At the reception, the Department of Debt Management and External Finance highly appreciated IFAD for years to support Vietnam in the field of agriculture and rural development, contribute to hunger erase and poverty reduction in poor and ethnic minority areas; IFAD funding with highly preferential condition is evaluated to be effective.

IFAD stated that Vietnam is one of IFAD’s important partners in the region, which reflected in the cooperative relationship for nearly 25 years with 15 projects and total fund of nearly USD 600 million. Besides providing financial supports, the Fund also provides technical assistance, organizes activities of transferring and sharing knowledge and experience to government agencies, research institutes and universities in the field of sustainable agricultural development and linking to the market. The Fund also highly appreciated Vietnam for its ability to use capital effectively and accumulate experiences during the period of management and using funds, thus IFAD has opened National Office in Vietnam since 2008. Currently, the Office in Vietnam covers Laos and Thailand.

Regarding to future cooperation, IFAD said that in the period of 2016-2018, Vietnam spent about USD 90 million of allocated capital. For the next period (2019-2021), depending on the mobilization capacity of the Fund, the allocation for Vietnam could increase. For Viet Nam's reaching to average income, Vietnam will not enjoy mixed conditions as currently but normal terms, according to the Fund’s criteria. Exchanging with the IFAD delegation, the Department of Debt Management and External Finance said that in the period 2016-2020, the Government plays the role of constructing and building mechanisms to create favorable conditions for people and enterprises to develop business spirit, start up. In the case of access to foreign loans by the Government, project owners, capital users and local authorities must carefully consider and evaluate the effectiveness of the project based on the conditions of the donor's loan. The government will also consider IFAD's normal borrowing conditions, compare with services cost from other sources, and evaluate the effectiveness of the project to decide to borrow. In general, the mobilization of loans to balance the budget must ensure the safety and sustainability of public debt.

IFAD delegation expressed its support and shared prudent view on the cost of borrowing from Vietnam. In addition, IFAD wants Vietnam to consider the added value in long-term cooperation between the two sides, reflected through many initiatives and new approaches which IFAD and Vietnam have undertaken such as mobilizing community participation, ethnic minorities in the process of development planning, investment in small and medium enterprises, value chain financing, linking the poor to the market ... IFAD also suggests some sectors which Vietnam should consider funding for the next cycle, such as food security, climate change adaptation and IFAD’s willingness to cooperate with the Government to select priority projects. In effort to increase the incentive of borrowing, IFAD will seek other cofinancing funding from the global fund for environment and climate change adaptation.

Thanks to the IFAD delegation for updated information, the Department for Debt Management and External Finance requested the Fund to continue dialogue and exchange with Vietnam on the expected time for “graduation” of ODA loans to Vietnam, the impact on the loan portfolio ... If the Fund still mobilizes capital contributions from countries Vietnam is expected to receive preferential conditions loans. In case of switching to ordinary loan conditions, the Government shall apply the on-lending to projects with financial efficiency. On the proposal of Vietnam to join the capital commitment for the 11th supplementary period, the Debt Management Department said that it would report to competent authorities for consideration and decision.