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Editorial:
- Dang Kim Son (Chief)
- Le Minh Hoa (Sec.)
- Dinh Anh Tuan
 GPXB 4376 (30/12/1992)

Contact:
Information center for Agriculture and Rural Development (ICARD)
  2 Ngoc Ha
  Hanoi - Vietnam
  Tel(84-4)7332160
  Fax: (84-4)8230381
  Email: Icard1@hn.vnn.vn

Newsletter
SEP-2003

 

Contents

TAKE MEASURES IN ARRANGEMENT, REFORM AND
DEVELOPMENT OF AGRO-FOREST FARMS.

The Politburo of the Communist Party of Vietnam has recently promulgated the Resolution on continuous organization, reform and development of state-owned agro-forest farms.

Objective

1: contribute to effectively implementing agriculture and rural industrialization and modernization; efficiently utilizing land and forest resources, long-term trees and existing infrastructure and techniques; establishing centralized goods production zones and large-scaled intensive and specialized farming areas attached with processing and marketing areas; improving productivity and competitiveness; creating more job opportunities; increasing people’s income; protecting ecological environment and reducing poverty.

2: Establish a new management mechanism and a proper organizing method to enhance fast and efficient application of advanced science and technology to agro-forestry production; create a motivation for economic reform; re-allocate labour force; back up the socio-economic and cultural development in remote, isolated and bordering areas, islands and areas where ethnic minorities are living.

3: Clarify production and business objectives and public-interest duties in order to renovate management mechanism.

1. Policy targeted at agricultural farms

Luc Yen Agricultural farm, Yen Bai Province
Photo by : Ngo Lich

Agricultural farms specialized in cultivating long-term trees which are equipped with fairly complete infrastructure shall continue enhancing and improving its productivity by further investing in tendering existing trees; promoting the development of processing establishments. And agricultural farms, which are inefficiently operating, shall be revoked as regulated by laws.

The agricultural farms producing annual trees such as sugar cane, pineapple, mulberry, cotton, tobacco shall be re-organized and attached to processing zones, at the same time producing plant seeds and developing a model of application of advanced techniques to activities of agricultural farms. The agricultural farms specialized in staple crop production and animal husbandry shall pay attention to seed production and development of advanced technical models to be handed over to farmers, and then focus on upgradation and development of production establishments and marketing system for agricultural products.

Maintain agricultural farms in remote, isolated and bordering areas and islands where ethnic minorities are living, aiming to serve fixed cultivation and settlement and national security and defense.

Change into other possession types or disintegrate agricultural farms which have been inefficiently operating for many years or mainly living on revenues from land lease.

2. Policy targeted at forest farms:

The forest farms which are mainly managing production forest and land area for afforestation for materials shall be further invested in its intensive cultivation and utilization of new forest seedlings and attached with processing factories operating under production and business mechanism.

The forest farms which are mainly managing land area with natural forests and land area planned for plantation of protection and special-use forests shall be shifted into profit-making public units.

The forest farms which have small forest land area mixed with farming land and adjacent to the citizen community shall have land areas contracted and shift into profit-making public units responsible for producing forest seedlings and developing an application model and transfer of advanced techniques to local farmers. The rest of area shall be taken back to be used as stipulated by land laws.

The forest farms which are no need being maintained shall be disintegrated and withdrawn by local authorities for utilization as provided for by laws.

The following solutions shall be made:

1. Effectively implement the planning for socio-economic and agro-forestry developmen, and land use; clearly clarify duties of certain agro-forest farms

Revise the planning for socio-economic and agro-forestry development in specific areas and ecological zones and localities; clearly identify functions and duties of certain agro-forest farms under the aforesaid reform orientation.

Clarify land areas for specific agro-forest farms; hand over the remaining land area to local authorities for land allocation to farmer households as regulated by laws; effectively execute the policy on land allocation to ethnic minorities for housing and production, especially in the Highland, northwest and southwest central areas.

After making the planning for agricultural land based on specific functions and duties of certain agro-forest farms, Municipal People’s Committees under jurisdiction of the Central shall identify land benchmarks and boundary and make decision on land allocation or land lease and issue red book to agro-forest farms. The issuance of red book shall be completed by 2005 at the latest.

2. Administration reform of agro-forest farms

The agro-forest farms which are performing production and business functions shall have to rent land from the State, execute the production contract policy and consume products through contracts.

The agricultural farms which are shifted into profit-making public units shall have land area allocated by the State without land use fees and its production activities organized under the proposed plan.

The forest farms which have natural forest area and rehabilitable land area for natural forests shall allocate land to households, household groups or hamlet people community for contract protection, regeneration and tendering in long-term.

