Press release number: IFAD 12/05

Rome , 15 February 2005 - About 70,000 poor households in 841 rural villages will benefit from a new poverty reduction programme in two provinces in Viet Nam .

The US$38.7 million decentralized programme will be largely financed by a US$ 24.1 million loan and a US$ 630,000 grant from the International Fund for Agricultural Development (IFAD). The loan agreement was signed today at IFAD headquarters in Rome by Madame Le Thi Bang Tam

Vice Minister of the Ministry of Finance and IFAD's President, Lennart Båge.

''Vietnam has made remarkable strides in reducing poverty in recent years,'' explains Atsuko Toda, IFAD's Country Portfolio Manager for Viet Nam. ''But poverty is still a persistent problem in the country's rural areas, and women and ethnic minorities are often the most disadvantaged groups.''

The programme will operate in the remote, northern provinces of Ha Giang and Quang Binh, which is home to more than 15 different ethnic groups. One of the key aspects of the Decentralized Programme for Rural Poverty Reduction in Ha Giang and Quang Binh Provinces is supporting the creation of self-help groups that will enable poor people to identify their own development needs and empower them to participate in local institutions.

''Each community has different constraints and priorities,'' explains Toda. ''The best way to effectively address people's needs is to give them the opportunity, capacity and necessary resources to set and implement their own development agenda.''

By supporting the rehabilitation of roads and irrigation systems, the programme will also create new employment opportunities, as well as improve water supplies and market access. Self-help groups will assist the programme in targeting the region's poorest households for preferential access to jobs, training and financial services.

''Since women in this region are often the most marginalized, at least 30 per cent of the seats in training activities will be reserved for them,'' adds Toda. Special efforts will also be made to include indigenous languages in training curricula.

With this loan, IFAD will have financed six projects in Viet Nam, totalling US$104.8 million.

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IFAD is a specialized agency of the United Nations dedicated to eradicating rural poverty in developing countries. Seventy-five per cent of the world's poorest people - 900 million women, children and men - live in rural areas and depend on agriculture and related activities for their livelihoods. Through low-interest loans and grants, IFAD works with governments to develop and finance programmes and projects that enable rural poor people to overcome poverty themselves.

There are close to 200 ongoing IFAD-supported rural poverty eradication programmes and projects, totaling US$ 6.5 billion. IFAD has invested about US$ 3 billion in these initiatives. Co-financing has been provided by governments, beneficiaries, multilateral and bilateral donors and other partners. At full development, these programmes will help more than 100 million rural poor women and men to achieve better lives for themselves and their families. Since starting operations in 1978, IFAD has invested US$ 8.5 billion in 676 projects and programmes that have helped more than 250 million poor rural men and women achieve better lives for themselves and their families.