An agreement to this effect was signed between Deputy State Bank Governor Le Minh Hung and ADB Country Director for Vietnam Tomoyuki Kimura in Hanoi on March 14.
The provision of the non-refundable aid is part of ADB’s ongoing efforts to assist the Vietnamese Government to use natural resources more effectively and contribute to higher levels of agricultural production, expand employment opportunities, increase rural household incomes and reduce poverty.
Addressing the signing ceremony, Deputy Governor Le Minh Hung said the irrigation system plays an important role in rural development, especially in the Red River Delta, one of Vietnam’s key agricultural areas.
The country will take advantage of the official development assistance to develop the irrigation system as part of its agricultural development strategy in the 2011-2020 period.
ADB Country Director Tomoyuki Kimura suggested Vietnam increase agricultural production and consequently increase employment opportunities to raise incomes and reduce poverty in rural areas.
“And that could not be done without development of effective rural infrastructure which is at the core of both economic growth and social development,” he added.