3. Science and technology

Apply advanced science and technology and high-tech to production, processing and post-harvest phases; make cooperation and linkage with science research institutes to protect, select and cross genes and produce high-yield agro-forest seedlings and animal breeds; focus on transferring and adopting advanced science and technology and providing agro-forestry extension services and market information.

Abstract a financial fund from the State Budget to support the import of precious, high-yield and high quality genes adaptable to natural conditions of specific areas; provide agro-forest farms and individual farmers with such genes; to issue the policy to support financial fund for agro-forestry extension services suitable with agro-forest farms.

4. Financial policies

Agro-forest farms which transferred into its activities into production and business shall do accounting balance as regulated by Corporation Code. They shall abide by regulations on financial management and business cost accounting.

The agricultural farms which change its activities into public-interest activities shall be entitled to enjoy favorable policies as being a public interest SOE.

5. Policy targeted at laborers

Households who are legally living on agricultural farms shall be provided with land area and red books, based on the master planning for local citizen community.

Bac Quang Forest Farm, Ha Giang Province
Photo by: Thai Ha

Local authorities will consider on land allocation and issuance of red book for those who are living on disintegrated agro-forest farms as stipulated by Land Law.

Staff and workers from agro-forest farms who have incomes from forest and forest land contract, tree gardening and animal raising shall be forced to pay social insurance and entitled to get benefits from the insurance policy as regulated by the State.

After the reform, abundant labour force of agro-forest farms shall be treated as prescribed by laws.

The State shall issue training policy in favour of management staff and technicians from agro-forest farms.

6. Decentralization for agro-forest farms

The agro-forest farms which are performing industrial tree production and business functions in collaboration with processing factories or consumption markets shall be considered as SOEs.

The Party Commission and local authorities perform their leadership and public administration functions over agro-forest farms as stipulated by prevailing regulations applicable to profit-making State public units.

CASHEW IN VIETNAM

Recently, cashew consumption has been become sustainable in Vietnam. It has obtained high prices. As a result, producers feel confident and enterprises feel happy. In the first 6 months of the year 2003, units under control of the Vietnam Cashew Association selected and purchased 220,000 tons of dried cashews, representing more than 80% of the total productivity. During that time, factories, being as members of the Vietnam Cashew Association, processed and exported more than 30,000 tons of finished cashew products, creating over US$100 million, increasing by 10% against the same period of last year. In addition, such factories are attempting to process and export more than 40,000 tons of various cashews with the total export turnover of US$135 million this year, helping cashew integrate into the world market.

1. The strength of cashew in Vietnam

Cashew is one of key long-term industrial trees, ranking the 2nd among the eatable oil-family trees in the world market. In Vietnam, cashew ranks the 4th among key industrial trees for export and the 3rd in the world market in terms of area scope and export processing capacity, following India and Brazil. Cashew is more adaptable to intensive cultivation than others. Annually, cashew is able to grow in areas with the rainfall of at least 500mm and still alive in areas with the rainfall of 300-400mm, serving as a tool to facilitate coastal central areas and Southern central areas to exploit their strength, even with infertile land. Cashew can grow on various soil types such as infertile or eroded land..., bringing in different outputs Therefore, land areas for cashew plantation is abundant and little occupied by other crops (exclusive of forest trees), mainly in Southern localities. Bare hills and barren area in Binh Duong, Binh Phuoc, Dong Nai, Tay Ninh, Ninh Thuan, Binh Thuan, Phu Yen, Khanh Hoa, Dak Lak, Kon Tum...have been planned for proper cashew plantation. Frankly, at present, the southeast area is making up around 60%, coastal central area: about 21%; the Highland: around 8% of existing areas.

Local people living in such areas have many experiences in plantation and intensive cultivation of cashew combined with marketing methods. Despite being not complete yet, the entire country has step by step established centralized cashew areas which are planned and combined with processing zones, facilitating to speed up larger production of cashew for export.

However, research strategy and long-term development vision aim to tackle with production constraints, improve economic efficiency and social importance of cashew during the unspecific and unsystematic agriculture and rural development. Therefore, the output of cashew has been floated for many years while people takes the intensive cultivation and production expansion for granted. Local people used to destroy cashew in the past. Under such situation, the Prime Minister issued the Decision 120/1999/QD-TTg on cashew growth by 2010, creating a strength for cashew over last few years.

