TRVC Project contributes to Vietnam's transition to low-emission rice production

The Netherlands Development Organization (SNV), in collaboration with the Ministry of Agriculture and Environment, is currently implementing the Transforming the Rice Value Chain for Climate Resilient and Sustainable Development in the Mekong Delta (TRVC). The project will span from 2023 to 2027.

According to Tran Thu Ha, Director of the TRVC Project, the 2024 summer-autumn crop marks the first year of operation in the project’s deployment timeline, with approximately 150 invited businesses. However, only 10% of these companies met the necessary requirements and submitted applications to participate.

Project Director Ha emphasized that TRVC, as an international project, features a highly innovative approach and provides participating businesses with a relatively challenging responsibility. In addition to maintaining a minimum profit margin of 30% for farmers during rising input costs and falling rice prices, businesses must also fulfill social and environmental responsibilities, reduce greenhouse gas emissions, promote gender equality, and support the inclusion of people with disabilities.

This initiative has demonstrated the commitment and leadership role of the business community in creating production linkages with rice farmers. Furthermore, businesses participating in the TRVC Project will become pioneers in establishing a brand identity for low-emission and environmentally responsible rice production. The project also established a strong foundation for businesses to participate in Vietnam’s carbon credit trading market, which is set to be implemented by 2027.

Christie Getman, Vietnam's Country Director at SNV, emphasized that as an international development organization, SNV is committed to supporting the Vietnamese government's climate sustainability priorities, with a strong focus on the rice sector. Through the TRVC Project, SNV is actively coordinating with local stakeholders to accomplish various objectives under the One Million Hectares of High-Quality Rice initiative. Accordingly, farmers in the Mekong Delta will adopt low-emission production practices and enhance climate resilience. This project complements SNV’s overall climate finance strategy and demonstrates its contribution to both national and global climate goals.

As one of the businesses participating in the TRVC Project, Pham Thai Binh, Chairman of the Board of Trung An High-Tech Agriculture JSC, noted that the project's greenhouse gas reduction requirements—such as alternating wet and dry rice cultivation, removing straw from fields, and reducing pesticide use—contribute significantly to the goals of the One Million Hectares initiative.

Chairman Binh emphasized that the TRVC Project is actively guiding Vietnam’s rice industry toward sustainable development in addition to maintaining compliance with the initiative’s key criteria. As a result, the project will provide an important starting point for businesses, including Trung An, to combine their experience in establishing connections with local farmers with emission reduction guidelines, thereby creating a breakthrough for the industry.

Truong Van Chinh, Director of Chon Chinh Import-Export Co., Ltd.—the company that achieved the highest greenhouse gas emission reduction in the first phase of the TRVC Project—also agreed with this sentiment.

According to Director Chinh, the most significant benefit for businesses participating in the TRVC Project is the ability to develop products that are verified and certified for greenhouse gas emission reductions by an international accreditation body. Consequently, the credibility will grant them further access to the global markets. In addition to the considerable benefits for the business community, farmers can enjoy lower production costs and improved product quality.

More importantly, given the comprehensive connection between the TRVC Project and the One Million Hectares of High-Quality Rice initiative, local stakeholders must play a crucial role in facilitating procurement. On the other hand, businesses must invest in upgrading the value chain and adopting new machinery and technology to meet the increasingly strict standards.

"By participating in the TRVC Project, I have realized the need for stronger collaboration and capacity building for cooperatives and local authorities. Cooperatives currently face significant challenges in connecting with businesses and engaging in commercial activities. I believe it is essential to train a new generation of cooperatives and help them recognize the business community as partners. On the other hand, leadership at the local level must shift attention toward the production chain, fostering connections within large-scale rice fields and engaging with practical results," Director Chinh suggested.

For Vinarice Co., Ltd., which joined the TRVC Project in August 2023, CEO Tran Truong Tan Tai highlighted the initiative's significant benefits for both the company and farmers participating in the supply chain.

According to CEO Tai, the project has enabled Vinarice’s technical team to effectively organize and manage a raw material region in a structured value chain in addition to supporting a balanced and sustainable partnership among stakeholders.

A key transformation for the local farmers has been a shift toward cost-effective rice cultivation. For example, in the 2024 summer-autumn crop, production costs for farmers outside the TRVC Project area ranged from 4,400 to 4,500 VND per kilogram of fresh rice. Conversely, farmers participating in the project were able to reduce costs to approximately 4,200 VND per kilogram.

On the social front, the project prioritizes the principle of “leaving no one behind” by promoting gender equality and encouraging the participation of women and people with disabilities. In support of this initiative, Vinarice has implemented policies to offer premium purchasing prices for rice grown by the aforementioned groups.

From an environmental perspective, in addition to measuring greenhouse gas emission reductions, farmers have also conserved a significant amount of water and adopted a more strategic approach to pesticide use—applying the right type, in the right dosage, and at the right time.

Regarding plans for the 2024–2025 winter-spring crop (the second production cycle), Vinarice has registered to expand its raw material region under the project from 997 to nearly 21,000 hectares. The company's CEO expressed optimism that the TRVC Project will create new opportunities for businesses to establish a strong brand identity for low-emission rice.