32285-033: Agriculture Sector Development (Investment Loan)

Project Data Sheet (PDS): Details

Description

The objective of the agro-industry small- and medium-sized enterprise (SME) Loan is to support the Government's efforts to reduce poverty and promote private sector investments in agro-based businesses through credit provision. The loan will be implemented in rural areas of Vietnam, broadly defined to include communes, villages, and provincial and district towns whose economic roles and functions are closely linked to agricultural and rural enterprises. Areas inside the municipal boundaries of the major cities of Ha Noi, Ho Chi Minh City, Hai Phong, and Da Nang are excluded. Special consideration will be given to areas designated as the poorest in the country with the objective of narrowing the gap in incomes, and to attain sectoral and regional balance in growth. To ensure the effectiveness of Vietnam Bank of Agriculture and Rural Development (VBARD), the Program will strengthen their operations through: (i) development of incentive systems, (ii) charging a risk premium of from one to two percent on subloans with insufficient collateral, improvements in training, training capacity, lending practices, and benefit monitoring and evaluation.

Description

The objective of the agro-industry small- and medium-sized enterprise (SME) Loan is to support the Government's efforts to reduce poverty and promote private sector investments in agro-based businesses through credit provision. The loan will be implemented in rural areas of Vietnam, broadly defined to include communes, villages, and provincial and district towns whose economic roles and functions are closely linked to agricultural and rural enterprises. Areas inside the municipal boundaries of the major cities of Ha Noi, Ho Chi Minh City, Hai Phong, and Da Nang are excluded. Special consideration will be given to areas designated as the poorest in the country with the objective of narrowing the gap in incomes, and to attain sectoral and regional balance in growth. To ensure the effectiveness of Vietnam Bank of Agriculture and Rural Development (VBARD), the Program will strengthen their operations through: (i) development of incentive systems, (ii) charging a risk premium of from one to two percent on subloans with insufficient collateral, improvements in training, training capacity, lending practices, and benefit monitoring and evaluation.

Safeguard Categories

Environment: B
Involuntary Resettlement:
Indigenous Peoples:

Summary of Environmental and Social Aspects

Environmental impact screening for the loan package identified no significant negative environmental impacts that cannot be mitigated. None of the representative projects are in category A. No further studies are required to complement the initial environmental examination (IEE). No resettlement issues are anticipated under the ASDP project. There will be a beneficial impact on job creation for women and women empowerment through increased income generation opportunities. No issues on indigenous peoples are anticipated under the ASDP project.

 

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

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