2.Cashew - a boom in cashew productivity and quality in Vietnam

Implementing the Decision by the Prime Minister, the agriculture sector considered cashew project as one of 18 projects of the plant and animal breed and forest seedling program. The sector sees it as a break-through of cashew productivity and quality, especially for export. It is informed that majority of cashew gardens are now bearing fruits. However, unselected cashew seeds were scattered, resulting in low and unstable productivity and a short life span of cashew trees. The supply of seeds or seedlings and the selection of parent trees as cashew seeds are spontaneous actions mainly based on farmers’ subjective experiences. With aims to improve the position of cashew in the integration, the Binh Duong Cashew Research Center, Vietnam Forest Science Institute and other local centers and institutes has made cooperation with many relevant agencies to identify centralized cashew area and select F1 parent cashew in cashew production areas, mainly in Tay Ninh, Binh Duong, Binh Phuoc and Ninh Thuan etc... creating local and exotic cashew generations; to generate a plenty of national cashew seed resources in order to gradually further grow cashew; to effectively implement the State policy on agriculture and rural restructuring under the integration orientation. Seeds of good cashew generations are distributed to relevant units and farmer households who have enough production conditions and are able to meet demands for new seeds by local people, especial those who are living in centralized cashew production areas in Dong Nai, Tay Ninh, Ninh Thuan, Binh Thuan, Binh Dinh, Quang Nam and Dak Lak provinces...Many units and farmer households in centralized cashew areas have expanded their production of high-yield and high quality new cashew varieties and fairly succeeded in cashew seed business. The Coffee and Agro-product Export Company 722 (Vietnam Coffee Corporation) is responsible for both processing cashew for export, planting over 200 ha of cashew for material inputs and establishing nursery specialized high quality cashew seedlings. Annually, this company produces and supplies 130,000 - 300,000 of high quality and high-yield cashew seedlings and standard cashew grafts such as GN1, P01, MH3, MH5, MH6, TL3, TL16... in an attempt to graft them onto cashew grafts nursed in ovary. Mr. Tran Van Xuan and his family in Tan Lap commune, Dong Phu district (Binh Phuoc province) has developed a 13-ha nursery to propagate high-yield and high quality cashew seeds provided by the Southern Agricultural Science Institute. This kind of cashew seed has short-term growth period (2-3 years), more or less 1 year shorter than old seeds. Annually, for the purpose of cashew production expansion, about 1 million cashew buds are supplied to be grafted onto about 100.000 of nursed seedlings. With the technical assistance of the Southern Agricultural Science Institute, Mr. Xuan invested in more than 2 ha to propagate Thais high-yield cashew varieties with aims to supply cashew buds for households’ cashew propagating gardens. Apart from 83 local cashew generations and 39 exotic ones, the Southern Agricultural Science Institute imported and experimented on 3 typical cashew varieties, namely Sasikel 1, Sasikel 2 and Sasikel 4 of Thais fruit and vegetables research center in order to gradually introduce good cashew seeds into Vietnam.

Cashnew in Binh Duong Province - Photo by: Ngo Lich

The whole country has 220,000 - 250,000 ha of cashew, including new high-yield and high quality cashew varieties, creating a motivation for the integration. Over the past few years, the cashew area has remarkably increased mainly in coastal central provinces where always suffer from harsh weather conditions and urgently require for poverty reduction. By then, new businesses and new hopes have appeared in cashew areas. Vietnam is striving for 340,000 ha of cashew by 2005 and 500,000 ha by 2010 with aims to surpass its predecessors.

3. Further development of processing industry

In parallel with expansion of cashew areas and establishment of new cashew area attached to processing zones, the whole country has developed a cashew processing networks, especially for export. Since then, exclusive of small-scale processing establishments managed by households, there have been more than 80 cashew processing factories over the whole country, mainly in key cashew area and cashew-specialized cultivation area. Every year, these factories are capable to process 300,000 tons, an increase of 50,000 tons compared to the processing capacity in 2002. Such big cashew processing factories such as Vinalimex, La fooco, Donafoods, export agricultural product company Ninh Thuan, Phu Yen and other cashew processing factories in Binh Duong... have equipped themselves with metal detectors, lighting nets, disinfection equipment. Besides, expanding their space site and production establishments will help ensure the quality of their products as required by market demands. As analyzed by experts, with the existing equipment and processing qualification, Vietnam’s cashew sector has been caught up with its predecessors specialized in cashew production for nearly half century. Vietnam does hope that cashew will become a vital export of the agriculture sector over recent years.

ONE MORE CASHEW PROCESSING PROJECT

Recently, Cai Lan Vegetation Oil Company in Ho Chi Minh City introduced a new product of salty cashew. This is the first product of the investment project for cashew processing in Ha Lam commune, Da Hoai, Lam Dong province.

The factory with an area of 57,460 m2 is planning to process 15,000 tons of cashews in order to bring in a stable productivity of 3,600 tons of various cashews. When the factory comes into operation, it is estimated to obtain a revenue of nearly US$12 million and generate more than 1000 jobs. It was informed that the Cai Lan Vegetation Oil Company invested in an oil-producing factory in Quang Ninh province with the capacity of 400 tons/day. And it is planning to increase its capacity to 500 tons/day. The Company in Can Tho is also planning to implement the project for producing oil from bran with the capacity of 400 tons/day in order to make the advantage of domestic materials available to produce bran oil and supply high quality bran to animal foodstuff-producing factories. (Vietnam Economics News 109/2003)

THE PROJECT FOR INFORMATION TECHNOLOGY (IT) APPLICATION TO THE AGRICULTURE AND RURAL INDUSTRIALIZATION AND MODERNIZATION.

