1. VIETNAM
Enabling poor rural people
to overcome poverty
Sustainable Economic Empowerment
of Ethnic Minorities (3EM)
Dak Nong
Project Rationale
Ethnic minority (EM) households in Dak Nong are largely integrated into the market economy,
but not on favourable terms. At present, most cash crops are sold by the EM farmers in bulk to
middlemen and little product differentiation takes place. Farmers repeatedly confirmed that their
food security strategy is based on limited food self sufficiency through upland rice cultivation
and major cash crop production of both annual and perennial crops for the market. Rather than
promoting subsistence farming, the project approach would be to improve the agronomic and
market conditions for food and cash crops. Opportunities exist in major value chains to improve
the net value in the hands of farmers through primary processing, storage, group marketing, etc.
Project Objectives
The overall goal of Sustainable Economic Empowerment of Ethnic Minorities in Dak Nong
Province (3EM) is the sustainable improvement of livelihoods of the rural poor in upland areas.
Its purpose is to increase incomes of the rural poor, especially ethnic minorities, through
sustainable economic development and natural resource management.
Project Area and Target Group
Dak Nong Province (DNP) is located in the Central Highlands adjacent to Cambodia. It’s
population is around 445,500. Mainstays of the economy are forestry, agriculture and agro-
processing. The main crops are coffee and pepper. In addition, various fruit trees, cashew
International nuts and sweet potatoes are important income sources for farmers. The target groups are: (i)
Fund for indigenous and ethnic minorities; and (ii) the rural poor and near poor.
Agricultural
Development IFAD VIETNAM >> 3EM Dak Nong >> 1

2. Project Strategy
Enabling poor rural people The project strategy is to address the specific issues of the different target groups including:
to overcome poverty
Ethnic minority groups:
• Strengthening the voice of ethnic minorities in planning and decision making
• Developing capability of ethnic minorities to access market opportunities
• Ensuring quality extension services to ethnic minority villages and farmers
• Identifying new market opportunities and enhancing competitiveness of value chains
• Providing access to land resources
• Piloting ways to increase ethnic minority incomes
Gender mainstreaming:
• Encouraging women to fully take part in all project activities
• Land titles to be in the name of the man and woman of the households
• Involving female staff in management decisions
Project Components
• Empowering the poor and grassroots communities
• Enhancing services for pro poor green market opportunities
• Investing in the natural resource base
• Project management
Project Cost and Financing
Total costs for the project are estimated at USD 27.2 million (VND 496.8 million).
Costs are spread as follows: foreign exchange: USD 3.1 million, IFAD: USD 20.8 million (loan),
Project Clients: USD 1.1 million (investment capital), VBARD: USD 0.4 million (credit), the
Government of Germany: USD 2.9 million (technical assistance), The Government of Vietnam
(GoVN): USD 2.0 million (this would in the form of duties and taxes either foregone or to be
returned to province and national revenue agencies).
Benefits and Impact
• Local participation in governance, and active community and farmer organisations
• Increased participation of women: better access to land, inputs, markets and knowledge
• Access to credit for seasonal crops and productive assets
• Public economic infrastructure and marketing facilities installed in poor communities
• Improved on-farm production resulting in better incomes and food security
• Poor farmers would have access to wider markets and better prices
• Reduced costs through better farm-to-market road access.
• Productive soil achieved by stopping soil loss, improving water management and
restoring depleted forests
• Land and water resources protected and improved for future generations
Contact details
Atsuko Toda
Country Programme Manager
Asia and Pacific Division
International Fund for Agricultural Development (IFAD)
Unit 304, UN Apartment Building
2E Van Phuc, Kim Ma Str, Ha Noi, Vietnam
Tel: 0084- (4) 3823 7231; Fax: + 84 (4) 3823 3819
Email: at.toda@ifad.org
Skype: atsuko.toda
Website: www.ifad.org.vn
International
Fund for
Agricultural
Development IFAD VIETNAM >> 3EM Dak Nong >> 2