Advancing the establishment of standardized agricultural production chains

To encourage the organization of agricultural production amidst economic integration and the increasing challenges posed by climate change, the formation and growth of raw material areas in conjunction with processing and export enterprises for agricultural products stand as top priorities for the Agriculture and Rural Development sector. Specifically, it is crucial to establish large-scale, inter-regional, concentrated, modern, and enduringly stable raw material areas. This approach will catalyze for localities to expand and develop raw material areas, thereby contributing to poverty alleviation and the successful construction of new rural areas.

To achieve this objective, the Ministry of Agriculture and Rural Development has initiated the "Pilot Project for Establishing Standard Agricultural and Forestry Raw Material Areas for Domestic Consumption and Export during the 2022-2025 period" to pilot the development of five agricultural and forestry raw material areas meeting the standards for both domestic consumption and export.

Furthermore, piloting mechanisms and methods in 13 provinces focusing on key products such as fruit trees, rice, coffee, and large timber from planted forests lays the groundwork for replicating successful models. To oversee the implementation of the project, the Ministry has established a Steering Committee composed of 31 members, with Deputy Minister Tran Thanh Nam serving as its Head. Additionally, the Department of Economic Cooperation and Rural Development has formed two regional working groups responsible for project implementation. These working groups have conducted numerous surveys and checks to ensure the effective implementation of the project.

Reporting on the results of the first two years of implementing the Project, the Director of the Department of Economic Cooperation and Rural Development, Le Duc Thinh, stated: "As of now, 81 link chains have been established, marking an increase of 56 chains compared to the project's inception. 26 agricultural product purchasing and processing enterprises are engaged in these associations, with 353 cooperatives participating—a rise of 83 cooperatives from the project's outset. Notably, several cooperatives have been newly established and reinforced, with member personnel training to enhance their capacity and adopt cooperative accounting software technology and production diary software.

Additionally, 130 community agricultural extension groups have been formed, including 26 groups established by the National Agricultural Extension Center and 104 groups formed by the provinces. The total area of raw material linked to consumption with businesses amounts to 103,884 hectares, constituting 62.3% of the total raw material area nationwide.

A representative from CPO Forestry, the project investor, highlighted that infrastructure works in raw material areas have been constructed and handed over to the locality, particularly roads and irrigation canals, which have been completed to facilitate the transportation of raw materials from production areas to the factories. 

Nonetheless, the construction and implementation of infrastructure investment components in raw material areas need to be more active and synchronized. To date, only road construction items have been predominantly executed, while the logistics infrastructure system serving production and business (warehouses, drying yards, raw material gathering yards, etc.) has yet to be developed.

Furthermore, granting area codes to cooperatives in raw material areas remains notably limited and slow, with only 179 planting area codes issued thus far. Of these, only 28 cooperatives participating in the project have been granted codes, accounting for less than 10% of the total number of cooperatives involved.

In response to the recommendations from representatives of agencies serving as focal points for implementing the Project, Deputy Minister Tran Thanh Nam expressed high appreciation for the results achieved during the first two years of pilot implementation in building raw material areas.

The Deputy Minister remarked, "The pilot phase has successfully established a network of community agricultural extension groups in raw material areas, enabling prompt advice and technical support on production, cooperative development, as well as credit and market linkages. This lays a crucial foundation for the Ministry of Agriculture and Rural Development to attain its objectives and gain public trust."

Deputy Minister Tran Thanh Nam emphasized the importance of addressing the issue of slow construction by calling for thorough and close coordination between the investor and consulting unit. He stressed that only through effective operation of the Ministry of Agriculture and Rural Development's focal point apparatus can support and guidance be provided to localities regarding legal information, design adjustments during construction, and production organization. Additionally, the Deputy Minister directed units to collaborate with the Plant Protection Department to expedite the granting of planting area codes.

In light of the achieved results, Deputy Minister Nam instructed the Steering Committee for the "Pilot Project to Establish Standard Agricultural and Forestry Raw Material Areas for Domestic Consumption and Export during the 2022-2025 period" to compile feedback and organize a preliminary workshop, chaired by Minister Le Minh Hoan, to summarize the first two years of implementation. Furthermore, he suggested organizing two parallel sessions during the workshop, which focused on building raw material areas and developing community agricultural extension.