IFAD-supported country programme in Viet Nam focused on support to decentralization, investment in small-scale infrastructure, market integration and microfinance. Satisfactory results were achieved in terms of impact on the incomes and assets of smallholders; increased human and social capital and empowerment, particularly for women; agricultural productivity and crop diversification; and efforts in capacity-building of institutions at the local level.

Despite some limitations related to policy dialogue with the Central Government, IFAD has had a satisfactory policy impact on the ground, based on experience in promoting decentralization, participation, land use and capacity building of farmers’ organizations. Limited attention was however given to addressing the challenges encountered in providing access to rural credit including in relation to the policy dialogue agenda.

The context in Viet Nam has changed significantly since IFAD started its partnership with the Government in 1993. Viet Nam’s newly acquired middle-income status will have important implications on IFAD’s role and focus in the country in the future. Reduced concessional funding, combined with increased vulnerability due to the effects of climate change and persistent poverty among ethnic minorities, could more severely affect the rural poor in most of the targeted provinces, thereby making the ongoing market-oriented programme shift even more challenging.