VIET NAM

Country results brief

Rural poverty and food security situation
The rapid economic growth that Viet Nam enjoyed in the last two decades has slowed down in recent years as a result of the world economic recession, inflation of food and oil prices, and a number of natural disasters.1 Most Vietnamese people live in rural areas and derive their livelihoods from agriculture, which remains the main source of occupation and an important source of job creation. Poverty is predominantly rural: 73 per cent of the population in rural areas make up 94 per cent of all poor people. The poorest regions are the northern midlands and mountainous area (where the poverty rate is 25.1 per cent) and the central highland and the central coast regions. Poverty also has an ethnic dimension: although ethnic minorities account for less than 13 per cent of the population, they account for nearly half of the poor.2 Food security remains a concern as many rural households are net food buyers.3 In 2007, 6.7 per cent of Vietnamese families lacked food. The figure increases to 8.7 per cent for households in rural areas.4

Enabling poor rural people to overcome poverty

BASIC COUNTRY DATAa

GDP per capita GDP growth Agriculture contribution to GDP Rural population Population engaged in agriculture US$674 (2009) 6.0% (2008) 8.0% (2007) 21.0% (2009) 72.0% (2009) 50.0% (2010) b

Percentage of population living in poverty c (2008)

14.5%

Overview of the IFAD-Viet Nam Partnership

In 2007, IFAD and the Government of Viet Nam developed a country strategic opportunities programme (COSOP). The COSOP targets the upland areas and focuses on creating links between remote production areas and markets and ensuring the participation of poor rural people. Interventions are tailored to reach ethnic minority groups and women. The COSOPs four interlinked strategic objectives are: rural poor households in upland areas access markets through increased private-sector partnerships; poor and vulnerable households take advantage of profitable business opportunities; poor upland communities secure access to and derive sustained benefits from productive natural assets; and poor rural people contribute to pro-poor, market-driven agricultural policy processes at subnational levels. In pursuing these objectives, IFAD works in partnership with a variety of stakeholders: central and provincial government, line ministries, national banks, farmers associations, national research institutions and civil society organizations. IFAD is also a member of relevant coordination groups, including the One United Nations Initiative in Viet Nam, and cooperates with a wide range of bilateral and multilateral partners.

World Development Indicators data, unless specified otherwise. Country strategic opportunities programme (COSOP) Mid-term Review (MTR), 2010. General Statistics Office (2008).

PARTNERSHIP WITH IFAD

First loan (year) Total number of programmes and projects Total number of beneficiaries 1993 11

613 000 households

Total investment (US$349.0 million)

IFAD financing US$257.6 million

Cofinancing mobilized US$91.4 million

Country programme results and impact

IFADs country programme supports operations in 11 poor provinces of Viet Nam. From 2002 to 2010 in Tuyen Quang province, the country programme supported poverty reduction and economic growth through the promotion of participatory, decentralized community development, and targeted poor upland ethnic minority groups and women. The country programme worked in 823 Tuyen Quang villages,
1 2 3 4 IFAD, Viet Nam Country Profile, 2010. Country Strategic Opportunities Programme (COSOP), Mid-term Review (MTR), 2010. International Food Policy Research Institute (IFPRI), Food Security Portal. Southeast Asian Council for Food Security & Fair Trade.

and reached over 75,700 beneficiaries, of whom 49,000 were women and 55,000 were from ethnic minority groups.5 Achievements include: the majority of beneficiary households improved their food security, thanks to an increase in average food availability of 72 kilograms per capita in 2009; 1,000 saving and credit groups (SCGs) were formed, with over 17,000 members, of whom 75 per cent were from ethnic minority groups and 76 per cent were women; the SCGs increased their access to microcredit for taking up small-scale farm activities;6 65,000 families received capacity-building services in upland farming provided by the over 2,600 farmers field schools training sessions and over 360 demonstrations; approximately 40,000 households reported a productivity increase of 14-20 per cent thanks to the demonstrations and field schools;7 5,700 school children received partial funding for their education, among whom 51 per cent were girls; and 824 village animal health workers were trained, resulting in a reduction in livestock diseases and improved diversification of farmers income.8 Around 1,500 village infrastructures (such as irrigation channels and village roads) were constructed with support from the village infrastructure development funds supported by the country programme. Of the total number of beneficiary households: 85-90 per cent had road access to markets; 60 per cent had access to stable irrigation water; 87 per cent had access to clean domestic water; and 90 per cent had access to electricity. These infrastructures have contributed to improving farm and non-farm production, and village operation and maintenance groups have been formed for each infrastructure scheme.9

