Number of projects and value of ODA capital for agriculture decreased

(Baoquangngai.vn) - Since Vietnam became a middle-income country and no longer enjoys low interest rates, the number of projects and the value of ODA capital and preferential loans for the agricultural sector have decreased significantly. For the Ministry of Agriculture and Rural Development , since 2019, no new ODA loan projects have been negotiated or signed.

That is the information just given by Minister of Agriculture and Rural Development Le Minh Hoan at the 2024 International Support Group (ISG) Plenary Conference organized by the Ministry of Agriculture and Rural Development on the morning of December 6. The conference has the theme "Orientation for prioritizing the use of ODA capital and preferential loans for the agriculture and rural development sector in the period 2026 - 2030", organized in the form of direct and online to 63 provinces and cities nationwide. Attending at the Quang Ngai province bridge, there were representatives of the Department of Agriculture and Rural Development and related departments and branches.

Delegates attending the meeting at Quang Ngai bridge. Photo: Y THU

According to the Ministry of Agriculture and Rural Development, the proportion of ODA capital in the total development investment capital of the ministry was at one point approximately 50%. Most of the ODA loans were used for investment projects in infrastructure development, supporting and promoting production, hunger eradication, poverty reduction, livelihood improvement, climate change response, natural disaster prevention, etc.

During the 2016 - 2020 period, the Ministry of Agriculture and Rural Development approved and signed 5 loan programs and projects, with a total value of 826 million USD, including 662 million USD in loans. During the 2021 - 2025 period, the main work was to propose and prepare new projects, and no loan agreements were signed. The total expected loan capital for new projects under preparation is about 2 billion USD, non-refundable capital is about 58 million USD, and counterpart capital is about 478 million USD. Of which, 5 projects have had their project proposals approved by competent authorities, with a total loan capital of about 750 million USD.

Regarding non-refundable aid, the Ministry of Agriculture and Rural Development currently has 112 projects under implementation (approved from 2016 to present), with a total non-refundable capital of about 300 million USD. Currently, the approval procedures for 32 more projects are being carried out, with a total aid capital of about 9 million USD.

Speaking at the conference, Minister of Agriculture and Rural Development Le Minh Hoan said that since Vietnam became a middle-income country and no longer enjoyed low interest rates, the number of projects and the value of ODA capital and preferential loans for the agricultural sector have decreased significantly. For the Ministry of Agriculture and Rural Development, since 2019, no new ODA loan projects have been negotiated or signed.

“In order to continue to mobilize and promote the advantages of international knowledge, experience, initiatives and resources to support the industry in implementing the goals approved by the Prime Minister in Decision No. 150/QD-TTg, dated January 28, 2022 on the Strategy for Sustainable Agricultural and Rural Development for the period 2021 - 2030, with a vision to 2050, the Ministry of Agriculture and Rural Development organized a conference today with the participation of many sponsors, development partners, and international organizations to share the orientations and needs of the industry and the Ministry and grasp the orientations and priorities of partners. From there, identify and coordinate specific cooperation plans in the coming time,” emphasized Minister of Agriculture and Rural Development Le Minh Hoan.

At the conference, many delegates discussed and proposed solutions to improve the effectiveness of ODA capital. In particular, World Bank (WB) Country Director Mariam Sherman said that Vietnam's demand for ODA loans is still very large. This capital is not only invested in infrastructure but also invested in "software" such as training, technical training, and capacity building. Therefore, WB hopes to be able to support a synchronous package, both hardware and software. Such a comprehensive and holistic approach and support will be a model for WB to implement ODA projects in the period 2026 - 2030. Asian Development Bank (ADB) Country Director Shantanu Chakrabory also expressed that he will support Vietnam to promote rural livelihoods and address issues of land degradation, land reclamation, etc.

News and photos: Y THU

Source: https://baoquangngai.vn/thoi-su/202412/so-du-an-va-gia-tri-nguon-von-oda-cho-nong-nghiep-giam-52c43ba/