Vietnam’s agricultural sector will receive US$95m from the Asian Development Bank (ADB) to improve the safety, quality and quantity of the country’s commercial food crops, as well as provide clean energy to communities with a biogas development.

The Quality and Safety Enhancement of Agricultural Products and Biogas Development Project was approved by the Bank’s board of directors yesterday, reported the Vietnam News Service.

Overuse of fertiliser and pesticides, improper crop choice and lack of infrastructure cause numerous problems for Vietnam’s horticulture sector, and limit the country’s export options despite being one of South East Asia’s largest producers.

“The increasing integration of Vietnam’s agricultural production, processing and marketing with international markets makes it critical that improvements are made in product quality and food safety if Vietnam is to maintain and increase its international market share,” said Mahfuzuddin Ahmed, a senior agricultural economist with ADB’s Southeast Asia Department.

Food regulations and quality control regimes will be brought up to domestic and export standard as part of the programme, along with the development of new infrastructure.

Funding for biogas plants will also be provided to 40,000 households. The initiative aims to reduce health hazards from livestock waste and to provide clean energy.

The project is expected to affect 6.5m farmers in 16 provinces and create 1.4m jobs in post-production work.

Total funding for the project will hit US$110.4m with additional support coming from Vietnam’s federal and local government, among others.

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