unique geography and climate. The programmes goal is to improve the productivity, income levels and food security of poor households, especially of ethnic minorities and women. In Ha Giang province, the programme has reached about 50,000 households (186,000 individuals) and has achieved the following results: 352 Village Management Groups (VMGs) comprising almost 5,000 members have been established to plan, implement and monitor development activities ensuring the participation of poor ethnic minority households and women; 72 provincial, 132 district and 1,400 commune staff have benefited from project training in better management of decentralization, participatory planning, and management and implementation of village infrastructure schemes; 267 savings groups (4,900 members) have been created; 240 operation and maintenance groups have been formed to ensure sustainability of small-scale infrastructure, and 1,500 people have been trained; and 206 kilometres of roads have been constructed.10 In Quang Binh province, the programme has promoted income generation activities in value chains, and infrastructure development (small irrigation schemes, village roads and markets places). By the end of 2009 approximately 45,900 households had received programme-funded services, and the programme had achieved the following: 137 infrastructure projects were carried out, of which 71 were road construction or rehabilitation projects and 23 were irrigation infrastructure projects; others include schools and kindergartens, bridges, markets, commune buildings, and supply of water and electricity; and 2,172 people were trained in infrastructure maintenance. These infrastructure investments have resulted in a high level of social benefit to beneficiaries by improving their access to services. Improved irrigation infrastructure projects have also had a positive economic impact by reducing fluctuations in expected yield.11

Programme and project examples

There are six on-going IFAD-funded programmes and projects in Viet Nam. The Decentralized Programme for Rural Poverty Reduction (DPRPR) began in 2005. It focuses on two of the poorest communities in the country, Ha Giang and Quang Binh, each with a

5 Rural Income Diversification Programme (RIDP), Project Completion Report (PCR) and Validation, 2010. 6 RIDP, PCR and Validation, 2010. 7 RIDP, PCR Validation, 2010. 8 RIDP, PCR, 2010. 9 RIDP, PCR Validation, 2010. 10 Decentralized Programme for Rural Poverty Reduction (DPRPR), Ha Giang province, Supervision Report 2010. 11 DPRPR, Quang Binh province, Supervision Report 2010.

From the field

The objective of the Programme for Improving Market Participation of the Poor (IMPP) in Ha Tinh and Tra Vinh provinces is to raise the incomes of poor rural people in 50 communes in Ha Tinh province and 30 communes in Tra Vinh province by improving their access to labour, finance, commodities and service markets. IIMP began in 2007. In Tra Vinh province, the project has reached about 44,000 people.12 All targeted communes have developed their Commune Market Opportunity Planning (CMOP), which includes at least three pro-poor, priority local value chains and two cross-cutting issues. Around 270 village awareness seminars on market-based approaches have been conducted and 377 common interest groups (CIGs) related to the value chains have been established, with about 10,300 household members. One third of the CIGs household members are poor, and the CIGs facilitate their engagement in these value chains: the groups can buy inputs collectively at a better price and can sell their produce to traders and markets in bulk, enabling them to negotiate higher prices. Moreover, by being part of the CIGs, the poor household members have an opportunity to work with better-off farmers, who have more experience in production practices and market linkages.13 In Ha Tinh province, around 76,000 people have received project services14 in 50 communes. At mid-term, IMPP had supported the establishment of 123 CIGs (over 4,600 members) related to the main value chains; of these, 60 per cent are women and 56 per cent of households are poor. Ten cooperative groups (CGs) with 452 member households and two cooperatives with 155 members have been formed; two thirds of the members are poor. The CGs and cooperatives also facilitate farmers linkages to the value chains and their engagement with better-off farmers. Moreover, after receiving IMPP-promoted vocational and enterprise training, around 1,400 people have found stable jobs for at least six months.15 The Developing Business with the Rural Poor Programme (DBRP) began in 2008. The programmes goal is to help develop market and business opportunities for poor rural people in Ben Tre and Cao Bang provinces. In its first year, DBRP reached about 45,000 beneficiaries in Ben Tre and around 21,000 beneficiaries in Cao Bang provinces. In Ben Tre province, DBRP has achieved the following results:
Nguyen Thi Nham was born and raised up in Dong village of Cam Thanh commune. She is the Chairperson of Cam Thanh Small Industry and Trade Services Cooperative. She hoped that in her position she would contribute to the development of her local area. And that is precisely what she did. Nham explored different options and advised women members to engage in secondary employment to earn extra income. In 2007, the Cooperative had access to support from the IFAD-supported programme on Improving Market Participation for the Poor of Ha Tinh province (IMPP Ha Tinh). The programme provided partial funding for trainees participating in vocational training courses and supported the Cooperative to find a market for their products. Thanks to the intervention, the Cooperatives products now have a strong reputation in the province and have reached markets in other provinces. Nham works with IMPP also to conduct technical training courses and to help women gain more experience in agricultural production, which has resulted in employment creation for over 300 women. In 2011, the Cooperative received the programmes support in the form of equipment, such as desks and chairs for the meeting hall, loudspeakers, a computer and a fax machine, with a total value of more than VND 50 million (US$ 2,396). This equipment will help the Cooperative to grow. I am very grateful to the programme. Thanks to its support, we, the women in the Cooperative, have what we have now, Nham said. With her contributions to the development of her homeland, Nham is honoured as an exemplary woman of Cam Thanh commune for her efforts in poverty reduction.