The Minister of MARD has just promulgated the Decision 1136/QD and the Ministry of Science and Technology has approved the Feasibility Study of the Project with the total investment capital of 71 billion VND with the following objectives:

(i) improve the IT capacity of public administrative agencies under jurisdiction of MARD; bring into full play the efficiency of public administration; provide guidelines on research, production and business activities of ministries and sectors.

(ii) adopt various kinds of services, public services (including on-line license granting service) through Internet; apply IT and provide information in order to guide and administrate agencies under control of the Ministry and the sector; establish a electronic public administrative system for MARD; facilitate enterprises, and farm owners and households to exploit and interchange information for the purpose of developing production and business of agro-products and enhancing the agriculture and rural industrialization and modernization.

In order to attain the above-mentioned goals, the Project has identified the following tasks:

-Additionally provide, upgrade infrastructure and improve information technology of agencies under jurisdiction of MARD.

-Establish, develop and further enhance the effective exploitation of the database shared by MARD and the agriculture and rural development sector.

-Develop software supporting to professional expertise of public administration agencies under control of MARD; develop specialized software serving cultivation, animal husbandry, forestry and irrigation system

-Support to investment in information technology background, database of pilot units in Vinh Phuc province.

Provide IT training for human resources of MARD and the agriculture and rural development sector.

This project has 6 components:

1.Develop an information network and specialized database system: The component will develop an information network connected with specialized database of agencies level 1 or 2 under control of MARD and Vinh Phuc DARD. In which, 9 entire local networks (LAN system) are installed for the following agencies: National Institute for Plant Protection, Food Crop Research Institute, National Institute of Animal Husbandry, Agricultural Genetics Institute; Institute of Agricultural Economics , Cuu Long Delta Rice Research Institute, National Institute for Soils and Fertilizers, National Institute of Veterinary Research and Vinh Phuc DARD. By the year 2005, the 9 above-mentioned networks shall be connected with the common networking of MARD. And the unreal VPN network shall be established to connect between MARD and agencies level 1 or 2 under control of MARD and the Vinh Phuc culture and rural development sector.

2.Develop a database for MARD’s public administration and some software supporting to public administration

The database system help manage legal documents and official letters (in and out, submission and internal circulation); working time schedule for units and individuals; denunciation letters; papers and files; working plans and reports; control personnel; disseminate information to introduce about MARD and its agencies.

The special software aims to serve public administration of several Departments under jurisdiction of MARDs (the software help manage key programs for processing agricultural products and rural trade; fixed cultivation and settlement; immigration and new economic zone development, river and sea embankments with aims to serve the flood control; planning and plans; science and technology...)

3. Development of specialized software:

a. Cultivation:

Develop a database on plant seeds, advanced technology applicable to the cultivation sector; a database on agricultural land resources based on the geographic information system (GIS) on maps; develop a database on utility of fertilizer and pesticide etc..., summary reports on land research and evaluation; land use planning and agro-forestry and rural development vision in certain provinces and areas.

b. Animal husbandry and animal health care: the website on animal health care and animal husbandry; software used for diagnosing animal diseases; software used for making out animal raising plans (LSD); VIETPIG software used for managing pig farms; VDM software used for managing dairy animals; VDA software and a set of CD on raising process and treatment methods to animals and poultry (pig, buffalo, cow, goat and sheep).

c. Database on forestry sector and Vietnam’s forest trees: Vietnam system for Information Software used for forestland management; Vietnam forest plant resource software; national program for data analysis on forest resources; Vietnam forest database.

d. Water resources:

Software is used for investigation and design: reservoirs, dams, channels, drainage with modules: updating data on topographic surveys; developing three-way topography of study area; design and check of design standards and risk evaluation.

One-way calculation software (used for describing the 2-way water flows) are able to indicate the situation of water flows (softly and tightly), alluvial sand flows and substance transmission including calculation modules for water flows of river basin; hydraulic power of waterflows of open channel; sendimented/floated alluvial sand flows and application to the Mekong Delta; substance transmission; processing of data and result demonstration under geographic information system.

4. Experimental application of Information Technology to Agriculture and Rural Development in Vinh Phuc province:

Furnish agencies under jurisdiction of Vinh Phuc DARD with computers and large-scale connection networking and provide them with Information Technology; develop a office building for computer stations in Vinh Phuc province; establish a integrated database center for Vinh Phuc’s agro-forestry and water resources; develop a database on agro-forestry and water resources under the Geographic Information System of Vinh Phuc province.

