20.9 Million Dollars to Improve Rural Income Diversification Project in Tuyen Quang Province in Viet Nam

IFAD Asset Request Portlet

Asset Publisher

20.9 Million Dollars to Improve Rural Income Diversification Project in Tuyen Quang Province in Viet Nam

Press release number: IFAD 08/02

Rome, 18 February 2002 – A USD 30.4 million project in the Socialist Republic of Viet Nam, the ‘Rural Income Diversification Project in Tuyen Quang Province’ will receive a USD 20.9 million loan from the International Fund for Agricultural Development (IFAD). A loan agreement was signed today at the Fund’s Headquarters, by H.E. Mr. Le Vinh Thu, Ambassador Extraordinary and Plenipotentiary of the Socialist Republic of Vietnam to Italy, and Mr. Lennart Båge, President of IFAD.

The project will be located in the Tuyen Quang Province, roughly 160-km Northwest of Hanoi, is located in the Northern Uplands Region. The province is predominantly mountainous, with altitudes of up to 1400m above sea level. It is divided into five administrative districts, 141communes and 2137villages. The total population of the province is 610200 or 137900 households. Ethnic minority groups account for almost 52% of the total population and for more than 73% of all poor. The largest groups are the Tay (26%), Dao (11%) and San Chay (8%). The ethnic population is highest in the northern districts, particularly Na Hang, Chiem Hoa and Ham Yen.

The beneficiaries of the project are poor households in upland areas of Tuyen Quang Province, with particular emphasis on ethnic minorities, women and destitute households. The project will target 49000 households living in 936 villages located in the 66 poorest communes of the province. Within the 66communes, ethnic minorities account for 74% of all households and 83% of the poor, respectively.

The six-year project objectives is to improve the socio-economic status of poor households living in upland areas, especially ethnic minorities and women, by increasing their capacities for, and role in, the decision-making process; enhancing food security; promoting the diversification of rural income opportunities; and encouraging the sustainable use of natural resources.

The project will strengthen the role of private households vis-à-vis a variety of economic activities, including the provision of agricultural inputs that have so far been largely controlled by state companies. Ethnic minorities living in upland areas will benefit from the project through increased access to, and use of, forestland resources; improved upland farming systems; and extension materials, methods and adaptive research more suited to their needs. Savings and credit groups (SCGs) will be developed as institutions of empowerment, rather than being used solely as channels for the delivery of credit. Finally, in recognition of women’s strategic role as agents of change, gender issues will be mainstreamed in all project activities.

To date, IFAD has financed 5 projects in Vietnam for a total commitment of USD 109.45 million for a total of 1146400 beneficiaries.

IFAD is a specialised agency of the United Nations with the specific mandate of combating hunger and poverty in the most disadvantaged regions of the world. Since 1978 IFAD has financed 603 projects in 115 recipient countries and in the West Bank and Gaza for a total commitment of approximately USD 7.3 billion in loans and grants. Through these projects, about 250 million rural people have had a chance to move out of poverty. IFAD makes the greater part of its resources available to low-income countries on very favourable terms, with up to 40 years for repayment and including a grace period of up to ten years and a service charge of 0.75% per year.