Silk Provides Income for Ethnic Communities in Viet Nam's Central Highlands
MANILA, PHILIPPINES (16 February 2004) - The forest-rich central region of Viet Nam, where ethnic minority communities form a significant part of the population, is characterized by high levels of poverty, low human development indicators, and vulnerability to natural disasters.
But these ethnic communities, which used to rely on forest resources, are facing even greater poverty since they have been losing access to forests and agricultural land.
To provide them with new livelihood, ADB has approved a US$620,000 grant, from its Japan Fund for Poverty Reduction (JFPR), funded by the Government of Japan, to help promote silk production in the central highlands of Viet Nam.
Initiated by the Japan Society for Wild Silk Moths (JSWSM), the project will utilize the cassava leaf for eri silk production. The cassava crop, which JSWSM has found to be suitable for silk worm raising, is extensively cultivated both in the northern and central regions of Viet Nam for consumption and for livestock.
JSWSM, the grant's implementing agency, will train at least 500 ethnic minority men and women in eri silk production, provide them with the necessary equipment and materials, and establish links to national and international markets. By the end of the project, the annual incomes of the beneficiaries are expected to increase by $450-$500.
"Diversification of livelihoods is a key element of livelihoods improvement and poverty reduction in the region. The central region forms the geographic focus of ADB's poverty reduction objective in Viet Nam," says Manoshi Mitra, an ADB Senior Social Development Specialist.
To ensure sustainability, the project will involve the communities in identifying the beneficiaries and will organize farmer groups. Infrastructure and training for government staff and nongovernment organizations are also covered by the grant.
A revolving fund for cocoon purchase that will continually be replenished through the sale of cocoons, yarns, and other products will also be set up. It will be managed by the Viet Nam National General Export-Import Corporation, a public sector corporation engaged in purchasing and marketing produce, including silk.
"The proposed project is fully responsive to the needs of these ethnic minority communities, particularly women. The project will address the immediate needs for improved incomes and greater food security through alternative livelihoods development," says Ms. Mitra.
In the long run, the project will also help reduce the social exclusion of ethnic minority communities and contribute to sustainable poverty reduction.
A US$50 million ADB loan in the pipeline for 2005, the Forest for Livelihoods Improvement in the Central Highlands, will build on the successful livelihood activities developed under the JFPR project. Thus, JFPR projects, such as this one, have a strong chance of being replicated.
The Government will add US$55,000 and the beneficiaries will contribute US$65,000 toward the total project cost of US$740,000.
The JFPR was set up in 2000 with an initial contribution of Y10 billion (about US$90 million), followed by additional contributions of $155 million and a commitment of $50 million.
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