ADB will work with Vietnamese officials to draft an action plan to improve the quality and safety standards of agricultural products, increase the number of small- and medium-scale enterprises and strengthen the capacity of government oversight agencies.

The goal is to make the sustainable agricultural industry competitive and enhance ties among producers, traders, product processors and consumers, according to a press release from ADB.

ADB will provide a grant of $750,000 from the Japan Special Fund to go toward estimated costs of US$950,000. The balance will be covered by the Vietnamese government.

"As Viet Nam’s agricultural sector becomes increasingly integrated with domestic and international markets, improvements in product quality and safety assume greater importance," said Ahsan Tayyab, senior natural resources economist of ADB’s Southeast Asia Department.

"Efforts need to be directed at agriculture research, extension, marketing, postharvest operations and product grading and certification."

The agricultural sector grew an average of 4 per cent annually in the last decade, according to ADB figures. Food security has improved at the national level and the country has turned from a net food importer into a major exporter of agricultural products.

There are still concerns, however, most notably with meat hygiene and pesticide residue