5. Development of training courses, human resources and information technology serving the agriculture and rural industrialization and modernization:

Provide training courses in information technology for staff and leaders of the Ministry; provide training courses in basic and advanced computer skills for users; simultaneously provide training course in networking and database administration; help operate database of the sector; improve the capacity of IT and software experts.

6. Experimental application of Teletext to providing information to farmers; contributing the agriculture and rural industrialization and modernization in the 2 provinces (Phu Tho and Vinh Long):

Develop a Telextext system for each province; purchase, process, edit and manage and propagate information; provide guidelines on managing and operating the broadcasting system.

The aforesaid project that focuses on public administration targeted at Vinh Phuc province as a pilot model, apart from ADB or WB funded IT projects targeted at farmers and rural areas.

AGRO-FOREST PRODUCT-PROCESSING INDUSTRY IN CONNECTION WITH AGRICULTURAL AND RURAL INDUSTRIALIZATION IN VIETNAM

Developing the industry of processing agro-forest products, especially rice is a key task of the agriculture and rural industrialization and modernization as clearly clarified by the IX th Party Congress and the Conference Session 5 of Communist Party of Vietnam.

Recently, the industry of processing agro-forest products nation-wide has raced with the integration, increasingly having positive influence on production expansion of agricultural products and modern commodities, making the best use of the existing strength of tropical agriculture, raising product values, creating competitiveness of the domestic and international markets. Accordingly, there is a very close linkage between the processing industry and intensive cultivation zones specialized in seedlings for materials. At present, intensive cultivation zones and processing industry zones have not been completed yet but specifically oriented; besides, they have not yet efficiently implemented but started to create benefits and competitiveness and been adaptable to the integration.

Material zones for the agricultural product processing industry

Since then, the entire country has established material zones specialized in rice for commerce, rice for export, coffee, rubber, cashew, fruits, lean pork; cow for commerce. Some zones were simultaneously established due to the apparent movement of agricultural production. Some others were founded thanks to thorough investigation, planning and guidance. Firstly, in terms of rice cultivation area, the Government and the agricultural sector have officially recognized 3 commercial rice zones: Dong Thap Muoi, Long Xuyen Quadrilateral and the West of Hau river. The 3 zones have the highest national average per capita output of food, ranging from 1,500kg to 2,500kg, raising the status of paddy and rice to a new height. They took initiative in integrating the international economy. The agricultural sector shall make cooperation with localities to make planning for a 1,000 ha area of export rice in the Mekong Delta and 300,000 ha in the Red river delta, considering as 2 national rice stocks: the export rice area in the Mekong delta mainly concentrates on such provinces as Long An, Dong Thap, Vinh Long, Can Tho, Soc Trang, An Giang...The export rice area in the Red river delta mainly concentrate on Thai Binh, Nam Dinh, Hai Duong, Hung Yen, Hai Phong...where have good land conditions, intensive cultivation skills and especially convenient transport.

The export rice areas focus on scattering high-yield paddy varieties, generating high quality rice and special paddy. Annually, they can obtain 8 – 9 million tons of brown rice and high quality rice for export. The Mekong delta represents 95% of the volume of rice for export. Annually, the whole country grows such high quality paddy varieties as OM 1490, OM2031, OMCS 2000, IR64, VND95-20. About 60-70% of farmers living in the Mekong Delta and the above-mentioned export rice areas already scattered such new varieties. Especially, such paddy areas are under pest control with the IPM method. However, pesticide is limited to be used in order to guarantee clean rice.

In addition, the entire country has more than 520,00 ha of coffee, including 280,000 ha in specialized cultivation area and approximately 415,000ha of rubber, inclusive of 330,000 ha in specialized cultivation area, mainly in the Highland and the Southeast central area. There is about 280,000 ha of sugar cane, mainly in the South, northern central mountainous area, central coastal area; 24,000 ha of silkworm mainly in Lam Dong province. Such areas were established long time ago. And they have been further consolidated and attached with the large-scale processing industry; developed new production processing modes and efficiently mobilized local human resources.

Recently, agricultural and rural economic structure has been adjusted; plant seeds and animal breeds have been promptly diversified under the farm model. The entire country has identified 27 relatively centralized fruit area with an area of nearly 242,000 ha out of the total area of about 580,000 ha. In order to meet the greater export demand, the agricultural sector worked with Vietnam Horticulture Association to make planning for fruit tree areas in an attempt to supply exports over the entire country with an area of about 100,000ha. The banana area is mainly found in the Red river delta; Tien riverine area, Hau river alluvial area; mango area mainly in riverine area of Tien river, Hau river and Khanh Hoa province; pineapple area mainly in Ca Mau Peninsula, the West of Hau river, Binh Son (Kien Giang), Bac Dong (Tien Giang), Dong Giao (Ninh Binh); Tam Ky (Quang Nam); Logan area mainly in riverine areas of Tien river, Hau river (the Mekong Delta) and the Red river ; rambutan, durian, mangosteen...mainly in Dong Nai, riverine area in Tien river, Hau river...

