IFAD Funds $19.9M for Economic Development in Central Highlands Vietnam

The International Fund for Agricultural Development (IFAD) has funded $19.9 million for a sustainable economic development project for ethnic minorities in Vietnam’s central highlands province of Dak Nong, the Ministry of Finance said. Minister Vu Van Ninh and IFAD Chairman Kanayo Nwanze signed an agreement on the aid in Hanoi on Nov 9, the ministry was quoted by the Thoi Bao Kinh Te Sai Gon online newspaper as saying Nov 10. The three-component aid, called 3EM project, aims to benefit poor and ethnic minority families in the province through improving their incomes, with priority to be given to women. The first component will focus on changing the farming habits of local ethnic minority groups, gearing them to production models that can develop a series of values for local farm. The second will provide financial services for domestic agricultural production, aiming to help poor households gain access to credit services via the Group of Sharing Responsibilities and small aid through Groups of Women Savings and Credits. The third component help improve project management and execution with the establishment of a project steering board and a project management board. For the Vietnamese side, Dak Nong province is committed to $2.3 million in partner investment, while the Bank of Agriculture and Rural Development (Agribank) is to contribute some $900,000 in credits, and project beneficiaries, $700,000. Up to 10 million people in Vietnam are now living under the poverty line, particularly those in mountainous and remote areas.  The Southeast Asian country targets to reduce the number of poor households to less than 9.5% this year from 11% in 2009. (thesaigontimes.vn Nov 10, Vietnamplus.vn Nov 9)