Many World Bank-funded agricultural projects achieve positive results

Ms. Manuela V. Ferro conveyed her appreciation for the success of World Bank-funded programs in the Mekong Delta for farmers, rice cultivation, and other agricultural products during the meeting. These initiatives have resulted in enhanced productivity, saving water, and delivered positive outcomes.

Ms. Ferro expressed her confidence in the effective implementation of the initiative to establish a sustainable 1-million-hectare area for the cultivation of high-quality, low-emission rice following green growth in the Mekong Delta. This initiative has the potential to considerably enhance the livelihoods of farmers and being introduced to other countries worldwide, she observed. She reiterated the World Bank's dedication to investing in and scaling up Vietnam's innovative initiatives.

A representative from the Office of the Steering Committee for the initiative under the Ministry of Agriculture and Rural Development (MARD) reported that the initiative is making progress, with positive results in various components, such as policy frameworks, software development, production processes, and pilot models. The pilot models have been well-received by participants, resulting in a 20-30% increase in profits and a reduction of production costs, water consumption, fertilizers, and pesticides by 10-30%.

At a recent conference, the State Bank of Vietnam implemented a credit program to bolster the initiative. The State Bank, in partnership with the Vietnam Bank for Agriculture and Rural Development and other partners, guaranteed that loan resources for farmers and businesses engaged in production and processing would remain unrestricted, with preferential interest rates and simplified procedures.

The implementation of the WB-funded initiatives is proceeding as planned. The government has assigned MARD the responsibility of establishing mechanisms to guarantee that project formation and alignment with WB proposals and MARD's overall directives are maintained in collaboration with other ministries.

Minister Le Minh Hoan emphasized the enthusiasm of farmers in provinces such as Kien Giang and Dong Thap, who are eager to participate or propose the expansion of the initiative in view of its positive outcomes. He encouraged the World Bank to investigate alternative non-repayable funding sources in order to improve loan incentives. MARD also intends to incorporate circular economy principles into the initiative and has requested that the World Bank introduce pertinent circular models to optimize its benefits.

The Minister also requested the World Bank's assistance in the dispatch of experts to investigate and advocate for agricultural insurance mechanisms. Despite the increasing complexity of climate change challenges, both parties acknowledged the growing significance of Vietnam's agricultural insurance coverage, which remains low in comparison to other countries. They underscored the collaborative effort of the public and private sectors to offer producers critical insurance solutions.

With respect to the Climate Resilient and Integrated Transformation in the Mekong Delta Project (MERIT-WB11), which is one of the 16 projects in the Mekong DPO portfolio that have been approved for ODA and concessional loan mobilization, the Minister has requested the World Bank's ongoing collaboration and technical support for MARD and the 10 provinces that are proposing the project during the preparation phase. He also urged the World Bank to collaborate with partners to secure supplementary grant funding for local initiatives, emphasizing the significance of grants in light of government regulations that restrict the use of loans to construction-related investments.