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ADB funds quality enhancement of agricultural products and biogas development
Governor of the State Bank of Vietnam Nguyen Van Giau and ADB Country Director for Vietnam,Ayumi Konishi signed today a US$95 million loan to improve the safety and quality of Vietnam’s commercial food crops, and provide alternative and clean energy supply to households through biogas development.
The project aims to improve food regulations and quality control systems to ensure the safety and quality of food products for domestic consumption and export. The project will also help build biogas plants which both reduce health hazards from livestock waste and provide an alternative energy source for about 40,000 households.
The project is expected to directly benefit around 3.6 million farmers in 16 provinces and generate about 1.4 million jobs in post-production work. As a result, the project will contribute to reducing rural poverty in these 16 provinces where poverty level is higher than the national average.
Addressing the signing ceremony, Governor Nguyen Van Giau said, although agricultural sector has contributed only 20% of Vietnam’s gross domestic product, 70% of the Vietnamese population are living in rural areas and the sector is making an important contribution to the country’s export.
Vietnam has always given priority to improving quality of agricultural products so that these products could meet demand not only in domestic but also foreign markets, he emphasised.
At the ceremony, Mr. Konishi said: “The demand for safer, higher quality agricultural products become more and more critical as cases of food poisoning from microbiological contamination and excessive pesticide residues in vegetables, fruits and tea account for about 30% of biological and chemical poisonings. It is essential for Vietnam to improve quality and safety to enhance competitiveness of Vietnam’s agricultural products in the global market, and also to ensure a better quality of life for the people”.
ADB is also providing a technical assistance (TA) grant of US$1.5 million to provide startup support for the project management and to design a strategy to expand the national biogas programme. The Government is contributing US$300,000 to the TA. The Ministry of Agriculture and Rural Development is the executing agency of the project expected to complete in June 2015.
Truong Son
nhandan
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