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ð REPORT OF STUDY TOUR TO VIETNAM
FOR (09TH-‐ 14TH AUGUST, 2015) IMPLEMENTATION OF SIYB PROGRAMME
SUBMITTED BY: RUCHIRA CHANDRA, CONSULTANT NATIONAL SKILL DEVELOPMENT AGENCY (NSDA), GOVERNMENT OF INDIA, NEW DELHI
EMAIL: ([email protected] )
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Table of Contents 1. Objective of the Study Tour…………………………………………..………………………………………3 2. Introduction to SIYB Programme………………..…………………………………………………………3 3. About Vietnam………………………………………………………………………………………………………5 4. Overview of Vietnam’s Socio-‐ Economic Development Plan for 2011-‐15
4.1 Overall objectives……………………………………………………………………………………………….6
4.2 Main targets……………………………………………………………………………………………………….7
5.Details of the visit
5.1 Meeting with General Department of Vocational Training (GDVT)……………………..8
5.2 Visit to Hanoi Industrial Vocational College……………………………………………………….11
5.3 Meeting with Hai Phong Labour & Social Department –DOLISA………………………..13
5.4 Visit to Hai Phong Industrial Vocational College………………………………………………..14
5.5 Visit to Peoples Committee, Vinh Bao District, Hai Phong Province…………………..15
5.6 Meeting with Women Union…………………………………………………………………………….16
6. Suggestive steps and way forward for SIYB Programme in India………………………….16
Annexure 1……………………………………………………………………………………………………………..19
Annexure 2……………………………………………………………………………………………………………..22
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1.Objective of the Study tour:
International Labour Organization (ILO) is the UN specialized agency dealing with work and workplace issues, and related rights and standards. India is founding member of ILO and has been a permanent member of the ILO Governing body. The ILO office in India was established in 1928 and is, at present composed of two teams-‐ the Decent Work Team (DWT) which provides technical support to India and other South Asian countries and the Country Office (CO) which is responsible for ILO activities in India. The New Delhi Office of ILO had sponsored a study tour for 5 Indian officials of Government of India Ministries and State Governments to Vietnam between the period 9th August-‐ 14th August, 2015. The objective of the tour was to learn and share experiences of ILO’s Start and Improve Your Business (SIYB) programme and the Million Farmers initiative in Vietnam. The SIYB programme is proving to be successful in Vietnam in collaboration with ILO and General Department for Vocational Training (GDVT). The study tour was aimed to understand the model being adopted in Vietnam and to come up with approach that could be adopted in India to give a boost to Skill Development and Entrepreneurship efforts in the country. 2. Introduction to SIYB Programme
Start and Improve Your Business Program (SIYB) is a management-‐training program with a focus on starting and improving micro and small businesses as a strategy for creating more and more better employment in developing economies and economies in transition. Its origin goes back to early 1970s and today it is used in almost 100 countries. The overall program objective is to “Contribute to economic development and to the creation of new and better jobs”. The immediate objectives are:
Ø To enable local Vocational Training Service Providers and Business
Development Service (BDS) organizations, and among them explicitly women’s organizations, to effectively and independently implement business start-‐ups and improvement of training and related activities for potential and existing entrepreneurs; and
Ø To enable potential and existing small entrepreneurs, both women and men, through these SIYB partner organizations to start viable businesses and to increase the viability and profitability of existing enterprises, and to create quality employment for others in the process.
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SIYB programme is introduced in 100 countries in Africa, Asia, the Caribbean Europe, Latin America, the Middle East, North America and the Pacific. Earlier version of SIYB was IYB that was introduced in India in 1980s. It was reintroduced in 2007-‐08 as part of UN/ILO collaboration. Target group for the SIYB programmes comprises of-‐ Local vocational and entrepreneurship training and BDS organizations as Direct target group and Potential and existing micro and small entrepreneurs as Intended target group.