More perfect processing industry

The Conference Session 5 re-confirmed that priority shall be given to developing the processing industry in connection with the development of agro-forest and marine materials, creating high quality export and consumer goods. This is a new step in the production process of modern and integrated agriculture. Currently, the total turnover of the industry of processing agro-forest and marine products makes up more than 85% of the total turnover of the entire processing industry, annual average increase of 12 –14%. Especially, some relatively modern processing industries such as rice grinding and rubbing, silkworm, sugar cane, cake and candy, condensed juice, wood processing... have been established. Some disadvantages of productivity, unit prices and competitiveness has been gradually overcome.

Aiming to develop the industry of processing agro-forest products in a sustainable manner in connection with material zones with proper scale and technologies; to meet the market demands; to create key competitive products, the industry in collaboration with localities renovated processing equipment in order to improve the product quality on regional and international markets.

At present, Vietnam has had nearly 630 national rice grinding and husking centers and ten thousands of private ones with the total capacity of more than 15 million tons/year, in which small-scale private establishments represent 70% (mainly for consumption). The Mekong delta alone has gradually completed 12 rice –processing zones attached with commercial rice areas, mainly for export, including Tra Noc (Can Tho), Long Xuyen (An Giang), Sa Dec (Dong Thap), Cai Lay, My Tho (Tien Giang), Tan An, Ben Luc (Long An), Vinh Loi (Bac Lieu) and Vinh Long with the total capacity of approximately 2.5 million tons/year. Aiming to create a new competitiveness for rice for the next 6-7 years, the Mekong Delta has developed and completed 70 modern rice-drying systems attached to 26 export-rice-processing centers. The coffee refining factory with the capacity of 800/year and many national coffee-processing lines with the capacity of 750-3,000kg/h. The total capacity of rubber processing establishments obtains 170,000 tons every year, including 3,000 to 12,000ton/year produced by medium-sized and large-scale processing establishments. The sugar processing industry has also developed dramatically, attaining 1 million tons of sugar. The whole country has 42 processing factories, yielding the total annual pressing capacity of more than 7.5 million tons; occupying half of annual sugar output. Vietnam’s vegetables and fruits are very plentiful, various and highly valued. However, the processing industry of fruits and vegetables has not yet become so large. It needs further investment. Recently, the entire country has brought a series of fruits and vegetables processing factories into operation, for example Hai Phong condensed tomato-processing factory; condensed pineapple-processing factories in Ninh Binh, Quang Nam, Vinh Phuc, Dong Nai, Kien Giang. The country has also improved some of such processing factories into 20 ones with the capacity 5,000 –10,000ton/year and 5 freezing factories with the total capacity of 30,000 ton/year. After the Conference Session 5 , many factories processing agricultural products and foodstuff started up their construction or came into operation like the northern biggest dairy-processing factory in Vinh Phuc, cassava-processing factory in Phu Tho, milk-cooling center in Cu Chi (Ho Chi Minh city).

Works should be done with the processing industry

Apart from guidelines on production re-adjustment, plants and animal restructuring under the shift in agriculture and rural economic structure, the agriculture sector is responsible for chairing the investment in the processing industry, concentrating on key sectors, creating high competitive essential products for export. With respects to rice, existing rice stocks need further investment in upgradation; the system for rice husking, grinding, rubbing and selecting is established mainly in 1.3 million ha of cultivation area specialized in rice for export in order to ensure annual export volume of 4 million tons. In terms of coffee and rubber having high export ratio, attention shall be paid to upgrading present processing establishments and factories by providing additional modern production lines for Stated-owned manufacturers, small machines for households, especially in the Highland and the Southeast central area. In the immediate future, the sector puts premium on building up 10 additional fruits and vegetables processing factories in Vinh Phuc, Bac Giang, Thanh Hoa, Ha Tinh, Quang Ngai, Lam Dong, Kien Giang; supporting to the construction of cooling stores with the total capacity of 5,000 tons of products/year; founding 2-3 packaging establishments; wood processing factories and agro-product processing factories; completing and newly constructing 5 Iodine salt-producing factories.

Despite being the first step of the industrialization and modernization of agro-forest product processing, the processing industry has obtained an remarkable increase in output value in comparison with agricultural production value, from 33.8% in 1990 to 45% at present, in which processing agro-forest products for export increases by 22% on annual average.

However, there exist some shortcomings and difficulties in the processing industry:

-Connection of material zones with processing factories: tomato juice, pineapple juice...

