IFAD Committed to Continuing Partnership with Vietnam to Reduce Poverty

2:45:33 PM | 5/23/2019

International Fund for Agricultural Development (IFAD) started its activities in Vietnam in 1993. During the past 25 years, IFAD has financed 15 rural development projects in Vietnam, for a total cost of US$565.4 million, with an IFAD investment of US$377.5 million. These projects have directly benefitted more than 748,470 rural households in 11 provinces throughout the country.

“Our program in Vietnam is not only about finance, rural transformation and innovation. It is also and really about people. IFAD is a people-cantered organization. IFAD invest in rural people while focusing on activities that have the greatest impact on residual poverty in rural areas,” said Thomas Rath, Vietnam Country Director of IFAD after the release of a symbolic anniversary stamp to mark the occasion.

In Vietnam’s rural areas, home to over 70 % of the population, poverty eradication efforts need to be strengthened. IFAD’s current strategy and portfolio aim at developing pro-poor market-led innovations, deepening institutional and policy reform at the provincial level, building capacity among poor farm households and adapting to the effects of climate change.

IFAD is an international financial institution and a specialized United Nations agency based in Rome – the UN’s food and agriculture hub. IFAD invests in rural people, empowering them to reduce poverty, increase food security, improve nutrition and strengthen resilience.

Vietnam has made impressive leaps in transforming its economy in a very short time span, growing from a mere US$230 GDP in 1985 to US$2,340 in 2017, or US$600 when corrected for purchasing power. This growth has also been generally inclusive, with poverty decreasing from 60 % of the total population in the mid-eighties to less than 10 % in 2016.

“We are celebrating the solid and fruitful partnership between IFAD and Vietnam this year, and IFAD has worked side-by-side with the Governments of Vietnam and development partners to support and contribute to Vietnam's poverty eradication efforts,” said Donal Brown, Associate Vice-President of IFAD.

Nowadays, Vietnam has become a hub for foreign investment and manufacturing in Southeast Asia. However, Vietnam is still a predominantly rural population with a vibrant agricultural sector where small holders represent the large majority, contribute to sustained growth, provide much of rural employment and raw materials for its agro-business. IFAD is fully committed to continuing its partnership with Vietnam in the coming years in support of the country's quest to reduce poverty in all its dimensions and to fulfill the United Nations' 2030 Sustainable Development Goals, in particular goal 1: No Poverty.

Vietnam and the Vietnamese people attach importance and cherish the good cooperation with IFAD. We are willing to continue our due contribution in the common efforts with IFAD to eliminate poverty and accelerate agriculture development in Vietnam. Based on our initial joint success, it is very important for Vietnam to replicate and scale up interventions, models and practices which have proven effective and impactful in 11 provinces, stressed Huynh Quang Hai, Vietnam’s Deputy Minister of Finance.

Nguyen Mai