Date of report: April 23, 2013

Report of Field Survey in Viet Nam

Hanoi- Follow-up of JICA/KITA participants now in their home country ThailandCambodia

Ho Chi Minh

Period of survey: From March 27 to April 5, 2013
Persons in charge: Dr. Masakatsu Ueno, Vice President of KITA
Mr. Tadashi Miyamoto, Course Leader of KITA

P-1

Training Division
1. Socialist Republic of Viet NamLogo

2013 is the 40th anniversary of theestablishment of diplomatic relations
between Japan and Viet Nam.

1) Major industries- Agriculture, forestry and fisheries, miningindustry, light industry
2) GDP (2011)- About 122.7 billion U.S. dollars
3) GDP per capita (Provisional figure as of 2011)- 1,374 U.S. dollars
4) Economic growth rate (2011, IMF)
- 5.9%
5) Inflation (2011)- 18.6%
6) Currency- Dong7) Dong to dollar exchange rate
- 20,800 dong (December 2011)8) Economic outlook
The average economic growth rate between 2000 and2010 was 7.26%, indicating the achievement of highgrowth. 6.8% growth was achieved in 2010, surpassing
the initially targeted 6.5%. Economic growth in 2011was 5.9%.

Source: Website of the Ministry of Foreign Affairs

P-2

Training Division
2. Purpose of the Survey
2-1. Background“Supporting Industries Promotion Project”, on which the training course‘Practical Corporate Management for Productivity Improvement for Viet Nam’is based, will end in the next fiscal year. After the training course has ended, theformation of a structure to conduct and disseminate “practical training” on site
is deemed essential.

① How to establish a structure of dissemination – Possibilities and actualconditions?
② Any need for new training subjects? (Is what was learned during the training
being put to actual use?)③ The procedures of selecting participants from among the candidates?

A visit to the site and survey ofthe actual conditions

P-3

Training Division
3. Schedule of the Visit and the Companies Visited
3-1. Schedule of the visit① Ho Chi Minh: From March 28 to March 30② Hanoi: From April 1 to April 4

Hanoi

China

Myanmar3-2. Places visitedLaos① Ho Chi Minh
- 5 factories where the last year’s
graduates are working- The office for senior volunteers- Other②HanoiThailandCambodia

Ho Chi Minh

- 2 companies visited the previous year
- 5 factories where the last year’s graduates
are working- The JICA Hanoi office and the office forsenior volunteers- OtherP-4

Training Division
4. Results of the visit
4-1. The structure of dissemination- Although there are institutions such as schools, quality control societies, qualitycontrol centers, vocational training schools and Vietnam-Japan Human Resources
Cooperation Center, the education carried out in such places is too theoretical orsystematic, lacking “practical training”. On the other hand, the need for practically usefultraining has come to be recognized.

Scenes during conferences at the visited companies

P-5

Training Division
4-2. Need for new training courses- All the 10 companies visited are making good use of what was learned during training,
starting with the “5S”. Compliance with the rules of workplaces has made such progressthat the challenge is now focused on quality improvement and the cultivation of newcustomers. The participants so far have consisted of mostly executive-level employees,
however, opinions were presented frequently that they wanted their subordinates toreceive specialist education even on a paid-for basis.

Noticeboards concerning 5S and other activities were seen frequently in the visited companies.

P-6

Training Division

4-3. Selection of participants- Senior volunteers will stay there until next year, so they will select and dispatch
from among the company employees they are training persons who are deemedcapable of coping with the training in Japan (persons who will proactively carry out
dissemination activities) and who qualify for it.

Scenes at manufacturing factories

P-7

5. Impressions

Training Division

5-1. Viet Nam is growing but facing very difficult circumstances
Two years ago I encountered blackouts even in Hanoi, but when I asked about it this time I wastold that they seldom happen now. There are rows of high-rise buildings and transportation
systems are being developed. (Development of Haiphong Port is in progress. The railroad has yet
to be developed.)
The most common loan terms are an annual interest rate of 15 to 18% on a 2-year repayment basis.
Manufacturing industries include 200 thousand companies, most of them having been founded 10years ago or later, with around 100 employees, and with annual sales within the range of 150 to200 million yen, which indicates that all these companies are engaged in friendly competition in asimilar environment.

A row of high-rise buildings

A train between Hanoi and Ho Chi Minh

P-8

Training Division
5-2. The participants now back in their home country are exercising theirautonomy and doing work that is right on the mark.
Those working in Japanese-affiliated companies or in companies doing business withJapanese companies are well trained and capable.
Expertise and technology are within the reach, however, a need is recognized for disciplinedorganizational operation, the perspectives and methodology of a wider range of management
techniques, and the capability to draw up midterm business plans. Training in Japan wasstrongly desired even on a fee-paying basis.

Would definitely like thisto.

A noticeboard for delivery schedules(Many names of Japanese companies were seen.)

P-9

Training Division

5-3. Public agents taking one step forward
Apart from the discussions, the importance is recognized of the formulation of a longterm plan and practical and steady activities toward the realization of that plan.
(Participation in TPP in 2015 and the establishment of an industrial nation by 2020 isbecoming a real possibility.)
Lack of funding is so great that it prompts investment from overseas Chinese andKoreans.

With the staffers of the visited companies

P-10