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Viet Nam

15

Projects Includes planned, ongoing and closed projects

US$ 553.97 million

Total Project Cost

US$ 377.5 million

Total IFAD financing

738,470

Households impacted


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The Context

Two decades of rapid economic growth and market integration have transformed Viet Nam from a subsistence economy to an emerging economy of lower-middle-income status, integrated into global markets. The structure of the economy has shifted from agriculture to industry and services. 

Yet in rural areas, home to 70 per cent of the population, poverty remains a severe and chronic problem. The average income per capita there is less than 50 per cent of that in urban areas, and the rural poverty rate is nearly three times the urban rate. 

Poverty gains are fragile, and a portion of the population are living close to the poverty line. Poor and extremely poor people are concentrated in ethnic minority groups. 

Rural people have little or no savings or State support and are almost totally dependent on gathering natural resources and subsistence-level agriculture. This makes them especially vulnerable to unexpected shocks. Around 90 per cent of total spending among rural residents is for basic living costs. Most of this income stems from agriculture, forestry and aquaculture production, and from wages derived from unskilled manual labour.

Half of the nation’s poor people belong to ethnic minorities, though they represent only 15 per cent of the population. Poverty is concentrated in the upland areas of the north-east and north-west mountains, the central coastal region, and the parts of the central highlands and Mekong Delta where ethnic minorities reside. 

Improving living standards in rural areas have also brought income inequity and environmental degradation. Urbanization and industrialization often deprive poor rural people of access to land, while leaving behind unskilled labourers and unemployed youth. These marginalized groups are highly vulnerable to shocks from climate change and natural disasters, as well as economic and health shocks.

The Strategy

In Viet Nam, IFAD focuses on activities that have the greatest impact on residual poverty in rural areas, reflecting the emerging challenges and opportunities of a lower-middle-income country, a changing economic structure and growing urbanization.

Our current strategy and portfolio of programmes and projects are aimed at developing market-led innovations that aid poor people. They work by deepening institutional and policy reform at the provincial level and building capacity in districts and communes and among poor farm households. 

We are also working to incorporate IFAD-supported experience into government systems and programmes. The process aims at: 

  • integrating participatory and market-oriented local planning into the government’s socioeconomic development planning processes; 
  • capacity-building at all levels to improve the management of rural development outcomes; 
  • improving access to and quality of a variety of rural services; 
  • community-led infrastructure development; 
  • increasing market access and pro-poor value chains and sustainable livelihoods, both on and off the farm; 
  • formation and support for producer cooperatives and other common-interest groups. 

A number of IFAD-supported projects in Viet Nam also include climate change response, since the country is predicted to be significantly affected by climate change.

 

Results-based country strategic opportunities programme (COSOP) Arabic | English | French | Spanish

Country Facts

About 70 per cent of Vietnamese people live in rural areas and have livelihoods dependent on agriculture.

About one third of the population (around 30 million people) lives close to the poverty line. Poor and extremely poor people are mainly concentrated in ethnic minority groups. 

Since 1993, IFAD has invested US$334.5 million to finance 14 projects and programmes related to agricultural development in Viet Nam, benefiting 669,070 households.


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Country documents

COSOP results review 2017

Type: COSOP results review (CRR)

Socialist Republic of Viet Nam Country Strategic Opportunities Programme 2012-2017

Type: Regional and country document, Country Strategic Opportunities Programme
Region: Asia and the Pacific

Projects and Programmes

PLANNED Under design after concept note approval

APPROVED Approved by the Executive Board or IFAD President

SIGNED Financing agreements signed

ONGOING Under implementation

CLOSED Completed/closed projects

No matching projects were found
No matching projects were found
No matching projects were found

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Related news

UN Agency Deputy Head to visit Viet Nam to strengthen 25-year rural development partnership

May 2019 - NEWS
Donal Brown, Associate Vice-President of the International Fund for Agricultural Development (IFAD) is visiting the Socialist Republic of Viet Nam this week to review progress made together to improve lives and reduce poverty in rural areas.

UN Messenger for Peace, Midori, performs in poor rural communities in Viet Nam's Tuyen Quang province

December 2018 - NEWS
The world-renowned violinist and UN Messenger of Peace, Midori, will travel to rural Viet Nam this week to meet with and perform for villagers in a remote and poverty-stricken community where projects supported by the International Fund for Agricultural Development (IFAD) have been working to improve conditions.

UN agency examines approach to decentralized operations in Asia and the Pacific

July 2016 - NEWS
Hanoi, 5 July 2016 – Government representatives and agricultural development specialists will gather in Hanoi 6-7 July to discuss the International Fund

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Related publications

Grant Results Sheet: ICRAF - Climate-smart, Tree-based, Co-investment in Adaptation and Mitigation in Asia (Smart Tree-Invest)

September 2018
The grant mainstreamed climate-smart, tree-based agricultural good practices into the climate adaptation and mitigation programmes of governments, NGOs and the private sector in Indonesia, the Philippines and Viet Nam.

Grant Results Sheet - ICRISAT: Sustainable Management of Cropbased Production Systems for Raising Agricultural Productivity in Rainfed Asia

June 2018
The programme aimed to intensify the cropping systems with grain legumes to improve the productivity and sustainability of rainfed agriculture while diversifying smallholder farmers’ income-generating opportunities. 

Grant results sheet - ROUTASIA: Strengthening Knowledge Sharing on Innovative Solutions Using the Learning Route Methodology in Asia and the Pacific – Phase 2

June 2018
The programme Strengthening Knowledge Sharing on Innovative Solutions Using Learning Route (LR) Methodology1 in Asia and the Pacific (ROUTASIA) is the second phase of a four-year IFAD-funded large grant to Procasur Corporation. 

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