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|IMPP projects help people bone up on market skills|
Alongside traditional agricultural work, Khanh Loc residents eked out a living by making sticky rice wine. Khanh Loc’s wine was famous throughout the area but its production was considered supplementary to the real work at hand. Wine production was on a small scale and low-efficiency.
But in 2006, the Improving Market Participation of the Poor (IMPP) project came to Khanh Loc. There was VND1.5 billion investment into the building of trading head offices and production facilities covering 2,000 square metres. The Khanh Loc Agricultural Products and Wine Co-operative was also established.
Furthermore, the new model involving farming households, scientists, government and businesses saw wine production become more efficient. The project not only aimed to make Khanh Loc sticky rice wine a nationally recognised brand but also to improve pig-breeding productivity and encourage enterprises to buy the whole sum of outputs.
Tran Thi Phi Yen, chairwoman of Khanh Loc Agricultural Products and Wine Co-operative said that the co-operative’s current chartered capital reached VND700 million ($33,800) and the revenue reached over VND2 billion ($96,000) per year.
In addition, the co-operative created regular work for 35 female labourers, giving them a stable monthly income of VND1.5 to 2 million per person. Many households are using IMPP winemaking and pig breeding project models to earn VND150-200 million ($7,300- $9,700) per year.
The project also helps dozens of other poor communes in Ha Tinh province fight poverty. These include the Dai Hung Incense Production Facility in Nghi Xuan district, Binh Loc Tofu in Loc Ha district and Watermelon Planting in Ky Anh district, just to name a few.
Phan Thanh Bien, director of IMPP project’s coordination board said: “What makes us most happy is that poor people in Ha Tinh province have learned how to organise production according to the market mechanisms.”
The IMPP project, funded by the International Fund for Agricultural Development (IFAD) with the total capital of $18.3 million, is being carried out in 50 poor communes in eight districts of Nghi Xuan, Can Loc, Duc Tho, Huong Son, Thach Ha, Cam Xuyen, Ky Anh and Loc Ha.
The project helps guarantee a sustainable income for Ha Tinh province’s rural poor by helping them access and participate in the province’s labour market, land market, commodity market, service market and financial market.
To date, nearly 40,000 poor people have been equipped with better awareness of market mechanisms, and business-making and business start-up knowledge. As a result, they have adjusted their production activities to be in line with market mechanisms.
The IMPP project also provides credit to poor people to organise their trading.
The saving credit model in 50 communes involves 447 groups of 5,907 members with total loans of over VND15.5 billion.
The project is also helping build 88 infrastructure subprojects and set up 30 joint groups and 13 co-operatives. It is also supporting the vocational training for 3,000 labourers.
The second phase of IMPP project will not finish up until next year so it might still be too early to talk about the project’s success. However, the positive changes that can be seen every day in the poor central province of Ha Tinh are a good indication that the project is on the right track.