ODA capital’s value and the number of projects for agriculture significantly reduced

Representatives from the World Bank, embassies, international organizations, and local entities attended the plenary meeting of the International Support Group (ISG) program, which was held by the Ministry of Agriculture and Rural Development (MARD) on the morning of December 6.

According to Mr. Nguyen Do Anh Tuan, Director of the International Cooperation Department (MARD), the ISG 2024 conference is dedicated to the consideration of discussions among stakeholders, including the donor community, under the theme "Priority Orientation for the Use of ODA and Concessional Loans in the Agriculture and Rural Development Sector for the 2026-2030 Period."

The goal of the conference is to determine the priorities of partners and donors in 2024, as state budgets continue to be insufficient to comprehensively address the needs of the agriculture and rural development sector, and as ODA and concessional loan resources transition to alternative forms of investment and support. In the forthcoming phase, it also attempts to comply with the government's directive viewpoints and orientations regarding the utilization of concessional loans and ODA in the agriculture sector. This effort establishes the foundation for the development of strategies that properly mobilize and employ these resources.

Minister Le Minh Hoan emphasized at the conference that the quantity and value of ODA and concessional loan projects in agriculture have considerably decreased as Vietnam has transitioned to a middle-income country and no longer benefits from low-interest rates. Furthermore, grant funding and technical assistance have decreased. MARD has not negotiated or signed any new projects since 2019.

The necessity for international cooperation is multifaceted and substantial in order to establish a competitive, sustainable, and modern agricultural production system that also protects the environment, adapts to climate change, and reduces emissions. It incorporates technical support, capacity building, and knowledge for development investment in the following phase, in addition to funding.

MARD organized today's conference with the participation of a diverse array of donors, development partners, and international organizations to continue mobilizing and leveraging the advantages of international knowledge, experience, initiatives, and resources to support the sector in achieving the objectives outlined in Decision No. 150 dated January 28, 2022, on the Strategy for Sustainable Agriculture and Rural Development 2021-2030, with a vision to 2050. The objective of the event is to comprehend the priorities and interests of stakeholders while simultaneously exchanging the sector's and ministry's orientations and requirements. We will establish and coordinate specific cooperation strategies for the future following this information. Minister Le Minh Hoan elaborated.

Ms. Mariam Sherman, the World Bank's Country Director, observed that Vietnam's requirement for official development assistance (ODA) loans remains substantial during her discussions with General Secretary To Lam and Prime Minister Pham Minh Chinh. According to estimates, Vietnam requires approximately USD 10 billion in ODA financing for infrastructure and "soft" investments, including technical seminars and training.

Ms. Sherman contends that this is consistent with WB's technique, as the organization offers not only financial credit but also a diverse array of inputs, including technology and expertise. The WB leader emphasized their strategy to address the challenges of reducing the efficacy of ODA loans by stating, "We aim to offer a comprehensive package, both hardware and software." She thinks that these comprehensive approaches will serve as a model for the ODA projects of the World Bank in the 2026-2030 period.

Ms. Sherman also suggested that a development partner network be established in Vietnam through collaboration with the government, ministries, localities, associations, and industries to ensure the more effective implementation of future projects.

During her visit to Vietnam, Ms. Sherman visited Can Tho City, where she engaged with agricultural extension officers and acquired knowledge about the VnSAT Project. This initiative is a prime example of using ODA loans, which has facilitated Vietnam's agricultural transformation toward increased productivity and reduced emissions.

She was pleased that projects such as VnSAT have provided advantages to a multitude of stakeholders, particularly the populace. She stated, "It is evident that the agricultural sector has a wealth of experience in effectively utilizing ODA loans."

The annual ISG plenary meeting is a high-level dialogue forum that facilitates the exchange of policies, the discussion of shared concerns, and the promotion of cooperation, support, and alignment with international commitments and development objectives between MARD and international partners.

The international community has provided MARD with financial resources, international experiences, lessons learned, recommendations, and contributions to assist in the formulation and implementation of development policies over the course of 20 years of ISG forums. These endeavors have contributed to the achievement of the objectives outlined in the Strategy for Sustainable Agriculture and Rural Development 2021-2030, with a vision for 2050.