Vietnam’s Public
Private Task Force on
Sustainable Agriculture
Supported by Grow Asia
GrowAsia
Vietnam
GrowAsia Vietnam
Vietnam has succeeded in harnessing
agricultural growth to power economic
expansion and poverty reduction. The
agriculture sector provides 60% of employment
and 22% of GDP. The government has
placed a high priority on industrialization and
modernization of rural agriculture, setting a
target of 3.5% annual growth in the sector until
2020. Private-sector investment is seen as
critical to achieving that target.
Population
Official GDP
growth rate (2013)
90.2m 5.4%
Agricultural
contribution to
exports
30%
Population living
below poverty line
Agricultural
contribution to
national GDP
Population in
agricultural
employment
17%
22%
60%
Agricultural earning
per capita per year
Quantity of farmers
growing rice
$367
45%
GrowAsia Vietnam
Vietnam’s Public Private Task Force on
Sustainable Agricultural Growth
Under the leadership and direction of the
Minister of Agriculture and Rural Development,
Vietnam developed a 10-year agricultural
development strategy in 2010 aimed at
advancing sustainable, large-scale agricultural
production with improvements in productivity,
quality,andcompetitivenessineffortsto
achieve national food security and economic
growth.
In November 2011, the Government of
VietnamratifiedtheadoptionoftheWorld
Economic Forum’s New Vision for Agriculture
(NVA) framework into the country’s 10-year
national agriculture strategy.
The Public Private Task Force on Sustainable
Agricultural Growth in Vietnam was formed
inMay2010attheWorldEconomicForum
on East Asia in Ho Chi Minh City. CoChaired by the Minister of Agriculture and
Rural Development and Nestlé Vietnam,
the task force is comprised of global and
local companies, provincial governments,
national research institutes, international
organizations and NGOs. It focuses on six
crops and one cross-cutting theme of agrifinance.ASecretariatisbeingestablishedto
coordinate the activites of the Task Force with
participation from the government and the
private sector.
Coffee
Target
Engage 20,000 Vietnamese coffee farmer
households (5% of national total) within
5 years.
The group has scaled to 75 demo plots in
four provinces to engage 4,158 farmers. The
demo plots conduct training (280 Farmer Field
Schools in 4 provinces with 10,200 training
days delivered), share knowledge, solve
problems, and build capacity of extension
workers.
Results
In the 2014–2015 season, the project:
— Increased farmers’ yield by 21% and
net income by 14%.
— Visually higher quality with healthier trees,
leaves and bigger and shinier cherries.
— Reduced water footprint by 30% from
1,390 to 470 litres/plant/irrigation.
— Monitored and balanced plant nutrition
reducing fertiliser use by 18–23%
depending on location.
— Reduced the carbon emission by 63%
(1486 kgCO2e/ton versus 661 kgCO2e/ton
for normal beans).
— Introducednewhigheryieldingcoffee
varieties.
In September 2013, the Government of
Vietnam institutionalised the partnership
byestablishinganewVietnamCoffee
Coordination Board (VCCB) at the nationallevel, comprised of members from public and
private sector to coordinate the sustainable
effortsofthewholeindustry.TheTaskforce’s
CoffeeWorkingGroupformstheSubProduction Committee of the VCCB.
TheWorkingGroupissettingupfarmer
cooperatives and farmer groups to enable
provisionoffinancingsolutionstothefarmers
through a wholesale model and direct linkages
withtheinputcompaniesandthecoffee
buying companies.
GrowAsia Vietnam
Commodities (Corn)
Fisheries
Target
Increase corn productivity by 30% in
3 years (2014–2016) and increase farmer
profit by over 30%.
Target
Offer Vietnamese consumers a good
quality fresh fish which is produced in a
sustainable way and processed under
international hygiene and food safety
standards.
The government plans to convert 83,000
hectares of rice farm land to corn in the
Mekong Delta by 2020. In this context, the
WorkingGrouppartnersconductedfarmer
fielddemonstrationsfortwohigh-yielding
conventional hybrid seeds for corn. Training on
better agronomic practices and post-harvest
services is also provided. Following regulatory
approvals, Monsanto and Syngenta will plant
biotech corn seeds with weed management
and insect protection traits. New high-yielding
hybrid seeds with similar traits are going
through the registration process. Feedmills
are being encouraged to invest in corn dryers
and contract direct with farmers to create
further value for farmers via corn trading. The
Government of Vietnam has established a
special committee focused on rice to corn
diversificationandisplanningtoofferfarmer
financingtofurthersupportcropdiversification
by farmers.
The project has reached 8,000 farmers
covering 4,000 hectares. Farm productivity
has increased by 200% compared to national
average and farmer incomes have increased
2.5 to 4 times compared to rice production.
The project also reduced water use by 40%,
pesticide and fungicide use by 25%, and
labor, cost and time by 80% per hectare.
Commodities (Spices)
A new working group on spices was set up
with a focus on Pepper in December 2014.
It will be co-chaired by MARD, Vietnam
Pepper Association and IDH. Corporate
partners include Harris Freeman, Nedspice,
Olam and Simexco. SNV will provide farmer
training.
The group has:
— Trainedandcertifiedover400farmers/
collectors. The total investment in farmer
trainings, since September 2011, is over
US$200,000.
— 70 farmers have been trained and are
implementing the METRO requirements.
