International Fund for Agricultural Development VIETNAM Sustainable Economic Empowerment oEthnic Minorities (3EM) Dak Nong Project Rationale Ethnic minority (EM) households in Dak Nong are largely integrated into the market economy, but not on avourab le terms. At present, most cash crops are sold by the EM armers in bulk to middlemen and little product dierentiation takes place. Farmers repeatedly confrmed that their ood security strategy is based on limited ood selsufciency through upland rice cultivation and major cash crop production oboth annual and perennial crops or the market. Rather than promoting subsistence arming, the project approach would be to improve the agronomic and market conditions or ood and cash crops. Opportunities exist in major value chains to improve the net value in the hands oarmers through primary processing, storage, group marketing, etc. Project Objectives The overall goal oSustainable Economic Empowerment oEthnic Minorities in Dak Nong Province (3EM) is the sustainable improvement olivelihoods othe rural poor in upland areas. Its purpose is to increase incomes othe rural poor, especially ethnic minorities, through sustainable economic development and natural resource management. Project Area and Target Group Dak Nong Province (DNP) is located in the Central Highlands adjacent to Cambodia. It’s population is around 445,500. Mainstays othe economy are orestry, agriculture and agro- processing. The main crops are coee and pepper. In addition, various ruit trees, cashew nuts and sweet potatoes are important income sources or armers. The target groups are: (i) indigenous and ethnic minorities; and (ii) the rural poor and near poor. IFAD VIETNAM >> 3EM Dak Nong >> 1 Enabling poor rural people to overcome poverty
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AgriculturalDevelopment IFAD VIETNAM >> 3EM Dak Nong >> 2
Project Strategy
The project strategy is to address the specifc issues o the dierent target groups including:
Ethnic minority groups:
• Strengthening the voice o ethnic minorities in planning and decision making
• Developing capability o ethnic minorities to access market opportunities
• Ensuring quality extension services to ethnic minority villages and armers• Identiying new market opportunities and enhancing competitiveness o value chains
• Providing access to land resources
• Piloting ways to increase ethnic minority incomes
Gender mainstreaming:
• Encouraging women to ully take part in all project activities
• Land titles to be in the name o the man and woman o the households
• Involving emale sta in management decisions
Project Components
• Empowering the poor and grassroots communities
• Enhancing services or pro poor green market opportunities
• Investing in the natural resource base• Project management
Project Cost and Financing
Total costs or the project are estimated at USD 27.2 million (VND 496.8 million).
Costs are spread as ollows: oreign exchange: USD 3.1 million, IFAD: USD 20.8 million (loan),
Project Clients: USD 1.1 million (investment capital), VBARD: USD 0.4 million (credit), the
Government o Germany: USD 2.9 million (technical assistance), The Government o Vietnam
(GoVN): USD 2.0 million (this would in the orm o duties and taxes either oregone or to be
returned to province and national revenue agencies).
Benefts and Impact
• Local participation in governance, and active community and armer organisations
• Increased participation o women: better access to land, inputs, markets and knowledge
• Access to credit or seasonal crops and productive assets
• Public economic inrastructure and marketing acilities installed in poor communities
• Improved on-arm production resulting in better incomes and ood security
• Poor armers would have access to wider markets and better prices
• Reduced costs through better arm-to-market road access.
• Productive soil achieved by stopping soil loss, improving water management and
restoring depleted orests
• Land and water resources protected and improved or uture generations
Contact details
Atsuko Toda
Country Programme Manager
Asia and Pacifc Division
International Fund or Agricultural Development (IFAD)