The Agriculture Competitiveness Project for Vietnam is supported by the World Bank and is focused on eight provinces in central Vietnam. This project is geared toward strengthening the competitiveness of smallholder farmers and is being carried out in collaboration with the agri-business sector in order to: 1) enhance agricultural technology, 2) support productive partnerships, 3) support serious infrastructure necessities, and 4) support project management and the strengthening of agricultural institutions.
This project was approved in September of 2008 and is being implemented by the Ministry of Agriculture and Rural Development, closing June 30, 2014. The total cost for this project is estimated to be approximately US$75.02 million. According to the World Bank, farmers were given approximately USD$2000 to purchase farm equipment and supplies. This included, but is not limited to, modern watering systems and light bulbs. Effectively, the Agriculture Competitiveness Project for Vietnam is supporting partnerships that aid in the production process.
According to the World Bank, farmers have been improving their products through good agricultural practices and farmers’ productivity has increased between 5 and 20 percent, product sales increasing by 12 percent. Historically, farmers often switched crops, depending on whichever had the highest selling value at the time of planting. This consequently put these farmers at risk of losing profit when prices dropped at harvest time — this occurred prior to the partnerships provided by the World Bank.
Now, post-partnership, farmers are protected from sudden price changes, as agreements are made on volume and price prior to the initiation of production. In total, there are nearly 100 such partnerships. Since the implementation of this project, farmers can now earn more and work fewer hours, according to this video posted by the World Bank.
