Decline in ODA poses challenge for Vietnam’s agricultural sector: Minister
The diminishing availability of ODA funding presents a significant challenge to the continued development of the Vietnamese agricultural sector, said Minister of Agriculture and Rural Development Le Minh Hoan.
According to Minister Le Minh Hoan, no new ODA projects have been signed in the agricultural sector since 2019. Vietnam’s graduation from low-income country status has significantly impacted its access to ODA funding. The loss of preferential treatment, including low-interest loans and grants, has resulted in a substantial decline in both the volume and value of ODA capital available for the agricultural sector.
Minister Le Minh Hoan emphasized that in the previous period, ODA capital accounted for up to 50 percent of the total development investment of Vietnam’s agricultural sector, playing an important role in projects to improve infrastructure, reduce poverty and respond to climate change.
However, the past five years have witnessed significant challenges arising from the diminished availability of ODA funding. The agricultural sector is encountering significant challenges, particularly due to the State budget’s inability to sufficiently allocate resources for strategic initiatives. These challenges include low labor productivity, the effects of climate change, and restricted access to credit.
Translated by Anh Quan
