$375 mln fund to boost high-quality, low-carbon rice production
The project has the potential to fundamentally transform rice production methods in the Mekong Delta region.
A project worth about US$375 million to support infrastructure for low-carbon rice cultivation is expected to be implemented in the Mekong Delta, according to Ministry of Agriculture and Rural Development (MARD)
The project was based on the Government's initiative to develop one million hectares of low-carbon and high-quality rice fields.
It will be carried out in 12 provinces over a five-year period, from 2026 to 2031, with a two-year preparation phase in 2024 and 2025.
Nguyễn Thế Hinh, Deputy Head of the Agricultural Project Management Board at the MARD, said that the estimated cost of the project is around $375 million, with funding primarily sourced from a $360 million loan from the International Bank for Reconstruction and Development (IBRD) of the World Bank (WB) and $15 million from the Government and local authorities.
The project will be based on six principles, including providing comprehensive and smart investment packages to help farmers adapt to climate change and increase farm profitability.
It also supports small-scale producers through the development and strengthening of farmer organisations and cooperatives, while mobilising credit resources for areas implementing low-carbon practices.
Moreover, it will promote private sector participation, facilitate the development of markets for low-carbon rice, and establish favourable policy and technical frameworks to support the production of low-carbon rice.
Trần Thanh Nam, Deputy Minister of the MARD, has proposed that the Agricultural Project Management Board communicate with the 12 participating provinces and cities, urging them to strengthen or establish new project management boards at the provincial level to facilitate project implementation.
The World Bank is expected to approve the project in May 2025, leaving approximately one year to accelerate work progress in the localities, Nam added.
He also urged the provinces to provide accurate data promptly, eliminating the need for time-consuming reviews. The deadline for submitting the data to the Ministry is April 2024.
This project has attracted significant international attention and enjoys strong support from farmers as it has the potential to fundamentally transform rice production methods in the Mekong Delta region. — VNS