SIYB is comprised of four training packages, which are designed to respond to the progressive stages of business development:
§ Generate Your Business (GYB)-‐ How to generate a feasible business idea § Start Your Business (SYB)-‐ How to write a simple business plan § Improve Your Business (IYB)-‐ How to set up a basic business
management system § Expand Your Business (EYB)-‐ How to develop a business growth plan
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3. About Vietnam
The Gross Domestic Product (GDP) in Vietnam was worth 1 86.20 billion US dollars in 2014. The GDP value of Vietnam represents 0.30 percent of the world economy. GDP in Vietnam averaged 55.42 USD Billion from 1985 until 2014, reaching an all time high of 186.20 USD Billion in 2014 and a record low of 6.30 USD Billion in 1989 (as reported by the World Bank).
Vietnam (officially the Socialist Republic of Vietnam) is the easternmost country on the Indochina Peninsula in Southeast Asia. With an estimated 90.5 million inhabitants as of 2014, it is the world's 13th-‐most-‐populous country, and the eighth-‐most-‐populous Asian country. The country is bordered by China to the north, Laos to the northwest, Cambodia to the southwest, and Malaysia across the South China Sea to the southeast.
Its capital city has been Hanoi since the reunification of North and South Vietnam in 1976.
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4. Overview of Vietnam’s Socio-‐ Economic Development Plan for 2011-‐15
In formulating and implementing the five-‐year 2011-‐2015 socio-‐economic development plan, Vietnam has enjoyed elemental advantages from the achievements recorded during the past 25 years of pursuing Doi Moi (renovation) as well as from the implementation of the 10-‐year socio-‐economic development strategy and the five-‐year 2006-‐2010 plan. Socio-‐political stability in Vietnam has enabled the country to bring into full play potentials and advantages of its agriculture and farm product export during the course of industrialization and make it easier to attract foreign investment and develop domestic market in a fast manner.
Forecast for 2012 and the following years have warned that the increasing public debt crisis and inflation in many countries would not only slow down global economic recovery but would potentially drag global economy in a new recession. Therefore, the implementation of the five-‐year plan of Vietnam is aimed to closely follow the objectives, targets, tasks, and solutions as determined in the 11th National Congress of the Communist Party of Vietnam; leadership and directions centralized in a more drastic manner with appropriate steps being taken to create a strength that can help realize the overall objectives, targets, three breakthroughs and 12 orientations of the socio-‐economic development strategy for the 2011 – 2020 period.
4.1 Overall objectives
Ø Economy to be developed in a rapid, sustainable manner coupled with innovating growth model.
Ø Social welfare and social security will be ensured while material and spiritual life of the people continue to be improved.
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Ø Diplomatic activities will be enhanced to promote the efficiency of international integration.
Ø Independence, sovereignty, unification and territorial integrity will be firmly defended and political security and social order and safety be maintained, thus creating a foundation for the country to basically become a modernity-‐oriented industrial nation by 2020.
During the first two or three years, the plan focuses on realizing the objectives of stabilizing the macro-‐economy, ensuring social security, achieving a proper growth rate and strongly expediting economic restructuring and growth model shifting. In the next two or three years, it aims for the basic accomplishment of the economic restructure to serve rapid and sustainable development and make growth, macro-‐economic stabilization and social security goals harmonize.
4.2 Main targets
4.2.1 Economic targets:
§ Gross Domestic Product (GDP) averages approximately 6.5%-‐7% a year in the five-‐year time.
§ Social investment in 2011-‐2015 accounts for around 33.5%-‐35% of GDP. § Trade deficit was slashed since 2012 and will be maintained at below 10% of
export turnover by 2015. § Budget overspending will be kept at below 4.5% of GDP in 2015 (including
Government bonds). § Energy use and real GDP will be narrowed by 2.5%-‐3% a year. § The proportion of high-‐tech products will account for around 30% of total
industrial production value and the rate of technological innovation will be 13% per year.
§ Social labor productivity by 2015 will be 29% -‐32% higher than that of 2010. § Collected tax and fee contributions to the State budget will not exceed 22% -‐
23% of GDP a year. § Public debt by 2015 will not exceed 65% of GDP, Government debt will not
surpass 50% of GDP, and national debt will not go beyond 50% of GDP. § The consumer price index will rise by 5% -‐7% by 2015.
4.2.2 Social targets
§ Eight million people to get jobs in five years. § Unemployment rate of urban people at the working age to stand below 4%
by 2015. § The rate of trained laborers in the workforce to reach 55% by 2015.
