The International Fund for Agriculture Development (IFAD) will provide Vietnam 43 million USD in soft loan to sustainably improve income and reduce climate vulnerability of farm households in northeastern Vietnam.
Rome (VNA) –The International Fund for Agriculture Development (IFAD) will provide Vietnam 43million USD in soft loan to sustainably improve income and reduce climatevulnerability of farm households in northeastern Vietnam.
The credit agreementwas signed between Vietnamese Ambassador to Italy Cao Chinh Thien and IFADPresident Kanayo F. Nwanze in Rome on March 24.
The CommercialSmallholder Support Programme in Bac Kan and Cao Bang will be run from 2017 to2020 with a total investment of 74.3 million USD, of which the IFAD finances 43million USD, the Vietnamese Government funds 20.6 million USD and the projectbeneficiary provinces contributes 10.7 million USD.
The project aims toimprove access of about 30,000 poor and near-poor rural smallholders in Bac Kanand Cao Bang provinces to commodity and labour markets and enhance theircapacity to adapt to climate change.
IFAD Country Directorin Vietnam Henning Pedersen said Bac Kan and Cao Bang are among the poorest inthe country where local people are vulnerable to unexpected life events,climate shock and the degradation of land and water resources. Approximately 90percent of each rural person’s total spending is to meet basic living costs, henoted.
According to the IFAD,Vietnam’s high economic growth has lifted around 30 million people out ofpoverty over the past two decades. However, it also contributed to incomeinequality and environmental degradation. Rural areas have less than half theaverage per capita income of urban areas. Bac Kan and Cao Bang provinces havemore than 70 percent of their population living by agriculture.
The project willprovide the farm households with financial support and technical training whilefinancing rural infrastructure development.
The IFAD has to dateprovided Vietnam with 377.5 million USD in loans for 15 different projects andprogrammes, benefiting over 709,070 poor rural households across the country,since 1993.-VNA
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Illustrative image. (Photo: VNA) 
