On March 19, the Ministry of Agriculture and Rural Development (MARD) held a conference with provinces and cities in the Mekong Delta region to propose a project supporting technical infrastructure for low-carbon rice. The total investment for the project in the 2026-2031 period is expected to be 375 million USD, equivalent to approximately 9,000 billion VND.

The project, designed to support low-carbon rice production in the Mekong Delta, is based on the Government's proposal for one million hectares of high-quality, 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 will run for 5 years from 2026 to 2031, with a preparatory phase in 2024 and 2025.

According to Mr. Nguyen The Hinh, Deputy Head of the Agricultural Project Management Board, the total cost for implementation is estimated at 375 million USD (equivalent to 8,968 billion VND); with 360 million USD coming from the International Bank for Reconstruction and Development (IBRD) and 15 million USD from government and local contributions.

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

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

Of the 375 million USD investment, three components are planned, with Component 1: "Developing high-quality, low-carbon rice value chains" receiving the highest investment of 350 million USD. This component aims to enhance production, efficiency, and reduce post-harvest losses, thereby improving profitability, adding value, and reducing greenhouse gas emissions.

Deputy Minister of Agriculture and Rural Development, Mr. Trần Thanh Nam, urged the Agricultural Project Management Board to send documents to the 12 participating provinces and cities to either reinforce or establish new provincial project management boards as a basis for implementation, and to provide information for MARD to complete the project proposal.

According to Mr. Trần Thanh Nam, discussions between MARD leadership and the World Bank’s Asia-Pacific leaders indicate that the World Bank will approve the project in May 2025. With about a year remaining, provinces need to expedite their work.

“The World Bank has identified this project as a priority in the Asia-Pacific region and intends to replicate it across other Asian countries. They have also agreed to purchase the project's carbon credits. Therefore, we must have a pilot model by August or September this year to replicate it across the participating provinces,” said Deputy Minister Trần Thanh Nam.

Deputy Minister Trần Thanh Nam requested that provinces provide accurate data by April 2024 to avoid delays. This project is expected to fundamentally transform rice production methods in the Mekong Delta and has attracted significant international attention and farmer support. MARD hopes that localities will coordinate with the Ministry to complete the preparatory phase quickly.

Source: Vietstock