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§ People’s actual income by 2015 to see a 2-‐2.5 fold rise from 2010. § Poor households to be reduced in a fast and sustainable manner, by 2% a
year on average and by 4% a year in poverty and extreme difficulties-‐striken districts and communes.
§ Housing floor space by 2015 to be 22sq.m per capita on average and it is 26sq.m per capita in urban areas on average.
§ Population will grow by 1 % by 2015. § By 2015, eight doctors will take care for over 10,000 people and 23 patient
beds (excluding beds of commune health station) will be provided for 10,000 people.
4.2.3 Environmental targets
§ Forest coverage rate by 2015 will be around 42%-‐43%. § By 2015, 85 percent of heavily environment polluters will be handled.
4.2.4 Other targets
The Government is assigned to consider and decide on other economic, social and environmental targets and submit an annual report on implementation results to the National Assembly.
5.Details of the visit 5.1 Meeting with General Department of Vocational Training (GDVT), Ministry of Labour, War Invalids and Social Affairs, 11th Aug 2015 (09:30 am-‐ 12:30 pm)
− Overview of GDVT The General Department of Vocational Training (GDVT) is a government department headed by the Ministry of Labour, War Invalids and Social Affairs (MoLISA). In its capacity as a governmental agency, MoLISA administrates state management regarding employment, vocational training, labour, salaries and wages, social insurance, contributors in revolution, labour safety, social protection, child care and protection, gender equality, anti-‐social vices in the country; state management of public services in fields pertaining to management of MoLISA. The functions of GDVT include advising the Minister of MoLISA on state management of vocational training, regarding objectives, programmes, content, plans, quality of training, occupational skills, standards of teachers, vocational management staff, enrolment and examination regulations, diploma systems, certificates, listing training occupations,
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facilities and training equipment and puts into effect state management tasks for vocational training as prescribed by law.
− Discussion with GDVT In Vietnam almost 80% of employed population is engaged in Agriculture (approx. 23 million) and a number of agriculture products are exported to other countries. GDVT focuses on enhancing skills of farmers and workers in agriculture to give boost to the economy of rural areas.
As per the discussions on Vocational education/ training, till 2014
The figures are quite encouraging and illustrate the importance and need of entrepreneurial skills in agriculture/ rural areas in Vietnam. In order to create more jobs and entrepreneurial activity in rural areas, Vietnamese Government has adopted the SIYB programme in 2011. Under this programme the government plans to train one million farmers per year between 2011 and 2020. The Government is spending remarkable money in this programme.
Improving skills of farmers/ workers
Development of Agriculture
Development of Rural Areas
2.2 million farmers/ workers
• Trained in Vocanonal Educanon
1 million farmers
• Own their businesses
20,000 farmers
• Established Companies
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Photo: GDVT office, Hanoi Under the implementation model currently agreed upon by GDVT and ILO, all trainees of the Million Farmers Programme have an introductory training on how to generate business ideas (through the GYB component) and marketable products in conjunction with a vocational training component. Those trainees who are willing and are able to set up an enterprise after this first training intervention then go through an additional one week training to develop a marketable business plan (through SYB component).
− SIYB roll out process in Vietnam
For SIYB roll out, the initiative relies on a core group of “Master Trainers” who train Trainers within the training institutions affiliated to the GDVT (colleges, schools and centres). The Trainers further deliver GYB and SYB trainings to rural framers/ workers in conjunction with vocational training. Master Trainers are of key importance in this entire process as they not only provide Training of Trainers (ToT) workshops, but also crucially help in quality assurance through trainer selection and follow up support. Master Trainers also play a key role in monitoring the outcomes
Vocational Training + GYB
Wage Employment
Self Employment/ SME Start ups (SYB)
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of training in terms of new skills acquired, new start-‐ups, performance of existing farms and rural enterprises improved.
