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ADB helps improve agro-product quality and promote biogas development

VGP – The Asian Development Bank (ADB) and the State Bank of Việt Nam (SBV) signed today a US $95 million credit loan for the project on improving the safety and quality of Việt Nam's commercial food crops, and provide alternative and clean energy supply to households through biogas development.

June 30, 2009 5:12 PM GMT+7

State Bank of Việt Nam’s Governor Nguyễn Văn Giàu and ADB Country Director for Việt Nam Ayumi Konishire sign the credit

The ADB-funded project aims to improve food regulations and quality control systems to ensure the safety and quality of food products for domestic consumption and export.

The project will also help build biogas plants which both reduce health hazards from livestock waste and provide an alternative energy source to 40,000 households.

“The demand for safer, higher quality agricultural products become more and more critical as incidences of food poisoning from microbiological contamination and excessive pesticide residues in vegetables, fruits, and tea account for about 30 percent of the total cases of biological and chemical poisonings,” said Mr. Ayumi Konishi, ADB Country Director in Việt Nam.

“It is essential for Việt Nam to improve quality and safety to enhance competitiveness of Việt Nam’s agricultural products in the global market, and also to ensure a better quality of life for the people,” he continued.

The project is expected to directly benefit around 3.6 million farmers in 16 provinces and generate some 1.4 million jobs in post-production work. As a result, the project will contribute to reducing rural poverty in these 16 provinces where poverty rate is higher than the national average.

ADB is also providing a technical assistance (TA) grant of US $1.5 million as the startup support for the project management and to design a strategy to expand the national biogas program. The Ministry of Agriculture and Rural Development is the executing agency of the project which is expected to complete in June 2015.

Việt Nam is one of Southeast Asia's largest producers of fruits, vegetables and tea. However the excessive use of fertilizers and the dumping of livestock waste often hinder the country's agricultural sector to meet the required standards. They also have significant negative impacts on environment and public health.

By Hải Minh