Droughts, floods, epidemics, and crop failures—these unforeseen crises not only jeopardize farmers' livelihoods in the short term but also inflict long-lasting shocks that can hamper their prosperity for years to come. Recognizing the urgent need to address such challenges, the Risk Reserve Fund was established through collaborative efforts between businesses and projects. This initiative aims to foster equitable risk-sharing and sustainable connections between farmers and enterprises.
With its primary objective of aiding farmers during unexpected crises, the Risk Reserve Fund offers vital financial support for diverse purposes, including facility repair, material procurement, livelihood restoration, and rebuilding efforts. Additionally, technical assistance is provided to farmers, enabling them to recover swiftly as the economy transitions into a new normal. It is noteworthy that the fund's primary recipients are women facing difficulties, highlighting its commitment to gender inclusivity.
The establishment of the Risk Reserve Fund exemplifies the shared social responsibility and inclusive vision of businesses and small producers alike. Beyond offering technical support, the fund serves as an invaluable tool to bolster farmers' resilience and adaptability to the ongoing challenges of climate change in the Mekong Delta region.
Hong Tan Food Company and Vinh Loi Cooperative in Soc Trang province have spearheaded the establishment of the Risk Reserve Fund, setting a precedent as a pilot model to bolster farmers' resilience against climate change. This laudable initiative falls under the project "The Gender Transformative and Responsible Agribusiness Investments in South East Asia" phase 2 (GRAISEA 2), which has received financial support from the Embassy of Sweden in Bangkok. The project is being implemented by Oxfam in Vietnam, in collaboration with VCCI, ICAFIS, RECERD, and MCD Vietnam.