1.Cooperation:
The International Fund for Agriculture Development (IFAD) officially started to provide financial support to Viet Nam in 1991. In 1992, the Government of Viet Nam pledged to contribute 200,000 USD to IFAD in multiple payments over a period of three years. In 1997, Viet Nam officially joined IFAD and was a member of List C2 – assistance receiving countries. Viet Nam was one of the few countries that enjoyed special interest rate of 0.75-1%/year from IFAD, with a repayment period of 50 years, and a 10 year renewal.
IFAD’s works in Viet Nam focus on providing support to farmers, fishermen and poor women; and poor provinces with large population of ethnic minorities.
Currently, IFAD has a Project Office in Ha Noi and is seeking approval to open a Representative Office.
2.Projects supported by IFAD in Viet Nam:
From 1997 to 2003, IFAD supported 5 projects valuing over 81.34 million USD in Viet Nam. These projects focused on rural development in mountainous and remote areas; diversifying incomes for poor households in rural areas aimed at poverty reduction and hunger elimination.
Project on “Sustainable development of resources in Tuyen Quang”: total value of 25.08 mil USD, of which capital from IFAD was 18.35 mil USD, implemented in 7 years from 1994 to 2000. The project ended in 2001.
Project on “Preserving and developing agricultural resources in Quang Binh”: total value of 16.4 mil USD, capital from IFAD was 14.4 mil USD, implemented in 5 years from 1997-2001. The project was extended until 2002.
Project on “Supporting ethnic minorities in Ha Giang”: total value of 17.56 mil USD, capital from IFAD was 12.5 mil USD, implemented in 6 years from 1998-2003.
Project on “Rural Development in Ha Tinh”: total value of 19.13 mil USD, capital from IFAD was 15.43 mil USD, implemented in 6 years from 1999-2005.
Project on “Diversifying rural incomes in Tuyen Quang”: total value of 30.43 mil USD, capital from IFAD 20.91 mil USD, from SIDA/Sweden 5 mil USD, implemented in 6 years from 2002-2008.
Currently, IFAD is implementing 2 projects with total value of 70 mil USD in Ha Giang, Quang Binh (2nd stage), and Tra Vinh, Ha Tinh. These projects focused on rural and agriculture development, diversifying agricultural products, and poverty reduction and hunger elimination.
In cooperation with relevant Ministries and professions, IFAD is now establishing a project with the value amounting 40 million USD in Cao Bang and Ben Tre targeting at improving farmers’ accession to the market after Viet Nam joins WTO. On the long run, IFAD is also working with the Government of Viet Nam in establishing the “2008 – 2012 Strategic Framework for Viet Nam – IFAD Cooperation”, IFAD intended to contribute approximately 65 mil USD to these projects in the upcoming years.
In October 2003, IFAD President, Mr. Lennart Bage, officially visited Viet Nam. The visit had opened a new period for development in the cooperation between Viet Nam and IFAD. In 2005, IFAD assigned an expert to work in Viet Nam for 5 weeks to evaluate the implementation of existing projects and develop guidelines for IFAD’s future activities in Viet Nam. The delegation unanimously acknowledge the positive results of these projects, namely the decrease of poverty rate in participating provinces, and the progress in other areas such as human resource management with citizens’ participation, infrastructure improvement, agriculture development and forestry. The delegation had confidence in the prospect of effective Viet Nam – IFAD cooperation in the future.
We can say that the cooperation between Viet Nam and IFAD is progressively developing. IFAD regards Viet Nam as one of the most important partner in Asia. With that spirit, IFAD is seeking permission to open a Representative Office, with same statutes as other international organizations’ representative offices in Viet Nam.