5,100 beneficiaries have accessed the programmes market information, business registration and business advisory services; 190 government officials and staff have been trained in agricultural extension and technology; 510 male and 165 female government officials and staff have been trained in community-based management; over 360 people have been trained in business and entrepreneurship, of whom 165 were women; about 450 staff of service providers have been trained in value chain development and market orientation, of whom over 120 were women; 550 men and women have been trained in financial services; and 1,300 women have been trained in community management topics.16 In Cao Bang province progress has been slower.

12 13 14 15 16

Results and Impact Management System (RIMS), Tra Vinh province, 2010. Improving Market Participation of the Poor (IMPP), Mid-term Review (MTR) Report, March 2010. RIMS, Ha Tinh province 2010. IMPP MTR Report, March 2010. RIMS, Ben Tre province, 2010.

Nevertheless, some results can already be identified: 270 marketing groups have been formed or strengthened; 280 beneficiaries have been trained in business and entrepreneurship; over 1,100 men and 1,200 women have been trained in crop production practices and technologies; 4,500 women have been trained in livestock production practices and technologies; over 1,200 people have been trained in financial services; and over 800 men and 700 women have been trained in community management topics.17

Innovation and scaling up

The main innovation promoted by the Viet Nam country programme has been the decentralization and participatory planning and implementation of IFAD-funded programmes and projects at commune and village levels. This approach was first piloted by the Rural Income Diversification Project in Tuyen Quang province, closed in 2009, which tested it on 15 communes. It was then successfully replicated. For example, the communes where DPRPR was implemented became programme owners, responsible for production support and civil works activities. Moreover, the introduction of participatory planning as a tool for preparing village development plans enhanced the participation of poor people and their organizations in decisionmaking processes. Increased participation has translated into increased capacity and strengthening of community-based organizations. The success of this approach has contributed to the Governments decentralization of management of infrastructure schemes in all the communes covered by its National Programme for Communes Facing Extreme Hardship in Ethnic Minority and Mountainous Areas (2006-2010),18 which seeks to promote informed community participation and engagement in the Governments targeted public investment programmes. Other innovations introduced by the country programme include using market-based planning tools such as the value chain methodology, promoting the participation of better-off farmers and enterprises alongside the target group in planning and implementing programme activities, and promoting market linkages in cooperation with the private sector and contract farming.

Key lessons and way forward

The focus of the Viet Nam country programme is currently on supporting the implementation of its many programmes and projects, the latest of which was approved in February 2011. Two key lessons have emerged: The role of participation: The more that poor rural people and their organizations engage in community activities and processes, the more they are able to do so effectively; and The decentralization process: Decentralization and participatory planning activities need to be synchronized, as they are mutually supportive and cannot succeed if implemented separately. Further lessons will be derived in 2011 through a country programme evaluation. Following the evaluation, a new COSOP will be developed in 2012 to cover 2013-2018.

IFAD is an international financial institution and a specialized United Nations agency dedicated to eradicating poverty and hunger in rural areas of developing countries. International Fund for Agricultural Development Via Paolo di Dono, 44 00142 Rome, Italy Tel: +39 06 54591 Fax: +39 06 5043463 E-mail: ifad@ifad.org www.ifad.org www.ruralpovertyportal.org Contact Atsuko Toda Country Programme Manager Via Paolo di Dono, 44 00142 Rome, Italy Tel: +39 06 54592638 Fax: +39 06 54593638 at.toda@ifad.org
June 2011

17 RIMS, Cao Bang province, 2010. 18 RIDP, PCR Validation, 2010.