VIETNAM

Enabling poor rural people to overcome poverty

Sustainable Economic Empowerment of Ethnic Minorities (3EM) Dak Nong

Project Rationale
Ethnic minority (EM) households in Dak Nong are largely integrated into the market economy, but not on favourable terms. At present, most cash crops are sold by the EM farmers in bulk to middlemen and little product differentiation takes place. Farmers repeatedly confirmed that their food security strategy is based on limited food self sufficiency through upland rice cultivation and major cash crop production of both annual and perennial crops for the market. Rather than promoting subsistence farming, the project approach would be to improve the agronomic and market conditions for food and cash crops. Opportunities exist in major value chains to improve the net value in the hands of farmers through primary processing, storage, group marketing, etc.

Project Objectives
The overall goal of Sustainable Economic Empowerment of Ethnic Minorities in Dak Nong Province (3EM) is the sustainable improvement of livelihoods of the rural poor in upland areas. Its purpose is to increase incomes of the rural poor, especially ethnic minorities, through sustainable economic development and natural resource management.

Project Area and Target Group

International Fund for Agricultural Development
Dak Nong Province (DNP) is located in the Central Highlands adjacent to Cambodia. Its population is around 445,500. Mainstays of the economy are forestry, agriculture and agroprocessing. The main crops are coffee and pepper. In addition, various fruit trees, cashew nuts and sweet potatoes are important income sources for farmers. The target groups are: (i) indigenous and ethnic minorities; and (ii) the rural poor and near poor.

IFAD VIETNAM

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3EM Dak Nong

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Project Strategy
Enabling poor rural people to overcome poverty

The project strategy is to address the specific issues of the different target groups including: Ethnic minority groups: Strengthening the voice of ethnic minorities in planning and decision making Developing capability of ethnic minorities to access market opportunities Ensuring quality extension services to ethnic minority villages and farmers Identifying new market opportunities and enhancing competitiveness of value chains Providing access to land resources Piloting ways to increase ethnic minority incomes Gender mainstreaming: Encouraging women to fully take part in all project activities Land titles to be in the name of the man and woman of the households Involving female staff in management decisions

Project Components
Empowering the poor and grassroots communities Enhancing services for pro poor green market opportunities Investing in the natural resource base Project management

Project Cost and Financing

Total costs for the project are estimated at USD 27.2 million (VND 496.8 million). Costs are spread as follows: foreign 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 of Germany: USD 2.9 million (technical assistance), The Government of Vietnam (GoVN): USD 2.0 million (this would in the form of duties and taxes either foregone or to be returned to province and national revenue agencies).

Benefits and Impact

Local participation in governance, and active community and farmer organisations Increased participation of women: better access to land, inputs, markets and knowledge Access to credit for seasonal crops and productive assets Public economic infrastructure and marketing facilities installed in poor communities Improved on-farm production resulting in better incomes and food security Poor farmers would have access to wider markets and better prices Reduced costs through better farm-to-market road access. Productive soil achieved by stopping soil loss, improving water management and restoring depleted forests Land and water resources protected and improved for future generations

Contact details
Atsuko Toda Country Programme Manager Asia and Pacific Division International Fund for Agricultural Development (IFAD) Unit 304, UN Apartment Building 2E Van Phuc, Kim Ma Str, Ha Noi, Vietnam Tel: 0084- (4) 3823 7231; Fax: + 84 (4) 3823 3819 Email: at.toda@ifad.org Skype: atsuko.toda Website: www.ifad.org.vn

International Fund for Agricultural Development

IFAD VIETNAM

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3EM Dak Nong

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