MCDF Promotes Viet Nam-China Agricultural Trade with Road Connectivity Grant

A USD1.47 million grant to improve road connectivity in rural northeast Viet Nam to promote agricultural trade with China was approved by the Multilateral Cooperation Center for Development Finance (MCDF) Governing Committee during its meeting in Beijing on 22 October. The project will be implemented by the International Fund for Agricultural Development (IFAD).

The MCDF grant will support the preparation of the Nature-Based Solutions for Rural Development Project’s infrastructure component in Viet Nam. The focus will be on upgrading and building 151.3 kilometers (km) of roads and four bridges in Cao Bang province and 82.5 km of roads and 17 bridges in Thai Nguyen province, in line with IFAD Social, Environmental, and Climate Assessment Procedures.

Activities to be funded by the MCDF grant include environmental impact assessments and feasibility studies of targeted road investments under the project. They will also cover market studies and surveys on cultural and agritourism potential in Cao Bang and Thai Nguyen, field surveys of infrastructure work, an investment report, and field surveys to validate proposed infrastructure investments.  

The MCDF grant will facilitate the preparation of the Nature-Based Solutions for Rural Development Project to be financed by IFAD and partners by ensuring the project’s compliance with all related requirements.

The resulting improvements in road connectivity between these provinces will reduce logistics costs, prevent border gate congestion, enable the efficient movement of agriculture and other goods between southwest China and major cities in Viet Nam, and attract investment in logistics and processing.

It will foster inclusive and sustainable development by improving linkages with farms and processing facilities in Cao Bang and Thai Nguyen which produce ginger, chestnuts, tangerines, black jelly, bamboo shoots, and other agricultural, medicinal plant, and forestry products that are primary sources of income for local communities.