— 1farmerhasVietGapcertification.25more
farmersareintheprocessofbeingcertified
with support from General Department of
Fisheries at MARD.
— Species sourced include barramundi,
climbing perch, frog, knifefish,pangasius,
shrimp, snakehead, piranha and red tilapia.
The project has played an increasingly
important role in integrating the fresh
fishcoldchainintothedomesticmarket,
connecting farmers to the modern trade
network, increasing farmers’ incomes as well
as promoting good sustainable agricultural
practicesamongVietnamesefishfarmers.
Fruits and Vegetables
Target
By 2015, to raise average yields of chipping
potato crop to 20 tons/hectare in the South
and to 16 tons/hectare in the North (21%
and 33% higher from current average yield
respectively).
Initially focusing on potatoes, the group has
introducednewvarietiesofpotatoes,offering
increased productivity and income to farmers.
Trials of four varieties have been completed
with 3 dominant varieties being put forth for
registration. Based on feedback from the
group, the Ministry is reviewing the registration
process to reduce time taken.
GrowAsia Vietnam
In the South, the yield achieved in 2014
was 20.7 tons/hectare and for 2015 the aim
is to produce 5,500 tons of potato with an
average processed yield of 22 tons/hectare
and expand production to 25 hectares in Dak
Lak province. Three farmer trainings are held
annually.
By 2015, at least 30,000 tons of Vietnamese
teawillbeRainforestAlliancecertified,
increasing farmer livelihoods through yield
improvement and increased quality of tea, and
ensuringtheenvironmentalsobenefitsfrom
project activities.
In the North, potato seed trials are continuing
for registration purposes. In 2015, the target
is average processed yield of 18 tons/hectare.
Commercial production has started to export
500 tons to Indonesia. Three training for
the trainers are held annually for supplier
representatives who will in turn train farmers
and village leaders.
Agri-Finance
Overall, in 2014 the project reached 1,100
farmers and increased the income of farmers
by $1,600 to $3,150 per hectare.
Tea
Target
Significantly expand production of export
quality tea in Vietnam, with Unilever as a
major buyer. Starting in 2015, Unilever aims
to procure 41,300 tons with a 4.0 Quality
Index ranking annually and Rainforest
Alliance certification.
Phase 1 The group has achieved the goal
of more than tripling export quantity from
Vietnam to 10,000 tons of export-quality tea
(3,000 tons of which was Rainforest Alliance
certified)initsfirstyear.
Phase 2 began in 2013, focusing on:
— Investing in tea processing facilities in
Yen Bai province (acquired 1 CTC factory,
to be extended to 3 CTC lines with
provincial approvals in progress).
— Initiating a partnership with the IDH to work
with over 11,600 farmers in 6 provinces on
sustainability training. Currently the project
is reaching 1,597 farmers.
Target
Support the Task Force’s commodity
working groups to address financial
services challenges and linkages to value
chain players; promote information sharing
and public-private dialogue on agri-finance
solutions and policy requirements.
TheAgri-FinanceWorkingGrouphasbeen
workingspecificallywiththeCoffeeWorking
Grouptoexplorepossiblefinancialsolutions
for the farmer cooperatives and farmer groups
throughthedevelopmentoffarmerprofiles
and credit history and links to banks. In 2015,
itwillalsoengagetheTeaWorkingGroup
to bridge the knowledge gaps between the
working group and banks about the challenges
andopportunitiesinfinancingmicro
entrepreneurs and SMEs in tea production.
April 2015
GrowAsia Vietnam
Partners
The Task Force engages over 40 organizations:
Government
Vietnamese Ministry of Agriculture
and Rural Development
— IPSARD
— National Centre of Agriculture Extension
— International Cooperation Department
— Livestock Department
— Crop Production Department
— Directorate of Fisheries
— Planning Department
— Agriculture Genetics Institute (VASS)
Provincial Representatives
— LâmĐồng
— ĐắcLắc
— ĐắcNông
— Gia Lai
Companies
Agribank, ANZ Vietnam, BIDV, Bunge, Bunge
Vietnam, Cargill, Coex, Cooperative Bank,
EDEConsulting,FreshStudio,IntimexBảo
LộcBayer,MetroCashandCarry,Minbuza,
Monsanto,Nedcoffee,NestléVietnam,
PepsiCo Vietnam, Pioneer Hi Bred Vietnam,
Rabobank, Simexco, State Bank of Vietnam,
Syngenta Vietnam, Unilever Vietnam, Vietin
Bank, Vinacafe, Yara Vietnam
Engage
www.growasia.org/
partneringcountries/
vietnam
Pham Quang Huy
Ministry of
Agriculture and
Rural Development
of Vietnam
hhanh.htqt@
mard.gov.vn
Donors, International Organisations
and Industry Associations
IFAD, International Finance Corporation,
IDH The Sustainable Trade Initiative, VCCI,
VICOSA, Viet Nam National Vegetables,
Fruit and Agriculture Products Corporation
Ltd.,VietNamTeaAssociation,WASI,
WorldBank
NGOs
4C Association, Rainforest Alliance, SNV,
Solidaridad
Looking Ahead
Going forward, priority areas for the
Vietnam Task Force include:
— Expanding the engagement of local
stakeholders.
— Scaling up projects to reach more farmers
and increase contribution to the goals of
food security and economic growth.
— Exploring opportunities to institutionalize
crop partnerships more formally, learning
fromtheexperienceoftheVietnamCoffee
Coordination Board.