The strategic role of the private sector in agriculture and rural development Platform Knowledge Piece 3 Launch : A case study of Vietnam Pham Thai Hung, With support from Le Thi Quynh Nga, Do Thu Trang Wednesday 28 th March 2012 International Fund for Agricultural Development, Rome .
6
Embed
The strategic role of the private sector in agriculture and rural development - Vietnam
Join IFAD and the Global Donor Platform for the launch of the report: The strategic role of the private sector in agriculture and rural development. Jonathan Mitchell (ODI), lead author of Platform Knowledge Piece 3 will be joined in his presentation via video by the authors of the Tanzania, Thailand and Vietnam country studies: Frédéric Kilcher, Wyn Ellis and Pham Thai Hung. A Question and Answer session will follow each discussion point.
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
The strategic role of the private sector in agriculture and rural developmentPlatform Knowledge Piece 3 Launch : A case study of Vietnam
Pham Thai Hung,With support from Le Thi Quynh Nga, Do Thu Trang
Wednesday 28th March 2012International Fund for Agricultural Development, Rome
.
Private sector responses: Rice
• Rice sector: 2nd world largest export; turning from hunger to strong surplus in few years after Doi moi
• Rice in the Mekong: role of private sector– Production: by 1.46 peasant hhs, 2/3 own less 0.8 ha– Export: 80% by SOEs; around 55% is G2G contract
• Problems found– Farmers: 2/3 is small-holders (either not profitable or even ‘lost’ if
being net buyers of rice); 20% largest erned the most– Exporters: limited to SOEs; over-reliant on G2G (low quality)
trade– Knocked-in ‘low quality’ trap:
• Farmers: ‘mixed bag’ approach, lack of certified seeds• Govt: create distortions; 3.8 million ha for rice?• Other services providers: weak NAFEC
Private sector responses: Coffee
• Coffee sector: 2rd largest producer/exporter (of robusta) – from almost zero at the Doi moi
• Coffee in CH: role of private sector– Production: state farms collapse private coffee growers (around 600
thousand peasant hhs); 90% own less than one ha– Exporter: foreign-invested (40%) and around 200 small processors selling
to SOE exporters
• Problems found– Unsustainable production: world highest yield due to intensive fertilizing
and underground watering– Knock-in low quality:
• Farmers: sun dried processing by farmers low quality; small scale lack of investment
• Other producers: low incentives as int’l buyers are happy to buy these low quality coffee bean
• Almost no state interventions• Ethnic minorities and the poorest tend to set aside
Private sector responses:Organic Vegetables
• OV sector: very new in Vietnam; perceived as potential
• OV in the Red River: role of private sector– Production: pilots by INGOs; small scaled; production in
groups; PGS is the only certification process– Trader/processors: few newly established private firms in
Hanoi; OV marts or few supermarkets
• Problems found– Lack of legislation background; PGS is the only cerfication– Constraits :
• Farmers: technical training; land fragmentation; • Firms: poor awareness on OV
Engagement of development partners
• General discussion: – Donors being pro-active in supporting development agenda of VN– Predominance of Japan, WB, and ADB (70%) is a driving force– Effective coordination is a big challenge
• Engament of donors in PSD and ARD:– Mainly in ‘enabling’ environment: rural infrascture, legislation
reform toward better playfield for PSD, rural poverty reduction interventions
– Few direct engagement in key agricultural sectors/products (rice, coffee, seafood)
• Finding entry points for furture interventions:– Vietnam as midle-income country donors have revised strategies– Cross roads ahead
Key messages for donors
• Rural economy growth: largely private sector led after major agri liberalization; benefits generated were distributed unequally
• Major challenge– Cheap food trap– Government has ‘withrawn’ and remained unprepared for high value
agriculture
• Entry points for donors– Pro-poor value chain on high quality agriculture products– Revisiting agriculture structure e.g rice, coffee, aquaculture– Capacity of service providers– Climate change adaptation in agricultural production