Minister of Planning and Investment Bui Quang Vinh has confirmed toNong thon Ngay nay (Countryside Today) newspaper that the Government anddonors will provide more official development assistance (ODA) loans tothe agriculture sector.
*What do you think about the current situation of ODA loans invested in agriculture?
To date, enterprises have not invested much in rural agriculture, butODA capital in agriculture is considerable. The amount of non-refundablecapital is fairly high compared to total ODA loans, between 350-400million USD yearly.
However, agriculture and rural fields face risks due to natural disasters and the unstable market.
*What changes in rural investment are taking place as Vietnam has become a middle-income country?
Previously,ODA loans for agriculture were non-refundable and low-interest. Soon,however, high-interest ODA loans will be provided to those involved inagriculture.
It would be very difficult to attract investmentfrom other economic stakeholders if the Government did not invest in thefield, as rural areas do not easily draw investors.
In the nearfuture, ODA loans for rural areas will focus on good projects with highrefundable capacity. Loans will be given not only to hunger eliminationand poverty reduction projects and infrastructure investment but alsohealth care, education, clean water and environmental hygiene.
Donorshave also paid attention to poor and ethnic minority areas. TheGovernment will consider increasing ODA loans for agriculture and ruralareas in the coming years.
*ODA loans have helped Vietnam withhunger elimination and poverty alleviation in rural areas, even thoughmany localities remain poor and underdeveloped. How can ODA loans beused most effectively in rural areas?
Along with huge funds fromthe State budget, Vietnam has been using preferential and non-refundableODA loans for hunger elimination and poverty alleviation.
In thenew context, we can't provide free of charge loans for these purposesforever. The poor should contribute between 10-15 percent of funds tothe ODA project. Poverty criteria will also be raised.
Vietnam has become a middle-income country, so hunger elimination and poverty alleviation measures must be adjusted.
*What can be done to attract ODA loans for underdeveloped rural areas?
Vietnam'seconomy has improved and the nation has become a middle-income country,so donors will gradually reduce preferential and non-refundable ODAloans for Vietnam.
That is why Vietnam should effectively use thesources that it has. ODA loans for agriculture development must conformto the sector's restructuring projects and the country's socio-economicdevelopment strategy and plans.
Vietnam's priority will targetto attract ODA loans for hunger elimination and poverty alleviation andclimate change adaptation, especially projects on disaster riskreduction and sustainable development.
The Government is alsogiving priority to high-tech agriculture projects with an aim to improvethe quality of agricultural products and increase the industry'scompetitiveness.
The Government recently promulgated Decree 210on preferential investment in agriculture and rural areas, which willserve as an important foundation for attracting investment from alleconomic stakeholders.-VNA
*What do you think about the current situation of ODA loans invested in agriculture?
To date, enterprises have not invested much in rural agriculture, butODA capital in agriculture is considerable. The amount of non-refundablecapital is fairly high compared to total ODA loans, between 350-400million USD yearly.
However, agriculture and rural fields face risks due to natural disasters and the unstable market.
*What changes in rural investment are taking place as Vietnam has become a middle-income country?
Previously,ODA loans for agriculture were non-refundable and low-interest. Soon,however, high-interest ODA loans will be provided to those involved inagriculture.
It would be very difficult to attract investmentfrom other economic stakeholders if the Government did not invest in thefield, as rural areas do not easily draw investors.
In the nearfuture, ODA loans for rural areas will focus on good projects with highrefundable capacity. Loans will be given not only to hunger eliminationand poverty reduction projects and infrastructure investment but alsohealth care, education, clean water and environmental hygiene.
Donorshave also paid attention to poor and ethnic minority areas. TheGovernment will consider increasing ODA loans for agriculture and ruralareas in the coming years.
*ODA loans have helped Vietnam withhunger elimination and poverty alleviation in rural areas, even thoughmany localities remain poor and underdeveloped. How can ODA loans beused most effectively in rural areas?
Along with huge funds fromthe State budget, Vietnam has been using preferential and non-refundableODA loans for hunger elimination and poverty alleviation.
In thenew context, we can't provide free of charge loans for these purposesforever. The poor should contribute between 10-15 percent of funds tothe ODA project. Poverty criteria will also be raised.
Vietnam has become a middle-income country, so hunger elimination and poverty alleviation measures must be adjusted.
*What can be done to attract ODA loans for underdeveloped rural areas?
Vietnam'seconomy has improved and the nation has become a middle-income country,so donors will gradually reduce preferential and non-refundable ODAloans for Vietnam.
That is why Vietnam should effectively use thesources that it has. ODA loans for agriculture development must conformto the sector's restructuring projects and the country's socio-economicdevelopment strategy and plans.
Vietnam's priority will targetto attract ODA loans for hunger elimination and poverty alleviation andclimate change adaptation, especially projects on disaster riskreduction and sustainable development.
The Government is alsogiving priority to high-tech agriculture projects with an aim to improvethe quality of agricultural products and increase the industry'scompetitiveness.
The Government recently promulgated Decree 210on preferential investment in agriculture and rural areas, which willserve as an important foundation for attracting investment from alleconomic stakeholders.-VNA
