Public Disclosure Copy The World Bank Implementation Status & Results Report Vietnam Climate Innovation Center (VCIC) RETF (P155260) Vietnam Climate Innovation Center (VCIC) RETF (P155260) EAST ASIA AND PACIFIC | Vietnam | Finance, Competitiveness and Innovation Global Practice | Recipient Executed Activities | Investment Project Financing | FY 2016 | Seq No: 6 | ARCHIVED on 24-Jul-2019 | ISR37972 | Implementing Agencies: Socialist Republic of Vietnam, Ministry of Science and Technology (MOST) Key Dates Key Project Dates Bank Approval Date:30-Oct-2015 Effectiveness Date:15-Dec-2015 Original Closing Date:30-Jun-2020 Revised Closing Date:30-Jun-2020 Project Development Objectives Project Development Objective (from Project Appraisal Document) The project's objective is to increase green growth business innovations by supporting entrepreneurs and SMEs involved in technological solutions through the establishment and operation of the Vietnam Climate Innovation Center Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Moderately Satisfactory  Moderately Satisfactory Overall Implementation Progress (IP)  Moderately Satisfactory  Moderately Satisfactory Implementation Status and Key Decisions The World Bank team would like to acknowledge and thank MOST and the PMU for their progress in supporting local climate change-related companies and meeting the PDO. The team is pleased to acknowledge that some of the issues noted in previous ISRs have now been addressed, including project extension, additional financing, acceleration of disbursements of supported projects, hiring of a new commercialization expert and more commercial focus of supported projects under PoC3. Overall the implementation of the third cohort of Proof of Concept companies, with a provision of services and grants, is so far deemed as satisfactory. Compared with the first two PoC rounds, VCIC received the largest number of applications in this third round the largest number of 7/24/2019 Page 1 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Vietnam Climate Innovation Center (VCIC) RETF (P155260) applications from women-led teams. The World Bank team would however like to highlight some areas which requires attention and close supervision: 1.Finalizing, validating and approving VCIC’s strategy. In order to allow sufficient time for transition to its new strategy before the project grant is over VCIC needs to finalize its strategy document by July 30, 2019 and the strategy must be approved by key stakeholders, including MOST. The assumptions in the strategy regarding revenue streams and institutional status must be validated with key stakeholders such as MOST and potential customers for the strategy to provide a credible path to sustainability. To be a viable institution, VCIC will also need to maintain strong links to MOST and act as a delivery unit to implement MOST’s policy agenda and instruments, access different sources of public funding and access to MOST’s policy network. As a milestone to finalizing its strategy it is important that VCIC submit a proposed strategy to MOST by July 15, 2019. 2. Achieving institutional autonomy. VCIC’s ability to sustain itself after the grant end date of June 2020 will require a new legal status that enables it to diversify its sources of revenue and to become more nimble and responsive to the market. In order allow for a transition period and to avoid a funding gap that could threaten the survival of VCIC, the team urges VCIC to achieve its institutional autonomy early, by October 30, 2019. 3.Finalizing recruitment of VCIC positions: VCIC continues to experience staff turnover and a critical Portfolio Manager position remains unfilled. Moreover, with the addition of Market Connect activities VCIC will need to make an appropriate staffing plan to ensure that it has enough capacity to deliver this activity in parallel with PoC3. The team urges VCIC to complete the recruitment process by August 1, 2019 so as to be able to carry out PoC3 at the same level of quality and timeliness as PoC1 and PoC2. 4. Finalizing the procurement process for a consulting company to deliver Market Connect: Overall, progress of procurement is rated as moderately satisfactory. However, the procurement for the Market Connect firm is still not launched. This has implications on the ability of VCIC to deliver Market Connect activities and affects overall project disbursements. This procurement process will need to be launched by August 1, 2019. In case of failure to meet this deadline, the Bank might opt to cancel this procurement package. 