Partnership for Sustainable

Agriculture in Vietnam
Supported by Grow Asia
GrowAsia Vietnam 2

Vietnam has succeeded in harnessing

agricultural growth to power economic
expansion and poverty reduction. In 2014,
the agriculture sector employed 46.3% of the
population and contributed 17.7% 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 regarded as critical to achieving
that target.
Population GDP growth rate Agricultural Agricultural
Millions % GDP growth rate contribution to
% national GDP
%

94.1 6.5 3.49 17.7

Agricultural Agricultural Population in
contribution to product exports agricultural
exports growth rate employment
% % %

11 7.6 46.3
Agricultural earning Quantity of farmers Agricultural
per household growing rice population living
per year % below poverty line
US$ %

1,855 45 5.97
GrowAsia Vietnam
Partnership for Sustainable Agriculture
Over the next five years, the aim is for
comprehensive and sustainable development
towards modernization, large-scale
commodity production and high post-
harvest value creation, to meet the diverse
domestic needs and promote export. To
achieve this goal, it is necessary to implement
the government strategy to restructure the
agricultural sector in 2016.
In the period 2011–2015, the Vietnamese
agriculture sector was negatively impacted
by extreme weather and emerging
competition from other countries for a
number of commodities, in addition to the
global economic slowdown. However, by
implementing sustainable solutions, Vietnam’s
agriculture sector maintained its growth and
met Government objectives with the average
growth rate of 3.13%.
Vietnam is the top exporter of many
agricultural commodities. From 2010 to
2014, exports increased from US$ 19.5
billion to a record level of US$ 30.38 billion.
In 2015, despite the difficult economic
situation, agricultural exports stood at US$
30.14 billion. Currently, Vietnam has 10
commodities which have the export turnover
of over US$ 1 billion namely rice, coffee,
rubber, fish, shrimp, cashew nuts, pepper,
vegetables, cassava and furniture.
3
Public Private Task Force on
Sustainable Agricultural Growth
The Public Private Task Force on Sustainable
Agricultural Growth in Vietnam was formed
in May 2010 and it was re-named the
Partnership for Sustainable Agriculture in
Vietnam (PSAV) in 2015. Co-Chaired by the
Minister of Agriculture and Rural Development
and Nestlé Vietnam, the partnership is
comprised of over 60 partners from global
and local companies, provincial governments,
the national research institute, international
organizations and NGOs. It focuses on six
crops and two cross-cutting themes of agri-
finance and agrochemicals. A Secretariat is
being established to coordinate the activities
of PSAV.
In November 2011, the Government of
Vietnam ratified the adoption of the World
Economic Forum’s New Vision for Agriculture
(NVA) framework into the country’s 10-year
national agriculture strategy.
PSAV is part of Grow Asia, which is a multi-
stakeholder platform for inclusive and
sustainable agricultural development in South
East Asia and is convened by the World
Economic Forum and the ASEAN Secretariat.
“PSAV has been the model platform for
the private sector and the Government
of Vietnam to join hands. Over the past
five years, we have not only built and
strengthened trust with our various
partners but also cast and shared vision
of sustainable agriculture development for
Vietnam. We look forward to bringing this
working relationship to a new level with
broader collaboration in Creating Shared
Value to all our stakeholders in particular
the farming community in Vietnam.”
Ganesan Ampalavanar
Country Manager, Nestlé Viet Nam
GrowAsia Vietnam 4

Coffee

Target
Engage 20,000 Vietnamese coffee farmer
households (5% of national total) within five
years (from 2011).

Results
— The group has scaled to over 100 demo
plots in four provinces and developed three
cooperatives.
— The demo plots conducted four technical
tours and two train-the-trainer trainings.
— Farmers were trained through 1,200 Farmer
Field Schools in four provinces with 20,000
training days delivered (between 2011 to
2016).
— One train-the-trainer program was run for
65 farmer leaders representing 12,004
farmers in 4 provinces to share knowledge, In September 2013, the Government of
solve problems, and build capacity of Vietnam institutionalized the partnership
extension workers. by establishing a new Vietnam Coffee
Coordination Board (VCCB) at the national-
In the 2015–2016 season, the project: level, which is comprised of members from
— Increased farmers’ yield by 17% and public and private sector to coordinate the
net income by 17%. sustainable efforts of the whole industry. The
— Achieved higher quality with healthier trees, PSAV Coffee Task Force forms the Sub-
leaves and bigger and shinier cherries. Production Committee of the VCCB.
— Reduced water use by 66% from 1,390
to 470 liters/plant for irrigated crops. The Task Force is setting up farmer
— Monitored and balanced plant nutrition, cooperatives and farmer groups to enable the
reducing chemical fertiliser use by 3%, provision of financing solutions, exchange of
depending on location. technical information, and sharing of benefits
— Reduced the carbon emission by 63% with farmers and community through a
to 1486kgCO2e/ton for normal beans. wholesale model and direct linkages with the
— Introduced new higher yielding coffee input companies, the coffee buying companies
varieties. and whole coffee value chain.

