Public Disclosure Copy The World Bank Implementation Status & Results Report Sustainable Agriculture Transformation Project (P145055) Sustainable Agriculture Transformation Project (P145055) EAST ASIA AND PACIFIC | Vietnam | Agriculture Global Practice | IBRD/IDA | Investment Project Financing | FY 2015 | Seq No: 7 | ARCHIVED on 20-Jun-2018 | ISR32834 | Implementing Agencies: Ministry of Agriculture and Rural Development, Ministry of Agriculture and Rural Development, SOCIALIST REPUBLIC OF VIETNAM, Ministry of Agriculture and Rural Development Key Dates Key Project Dates Bank Approval Date:30-Jun-2015 Effectiveness Date:03-Dec-2015 Planned Mid Term Review Date:28-Dec-2018 Actual Mid-Term Review Date:-- Original Closing Date:31-Dec-2020 Revised Closing Date:31-Dec-2020 Project Development Objectives Project Development Objective (from Project Appraisal Document) The project development objective is to improve farming practices and value chains in the targeted project areas, and promote institutional strengthening of relevant public agencies in effective support to implementation of the Agricultural Restructuring Plan.

Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Component A: Institutional Strengthening to Support Agricultural Transformation:(Cost $10.00 M) Component B: Supporting Sustainable Rice-Based Systems:(Cost $224.10 M) Component C: Supporting Sustainable Coffee Production and Rejuvenation:(Cost $100.90 M) Component D: Project Management:(Cost $13.00 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Moderately Satisfactory  Moderately Satisfactory Overall Implementation Progress (IP)  Moderately Satisfactory  Moderately Satisfactory Overall Risk Rating  Substantial  Substantial 6/20/2018 Page 1 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Sustainable Agriculture Transformation Project (P145055) Implementation Status and Key Decisions The project has made a significant progress in several areas during the last six months. First, training of farmers on sustainable practices for producing coffee and rice carried out under the project has been impactful. As of May 2018, the coffee area under sustainable practices reached 12,000 ha (against the end target of 50,000 ha) and the coffee area with water saving practices was 16,000 ha (against the end target of 22,000 ha). The 3R3G technology for paddy production is being practiced on 66,000 ha (against the end target of 150,000 ha), while more comprehensive 1M5R practices are being adopted on 32,000 ha (against the end target of 75,000 ha). Second, the coffee nurseries supported by the project started producing high-quality coffee seedling, just in time for the 2019 replanting/rejuvenation season, which begins in August 2018. Third, many PPMUs have advanced in selecting farmer organizations (FOs) for the second-batch subprojects, which should accelerate future disbursement. Fourth, MARD approved the extension of the project areas to more districts, providing PPMUs with more choice and flexibility in selecting strong FOs. And fifth, the project disbursement doubled, from USD 32.5 million in December 2017 to USD 60.8 million in June 2018, resulting in project disbursement of 25 percent. By the end of June 2018, the project disbursement is projected to reach USD 67 million. Yet, the most of disbursement was for credit line. It increased from VND 410 billion in November 2017 to VND 829 billion in May 2018. Progress was made on both coffee and rice subcomponents. On the other hand, the disbursement of non-credit activities was only VND 50 billion, out of VND 650 billion of the IDA resources allocated to the project in 2018. This low disbursement for the non-credit activities has been a result of several factors, including: (i) the weak capacity of some PPMUs in preparing investment documents for 64 FOs included in the first-batch investments; (ii) the slow appraisal and approval of technical and economic reports required for investments in FO subprojects by provincial authorities; (iii) a large number of additional guidelines issued by the CPMU, creating uncertainty for PPMUs; and (iv) weaknesses in selection and capacity building of FOs by PPMUs leading to delays in farmers’ commitment to provide counterpart funds. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  Substantial  Substantial Macroeconomic  --  Substantial  Substantial Sector Strategies and Policies  --  Moderate  Moderate Technical Design of Project or Program  --  Substantial  Substantial Institutional Capacity for Implementation and Sustainability  --  Moderate  Moderate Fiduciary  --  Substantial  Substantial Environment and Social  --  Moderate  Moderate Stakeholders  --  Substantial  Substantial 6/20/2018 Page 2 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Sustainable Agriculture Transformation Project (P145055) Other  --  --  -- Overall  --  Substantial  Substantial Results Project Development Objective Indicators PHINDPDOTBL  Direct project beneficiaries (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 392,200.00 506,811.00 800,000.00 Date 04-Nov-2014 31-Oct-2017 30-May-2018 31-Dec-2020 PHINDPDOTBL  Female beneficiaries (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 50.00 50.00 50.00 PHINDPDOTBL  Area of rice farming under sustainable farming practices: a) rice production (Hectare(Ha), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 38,390.00 66,195.00 150,000.00 Date 04-Nov-2014 31-Oct-2017 30-May-2018 31-Dec-2020 PHINDPDOTBL  b) Coffee production (Hectare(Ha), Custom Breakdown) 6/20/2018 Page 3 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Sustainable Agriculture Transformation Project (P145055) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 9,520.00 11,907.00 50,000.00 Date 04-Nov-2014 31-Oct-2017 30-May-2018 31-Dec-2020 PHINDPDOTBL  Increase in net profits per hectare among targeted farmers: a) rice production (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 15.00 20.00 Date 04-Nov-2014 -- 30-May-2018 31-Dec-2020 PHINDPDOTBL  b) coffee production (Percentage, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 23.00 15.00 20.00 Date 04-Nov-2014 31-Oct-2017 30-May-2018 31-Dec-2020 PHINDPDOTBL  Reduction in GHG emissions from rice farming in the project area (Tones/year, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 1,000,000.00 Date 04-Nov-2014 31-Oct-2017 30-May-2018 31-Dec-2020 PHINDPDOTBL  Improved quality of service delivery by MARD and DARDs in support of project implementation measured by performance scorecard: a) MARD (departments) (Number, Custom) 6/20/2018 Page 4 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Sustainable Agriculture Transformation Project (P145055) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 4.00 Date 04-Nov-2014 31-Oct-2017 30-May-2018 31-Dec-2020 PHINDPDOTBL  b) DARDs (provinces) (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 10.00 Date 04-Nov-2014 -- 30-May-2018 31-Dec-2020 Overall Comments Intermediate Results Indicators PHINDIRITBL  A.1: Improved performance in budget execution by MARD measured by a reduction in the discrepancy between budget allocations and end-of-year budget out-turns (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 100.00 20.00 Date 04-Nov-2014 -- 30-May-2018 31-Dec-2020 PHINDIRITBL  A.2: An MTEF covering MARD’s investment and recurrent expenditure and MTEFs for DARDs (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 3.00 Date 04-Nov-2014 -- 30-May-2018 31-Dec-2020 6/20/2018 Page 5 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Sustainable Agriculture Transformation Project (P145055) PHINDIRITBL  A.3: Adoption of improved subsector ARPs in selected MARD departments (departments) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1.00 1.00 3.00 Date 04-Nov-2014 31-Oct-2017 30-May-2018 31-Dec-2020 PHINDIRITBL  B.1: Area of rice farming under sustainable farming practices as measured by reductions in pesticide and fertilizer use (ha) (Hectare(Ha), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 126,710.00 150,000.00 Date 04-Nov-2014 -- 30-May-2018 31-Dec-2020 PHINDIRITBL  B.2: Area of sustainable rice farming applying improved farming and post harvest packages to reduce water use and post harvest losses each by 30% (Hectare(Ha), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 31,607.00 75,000.00 Date 04-Nov-2014 -- 30-May-2018 31-Dec-2020 PHINDIRITBL  B.3: Area of sustainable rice farming under contract farming arrangements with agribusinesses (Hectare(Ha), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 33,786.00 50,000.00 Date 04-Nov-2014 -- 30-May-2018 31-Dec-2020 6/20/2018 Page 6 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Sustainable Agriculture Transformation Project (P145055) PHINDIRITBL  B.4: Investments by project-supported agribusinesses in additional milling/ processing capacity (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 6,000,000.00 8,347,826.00 40,000,000.00 Date 04-Nov-2014 30-Nov-2017 30-May-2018 31-Dec-2020 PHINDIRITBL  C.1: Coffee area adopting sustainable farming practices as measured by reductions in presticide and fertilizer use: (a) Existing Plantations (Hectare(Ha), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 10,796.00 40,000.00 Date 04-Nov-2014 -- 30-May-2018 31-Dec-2020 PHINDIRITBL  (b) Rejuvenation (Hectare(Ha), Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 1,111.00 10,000.00 Date 04-Nov-2014 -- 30-May-2018 31-Dec-2020 PHINDIRITBL  C.2: Coffee area adopting advanced water saving irrigation technologies and reduce water use by at least 20% in the project areas (Hectare(Ha), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 16,000.00 22,000.00 Date 04-Nov-2014 31-May-2016 30-May-2018 31-Dec-2020 6/20/2018 Page 7 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Sustainable Agriculture Transformation Project (P145055) PHINDIRITBL  C.4: Area replanted with certified planting materials in the project areas (Hectare(Ha), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1,535.00 2,902.00 7,000.00 Date 04-Nov-2014 31-Oct-2017 30-May-2018 31-Dec-2020 PHINDIRITBL  C.4: Number of pilot coffee-based landscape management plans developed in project areas (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 5.00 Date 04-Nov-2014 -- 30-May-2018 31-Dec-2020 PHINDIRITBL  Farmers reached with agricultural assets or services (Number, Corporate) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 95,080.00 126,850.00 170,000.00 Date 04-Nov-2014 30-Oct-2017 30-May-2018 31-Dec-2020 PHINDIRITBL  Farmers reached with agricultural assets or services - Female (Number, Corporate Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 20,000.00 23,000.00 40,000.00 Overall Comments 6/20/2018 Page 8 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Sustainable Agriculture Transformation Project (P145055) Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P145055 IDA-57040 Effective USD 238.00 238.00 0.00 60.83 181.87 25% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P145055 IDA-57040 Effective 30-Jun-2015 09-Jul-2015 03-Dec-2015 31-Dec-2020 31-Dec-2020 Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) 6/20/2018 Page 9 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Sustainable Agriculture Transformation Project (P145055) There are no related projects. 6/20/2018 Page 10 of 10 Public Disclosure Copy