The Minister made the statement at the plenary conference of the International Support Program yesterday in Hanoi.
According to Minister Le Minh Hoan, no new ODA projects have been signed in the agricultural sector since 2019. Vietnam's graduation from low-income country status has significantly impacted its access to ODA funding. The loss of preferential treatment, including low-interest loans and grants, has resulted in a substantial decline in both the volume and value of ODA capital available for the agricultural sector.
Minister Le Minh Hoan emphasized that in the previous period, ODA capital accounted for up to 50 percent of the total development investment of Vietnam's agricultural sector, playing an important role in projects to improve infrastructure, reduce poverty and respond to climate change.
However, the past five years have witnessed significant challenges arising from the diminished availability of ODA funding. The agricultural sector is encountering significant challenges, particularly due to the State budget's inability to sufficiently allocate resources for strategic initiatives. These challenges include low labor productivity, the effects of climate change, and restricted access to credit.
Minister Le Minh Hoan underscored that the agricultural sector requires not only financial investment but also technical support and the enhancement of management capabilities.
World Bank Country Director Mariam Sherman said that Vietnam’s ODA capital needs are still very large, estimated at about US$10 billion for infrastructure projects and technical training.
She said that, in addition to investment in infrastructure, it is necessary to focus on training and technical training to ensure sustainability. The World Bank is committed to providing comprehensive support packages, including loans and technical assistance.
Asian Development Bank Country Director for Vietnam Shantanu Chakraborty reiterated the Asian Development Bank's commitment to supporting Vietnam's efforts to enhance rural livelihoods and build resilience in vulnerable areas, with a particular focus on coastal and island communities. He emphasized the significance of large-scale initiatives, such as the 1 million hectare rice emission reduction project, in facilitating the transition of the agricultural sector towards a more sustainable and environmentally responsible model.
The gradual decline in Official Development Assistance (ODA) poses a significant challenge for Vietnam, necessitating a proactive approach to securing alternative funding sources and optimizing the utilization of available resources within the agricultural sector.
To achieve this, Director Nguyen Do Anh Tuan of the Department of International Cooperation under the Ministry of Agriculture and Rural Development emphasized on the need to build a network of sustainable development partners, closely coordinating between the Government, ministries and localities.
It is expected that in the period of 2026-2030, the Ministry of Agriculture and Rural Development aims to mobilize about US$2.16 billion in ODA capital, including $2 billion from new projects to implement long-term plans in the agricultural sector.
