Attracting ODA capital in agriculture

(VEN) – Vietnam has become a middle-income country, leading to a decline in Official Development Assistance (ODA) capital. Therefore, the Ministry of Agriculture and Rural Development agreed a series of measures to attract ODA capital in 2014 and subsequent years.

The agriculture and rural development sector attracts US$5.5 billion in the 1993-2013 period

The agriculture and rural development sector attracts US$5.5 billion in the 1993-2013 period

In the 1993-2013 period, Vietnam attracted ODA capital of US$78 billion from over 50 donors worldwide. The agriculture and rural development sector attracted US$5.5 billion from 41 donors in this period, accounting for about seven percent of total ODA capital for Vietnam.

Two major multilateral donors in the agriculture and rural development sector remained the World Bank (WB) and the Asian Development Bank (ADB). As of 2013, these two partners funded US$3.15 billion, accounting for 57.3 percent of total ODA for agriculture. ADB remained the largest donor with US$1.6 billion, accounting for nearly 30 percent of total ODA capital for agriculture.

In terms of bilateral donors, Japan remained Vietnam’s largest partner in the agricultural sector. Japan funded 70 projects with a total capital of US$1.3 billion for the sector, including 60 technical assistance projects with total capital of over US$300 million and 10 projects in the fields of irrigation and forestry with a total capital of about US$1 billion.

According to the Ministry of Agriculture and Rural Development, total ODA capital for the agricultural sector has significantly contributed to the development of the sector in recent years. In particular, ODA capital for the agricultural sector has contributed to reducing the poverty rate in Vietnam from 60 percent in 1993 to 10 percent in 2012. In addition, thanks to ODA capital, agricultural infrastructure, power infrastructure, schools and communal medical stations have been improved. Moreover, ODA capital has contributed to promoting the application of scientific and technological achievements into agriculture and strengthening scientific research and technology transfer through technical assistance projects. In particular, many plants and livestock have been researched and put into production.

Vietnam has become a middle-income country. Therefore, to continue to attract ODA into the agricultural sector, the Ministry of Agriculture and Rural Development agreed a series of measures. One of important measures is to continue attracting ODA capital at preferential interest rates.

To attract more ODA capital, the Ministry of Agriculture and Rural Development said that the ministry would select programs and projects in accordance with the sector’s standards; and improve mechanisms, policies and management apparatus to implement ODA projects, contributing to gaining the trust of donors.

The Ministry of Agriculture and Rural Development will also propose to the government to prioritize investment in agricultural infrastructure such as irrigation and dykes; restructure the agricultural sector to ensure sustainable development; improve rural socioeconomic infrastructure; implement the new rural area construction program; and adopt measures to respond to climate change./.

By Chu Hoa

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