Vietnam and the World Bank will join hands to improve the overall competitiveness of Vietnam’s livestock production, mainly in the meat supply chain, by addressing the main constraints and risks faced by household-based livestock producers.

An agreement to this effect was signed on Dec 10 between the State Bank of Vietnam and the World Bank in Vietnam, according to which the World Bank will provide a credit of US$ 65,26 million of the total US$ 79.03 million for the Livestock Competitiveness and Food Safety Project.

Specifically, the Project aims to achieve increased production efficiency of household producers through the adoption of Good Animal Husbandry Practices. It will also reduce negative environmental impact by supporting livestock producers, markets and slaughterhouses to meet environmental standards, and improved food safety by supporting slaughterhouses and meat markets to operate at national hygienic standards.

“For poor households, livestock is a major source of food and a mean to save and accumulate capital,” said Victoria Kwakwa, the World Bank’s Country Director for Vietnam. Through this Project, “...household producers would be able to remain competitive so that they can participate in the sector’s growth, and improved processing and markets would allow household producers to sell meat under conditions that are cleaner and safer to meet Vietnamese people’s increasing demand of safer food.”

The agriculture sector currently accounts for 22 percent of GDP and more than 60 percent of employment, of which the livestock sub-sector accounts for 27 percent of agriculture’s contribution to GDP (about 6 percent of total GDP). Pig production is the most significant contributor (about 71 percent of total livestock production). Livestock production is one of the fastest growing sub-sectors in agriculture and is projected to account for about 42 percent of agriculture GDP by 2020.

This project is expected to be completed in mid 2015.