The World Bank has enough potential to support Vietnam in developing sustainable rice

Significant progress in sustainable development

In the past ten years, Vietnam's agricultural industry has made remarkable achievements in bringing the rice industry into the direction of sustainable development. Specifically, the Government supports farmers applying advanced farming technology, such as "3 decreases, 3 increases".

Then, based on "3 decreases, 3 increases," the Ministry of Agriculture and Rural Development (MARD) has come up with a solution and "1 must do, 5 reductions." In addition to three reductions in "3 decreases, 3 increases," there are two more reductions to reduce the amount of water and reduce post-harvest losses. Thus, "1 must do, 5 reductions" has helped reduce emissions further, contributing to efforts to reduce global warming. This issue is of concern to the whole world.

Although the income of rice farmers is still low compared to other occupations, in the past ten years, the profits of farmers applying advanced farming solutions have increased significantly compared to traditional farming systems.

Applying advanced farming technologies is significant in bringing the rice industry into sustainable development. The remaining problem is how to increase farmers' income so that they can limit the conversion of rice land to other crops to ensure long-term food security, thereby maintaining the national advantage. Of course, to solve this problem, we must follow the market mechanism, not administrative measures.

Expectations from a million hectares of high-quality rice

A million hectares of high-quality rice associated with green growth in the Mekong Delta includes many crucial factors. First, the Project "Sustainable development of a million hectares specializing in high-quality and low-emission rice cultivation associated with green growth in the Mekong Delta until 2030" includes synchronous investment planning for areas specializing in high-quality rice cultivation. That is when the Scheme is approved, the State will support synchronous investment in infrastructure for high-quality, low-emissions specialized rice areas.

The second is to reorganize production and train farmers, cooperatives, and sustainable production technologies, save more inputs, further reduce emissions, improve farmers' incomes, build a brand, and develop a high-quality, low-emission rice market for the Mekong Delta and the whole country.

In addition, it is issuing carbon certificates for rice areas that have applied low-emission production technology, thereby accessing global carbon credit markets. At the same time, we also develop the domestic carbon credit market to increase farmers' income and promote the circular economy. Develop credit programs to support the development of rice linkage chains to harmonize the benefits between farmers, traders, and businesses.

If the Project's main elements are successfully implemented synchronously, Vietnam's rice industry will turn a new page. First of all, rice growers and rice traders increase their income, which, most importantly, can ensure a living for their families without having to work hard to make a living or migrate to other countries' big cities to find a job.

For the environment, reducing chemical fertilizers and chemicals will help improve the soil and water environment, restore freshwater aquatic resources, and turn rural areas into places worth living.

To the world, Vietnamese rice grains will carry a new brand of high quality and low emissions. Thereby, it proves that Vietnam is a country that produces and supplies food to the world responsibly. Thanks to that, Vietnamese rice grains will have higher prices and be able to access markets with strict environmental standards and emissions requirements, specifically European countries.

Currently, Vietnam has the advantage of being ahead of many countries in the region and worldwide in converting to low-cost rice production. Therefore, if a million hectares of high-quality rice are approved, implemented soon, and successful, then from now until the end of 2030, a million hectares of high-quality rice in the Mekong Delta will have the entire technology applied to reduce emissions and increase income for farmers.

Based on a million hectares of high-quality rice in the Mekong Delta, after 2030, Vietnam can spread to the remaining rice production area across the country and simultaneously replicate this model. On that basis, Vietnam will move towards a clean, sustainable, and globally competitive green colleague, genuinely becoming a center responsible for producing and exporting food to the world.

World Bank will accompany and provide long-term support

Over the past three decades, the World Bank has supported and accompanied Vietnam's agricultural sector, from rural recovery for food self-sufficiency after the war to agricultural diversification to exports, then enhancing the competitiveness of agriculture by increasing quality and now transitioning to sustainable agriculture.

Since the beginning of 2022, the World Bank has provided technical support to the Ministry of Agriculture and Rural Development in building a million hectares of high-quality rice associated with green growth in the Mekong Delta.

In addition, the World Bank also supports the Ministry of Agriculture and Rural Development to access carbon emission reduction financial funds managed by the World Bank. As expected, this year, about 40 million USD will be funded for the Ministry of Agriculture and Rural Development and the Mekong Delta provinces to implement a million hectares of high-quality rice from 2024 to 2027. The immediate priority is for areas that already have relatively good infrastructure.

In the long term, after 2027, the World Bank is expected to provide longer-term ODA loans to continue investing in high-quality rice production areas that lack infrastructure and are not eligible for rice production application of advanced production technologies. Long-term loans will help businesses invest in synchronously modernizing processing and logistics infrastructure for the entire rice supply chain. Therefore, accessing and expanding the market for low-emission rice products in Vietnam is possible.

The World Bank is actively working with the MARD and the Ministry of Natural Resources and Environment (MONRE) to receive support for reducing carbon emissions. In addition, a non-refundable grant worth 2 million USD from the Korean Government through the World Bank to support green transformation for Vietnam's agricultural industry. In 2023, there will be grants so that MARD can prepare for a million hectares of high-quality rice associated with green growth in the Mekong Delta.

Suppose the Project "Sustainable development of a million hectares specializing in high-quality and low-emission rice cultivation associated with green growth in the Mekong Delta until 2030" is approved, and the Vietnamese Government agrees to receive non-refundable grants and long-term ODA. In that case, The World Bank has enough technical and financial potential to help the MARD successfully implement this Project.