This chapter highlights the World Bank’s enduring partnership with Viet Nam over the past forty years, with the last decade standing out as a beacon of climate action and green transformation. Looking ahead, we are confident that, through deeper and more fruitful collaboration between the two sides, the agriculture sector will unlock its full potential and play a pivotal role in realizing Viet Nam’s ambitious goal of becoming a high-income country by 2045.

Prioritizing poverty reduction and food security (Early 1990s–Early 2000s)

In the late 1980s, Viet Nam stood at a historic crossroads. The Doi Moi reforms of 1986 marked a bold departure from central planning, unleashing the creative energies of farmers and rural communities. When the World Bank reengaged with Viet Nam in 1993, it became a steadfast companion in this new era, channeling financial resources, technical expertise, and optimism into the countryside.

At the time, over 70 percent of Viet Nam’s population lived in rural areas, and poverty was a daily reality for millions. The World Bank’s early support focused on rural infrastructure, agriculture and irrigation rehabilitation, and land reform. Projects such as the Agriculture Rehabilitation Project (1993), the Irrigation Rehabilitation Project (1995), the Agriculture Diversification Project (1998), and the Mekong Delta Water Resources Development Project (2000) laid the foundation for food security and rural development. These investments not only restored agriculture production systems and improved yields but also provided access to clean water and sanitation for thousands of households, directly improving health and livelihoods.

On September 23, 2025, Acting Minister of Agriculture and Environment Tran Duc Thang met with Ms. Mariam Sherman, World Bank Division Director for Viet Nam, Cambodia and Lao PDR (Photo: Minh Thanh)

Among the most transformative interventions was the Northern Mountains Poverty Reduction Project (NMPRP), launched in 2002. Targeting the poorest provinces in the northern highlands—where poverty rates exceeded 40 per cent and ethnic minorities formed the majority—NMPRP pioneered decentralized, participatory planning. Villages and communes identified their own priorities, from roads and irrigation to health clinics and schools, and managed investments through block grants. This approach fostered local ownership, transparency, and empowerment, especially among ethnic minorities and women. Commune Development Boards, representing mass organizations and village leaders, became engines of change. Lessons from NMPRP were scaled up in subsequent projects and shaped government policy on decentralization, ethnic minority inclusion, and rural investment.

By 2002, the country’s rural poverty had fallen from 66 percent in 1993 to 37 percent. Rice production soared from 20 million tons in 1990 to over 30 million tons by the end of the decade, transforming Viet Nam from a food- deficit nation into a major rice exporter. The World Bank’s role extended beyond financing, providing policy advice, technical assistance, and donor coordination to help shape Viet Nam’s Comprehensive Poverty Reduction and Growth Strategy, aligning international support with national priorities.

Enhancing agricultural productivity and market integration (Early 2000s–Mid-2010s)

As Viet Nam’s economy opened to the world, the focus shifted to enhancing productivity and integrating farmers into domestic and global markets. The World Bank responded with a suite of projects and policy research aimed at boosting productivity, market access, and competitiveness.

The Agriculture Competitiveness Project (2008) and the Livestock Competitiveness and Food Safety Project (2009) exemplified this shift, strengthening smallholder farmers’ access to markets, value chain development, and agribusiness partnerships. Collaboration among farmers, agribusinesses, government, and research institutions laid the groundwork for modern value chains. The Second Rural Finance Project (2003) extended banking services to remote farmers, enabling investment in crops, livestock, and processing. Nearly 650,000 loans were made to 250,000 households, with women accounting for 30 percent of the borrowers. 

By the mid-2010s, Viet Nam had become a leading exporter of rice, coffee, tea, cashews, and aquatic products. Agricultural growth averaged 2–3 percent per year, with smallholder farmers gaining access to improved seeds, technology services, and critical infrastructure.

The World Bank’s support for market-oriented reforms was also pivotal. The Poverty Reduction Support Credit (PRSC, 2001-2012) series provided budget support for reforms in trade, finance, and governance, helping Viet Nam advance its transition to a market economy. Analytical work informed reforms in seed governance, contract farming, and market integration, while annual Consultative Group meetings facilitated donor coordination and policy dialogue.

Promoting efficiency, environmental sustainability, and climate resilience (Mid-2010s–Present)

With prosperity came new challenges: environmental degradation, resource scarcity, and the need for more efficient, sustainable and green agriculture. The World Bank’s support evolved to address these challenges, integrating climate resilience and environmental stewardship into its operations.

Viet Nam’s agricultural vision gradually shifted—from a model focused on rapid growth through excessive inputs to one centered on efficiency, sustainability, inclusivity, and resilience. The World Bank has been at the forefront, supporting transformative projects and policy reforms that address climate change and environmental sustainability.

On March 27, 2025, Deputy Minister Phung Duc Tien met with Mr. Africa Eshogba Olojoba, Practice Manager for Environment, Natural Resources and Blue Economy (EAP), World Bank.

