Vietnam develops modern supply system for farm products

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Vietnam is working to develop a system of modern agricultural product supply centres to promote the consumption of farm produce, enhance food safety and hygiene, and improve the competitive edge of Vietnamese goods. (Photo: VNS)

The Ministry of Agriculture and Rural Development aims to restructure the entire chain of production, procession and distribution of agricultural products.

The centres will improve connections between production and distribution activities that will enhance efficiency, increase consumption of agricultural products, and ensure quality.

The products entering the centres will be controlled and have traceable origins to ensure quality, and there will be classification and packaging of products according to recognised standards.

In particular, a trading floor with information about market prices in many countries and integrated payment services will be created to offer favourable conditions for businesses.

Minister of Agriculture and Rural Development Nguyen Xuan Cuong said that the country’s agriculture lacks effective productivity because most farms are small, exposing the sector to threats of loss and crop failure, especially under climate change.

Besides shrimp, catfish and milk, most agricultural products have very short value chains, he said. Farmers are the most vulnerable as production still depends heavily on weather conditions while infrastructure remains limited.

In the context of global integration, more public-private partnerships are needed to develop financial resources for a complete agricultural management ecosystem that would satisfy food demand of the country's citizens but also the international market, Cuong said.

“Vietnam has to continue agricultural restructuring, and must focus on products in which the country has comparative advantages. Innovation and international cooperation need to be enhanced,” he said.

Ousmane Dione, country director for World Bank Vietnam, has raised concerns over quality and sustainability of Vietnam’s agricultural growth, saying that profits earned by small households were low and post-harvest losses were considerable. Food quality and safety have not been ensured, hindering the country’s agriculture sector from expansion.

He recommended that Vietnam strengthen ties among stakeholders and provinces in planning of production areas and improve trade promotions as well as productivity.

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