-High unit prices of processed agro-forest products such as: sugar cane, artificial board...

-Besides, difficulties in cashew production and silkworm management shall be overcome.

BACH MA NATIONAL PARK

Bach Ma National Park is located in, around 680 km from the country's capital Hanoi. The national park covers an area of 22,031 ha and was created in 1991 to protect the centre of the last corridor of forest stretching from the South China Sea to the border with Lao PDR. With steep mountains and dense forests this area is home to a wide variety of animals and plants. At the base of the mountains there is tropical monsoon forest, above 900 m the forest is sub-tropical. There are species from both the northern and southern areas of the country and Bach Ma is recognised as one of the biodiversity centres of Indochina.

The highest point in the park, Bach Ma mountain, is 1450 m above sea level and only 18 km away from the coast. Visitors have been coming to Bach Ma since the 1930s, when the French Colonials built a hill resort here to escape the hot and humid plains during the summer months. The National Park has restored some of the villas built at that time, and is upgrading the services they offer

Studies of the biodiversity of Bach Ma’s forests are not yet completed but it is already clear that the park supports a very large number of species. This is partly due to the variations in altitude and also because the park is located within the transition of two bio-geographical zones supporting species from northern and southern regions of Vietnam.

The vegetation includes two main formations: tropical ombrophilous lowland forest below 900 m and subtropical submontane forest between 900 and 1450 m. The flora of Bach Ma includes at least 1,400 species which represents around one-fifth of the entire flora of Vietnam (in 0.07% of the country’s total land area). Of these, 86 species are listed as endangered in the red data book of Vietnam. There are also over 500 species which could have a commercial value, including over 430 species of medicinal plants. Bach Ma has given its name to at least three species of plants: Piper bachmariaefolia, Cissus bachmaensis, and Elaeocarpus bachmaensis.

Bach Ma National Park

The fauna of Bach Ma National Park is considered to support half of all mammals known in Vietnam. 43 species of mammals were identified in the park and further 76 species are listed as potential present, considering their range of distribution. Nine species of primates are confirmed in Bach Ma, including loris, macaques, langurs, and the white-cheeked gibbon. The elusive Saola or spindlehorn (Pseudoryx nghetinhensis) was only discovered in Vietnam in 1992 and is also resident in the protected area. Large predators, such as tiger and leopard, may still remain in the remote parts of the park.

The 330 species of birds that have been observed in the park represent over one-third of the species found in Vietnam. There are seven species of pheasants, including the rare endemic Edward's pheasant (Lophura edwardsi). Historically this species was very common in the forests along the foot of the mountain but was already considered to become extinct by the 1940s. More than 50 years later, it was rediscovered in the park and has become one of the symbols of Bach Ma National Park.

MARKET TURN FOR PLANT SEEDS, ANIMAL BREEDS AND AGRICULTURAL MATERIALS IN THE NORTH ON 15 – 19TH AUGUST 2003

The 2nd market turn for plant seeds and animal breeds and agricultural materials and rural development in the North was organized by MARD in Agriculture and Rural Development Exhibition and Fair in Hanoi between 15th and 19 August 2003.

Opening Ceremony of the Market Turn

The objectives of the market turn include as bellows:

- Enhance public administration of seeds/varieties/breeds, agricultural materials by selling out high quality products (production units are responsible for publicize their quality by themselves under control by administrative agencies)

- Introduce the variety and plenty of plant seeds and animal breeds in Northern localities; introduce farmers about reliable seed-producing establishments in order to serve production and restructure the agricultural and rural production and economy.

- Popularize achievements of the national seed program which have been implemented over recent years; support local enterprises to participate in the 2nd phase of the national seeds program more and more effectively.

- Further develop agricultural extension services; provide information on advanced and new science and technology for producers; improve productivity and quality of agricultural products in order to serve domestic consumption and export.

- Promote studies and application of biological technology to tendering and protection of plant seeds and animal breeds especially pay due attention to series of fertilizer and pest control chemicals; technologies and safe agricultural products.

- The market turn is the place where transactions take place and enterprises enter contracts with domestic and foreign clients and where experiences are exchanged and the linkage among science – agricultural extension – enterprises – farmers is established.

Market turn for plant seed, animal breeds
15th August 2003

The market turn consisted of 135 stands with the participation of 13 Departments of Agriculture and Rural Development from Northern provinces, 10 leading agricultural research institutes; enterprises, research centers, associations, farms, gardens, clubs and cooperatives trading in seeds/varieties and agricultural materials.