− Roles of ILO and GDVT As based on the agreement between ILO and GDVT, the role of ILO is to help GDVT to create the internal capacity to roll out entrepreneurship and business skills training for farmers at a large scale. This included material adaption for the programme context and building up a cadre of certified Master Trainers. The GDVT is responsible for actual roll out at the potential entrepreneur level through courses delivered in structures affiliated to it. Mobilizing people for the programme is an important activity undertaken by GDVT which includes channels like TV and Radio. For the programme, GDVT also liaisons with other ministries like Agriculture, Industry, Women, Disability, Commerce etc. Key Target to GDVT: 3,00,000-‐ 6,00,000 farmers trained in 1st year to be up scaled to 1 million per year 5.2 Visit to Hanoi Industrial Vocational College, 11th August 2015 (01:30 pm-‐ 4:30
pm) During the visit, we met representatives from Hanoi People’s Committee, Master Trainers, Trainers and other officials of Hanoi Industrial Vocational College. The college is one of the oldest colleges, celebrated 40th anniversary last year. It has 8 faculty and 5 departments namely Mechanical, Electronics, Auto Technology, IT, Economics & Business. It is the State College, managed by Peoples Committee. The
college has strong international collaboration with countries like U.K, Korea and Japan.
High Experts-‐ 14
Medium Experts-‐ 80
Experts-‐ 300
The Vietnamese Government places great emphasis on Trainers and enhancing their capacity to achieve the targets of Million Farmers Initiative. The benefit of this approach is that the Government is getting itself equipped with training capacity to further effectively impart SIYB training to farmers/ workers. Based of their proficiency, trainers are categorized in 3 levels. The target number of master trainers and trainers (by 2020) to be achieved by the Government is 16 and 800 respectively.
23 Vocational Courses, 2000 Students enrolments/ year, 270 Teachers & Staff
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Photo: Training facility in Hanoi Vocational College We met one master Trainer and 2 Trainers in the College. Vocational Colleges play important role in SIYB programmes as they act as pool of trainers. On an average, each trainer takes 3-‐4 batch of SIYB programme and trains 20 beneficiaries (approx.)/ batch. For the programme, in villages Peoples Committee space is being used.
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Photo: Hanoi Industrial Vocational College
− Some of the challenges mentioned by Master Trainers and Trainers are: § Location § Different Educational levels of beneficiaries § Same batch with people of different ages (18-‐ 50 years) § Lack of teaching facilities and infrastructure at some places
5.3 Meeting with Hai Phong Labour & Social Department –DOLISA, 12th August
2015 (08:30-‐ 10:30 am) Hai Phong is an industrial province of Vietnam. Total number of teachers in Vocational colleges in the province is 3,000 with student intake capacity of 38,000-‐ 40,000. Till 2013-‐14, 120 trainers have been trained (teachers/ Economic Department) and 60 farmers have been trained in Service Sector (home made products) under SIYB programme. There is great demand of SIYB programme in 8 districts of Hai Phong (out of total 14 districts), owing to the growth in industrial and
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agricultural sector and it is expected that till 2020, 60% workers would be covered under the SIYB programme.
Photo: Study tour participants with officials of DOLISA, Hai Phong
5.4 Visit to Hai Phong Industrial Vocational College, 12th August 2015 (10:30 am-‐
12:30 pm) In the vocational college, we met some of the SIYB trainers in the province. Ms. Vo Hang for example is head of Quality assurance at the vocational college and is a trainer (level 2) for SIYB programme. She has trained farmers/ workers in villages for service sector and home made products. Some of the additional support components of the SIYB trainings described by her are:
§ To enable farmers to select home made products that have high potential for export (since Vietnamese market is small to consume all the products)
§ To initiate the concept of clubbing small outputs of individual farmers so that they have more bargaining power in the market
§ To link farmers/workers with credit facilities This kind of support is very essential as in absence of these, a person would not be able to start/run/sustain the business successfully.
During discussions, it was brought out that w.r.t to Policy# 971 of Prime Minister’s decision, from July 2015 SIYB component would be integrated into all Vocational Courses.
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During discussions with other trainers, it was brought out that in a village word of mouth plays a very important role in motivating people to join the programme. Some of the difficulties on the field while SIYB training and its implementation as identified by the trainers are:
§ Lack of infrastructure facilities such as computers etc. § People at first instance don’t want to change their business habits and it
takes lot of effort for trainers to convince them § Accessibility of market to buy ingredients § Authority/position of master trainers/ trainers
5.5 Visit to Peoples Committee, Vinh Bao District, Hai Phong Province, 12th August
2015 (02:30 pm-‐ 06:00 pm) A visit was made to Peoples Committee to understand how the SIYB programme is getting implemented at that level. Peoples Committee plays an important role in mobilizing the people for SIYB programme and facilitate link between GDVT and direct beneficiary.