The coffee Task Force is working with the agri-

finance Task Force to develop a short term
loan solution via credit cards and is building,
with State Banks, a credit program for farmers.
Currently Agribank is working to implement a
trial project with two cooperatives in Dak Lak
province with over 500 farmers in 2015 – 2016,
and will scale up after the pilot.
GrowAsia Vietnam
Tea
Target
The Vietnam Tea Initiative aims to:
— Help Vietnam increase tea export
through enabling designated tea growers
and processors to meet export-quality
standards.
— Increase Rainforest Alliance-certified tea
procurement to at least 25,000 MT.
— Increase farmer livelihoods through yield
improvement and higher quality of tea,
ensuring the environment also benefits
from project activities.
Results
In Phase 1 (2012-2013), the Initiative achieved
the goal of more than tripling the volume of
export-quality tea, to 10,000 MT, one third of
which was Rainforest Alliance-certified.
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Phase 2 began in 2013 and focuses on the
implementation of a cooperation project
between Unilever, IDH and Rainforest Alliance.
The cooperation is a critical step to further
develop the Vietnam Tea Initiative, which aims
to integrate smallholders into quality and
sustainable tea supply chains. It will improve
the long-term economic, environmental and
social sustainability of smallholder tea farmers
by building their capacity and creating links
to the mainstream export market. Through
the establishment of pilot Farmer Field
Schools (FFS), the project will train farmers
in the Sustainable Agriculture Network (SAN)
Standard that leads to Rainforest Alliance
certification and will also work on increasing
productivity and improving agrochemical
management in smallholder tea farms in six
provinces.
GrowAsia Vietnam 6

