8/3/2019 IFAD Vietnam - Dak Nong

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InternationalFund for

 AgriculturalDevelopment

 VIETNAM

Sustainable Economic Empowerment

o Ethnic Minorities (3EM)Dak Nong

Project Rationale

Ethnic minority (EM) households in Dak Nong are largely integrated into the market economy,

but not on avourable terms. At present, most cash crops are sold by the EM armers in bulk to

middlemen and little product dierentiation takes place. Farmers repeatedly confrmed that their

ood security strategy is based on limited ood sel sufciency through upland rice cultivation

and major cash crop production o both annual and perennial crops or the market. Rather than

promoting subsistence arming, the project approach would be to improve the agronomic and

market conditions or ood and cash crops. Opportunities exist in major value chains to improve

the net value in the hands o armers through primary processing, storage, group marketing, etc.

Project Objectives

The overall goal o Sustainable Economic Empowerment o Ethnic Minorities in Dak Nong

Province (3EM) is the sustainable improvement o livelihoods o the rural poor in upland areas.

Its purpose is to increase incomes o the rural poor, especially ethnic minorities, through

sustainable economic development and natural resource management.

Project Area and Target Group

Dak Nong Province (DNP) is located in the Central Highlands adjacent to Cambodia. It’s

population is around 445,500. Mainstays o the economy are orestry, agriculture and agro-

processing. The main crops are coee and pepper. In addition, various ruit trees, cashew

nuts and sweet potatoes are important income sources or armers. The target groups are: (i)

indigenous and ethnic minorities; and (ii) the rural poor and near poor.

IFAD VIETNAM >> 3EM Dak Nong >> 1

Enabling poor rural peopleto overcome poverty

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InternationalFund for

 AgriculturalDevelopment IFAD VIETNAM >> 3EM Dak Nong >> 2

Project Strategy

The project strategy is to address the specifc issues o the dierent target groups including:

Ethnic minority groups: 

• Strengthening the voice o ethnic minorities in planning and decision making

• Developing capability o ethnic minorities to access market opportunities

• Ensuring quality extension services to ethnic minority villages and armers• Identiying new market opportunities and enhancing competitiveness o value chains

• Providing access to land resources

• Piloting ways to increase ethnic minority incomes

Gender mainstreaming: 

• Encouraging women to ully take part in all project activities

• Land titles to be in the name o the man and woman o the households

• Involving emale sta in management decisions 

Project Components 

• Empowering the poor and grassroots communities

• Enhancing services or pro poor green market opportunities

• Investing in the natural resource base• Project management

Project Cost and Financing

Total costs or the project are estimated at USD 27.2 million (VND 496.8 million).

Costs are spread as ollows: oreign exchange: USD 3.1 million, IFAD: USD 20.8 million (loan),

Project Clients: USD 1.1 million (investment capital), VBARD: USD 0.4 million (credit), the

Government o Germany: USD 2.9 million (technical assistance), The Government o Vietnam

(GoVN): USD 2.0 million (this would in the orm o duties and taxes either oregone or to be

returned to province and national revenue agencies).

Benefts and Impact

• Local participation in governance, and active community and armer organisations

• Increased participation o women: better access to land, inputs, markets and knowledge

• Access to credit or seasonal crops and productive assets

• Public economic inrastructure and marketing acilities installed in poor communities

• Improved on-arm production resulting in better incomes and ood security

• Poor armers would have access to wider markets and better prices

• Reduced costs through better arm-to-market road access.

• Productive soil achieved by stopping soil loss, improving water management and

restoring depleted orests

• Land and water resources protected and improved or uture generations

Contact details 

Atsuko Toda

Country Programme Manager

Asia and Pacifc Division

International Fund or Agricultural Development (IFAD)

Unit 304, UN Apartment Building

2E Van Phuc, Kim Ma Str, Ha Noi, Vietnam

Tel: 0084- (4) 3823 7231; Fax: + 84 (4) 3823 3819

Email: at.toda@iad.org

Skype: atsuko.toda

Website: www.iad.org.vn

Enabling poor rural peopleto overcome poverty