Vietnam - United States: Connecting businesses in green agriculture transformation and sustainable environment

On March 20, Mr. Do Duc Duy, Minister of Agriculture and Environment, had a working session with the delegation of the U.S.-ASEAN Business Council (USABC), led by Mr. Brian McFeeters, Senior Vice President and Executive Director of the USABC Regional Office.

Vietnam is a "destination" for the U.S. businesses community

Speaking at the meeting, Minister Do Duc Duy informed the USABC delegation that during meetings with General Secretary To Lam, Prime Minister Pham Minh Chinh, the Vietnamese Government has committed to accompanying U.S. businesses, promoting innovation, improving the legal framework, and creating favorable conditions for sustainable development initiatives. Together, they aim to explore potential, enhance quality, efficiency and value added in production chains while closely linking with environmental protection. This reaffirms that Vietnam is a trusted destination for the U.S. business community.

Currently, in the context of the global focus on sustainable development and preserving the green planet, Vietnam is making efforts to transition into a model of green production, smart agriculture, circular agriculture, reducing emissions, and applying modern technology for green, sustainable development. In this process, U.S. businesses have played an active role in technology transfer and innovation within the sector.

With their strengths in technology and innovation in the fields of agriculture and the environment, U.S. businesses have made significant contributions to efforts ensuring food security and striving for global prosperity.

In addition, for Vietnam, U.S. businesses are key partners in transferring advanced technological solutions, creating opportunities for effective business cooperation, boosting bilateral trade, and enhancing the competitiveness of the national agricultural sector.

At the working session, both sides focused on exchanging key topics such as: facilitating trade between the two parties, increasing investment attraction, developing green and sustainable agriculture, protecting the environment, addressing climate change, and applying advanced technologies in resource management.

Minister Do Duc Duy is confident that the discussions today will lead to breakthrough solutions, reaffirming the pioneering role of U.S. businesses in technology transfer and the development of green production models in Vietnam, while also strengthening bilateral trade relations.

Discussing solutions for agricultural development and sustainable environmental protection

In the context of Vietnam promoting sustainable development in sectors such as agriculture, aquaculture, clean energy, waste management, plastic recycling, meteorology, and climate change, international companies like Bayer, PepsiCo, Coca-Cola, Mondelez, and USABC have made significant proposals to improve and optimize production processes while protecting the environment. At the same time, the Vietnamese Government is committed to supporting and collaborating closely with businesses to implement these initiatives.

Bayer and PepsiCo are two of the first companies to introduce initiatives related to sustainable agriculture in Vietnam. Bayer expressed its desire to participate in the "1 Million hectares of high-quality, low-emission rice" program in the Mekong Delta, as well as contribute to establishing a reasonable intercropping structure for crops such as coffee and durian in the Central Highlands. The leaders of the Crop Production and Plant Protection Department welcomed Bayer’s involvement in the project and requested detailed information regarding their participation.

PepsiCo, with its success in expanding potato cultivation in the Central Highlands and northern provinces, has helped increase potato yields from 15-16 tons/ha to 35-40 tons/ha, with farmers earning 8.000 USD per hectare. The reduction of irrigation water usage by 50% and the implementation of sustainable farming practices are notable achievements.

Mondelez also proposed developing cage-free poultry farming and expressed interest in having the Ministry of Agriculture and Environment facilitate the import of egg powder. The leaders of the Livestock and Veterinary Department announced the opening of the egg powder market to certain markets and will continue to work and exchange with businesses to promote sustainable and humane poultry farming in Vietnam.

Regarding plastic pollution and Extended Producer Responsibility (EPR), these are two issues of interest to Coca-Cola, Mondelez, PepsiCo, and Dow. The leadership of the Environmental Department stated that Vietnam is committed to controlling plastic pollution through policies and international cooperation. The Vietnamese government has participated in negotiations for a Global Agreement on plastic pollution and issued policies such as the 2020 Environmental Protection Law and Directive 33/CT-TTg to reduce plastic waste.

Coca-Cola has expanded its scale of active projects supporting Vietnam and committed to continuing cooperation in transitioning to a circular economy model. Companies like Mondelez and PepsiCo also hope for mechanisms that encourage the production and use of recycled plastic packaging (rPET). The Environmental Department has noted the proposals and committed to studying and improving policies to support waste recycling and sustainable environmental activities.

As for EPR, Vietnam began implementing regulations in 2022, and it is expected that businesses will be responsible for recycling products and packaging starting from 2024. The Ministry of Agriculture and Environment has also introduced regulations on recycling costs and mechanisms for contributing to the Environmental Protection Fund.

In the fields of meteorology, hydrology, and climate change, companies like Atmo Inc. and SAP have proposed collaborating on the use of AI technology to monitor greenhouse gas emission reductions and manage emission indicators. The Ministry of Agriculture and Environment welcomes these initiatives and is committed to working closely with partners to promote the application of AI in weather forecasting, flood forecasting, drought prediction and saltwater intrusion.