Fisheries The project sources species such as red

tilapia, frog, snakehead, clown feather back,
Target pangasius, eel, black tiger shrimp, common
Offer Vietnamese consumers fresh carp, scampi, giant gourami, Asian red tail
fish which is produced sustainably and catfish and walking catfish.
processed under international hygiene and
food safety standards. The project has played an increasingly
important role in integrating the fresh
Results fish cold chain into the domestic market,
The group, led by METRO Cash and Carry connecting farmers to the modern trade
Vietnam, has: network, increasing farmers’ incomes as well
— Trained and certified over 400 farmers/ as promoting good sustainable agricultural
collectors. The total investment in farmer practices among Vietnamese fish farmers.
trainings, since September 2011, is over
US$ 200,000.
— Trained 70 farmers on the use and
implementation of METRO requirements.
— Certified 27 farmers on VietGap standards.
20 more farmers are in the process of being
certified with support from Directorate of
Fisheries at MARD.
GrowAsia Vietnam
Fruits and Vegetables
Target
By 2015, increase average yields of
chipping potato crop to 16 tons/hectare
in the North (21% and 33% higher from
current average yield, respectively). In the
South, the 2016 target is 22 tons/hectare.
Initially focusing on potatoes, the fruits and
vegetables Task Force has introduced new
varieties which increase productivity and
income to farmers. Trials of four varieties
have been completed with three dominant
varieties being put forth for registration with
the Ministry, one of which is in final stages
of approval. Based on feedback from the
group, the Ministry is reviewing the registration
process to reduce time taken.
In the South, in 2015 the yield achieved 21
tons/hectare. 16 hectares of potatoes have
been grown commercially in Dak Lak to
assess the potential of expanding the areas.
Three farmer trainings and workshops are held
annually. The target for local sourcing in 7,000
tons, which will be an increase of 25% from
the previous year.
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Southern potatoes farmer average income is
around US$ 2,200 per hectare, and the highest
farmer income is approximately US$ 10,000
per hectare.
In the North, potato seed trials are continuing
for registration purposes. In 2015, the average
yield was 17 tons/hectare. 500 tons were
exported to Indonesia in 2015, but in 2016 the
export is pending due to cost competitiveness.
The export might be resumed in 2017 after
working on cost reduction. Three train-the-
trainer sessions are held annually for supplier
representatives who will in turn train farmers
and village leaders.
In 2015, the project trained 519 farmers in
potato production in the Red River Delta, of
which 62% trainees were women. Fourteen
potato production advisors were trained to
provide farmer extension services during the
coming potato season in North-Vietnam.
Two potato demonstration farms in Hai Duong
and Lam Dong province were established.
Furthermore, a consumer survey of 1,000
questionnaires was carried out in Hanoi and
Ho Chi Minh City. And a new potato variety,
Sinora, was added to the national list of
varieties to be commercially sold in Vietnam.
GrowAsia Vietnam
Commodities (Corn)
Target
Increase corn productivity by 30% in three
years (2014-2016) and increase farmer profit
by over 30% by 2016.
The government’s strategy to restructure
the agriculture sector (which was developed
in 2014), includes plans to convert about
200,000 hectares of low yielding rice land into to contribute to corn productivity in Vietnam.
corn land in the period 2015-2020. The aim is
to improve the corn yield of Northern midland
areas (from 3.6 tons/hectare in 2013, to 4 tons/ — 50 hectares demo field of low-yielding rice
hectare in 2015, and 4.8 tons/hectare in 2020).
The Center for Technology Development and
Agricultural Extension (CETDAE - MARD) has
been assigned to implement the project. Two
focus areas have been identified: ‘shifting low
yielding rice land to corn’ in Mekong delta and
Northern mountainous areas and ‘planting
corn in winter’ in Red River delta provinces.
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Syngenta has aligned its initiative with this
strategy through a public-private partnership
project with CETDAE, for the period 2014
– 2017, with commitment of US$ 130,000.
The project is to develop technical packages
including hybrid seeds, agronomy, demo
fields, and to provides farm training,
communication and extension services
tailored to each area. The overarching aim is
to increase the value added to farmers and
Project target output:
to corn, farmer income increase
by 20%.
— 50 hectares demo field of corn in winter
season in Red River delta provinces,
farmer return on investment (ROI) to
increase by 20% (or to reach average
yield of 6 tons/hectare).
— Reach and train 10,000 smallholders
through demo farms, learning centers,
farmer meetings and mass media
communication.
In 2015, 30 hectares demo field was
developed in winter season in project
provinces. Syngenta’s technical solution,
including GM seeds, was introduced and
2,000 farmers trained in agronomic practice
through demo fields, learning centers, field
days and farmer meetings. Farmer return on
investment increased from US$ 95 to US$
280 per hectare, on average, equivalent to
an almost threefold increase.
GrowAsia Vietnam
In another corn project, Dekalb Vietnam
(Monsanto) is working with Vietnamese
farmers to provide a complete solution for
growing corn on a rice farm, which includes
land management and water control
techniques, good hybrid seeds for local
conditions, and proper tools and equipment
to get the most out of corn harvests. The
program strengthens corn-growing, whilst
avoiding disruption to current rice-growing
practices.
Dekalb Vietnam partnered with farmers, local
grain collectors and various departments
within the Vietnamese government to
introduce a rice-to-corn rotation process to
help farmers rotate between crops, while
reducing impact on the environment at the
same time. Through this effort, farmers are
able to more easily rotate between corn and
rice crops, and to adopt techniques like
conservation tillage farming, which helps to
preserve topsoil and other natural resources.
Dekalb’s Rice-to-Corn Rotation Protocol has
been approved by the Ministry of Agriculture
and Rural Development. Additionally, local
departments of agriculture are involved to help
transfer corn planting knowledge to more than
8,000 farmers in the Mekong Delta.
These collaborative efforts have achieved
significant results. In a national economy
where the average annual income is less
than $2,000 per person, many farmers in the
Mekong Delta have doubled or even tripled
their profits. Today, as a result of these efforts,
more than 8,000 farmers in the region have
earned more than $1 million combined in
incremental income since 2012. The program
helps farmers not only grow enough food to
feed a growing population, but to grow the
right food at the right time to best match both
local and global demand.
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Commodities (Spices)
In 2015, the newly setup Task Force for spices,
co-chaired by MARD, IDH The Sustainable
Trade Initiative and the Vietnam Pepper
Association, spearheaded discussions on
responsible agrochemical use in pepper.
The Task Force, which includes also Harris
Freeman, Nedspice, Olam, McCormick,
Netafim, Simexco, SNV, Syngenta and
Unilever, discussed the importance of
understanding the root causes of improper
agrochemical use and of providing clear
guidance to farmers for responsible use.
In December 2015 the European Spices
Association (ESA), the American Spice Trade
Association (ASTA), the Canadian Spices
Association and the members of the Task
Force held meetings with the Vietnam Pepper
Association (VPA), Ministry of Agriculture
and Rural Development (MARD), Vietnam
Trade Promotion Agency and more than 100
spices stakeholders (including farmers etc.) to
deepen the understanding of the issue and to
join forces for responsible agrochemical use in
pepper in Vietnam.
A joint action plan with clear timelines is now
under development by MARD and will be
discussed by the Spices Task Force in April
2016.
GrowAsia Vietnam
Agrochemicals
Over the years, PSAV stakeholders became
increasingly aware of the improper use of
agrochemicals as an issue in several of
the strategic crops such as Tea, Fruit and
Vegetable, Spices and Coffee. For this reason,
in September 2015, it was agreed to establish
an Agrochemical Task Force as a cross-cutting
platform to address this critical issue.
To define the approach, all partners were
invited to an initial meeting, attended by
private companies, input producers, public
sector and non-profit organizations. As one
of the outcomes, a survey on agrochemicals
issues was sent out to collect information from
all the key sectors. Survey results showed an
increasing level of maximum residue levels
(MRL) of non-registered products being
detected by importing countries specially on
tea and black pepper.
Based on this, different actions have been
raised as solutions:
— Review and revise as needed the legal
framework.
— Strengthen the penalty mechanism for
malpractices (in terms of farming and
chemical trading).
— Promote the model of factory-led agri-team
or cooperative spray service provider (who
provides technical assistant to the farmers
on agrochemicals usage).
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The Plant Protection Department (PPD) and
its local networks, companies, associations
and non-profit organizations shall collaborate
to conduct farmer training on how to properly
and responsibly use permitted chemicals,
so that the residues meet food safety and
importing countries’ requirement. It was
agreed to discuss the proposed actions with
each commodity Task Force and to present
the outcomes of those discussions to the
Minister of Agriculture and Rural Development
at a PSAV meeting.
The Agrochemical Task Force has three
co-chairs, appointed from Plant Protection
Department, IDH The Sustainable Trade
Initiative, and CropLife.
Agri-Finance
Target
Support the commodity Task Forces 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.
The Agri-Finance Task Force has been working
specifically with the Coffee Task Force to
explore possible financial solutions for the
farmer cooperatives and farmer groups
through the development of farmer profiles
and credit history and links to banks. In 2016,
it will also engage the Tea Task Force to
bridge the knowledge gaps between the Task
Force and banks about the challenges and
opportunities in financing micro entrepreneurs
and SMEs in tea production.
GrowAsia Vietnam 11

