The project development objective was to strengthen the competitiveness of smallholder farmers, with a focus on eight provinces in central Vietnam, in collaboration with the agribusiness sector. The development objective was achieved by enhancing smallholders’ access to markets through the provision of technology services, facilitating farmer organizations and linkages to agribusiness, and the provision of critical public infrastructure.
Ministry of Agriculture and Rural Development of Vietnam
The World Bank
The project had 3 main components: Component A: Enhancement of Agricultural Technology (US$16.2 million cost which would be financed entirely by IDA). TA team assisted identification and implementation of applied research and the dissemination of proven technologies which are cost-efficient, increasing availability to access to quality seed, responsive to market demands and incentives, and enhance the environmental sustainability of increasingly competitive farming practices. It includes three subcomponents. Component B: TA team provided the advisory to Productive Partnerships (US$28.5 million of which US$15.6 million would be financed by IDA). Consultant supported P Us to improve the capacity competitiveness of smallholder farmers and farmer groups and agribusinesses by facilitating the establishment, development and operation of private, demand-driven productive partnerships (through public support provided on the basis of competitive and transparent procedures), improving private service delivery supporting such partnerships, and enhancing the provincial rural investment climate; increasing access to agriculture information and market data; improved the agriculture productivity and diversification; improved the capacity of Farmer and farmer groups to access to rural financial service; effective project management. A Productive Partnership is understood here to mean a long-term, voluntary, commercial relationship between a farmers’ organization (and its members) with an agribusiness enterprise aiming to meet market demands. It is based on contractual arrangements (a) to implement a business and investment plan that has been jointly developed and (b) to undertake commercial transactions. Productive Partnerships are one key link within a longer value chain. A Productive Partnership does not constitute a separate legal entity independent of its constituent parts, i.e,. a farmer organization and an agribusiness enterprise. Component C: Provision of Critical Infrastructure (US$24.0 million of which US$22.2 million would be financed by IDA). ACI’s team provided the support for critical rural public infrastructure needs supporting the competitiveness of the agricultural sector. These investments would contribute to increased agricultural productivity and the reduction of marketing costs. It includes two subcomponents: ACI’s role was to: •Coordinate with Coordination Unit (PCU)/ Province Management Units and stakeholders to implement all project components; •Provide technical assistance to PCU/P Us for effective implementation of all project components including planning, procurement, implementation arrangements, handover to beneficiaries for maintenance and operation of sub-projects financed by the project; •Provide technical assistance to PCU/P Us in monitoring and evaluation of the project and components’ activities in accordance with the project result monitoring framework; •Provide technical assistance to PCU/P Us in preparation and submission of project reports during the project implementation