Citibank, S&P Global, and Bay Global Strategies raised questions regarding Decree 06/2022/ND-CP and issues related to the carbon market. The leadership of the Climate Change Department stated that the Ministry of Agriculture and Environment is currently developing and refining policies related to the carbon market, with an official rollout expected in 2029. Connecting the domestic carbon credit exchange with international markets will be implemented in the next phase, after the completion of the pilot phase.

Additionally, initiatives like the Green Index from Bay Global Strategies are expected to help encourage private sector participation in greenhouse gas emission reduction activities.

Regarding the development of renewable energy and clean energy, Pacifico Energy has proposed surveying and developing offshore wind power projects in Vietnam. The Department of Marine and Islands has acknowledged the Group's contributions to wind power projects in Ben Tre and solar power in Binh Thuan, and has committed to facilitating the Group’s collaboration in surveying the projects.

Deputy Minister Hoàng Trung stated that international businesses are actively participating in sustainable development initiatives in Vietnam, ranging from agriculture, aquaculture, to environmental protection and climate change response. The Vietnamese government is committed to working closely with international partners to develop a circular economy, enhance resource efficiency, and protect the environment. The proposals and initiatives from businesses will contribute to Vietnam's sustainable development goals while promoting economic cooperation between Vietnam and countries worldwide.

Strengthening trusted cooperation to benefit businesses and people in both countries

From the perspective of a government official, Minister Do Duc Duy discussed agricultural production (ecological, circular, smart along the value chain, linked with innovation and science and technology), noting that this is a key area of focus for Vietnam, an agricultural country.

With significant potential for growth in the agricultural sector, increasing profitability, and supporting farmers in agricultural production, the Minister suggested that both sides should continue to engage in more frequent exchanges to promote cooperation. Furthermore, the Ministry will continue to support the development of industries and enhance processing, as the agriculture-forestry-fisheries sector still holds vast potential for further development between Vietnam and the United States.

Regarding the environment, Vietnam has expressed its stance and views on plastic emissions. For the EPR sector, the Ministry of Agriculture and Environment is very eager to listen to the opinions of U.S. businesses and always values the experiences of other countries in this new field. "This is a new and important issue, and the Ministry will focus on proposing it to the government in the form of a separate decree", said Minister Do Duc Duy.

In addition, workshops will continue to be organized to gather feedback on policy drafts, offering appropriate incentives to effectively implement the regulations, as well as measures to control companies that do not comply well.

For the field of climate change, the Ministry is actively proposing amendments to Decree 06/2022, creating a legal framework to adjust regulations, establish the carbon market, and reduce emissions, as well as improving carbon exchange platforms.

Based on the Government's program, a decree on carbon credit exchange will continue to be developed, with the intention to draw on international experience to ensure feasibility, international responsibility, and enable Vietnam to participate more deeply in the market, particularly through voluntary and responsible participation.

Regarding the development of offshore wind power, the Minister said that current legal policies such as the Electricity Law, circulars on renewable energy, and decrees on offshore wind surveys will create favorable conditions for businesses to invest in and develop such projects.

In his exchange with Mr. Brian McFeeters, Minister Do Duc Duy stated that today’s event is not only a dialogue but also an important step forward in facilitating trade and investment between Vietnam and the United States.

“The initiatives and solutions we are sharing today are a testament to the spirit of international cooperation and the strong connection between the Vietnamese Government and the U.S. business community", Minister Do Duc Duy affirmed.

At the same time, the Minister also emphasized that the application of advanced technology, smart governance, and optimization in resource management, along with efficient and sustainable use of resources, is an inevitable trend for all countries, including Vietnam, which starts as an agricultural nation. This trend is closely linked to environmental protection, enhancing quality, efficiency, and value-added in agricultural production.

The Ministry of Agriculture and Environment is committed to continuing to improve policies, create a favorable investment environment, and strongly promote innovation initiatives to facilitate, advance, and expand trade between the two parties.

“The Vietnamese Government in general, and the Ministry of Agriculture and Environment in particular, always considers this a very important task and will carry it out regularly, as well as continuously to meet the ever-changing and dynamic demands. All policy recommendations from businesses in the USABC are valuable assets for the Ministry to advise on improving policies", the Minister said.

Acknowledging the remarks of Minister of Agriculture and Environment Do Duc Duy, Mr. Brian McFeeters expressed that, in the current global context, characterized by many uncertainties and changes, the sincere and effective cooperation between the Ministry of Agriculture and Environment, as well as the Vietnamese Government in general, and the U.S. business community, plays a crucial role. This collaboration not only lays the groundwork for stronger bilateral relations but also serves as a vital prelude for the U.S. government to formulate specific, suitable, and aligned policies and actions that are conducive to fostering long-term cooperation between the two nations. Such policies would provide a favorable environment for U.S. businesses that are currently operating or planning to invest in Vietnam.

Mr. Do Duc Duy and Mr. Brian McFeeters are confident that with unity, cooperation, and determination, we will contribute to strengthening the strong and reliable diplomatic relationship between the two countries, enhancing the good trade relations that are mutually beneficial, and further deepening the comprehensive strategic partnership between Vietnam and the United States.