5. Strengthening financial management. VCIC’s grant disbursement processes and supporting documentation requirements have not yet been streamlined. This poses the serious risk that VCIC will not be able to finalize PoC3 grants within the project implementation period and PoC3 clients will not have their contracts honored. The team urges VCIC to finalize the simplification of the disbursement process according to the guidance that the World Bank has already provided by September 1, 2019. Risks Overall Risk Rating Risk Category Rating at Approval Previous Rating Current Rating Overall  --  Substantial  Substantial Results Project Development Objective Indicators PHINDPDOTBL Number of businesses that raised early stage finance (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 23.00 26.00 19.00 Date 31-Jan-2017 12-Nov-2018 29-Mar-2019 30-Jun-2019 7/24/2019 Page 2 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Vietnam Climate Innovation Center (VCIC) RETF (P155260) PHINDPDOTBL Number of businesses who registered their prototype with Intellectual Property (IP) office (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 9.00 12.00 9.00 Date 02-Nov-2015 12-Nov-2018 29-Mar-2019 30-Jun-2019 Overall Comments Intermediate Results Indicators PHINDIRITBL Number of participants in workshops, training events, seminars, conferences, etc. (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 4,839.00 1,925.00 360.00 Date 02-Nov-2015 12-Nov-2018 31-Mar-2019 30-Jun-2019 PHINDIRITBL Number of businesses/entrepreneurs having access to technical facilities (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 24.00 18.00 50.00 Date 02-Nov-2015 12-Nov-2018 31-Mar-2019 30-Jun-2019 7/24/2019 Page 3 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Vietnam Climate Innovation Center (VCIC) RETF (P155260) PHINDIRITBL Number of partnerships with non-financial services providers (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 23.00 16.00 19.00 Date 02-Nov-2015 12-Nov-2018 31-Mar-2019 30-Jun-2019 PHINDIRITBL Number of households with access to new/improved products/services (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 171,440.00 175,047.00 1,785.00 Date 02-Nov-2015 15-Jan-2018 31-Mar-2018 30-Jun-2019 PHINDIRITBL CO2 emissions avoided (metric tons) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 176,131.00 2,100.00 1,071.00 Date 02-Nov-2015 15-Jan-2018 31-Mar-2018 30-Jun-2019 PHINDIRITBL Number of businesses who registered their prototype with Intellectual Property (IP) office (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 9.00 9.00 9.00 Date 02-Nov-2015 30-Jun-2018 30-Jun-2018 30-Jun-2018 7/24/2019 Page 4 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Vietnam Climate Innovation Center (VCIC) RETF (P155260) PHINDIRITBL Number of businesses who raised early stage finance (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 19.00 12.00 9.00 Date 02-Nov-2015 15-Jan-2018 31-Mar-2018 30-Jun-2019 PHINDIRITBL Amount of early stage finance raised by businesses (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 509,714.00 1,635,831.00 950,000.00 Date 02-Nov-2015 15-Jan-2018 31-Mar-2018 30-Jun-2019 PHINDIRITBL Number of new direct jobs created (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 793.00 665.00 378.00 Date 02-Nov-2015 15-Jan-2018 31-Mar-2018 30-Jun-2019 PHINDIRITBL Number of Public Private Dialogue (PPD) sessions (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 5.00 4.00 7.00 Date 02-Nov-2015 15-Jan-2018 31-Mar-2018 30-Jun-2018 7/24/2019 Page 5 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Vietnam Climate Innovation Center (VCIC) RETF (P155260) PHINDIRITBL Number of workshops, training events, seminars, conferences, etc. (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 22.00 29.00 12.00 Date 02-Nov-2015 15-Jan-2018 31-Mar-2018 30-Jun-2019 PHINDIRITBL Amount of funding (grants) received by businesses (USD) (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 500,043.00 667,117.00 1,400,000.00 Date 02-Nov-2015 15-Jan-2018 31-Mar-2018 30-Jun-2019 PHINDIRITBL Number of knowledge products developed (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 19.00 24.00 16.00 Date 02-Nov-2015 15-Jan-2018 31-Mar-2018 30-Jun-2019 Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P155260 TF-A1407 Effective USD 3.80 3.80 0.00 2.70 1.10 71% P155260 TF-A9280 Effective USD 0.80 0.80 0.00 0.00 0.80 0% 7/24/2019 Page 6 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Vietnam Climate Innovation Center (VCIC) RETF (P155260) Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P155260 TF-A1407 Effective 30-Oct-2015 15-Dec-2015 15-Dec-2015 30-Jun-2018 30-Jun-2020 P155260 TF-A9280 Effective 28-Dec-2018 28-Dec-2018 28-Dec-2018 30-Jun-2020 30-Jun-2020 Cumulative Disbursements Restructuring History Level 2 Approved on 05-Jun-2018 ,Level 2 Approved on 27-Dec-2018 Related Project(s) There are no related projects. 7/24/2019 Page 7 of 7 Public Disclosure Copy