Under the agreement, IFAD is providing US$43 million out of US$74.3 million for the Commercial Smallholder Support Project in the two provinces of Bac Kan and Cao Bang.
The project aims to improve access of farmers and rural labourers to commodity and labour markets and increase the rural poor’s capacity to adapt to the effects of a changing climate.
The Vietnamese government will finance US$20.6 million while the beneficiary provinces will contribute US$10.7 million.
The agreement was signed by IFAD President, Kanayo F. Nwanze and Vietnamese Ambassador to Italy, Cao Chinh Thien in Rome on March 24.
IFAD Country Programme Manager for Vietnam, Henning Pedersen said Cao Bang and Bac Kan are among the poorest provinces in Vietnam and local residents are vulnerable to unforeseen expenses, climate shocks and the degradation of land and water resources.
The project will support rural farmers to access finance, business and technical training, as well as improved infrastructure, such as rural roads, to support their access to markets and commodity chains, which increase the value of agricultural products.
There is a significant market demand and commercial opportunities for improved quality and production of a range of agricultural products including forestry and non-timber forest products; meat, eggs and dairy; fruit, ginger, cassava and peanuts; as well as opportunities to develop ecotourism.
