ADB helps Vietnam improve agricultural sector

29-Nov-2018 Intellasia | The Saigon Times | 6:00 AM Print This Post

The Asian Development Bank (ADB) has approved over $100 million in financing to help the Vietnam install eight modern irrigation systems in five drought-affected provinces, which aim to improve agricultural productivity, especially among farmers growing high-value crops such as coffee, peppers, grapes, dragon fruit and mangoes.

The ADB-financed project will supply water on-demand through pressurised pipe systems to help the provinces of Binh Thuan, Dak Lak, Dak Nong, Khanh Hoa and Ninh Thuan improve their irrigation management services, including the operations and maintenance of the irrigation infrastructure. It will also support the development of improved groundwater and water productivity assessments, as well as micro-irrigation systems, based on the type of crops and farmer demand, the bank said in a statement released on November 27.

“Modernised irrigation systems that maximise the potential of Vietnam’s agricultural sector are crucial to the country’s goal of pursuing inclusive and sustainable growth. The project’s focus on climate resilience, particularly by providing water on-demand to farmers, will help smallholder farmers increase their crop yield and boost their incomes,” Sanath Ranawana, ADB senior natural resources economist, said in the statement.

ADB’s assistance provides a $100 million concessional loan and a $300,000 grant from the Climate Change Fund, established in May 2008 to facilitate greater investments in ADB’s developing member countries to effectively address climate change.

ADB will also administer another $750,000 grant from the Netherlands Trust Fund under the Water Financing Partnership Facility, which was established in November 2006 to improve access to water resources among people living in the project area. The grant will support the development of water resource assessments and a water allocation framework, water productivity assessments and a crop water monitoring platform.

Agriculture plays a significant role in Vietnam’s economy, contributing 18.3 percent of the country’s gross domestic product and 44 percent of the labour force from 2008 to 2016.

However, despite having some of the best irrigation coverage in Southeast Asia, covering about 50 percent of the country’s arable land area, more than half of Vietnam’s irrigation systems remain under capacity due to their outdated infrastructure. This affects the productivity of farmers in the drought-hit provinces in Vietnam, especially given the effects of climate change.


Category: Economy, Vietnam

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