Number of projects and value of ODA capital for agriculture sector decreased

This morning, December 6th, Minister of Agriculture and Rural Development Le Minh Hoan and World Bank Country Director for Vietnam Mariam Sherman chaired the ISG 2024 plenary online conference with the theme “Prioritizing the use of ODA and concessional loans for the agriculture and rural development sector in the period 2026-2030”.

Delegates attending the conference at the Quang Tri branch - Photo: Tran Tuyen

Speaking at the conference, Minister of Agriculture and Rural Development Le Minh Hoan pointed out that Vietnam has become a middle-income country and no longer benefits from low interest rates. In addition, the number of projects, the value of ODA and concessional loans for the agricultural sector have decreased significantly; technical assistance and non-refundable funding have also declined.

With the goal of building a modern, sustainable, and highly competitive commodity-producing agricultural sector, linked to environmental protection and climate change adaptation, Minister Le Minh Hoan emphasized the great need for cooperation with international partners, not only in terms of capital but also in terms of technical support, capacity building, and knowledge enhancement for investment and development in the coming period. In particular, he expressed the desire for the agricultural sector to receive the most favorable ODA loans to invest in infrastructure, enhance the capacity of communities and farmers' organizations.

Reporting at the conference, Mr. Nguyen Do Anh Tuan, Director of the International Cooperation Department of the Ministry of Agriculture and Rural Development, stated that in the period 2021-2025, the total projected loan capital for new projects under preparation is approximately 2 billion USD, with about 58 million USD in non-refundable capital and 478 million USD in counterpart funding.

Of these, five projects have received project proposal approval with a total loan capital of approximately US$750 million. The proportion of ODA capital in the total development investment capital of the Ministry of Agriculture and Rural Development has at times reached nearly 50%. Most of the ODA loans in recent years have been used for infrastructure development projects, supporting production promotion, poverty reduction, improving livelihoods, responding to climate change, and disaster prevention and control.

However, the limitations of this funding source are that the preparation process is often lengthy and the procedures are complex, leading to delays in completion and commissioning, thus reducing investment efficiency. Furthermore, programs and projects tend to be localized according to specific sectors, fields, and regions.

With the sustainable agricultural and rural development strategy for the period 2021-2030, and a vision to 2050, the projected need for ODA loans and concessional loans for the period 2026-2030 is approximately US$2.46 billion.

Mariam Sherman, Country Director of the World Bank in Vietnam, assessed that Vietnam has been a model in recent years, achieving outstanding success in utilizing concessional ODA (Official Development Assistance) funds. Vietnam's need for ODA loans remains very large, estimated at approximately US$17 billion. The World Bank hopes to provide more support through ODA loans, concessional loans, and technical solutions to help Vietnam develop further.

In Quang Tri, representatives from the Department of Agriculture and Rural Development stated that ODA funding has supplemented investment capital for development, infrastructure construction, human resource training, technical support, and livelihood support, contributing to the socio-economic development of the province, especially in the agricultural and rural sectors.

However, ODA and concessional loans are currently on the decline; ODA loans are gradually shifting towards less concessional loans. Therefore, Quang Tri province proposes using ODA and concessional loans for the agricultural sector in the period 2026-2030.

Tran Tuyen

Source: https://baoquangtri.vn/so-du-an-va-gia-tri-nguon-von-oda-cho-nganh-nong-nghiep-giam-190226.htm