Vietnam will need about 2.7 billion USD to implement its project of planting 1 million hectares of high-quality rice from now to 2030 - Illustrative image (Photo: VNA)

The estimated figure was given at a working session on June 29 among the Ministry of Planning and Investment, the MARD and Mekong Delta localities on the use of World Bank (WB) loans to support the implementation of the project to develop 1 million hectares of specialised rice cultivation with high quality and low emissions associated with green growth in the Mekong Delta region.

Ton That Son Phong, deputy head of the MARD’s management board of agricultural projects, stressed the need to soon mobilise resources from international organisations, given the lack of domestic resources.

To this goal, the MARD has proactively worked with many international organisations such as the WB, the Asian Development Bank (ADB), the SNV Netherlands Development Organisation, and the International Rice Research Institute (IRRI). To date, the WB has committed to providing loans and technical assistance, while the IRRI and several other organisations have pledged to provide technical support.

Based on the WB's commitment, representatives from the MARD, 12 provinces and Can Tho city in the Mekong Delta, and other ministries and sectors have directly worked with the WB and domestic and international experts to complete a draft project on infrastructure and technical support for high-quality, and low-emission rice farming in the region. The draft project is expected to be submitted to the Prime Minister for consideration and approval in the third quarter of 2024. Its investment is estimated at 430 million USD, of which 330 million USD will be financed by loans from the World Bank.

Cao Thang Binh, a senior expert of the WB, said that this is the first time Vietnam and the world have a large-scale project on rice production towards sustainable growth and emissions reduction. Vietnam is at a golden time to implement the project of 1 million hectares of high-quality rice, and this is a way for the country to promote and reposition the Vietnamese rice brand, its responsibility for rice production, and raise its position in the world.

According to Binh’s preliminary calculations, if the investment for the whole project is about 1 billion USD, it will generate a profit of about 4 billion USD. It will also cut down production costs and fertilisers by about 30%. The project to develop 1 million hectares of specialised rice cultivation with high quality and low emissions associated with green growth in the Mekong Delta region was approved by the Prime Minister on November 27, 2023.

It is part of efforts to restructure the region's production system and value chain with a focus on sustainable farming practices, higher product value, greater business and production efficiency, as well as improved livelihoods of rice farmers, in accordance with Vietnam's commitment to protect the environment, adapt to climate change and reduce greenhouse gas emissions./.