By the mid-2010s, climate change posed serious risks, especially in the Mekong Delta. In response, the World Bank and the Government of Viet Nam launched the Viet Nam - Sustainable Agriculture Transformation (VnSAT) Project, a landmark initiative promoting climate-smart, low-emission practices. More than 200,000 rice farmers in the Mekong Delta and coffee farmers in the Central Highlands adopted improved seeds, reduced fertilizer and pesticide use, and implemented water-saving techniques. In the Mekong Delta, alternate wetting and drying (AWD) led to a 30 percent reduction in water use and a 50 percent cut in methane emissions, while increasing yields and boosting farmers’ profits. Greenhouse gas emissions from 180,000 hectares of rice land were reduced by 1.5 million tons of CO₂ equivalent per year. By its conclusion in 2022, VnSAT had become a global flagship for climate-smart agriculture, inspiring the Government of Viet Nam to scale up these practices nationwide. 

The Mekong Delta Integrated Climate Resilience and Sustainable Livelihoods (MD-ICRSL) project, completed in 2024, further enhanced climate-smart planning and resilience in the region. Its integrated approach—combining infrastructure, knowledge, and community engagement—serves as a model for climate adaptation in vulnerable regions. By following an adaptive, spatial approach to delta planning, the project supported a large-scale transformation of rural livelihoods toward more climate-resilient and diversified models, aligning production practices with ecological conditions and climate risks in different subregions. At completion, the project directly benefited 1.8 million farmers and transformed more than 200,000 hectares into climate resilient water and land management practices. Its success has paved the way for a new project -- Mekong Delta Climate Resilience and Integrated Transformation Project (MERIT or WB11 project) -- aimed at scaling up results and impacts to larger areas in the Mekong Delta.

The Mekong Delta Water Management for Rural Development project, completed in 2017, protected water resources, improved irrigation for 215,000 farming households, and helped communities adapt to rising sea levels and saline intrusion. Agricultural yields increased, water productivity rose, and the project’s integrated approach set a new standard for climate adaptation.

The World Bank has supported Viet Nam’s Nationally Determined Contribution (NDC) under the Paris Agreement, mobilizing resources and technical assistance for climate change mitigation and adaptation. Financial innovation and private sector engagement have expanded access to finance for farmers and agribusinesses, supporting the adoption of climate-smart technologies and value chain development.

Rigorous research has guided these efforts. The landmark report “Transforming Vietnamese Agriculture: Gaining More for Less” (2016) called for a shift to high-value, sustainable production, while “Spearheading Viet Nam's Green Agricultural Transformation: Moving to Low-Carbon Rice” (2022) documented the success of climate-smart rice farming and the potential for scaling up low-carbon techniques.

The 2020s ushered in a bold vision: Viet Nam pledged to achieve net-zero emissions by 2050. The program of “One Million Hectares of High-Quality, Low-Carbon Rice in Mekong Delta,” building on VnSAT’s success, emerged as a national symbol, with millions of farmers expected to join cooperatives and adopt climate-smart practices. Branding rice as low-carbon is helping farmers and private businesses access premium markets and command higher prices.

Beyond technical solutions, the World Bank has supported Viet Nam in expanding access to climate and carbon finance. The emergence of carbon markets has opened new income opportunities for rural households. The Government of Viet Nam has raised its 2030 emission reduction targets and committed to a 30 percent reduction in methane emissions by 2030, with agriculture as a primary focus.

Eco-friendly practices and certified standards have enabled Vietnamese producers to access premium markets, doubling export revenues in some sectors. The World Bank is supporting the development of robust monitoring, reporting, and verification systems (MRV) to ensure that the carbon credits of sustainable practices flow directly to farmers.

Enduring partnership to unlock agriculture’s potential for high-income status by 2045

Reflecting on this journey, the World Bank’s support for Viet Nam’s agriculture is more than a portfolio of projects—it is a story of partnership, trust, and shared vision. For over four decades, the Ministry of Agriculture and Rural Development (now the Ministry of Agriculture and Environment) and the World Bank have worked hand in hand, from securing food security to pioneering green and low-emission agricultural transformation.

Despite remarkable achievements, challenges remain. Scaling successful models nationwide requires strong institutions, substantial financing, and inclusive approaches that ensure smallholders—who make up 70 percent of Viet Nam’s rural workforce—are not left behind. Climate risks are intensifying, markets are evolving, and the demand for safe, nutritious, green, and traceable products is rising. Meeting these demands will require sustained investment, innovative financing, and robust partnerships across public and private sectors.

Viet Nam’s ambition to become a high-income economy by 2045 is bold and achievable. Agriculture, with its deep roots and proven capacity for innovation, remains indispensable to this journey. By embracing evidence-based reforms, investing in climate resilience, and fostering inclusive growth, Viet Nam can transform its agricultural sector into a powerhouse of productivity, sustainability, and shared prosperity.

The next chapter will be written by millions of Vietnamese farmers who, with the support of the World Bank and the government, are transforming their fields into engines of prosperity and guardians of the environment. Together, we look forward to a future where Viet Nam’s agriculture not only feeds the nation and the world but also nurtures the planet for generations to come.

Mariam J. Sherman
World Bank Division Director for Viet Nam, Cambodia and Lao PDR