Agricultural infrastructure is a cornerstone of ADB’s investment strategy

Expanding regional and multi-sectoral cooperation

On March 3, at the headquarters of the Ministry of Agriculture and Environment (MAE), Deputy Minister Hoang Trung held a working meeting with Mr. Nianshan Zhang, Director General of the Southeast Asia Department at the Asian Development Bank (ADB).

During the meeting, Deputy Minister Hoang Trung highly valued the cooperation relationship between Viet Nam and ADB spanning over 30 years. According to him, MAE consistently regards ADB as a top strategic partner in the fields of sustainable agriculture, water resource management, and climate change adaptation. In particular, the Ministry's leadership expressed deep appreciation for ADB's timely and effective support in overcoming the aftermath of natural disasters in Central Viet Nam provinces over the past two years.

"In the coming period, the Agriculture and Environment sector will prioritize the implementation of large-scale, multi-sectoral integrated projects with spillover and transformative effects, aligning with the Government's overall development orientation. The Ministry stands ready to collaborate with ADB in developing agriculture and environment components for the Country Partnership Strategy (CPS) for the 2027-2031 period, serving as a foundation for bilateral cooperation in this new phase.

Regarding regional cooperation mechanisms such as the Greater Mekong Subregion (GMS), we are committed to coordinating closely with the Ministry of Finance - the national focal point - to effectively fulfill our assigned roles and tasks, particularly in leading the Agriculture Working Group and the Environment Working Group," stated Deputy Minister Trung.

Regarding ODA resources, the International Cooperation Department is leading the development of a Scheme for the Attraction, Management, and Utilization of ODA and Concessional Loans for the Ministry, which is expected to be submitted for issuance in June 2026. The Scheme will identify priority regions and sectors, and the Ministry requests ADB to consider and provide support during its formulation.

On this basis, the Ministry of Agriculture and Environment proposes that ADB focus on several key areas: developing green agricultural infrastructure and renewable energy for production; modernizing irrigation and water supply systems in arid regions to adapt to climate change; and promoting the transformation of agricultural growth models toward green, circular, and low-emission directions.

Furthermore, the Ministry requests support for businesses and cooperatives in accessing advanced technology, climate finance, and expanding export markets. We also seek cooperation in institutional reform and the development of an integrated database for land, water, climate, and ecology to support master planning and enhance resource management capacity in accordance with regional and international standards.

ADB allocates $40 billion to support Viet Nam’s Food System Transformation

Highly appreciating the role of MAE in ADB-funded projects, Director General Nianshan Zhang emphasized that investment in rural and agricultural infrastructure continues to be a key pillar of the bank’s plan in Viet Nam. Notably, he was pleased to announce that the new Environmental and Social Framework (ESF) will take effect on January 1, 2026, promising to create even stronger development impacts for projects in Vietnam.

Both sides agreed to accelerate the approval process for the Climate Adaptive Integrated Flood Risk Management Project (CAIFRMP), valued at $200 million, with signing expected in 2027. Additionally, the bank expressed special interest and readiness to realize the "1 Million hectares of high-quality, low-emission rice" Project in the Mekong Delta.

"ADB is committed to supporting Viet Nam in achieving its Net Zero targets through the formulation of Nationally Determined Contributions (NDC 3.0), the development of carbon credit markets, and the modernization of irrigation systems in arid regions. The Bank stands ready to promote Public-Private Partnership (PPP) models and provide diverse financing options, ranging from project loans to budget support, to help Viet Nam reach its goal of becoming a high-middle-income country by 2030.

We view Viet Nam as one of the pioneering nations in food system transformation. ADB pledges to allocate a portion of its $40 billion regional food security package to partner with the Ministry of Agriculture and Environment in turning policies into practical investments," Mr. Nianshan Zhang affirmed.

Director General Zhang further informed that ADB has commenced the formulation of the Country Partnership Strategy for the 2027-2031 period, ensuring alignment with Viet Nam's Socio-Economic Development Plan for 2026-2030. He expressed a desire to collaborate with the Ministry during the strategy's development and to discuss solutions for enhancing partnership effectiveness.

Regarding external activities, ADB announced scheduled high-level visits to Viet Nam in 2026, including the ADB President, Vice President, and the Executive Director representing Viet Nam on the Board of Directors. The Bank also highlighted the Greater Mekong Subregion initiative, which Viet Nam will chair in 2026, and requested the Ministry of Agriculture and Environment’s coordination to further expand bilateral cooperation.