The project was signed by the Government of Vietnam and the International Fund for Agricultural Development (IFAD) on December 21, 2006 and took effect as of April 19, 2007. The US$37 million project will be implemented in 80 communes in 14 districts of Ha Tinh and Tra Vinh provinces.

The focus will be on poverty reduction, environment protection, management of natural resources and sustainable development. The project will get off the ground in June 2007 to help improve market participation by the poor.

The German Government also pledged a EUR2 million grant for the project through GTZ in Vietnam.

Under the agreement, GTZ will develop plans to help local communes gain access to the market, generate jobs and develop businesses.

Speaking at the signing ceremony, Mai Tung Lam, Office Administrator from the Ha Tinh provincial People’s Committee said the province is committed to making plans, assessing and supporting the market in accordance with the set criteria in the agreement. It will also co-ordinate with GTZ to execute plans of activity for better market participation by the poor.