Partners Private Sector

Agribank
The Partnership engages approximately ANZ Vietnam
60 organizations: Bayer
BIDV
Government Bunge Vietnam
Vietnamese Ministry of Agriculture Cargill
and Rural Development Coex
Agriculture Genetics Institute (VASS) Cooperative Bank
Crop Production Department Dakman
Directorate of Fisheries EDE Consulting
International Cooperation Department Fresh Studio
IPSARD Harris Freeman
Livestock Department Intimex Bảo LộcBayer
National Centre of Agriculture Extension Master Blenders
Planning Department McCormick
Plant Protection Department Metro Cash and Carry
Minbuza
Provincial Representatives Monsanto
Đắc Lắc Nedcoffee
Đắc Nông Nestlé Vietnam
Gia Lai Olam
Lâm Đồng PepsiCo Vietnam
Pioneer Hi Bred Vietnam
Donors, International Organizations PVFCCo
and Associations Rabobank
IFAD Simexco
International Finance Corporation State Bank of Vietnam
Sustainable Trade Initiative (IDH) Syngenta Vietnam
VCCI The Chemical Company
VICOSA Unilever Vietnam
Viet Nam National Vegetables, Fruit and Vietin Bank
Agriculture Products Corporation Ltd. Vinacafe
Vietnam Pepper Association Yara Vietnam
Viet Nam Tea Association
WASI NGOs
World Bank 4C Association
Rainforest Alliance
SNV
Solidaridad
UTZ Certified
GrowAsia Vietnam May 2016

Partnership for Sustainable Partnership for Sustainable

Agriculture in Vietnam Agriculture in Vietnam
Focus 1 Focus 2

Expanding the engagement of Scaling up projects to reach

local stakeholders more farmers and increase
contribution to the goals of
food security and economic
growth

Partnership for Sustainable Partnership for Sustainable

Agriculture in Vietnam Agriculture in Vietnam
Focus 3 Focus 3

Exploring opportunities Institutionalize the PSAV

to institutionalize crop secretariat
partnerships more formally,
learning from the experience
of the Vietnam Coffee
Coordination Board

Engage Engage
www.growasia.org/ Pham Quang Huy
country-partnerships/ Ministry of Agriculture
vietnam and Rural Development
of Vietnam
quanghuy.htqt@
mard.gov.vn