Viet Nam



Viet Nam


Projects يتضمن المشاريع المخطط لها والجارية والمنتهية

US$ 871 million

Total Project Cost

US$ 503.49 million

Total IFAD financing


Households impacted

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.


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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.

Country documents

Related Assets

Socialist Republic of Viet Nam Country Strategic Opportunities Programme 2019-2025 Type: Regional and country document, Country Strategic Opportunities Programme

Country Experts

Projects and Programmes

Projects Browser

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

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Related news

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IFAD loan to enable small-scale farmers in Viet Nam to plan for, cope with and adapt to climate change impacts

February 2023 - NEWS

IFAD and the Socialist Republic of Viet Nam last week signed a loan agreement to promote inclusive and sustainable agricultural growth in the Mekong Delta. The Climate-smart Agricultural Value Chain Development (CSAT) project will generate sustainable income opportunities and improved rural livelihoods for 60,000 families engaged in small-scale farming.

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.

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Early warning systems help small-scale farmers prepare for climate change

January 2024 - STORY

Climate change is making extreme weather events more intense and frequent.  With IFAD’s support, small-scale farmers are getting the advanced warning they need to limit damage to their livelihoods and recover faster.

Lasting traditions: How Dao healers are custodians of indigenous knowledge and the natural environment

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In Viet Nam the Dao people treat ailments with local herbs, forest products and generational knowledge.

Discovering the fruits of the forests in Viet Nam—and preserving them for future generations

July 2022 - STORY

Vietnamese rural people need to farm to eat and make a living. But if they don’t do this sustainably, it can damage the land and degrade the forests. IFAD’s new project helps them manage their forests sustainably, while earning a decent living.

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Investing in rural people in Viet Nam

April 2024

This country fact sheet outlines IFAD’s strategy to eradicate poverty in Viet Nam, which focus on developing market-led innovations that aid poor people.

The Food of Viet Nam: 34 traditional dishes cooked by the rural people and ethnic minority groups of Viet Nam

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This cookbook contains 34 easy-to-follow traditional dishes cooked by the rural people and ethnic minority groups of Viet Nam, and recognises their invaluable role in preserving the country’s cultural and biological diversity, inspiring an appreciation for the interconnectedness of food, culture and the natural world.

Viet Nam: Country Technical Note on Indigenous Peoples’ Issues

November 2023

This report aims to provide the most recent information on the issue of Ethnic Minorities in Viet Nam in terms of the general situation, poverty reduction, impact of COVID-19, Government policies and programs as well as such as NGOs, ODA and IFAD in Viet Nam.

Vietnam: Project for Adaptation to Climate Change in the Mekong Delta (AMD)

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The project mainstreamed climate-informed socio-economic development plans in two provinces.

IFAD Research Series No. 89: Incorporating the Impact of Climate and Weather Variables in Impact Assessments: An Application to an IFAD Climate Change Adaptation Project in Viet Nam

March 2023

This paper discusses which climate variables to collect, and from which sources, when incorporating them into an impact assessment.

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Viet Nam: Adapting in the Delta

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Vietnam is the world's second largest exporter of rice and 60 percent of it is grown in the Mekong Delta. But now farmers in at least two provinces say the future of rice production is threatened because of rising sea levels and temperature increases attributed to climate change.