The German Government will provide non-refundable aid worth 8 million EUR for a project on forest ecosystem protection and management in Vietnam.

An agreement to this effect was signed in Hanoi on November 18 between representatives of the Ministry of Agriculture and Rural Development (MARD) and the German Reconstruction Bank (KfW).

The seven-year KfW10 project will be implemented in the Central and Central Highlands provinces of Quang Nam, Kon Tum and Gia Lai, at a total cost of 11.29 million EUR.

MARD Deputy Minister Ha Cong Tuan said the project will protect the natural resources and biodiversity of 28,110ha of forests in the three provinces, and increase incomes for local households in 110 villages and communes.

Since 1995, the German Government, through the KfW, has provided more than 120 million EUR for 14 projects on afforestation and the protection and management of natural resources in Vietnam, with 11 projects implemented by MARD.

Vietnam is KfW's third-largest strategic partner in Asia, just after China and India.

KfW’s total investment capital in Vietnam reached 1.2 billion EUR (1.66 billion USD), with 71 pojects receiving 594 million EUR (822 million USD) so far.-VNA