, and then see "Avvisi di gara" (“Bid Announcement”). 

Apart from the financial obligation pledged in the bilateral programme, the Italian Cooperation finances and co-finances projects and programmes through the European Union, international organizations (in particular, the United Nations’ Agencies) and non-governmental organizations. Furthermore, in case of natural calamities, food aid (emergency) could be provided. In addition, the Italian Cooperation offers a limited number of scholarships.  

On-going activities 

Bilateral Projects funded with grants 

·       Extension of the mother and child protection programme in the province of Bac Giang”, executed by the NGO GVC - 750.000 euro; 

Bilateral Projects co-financed with grants 

·         Support to women's, enterprises to raise incomes and to improve the nutritional status of families, promoted by Italian NGO - Gruppo Volontariato Civile (GVC) – 431,000 euro;

·         Building up a Vocational Technical Institute for Young Vietnamese in Hanoi, promoted by Italian NGO - Centro ELIS (Educazione Lavoro Istruzione Sport)–803,000 euro;

·         Pilot Project for the Rural Development  in the province of Bac Giang, promoted by Italian NGO - Gruppo Volontariato Civile (GVC) – 802,000 euro;

·         Pilot project on On–farm Plant Genetic Resources Use and Conservation in the districts Yen Chau, Nho Quan of Nam Dinh province, promoted by Italian NGO -  Centro Internazionale Crocevia (CIC) – 341,000 euro;

·         Integrated Programme for the fight against children’s malnutrition in 5 suburb districts of Hanoi, promoted by Italian ONG - Cooperazione e Sviluppo (CESVI) – 818,526 euro. 

Multilateral projects financed with grants 

·         Strengthening National Food Security Information System, executed by FAO –1.484 million USD;

·         Development of Market – Oriented Agroforestry of Quang Nam province, executed by FAO – 1.661 million USD.

·         Partly financing the Vietnam Country Programme of UNICEF for Children protection – 826,000 euro;

·         Financing the Restoration Program of archeological site of My Son managed by UNESCO in collaboration with Lerici-Politecnico di Milano Foundation – 812,000 USD. 

·        Comprehensive Drug Prevention Activities in Vietnam, executed by UNDCP - 245,000 USD.

Pipeline Initiatives 

Projects financed with soft loans

Projects, whose financing is  approved:

·         Improving and upgrading the water supply system in Quang Ngai (2.324 million euro), Ca Mau (3.357 million euro) e Me Linh (5.164 million euro);

·         Investment in facilities and medical equipment for four provincial hospitals in Phu Tho, Ninh Binh, Danang, Can Tho - 6.197 million euro;

·         Strengthening and upgrading the National Flood Forecasting and Warning System of the Hydrometeorology Service of Vietnam - 2.582 million euro.

·         Creation of a training center for the food processing industry in Hanoi University and Strengthening of agricultural research and training capacity of the agro-forestry college in Thai Nguyen University – 3,098,741 euro (out of which an amount of 15,493 euro is a grant).

Further soft loans are available for other projects to be identified. 

Bilateral Projects financed with grants 

Projects in the evaluation phase:

·         Water sector commodity aid in support to the balance of payments in favour of the Ministry of Finance  of the S.R. of Vietnam (2.582 million euro);

·         Project for the promotion of income generating productive activities to the benefit of disadvantaged communities: support to the development of Aquaculture  in Bai Tu Long and Ha Long Bay and to the development of  Sericulture in Yen Lac District, Vinh Phu Province - 3.460 million euro;

·         Technical Assistance for institutional enhancement to facilitate Vietnam's accession to the WTO – 716,000 euro. 

List of initiatives carried out by Italian NGOs, regions, provinces, municipalities and associations in Vietnam 

Useful links: 

Italian Development Cooperation

·         Bid Announcements

·         Announcement of Assignments for experts  

Development Cooperation in Vietnam

·         Ministry of Planning and Investment

·         Delegation of the European Commission

·         Vietnam Development Information Center

·         World Bank in Vietnam

·         The UN in Vietnam  

Internship at Embassies

Updated December 2002