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Finance project sees better-than-expected results
The WB-funded Rural Finance Project II (RFP II) has recorded better-than-expected results, having help the agricultural sector develop in a more sustainable manner.
The second phase of the project has been carried out with the WB’s loan of 235 million USD since 2003.
RFP II is intended to assist economic development in rural areas and raise local people’s living standards by encouraging private investments, especially farm household businesses.
It also aims to enhance the banking system’s capability to better serve the rural economy and increase the possibilities for poor people to access financial services.
By the end of September, 2009, the entire capital of RFP II was disbursed for more than 444,000 small projects of rural families and businesses nationwide.
The project manager, the Bank for Investment and Development of Vietnam (BIDV), has organised dozens of training courses on environmental protection for staff of credits organisations to help them discover those projects that fail to meet environmental requirements for taking loans.
As a result, projects that have been provided with loans from RFP II have helped boost afforestation, organic vegetable planting and application of clean technology.
The success of RFP II was a factor behind the WB’s decision to grant 200 million USD in loans to the third phase of the project even though the second phase has not finished.
RFP III is expected to disburse 19.7 million USD for more than 3,100 small projects next month.
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