Apart from display of varieties of rice, maize, potato and cassava and breeds of cow, pig and fowls..., especially variety of special Bo guava being known as speciality of Thai Binh province; high protein-containing hoe seeds from Thai Binh which are easily to grow and have access to Chinese market; olive varieties of forest seedlings factories in northeast areas which can have access to Chinese southwest markets; seeds of the Central Forest Seedling Company with aims to serve combined agro-forestry cultivation and of farms such as: star anise, white olive, chestnut…

MARD-DANIDA/ASPS, SEED COMPONENT: A MILESTONE

Seed Component is one of 5 Components of MARD-DANIDA/ Agriculture Sector Programme Support (ASPS). With overall budget frame of DKK 203.5 million (USD 29.1 million), the Seed Component's objective over 5 years from 2000 to 2005 is to promote sustainable growth in production, supply and use of high quality seed for rice, maize and legumes as well as economic efficiency gains in the seed sector. Since September 2000, a Component Management Unit locates within the Department of Agriculture and Forestry Extension has been established to supervise and monitor the implementation.

ASPS's Experts in Vietnamese field

The Seed Component comprises 8 Sub-components: SC1 - Development of Regulatory Framework which will establish a legal basis for improving discipline, quality and confidence with respect to traded seed; SC2 - Support to a National Seed Council which will promote transperancy and information exchange, and stakeholder influence and cooperation; SC3 - Improvement of the Variety Evaluation and Release System which will be improved, including introduction of tests for distinctiveness, uniformity and stability (DUS); SC4 - Improvement of Seed Certification and Quality Control which will introduce an optional certification system and improve government's capacity to control and monitor the quality of traded seed; SC5 - Support to Research and Breeding which will be supported through capacity building assistance to core breeding institutions, and a "breeding fund" that may finance breeding projects based on applications; SC 6 - Seed Health which will develop capacity in this field among research and control institutions; SC7&9 - Support to Seed Production Units which will support seed production units capable of managing seed business (including purchase, production, processing, quality control, marketing and sale) on market conditions; SC8 - Farm Saved Seed which will improve farmer ability to produce good farm saved seed, process, store and selling through strengthening capacity of DAFE and extension services (province, district and commune) for management and technical implementation of participatory farmer training.

Since the year 2000, the Seed Component Management Unit (CMU) and the eight sub-components (SC) have been working on a variety of activities. Some of the more important include: (i) work with thirty one international missions and twenty eight regional missions; (ii) recruitment of additional staff; (iii) finalize the first request for procurement of seed processing equipment in Denmark and the first request for procurement of laboratory equipment in Vietnam; (iv) planning and initiation of the first Training of Main Trainers (ToMT) course; (v) work with the technical review mission (TRM) and annual sector review (ASR) (vi) finalization of the Component Implementation Plan (CIP).

The main achievements of the Seed Component during this period are:

During 2002, the TOR for Baseline Survey/PRRA activities were elaborated and agreed upon. All field activities have been carried out and two reports, one on Baseline study and PRRA, respectively were received in January 2003.

 The Seed Component's activities

One mission in SC4, SC6 and SC8, two missions in SC5 and SC7&9 with international consultants (all included national consultant or counterpart staff) were implemented.

From July until December 2002, one international consultant to support the Seed Industry Investment Program (SIIP) secretariat and to initiate the investigations concerning establishment of independent business units was recruited.

The Memorandum of Understanding (MOU) was signed with the provinces of Nam Dinh, Nghe An, Binh Dinh and Dong Thap.

The first request for procurement of mainly laboratory equipment for SC3, SC4, SC5 and SC7&9 in Vietnam was finalized and a consultancy company with office in Hanoi was recruited to assist the CMU with the procurement. Equipment list and specifications were prepared and sent to Denmark.

Draft Seed Ordinance, Draft Regulations on Accreditation, Management and Monitoring of Agricultural and Forest Tree Seed Testing Laboratories were elaborated and a two-week workshop on Quality Management for Seed Testing Laboratories, Seed Sampling and Field Inspection was organized.

The Seed Component's activities

Two outsourcing contracts on establishing seed technology training centers at Hanoi Agricultural University (HAU) and at Can Tho University (CTU) have been signed by CMU and respectively HAU and CTU. Training topics were prepared and commented on by seed production units.

ToMT curriculum was developed and one outsourcing contract on carrying out the first ToMT courses has been signed by CTU and CMU.

For the next step, the following activities have been planed:

- Preparation for Financing Appraisal and Investment Modality.

- Complete and submit to NMU for approval MARD Feasibility Study.

- Recruiment an International Consultant on Training Methods.

- Further implementation of ToT, FSPS

- Complete procedures for establishment of NSC.

- Complete the final draft of Seed Ordinance and submit to Standing Committee of Vietnam National Assembly for approval.

- Receive and installation of equipment procured from Denmark and domestically.

With a close cooperation between DANIDA Advisers and Vietnamese Counterparts, Seed Component has been implementing a variety of activities that in accordance with the plan and bring a lot of benefits to farmer and organizations.

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