On March 19, the Ministry of Agriculture and Rural Development (MARD) held a conference with provinces and cities in the Mekong Delta region to discuss the proposal of a project supporting low-carbon rice production infrastructure. The total investment for the project, planned for the 2026-2031 period, is estimated at $375 million, equivalent to about VND 9,000 billion.

The proposed low-carbon rice production infrastructure support project in the Mekong Delta is based on the government's plan for one million hectares of high-quality and low-emission rice cultivation. The project will be led by MARD and implemented in 12 Mekong Delta provinces (An Giang, Kien Giang, Dong Thap, Long An, Soc Trang, Can Tho, Bac Lieu, Tra Vinh, Hau Giang, Ca Mau, Tien Giang, and Vinh Long). The project is set to be executed over five years from 2026 to 2031, with a preparation phase in 2024 and 2025.

According to Mr. Nguyễn Thế Hinh, Deputy Director of the Agriculture Projects Management Board, MARD, the total estimated cost for the project is about $375 million (equivalent to VND 8,968 billion), of which $360 million will come from a loan from the International Bank for Reconstruction and Development (IBRD) of the World Bank, and $15 million will be counterpart funding from the government and local contributions.

The project will be designed based on six principles, including: designing and providing comprehensive and smart investment packages for farmers to adapt to climate change and increase farm profits. It will also support smallholder farmers by developing and strengthening farmer organizations and cooperatives, mobilizing carbon credit funding for areas applying low-carbon practices.

Additionally, the project will encourage private sector participation and support the development of a low-carbon rice market. It will also create a favorable policy and technical framework to support low-carbon rice production.

Of the $375 million investment, the project will be divided into three components, with Component 1: "Developing the High-Quality, Low-Carbon Rice Value Chain" receiving the highest investment of $350 million. This component aims to increase productivity, efficiency, and reduce post-harvest losses, thereby improving profitability, enhancing added value, reducing greenhouse gas emissions, and impacting the climate.

Deputy Minister of MARD Trần Thanh Nam suggested that the Agriculture Projects Management Board send documents to the 12 provinces and cities participating in the project so that localities can strengthen or establish new provincial project management boards to provide a basis for implementation guidance and provide information for MARD to complete the project soon.

According to Mr. Trần Thanh Nam, discussions between MARD leaders and World Bank leaders in the Asia-Pacific region indicate that the World Bank will approve this project in May 2025. With only about one year left, localities need to accelerate their work.

"The World Bank has identified this project as a key project in the Asia-Pacific region, to be replicated in other Asian countries. They have also agreed to buy carbon credits from the project. Therefore, we must have a pilot model by August or September this year to then replicate it in participating localities," said Deputy Minister Trần Thanh Nam.

Deputy Minister Trần Thanh Nam requested that provinces provide accurate data to avoid time-consuming reviews and submit it to the Ministry by April 2024. This project has the potential to fundamentally transform the production methods of the Mekong Delta's rice sector, garnering significant attention from international organizations and strong support from farmers. Therefore, MARD hopes that localities will work closely with the Ministry to complete the project preparation phase soon.

Source: VietstockVietstock