Photo: Peoples Committee, Vinh Bao District
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As part of the visit we also met one of the ILO’s business plan winner, Mr. Duong. He had been given grant of $20,000 to implement his business idea. As a result of this he is able to purchase new machinery and do value addition. Now instead of selling his produce (sedge mat) alone he clubs produce from other 35 farmers, do the value addition and then sell them together in the market. This has facilitated him to have greater bargaining power in the market with reduced production cost and better quality.
Photo: Sedge mat production with value addition 5.7 Meeting with Women Union, 12th August 2015 (08:00 pm-‐ 09:00 pm) A brief meeting was organized with women union to understand the function and its role in SIYB programme. As women constitute a remarkable % of workforce, understanding this aspect was very important and critical. 6. Suggestive steps and way forward for SIYB Programme in India The study tour to Vietnam has enabled to see the implementation of SIYB programme in Vietnam, challenges faced and future strategy. In Indian Contest, successful implementation of SIYB programme is very important owing to the demographic dividend which our country posses. India is one of the few countries in the world where the working age population will be far in excess of those dependent on them and, as per the World Bank, this will continue for at least three decades till 2040. This has increasingly been recognized as a potential source of significant strength for the national economy, provided we are able to equip and continuously upgrade the skills of the population in the working age group. Talking about the outcomes of skill training, most important and critical factor is employment/placement. This includes both the wage employment and self-‐employment. Wage employment cannot fulfill the entire employment needs of the
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country and hence it is high time that importance and focus is given to self-‐employment and entrepreneurship. In this effort, SIYB programme would be a very useful tool to create new jobs in the country. Features of SIYB that makes it highly outcome oriented and suitable in Indian context are:
As SIYB is in starting phase of implementation in the country, some of the suggestive steps to take it forward could be:
Ø Measuring impact so that it is example for others:
§ The actual impact of the programme would be-‐ how many new enterprises have started, how much is the incremental income of the enterprises after SIYB programme and after a time period say 6 months, what is their sustainability. This needs to be captured and monitored with a robust system in place.
§ How the finances are getting linked to start enterprise of own § How well they are able to market their products
SIYB value proposibon
Follow up aser training
M & E system
Training by ILO Cernfied Master Trainers and
Trainers
Modular set of course
Material based training
Mulnlingual Course material
Short duranon of training
Customized Training as per the need Low Cost
training
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Ø Develop pool of quality trainers in the country and target setting:
§ One of the strategies that have been adopted by Vietnamese Government is to create pool of master trainers and trainers who would further train the beneficiaries. In India, having quality trainers with requisite skills is one of the challenges. SIYB programme can help in overcome that challenge and setting up the targets.
Ø Inclusion of SIYB programme into Industrial Training Institutes (ITIs) course curriculum: § In most of the vocational courses of ITIs, there is “employability skills”
component in which aspects like entrepreneurship and starting own business are taught. But getting quality trainers to teach these course contents is very difficult.
§ Inclusion of SIYB programme into this component needs to be worked out.
§ Some pilots could be initiated in this regard.
Ø Integrating SIYB programme into Centrally sponsored/ State run Skill Development schemes/ programmes § 22 Central Ministries run approximately 73 schemes/ programmes of skill
Development. All of the schemes have self-‐employment as outcomes and hence it would be useful to explore integration of SIYB component (suitable modules) into those programmes/ schemes.
§ I was part of an advisory team to a consultant hired by ILO India office to study these schemes and the study report submitted by the consultant having recommendations and implementation strategy for SIYB programme. This can be used as a base document.
§ Similar mapping and integration plan could be made as part of State run programmes/ schemes.
Ø Partnership with National Skill Development Agency (NSDA):
§ In this regard some kind of arrangement could be made between ILO and NSDA. The NSDA works to create an ecosystem for skilling in the country with impetus on quality and outcomes. Suitable arrangement with NSDA could facilitate in driving some of the policy level decisions.