Impacts of Transport Infrastructure Projects on Poverty The Case of Northern Vietnam

1
Impacts of Transport Infrastructure Projects on
PovertyThe Case of Northern Vietnam

• Teruyuki TANABEJBIC Institute

2
Outline of the Presentation

• Owing to improvement of transport infrastructure
  in northern Vietnam
• Foreign Direct Investment (FDI) increased
• Areas near the improved infrastructure
  experienced fast growth
• The benefits of the growth spread to
  neighboring areas and transformed rural economy
• Positive impacts on diversification of farmers
  income sources were observed
• As a result, poverty in these areas decreased

3
Basis of the Presentation
4
The Projects under the Impact Assessment
5
Highway No.5Before Improvement
Railway Line
Railway Bridge shared by Road Traffic
Narrow Carriageway
Un-Paved Road Shoulder
Rough and Bumpy Road Surface
6
Highway No. 5 After Improvement
7
Haiphong Port
8
Other Major Projects
Baichai Bridge of Highway No.18 at the entrance
of Cailan Port
Flyover of Highway No.18 over Highway No.1
9
FDI Inflow to the Provinces along Highway No.5
10
Emergence of Modern Industrial Zone
Employment Opportunity by FDI Increased
Thanglong Industrial Park in Hanoi
11
Traffic volume of HW5 2-10 times larger than
before improvementThroughput of Haiphong
Port almost quadrupled
12
Change in land Use Hungyen
13
Change in Land Use Haiduong
14
Increase and Diversification of Farmers Income
Sources1997-2002
15
Image of Activated Market Forces
16
Income per Capita1997-2002
17
LARGE-SCALE PROJECT IS NOT EVERYTHING

• The two infrastructure projects were not a single
  engine of growth and rural development ! Can we
  identify and measure contributions made by other
  factors ?
• It was too early to fully capture the benefits
  from the projects since they had just been
  completed !
• Infrastructure in rural areas are also necessary
  !

18
Rural Infrastructure Improvements
Rural road Before Improvement
Rural Water Supply After improvement
19
Implications to Other Countries

• Vietnamese case might be an exceptional one
  therefore, such an experience would not be
  replicated in other country.

20
The Full Text of the Impact Assessment is
available at

• http//www.jbic.go.jp/english/oec/post/2003/index.
  php
• Thank you very much for your attention!