Vietnam’s Public-Private Task Force on Sustainable Agriculture Task Force Meeting Summary 8 December 2014 – 14.00-17.00 hrs , Hanoi Time Sofitel Plaza, 1 Thanh Nien Road, Badinh District, Hanoi, Vietnam Participants Government H.E. Dr. Cao Duc Phat Minister of Agriculture and Rural Development of Vietnam, Co-Chair of the Task Force Mr. Tran Kim Long, Director General, International Cooperation Department, MARD Ms. Pham Hong Hanh, Head of Global Integration and Foreign Investment Division, International Cooperation Department, MARD Ms. Dinh Thi Thanh Huyen, International Cooperation Department, MARD Mr. Le Minh Tuan, International Cooperation Department, MARD Mr. Pham Anh Tuan, Deputy Director General, Administration of Fisheries Mr. Tong Xuan Chinh, Deputy Director General, Department of Livestock Husbandry, MARD Ms. Do Tuyet Mai, Department of Processing for Agro-Forestry-Fisheries and Salt Production, MARD Mr. Dang Kim Son, Director of IPSARD MARD Mr. Tran Van Khoi, Deputy Director of NAEC Ms. Ha Thuy Hanh, Deputy Director of NAEC Business Mr. Rashid Qureshi, Managing Director, Nestlé Vietnam, Co-Chair of the Task Force Mr.Bui Thanh Nam, Marketing Manager, Bunge Vietnam Mr.Mehdi Saint - Andre, Managing Director, Yara Vietnam Mr.Nguyen Phuc Trai, PepsiCo Vietnam Ms. Bui Thi Hai Yen, Deputy General Director, Hanel Mr. Nguyen The Trung, Chairman, Hanel Mr. Gal Yarden, Managing Director, Netafim South East Asia Mr. Lam Hoang Quoc Khoi, Market/Supply Chain Analyst, Nedspice Mr. Soeren Juelsback, General Director, Nedspice Ms. Pham Thi Thu Thuy, Sourcing Manager, Harris Freeman Asia Ltd Mr. Nguyen Quoc Thang, Business Manager, Advanta Mr. Tran Son, Sale & Marketing Manager, Baconco Ms. Vuong Khanh Ly, P.A TDH Vietnam Mr. Ravindranath, Olam International Mr. Vu Kien Trung, Khang Thinh Company, Netafim Distirbutor Mr. René van Rensen, R&D Director Crops, Fresh Studio Ms. Nguyen Anh Hong, Vietnam Tea Association Ms. Nguyen Mai Oanh, Vice Chairman, VN Pepper Association International Organizations Mr. Flavio Corsin, Vietnam Manager & Senior Manager- Producer Support Aquaculture & Spices, IDH Ms. Dang Thi Thu Hong, IFC Ms. Huynh Mai Huong. IFC Mr. Avie Veldhuizen, Agriculture Councellor, Kingdom of the Netherlands Mr. Do Quang Huy, National Programme Officer, SECO Ms. Nguyen Thi Thu Hang, Senior Operations Officer, the World Bank Mr. Pham Van Hoang, Associate Operations Officer, the World Bank Mr. Uchiumi Susumu, JICA Expert Vietnam’s Public-Private Task Force on Sustainable Agriculture WEF Ms. Kavita Prakash-Mani, Special Advisor, Grow Asia Summary I. Welcome and Introduction His Excellency, Minister Cao Duc Phat made an opening remark. He expressed his pride with what the Vietnam PPP taskforces (TF) have achieved in the last three years. What the TFs have done is meaningful not only for Vietnam but also for international communities to increase the productivity of agriculture, to help the world solve the problem of poverty, to address the climate change issue and to reduce the GHG emission. From the perspective of the Ministry, the Minister highly appreciated the achievemens gained by the TFs and expected more positive outcomes from each TF with the joint efforts between private & public sectors. He also welcome the subTF on Pepper and Spices to join the group and informed the establishment of the PPP secretariat. In addition, Mr.Phat also announced the leave of Mr.Rashid Aleem Qureshi, the Co-chair of VN PPP taskforce, for his new assignment in Indonesiaafter 6 years of his tenure in Vietnam. He thanked Mr.Rashid for his great contribution to Vietnam PPP and presented him a trophy. Mr.Rashid thanked Mr.Phat for inspiring the group to achieve good outcomes. He again highlighted the meanings of the PPP taskforce initiative. He also thanked other taskforce members for their efforts to the development of Vietnam PPP in agriculture The Minister invited a new MD of Nestle Vietnam, Mr.Ganesan to be the co-chair for the taskforce. Mr. Rashid has made brief introduction about Mr.Ganesan and expressed the Nestle commitment to the success of Vietnam PPP taskforce. II. Update from Working Groups Co-leaders of each of the six Task Forces reported their progress to date. 1. Coffee Presented by Mr. Mehdi Saint - Andre, Yara Vietnam Mr.Vu Quoc Tuan, Nestle Vietnam (Pls see details in the presentation) Comments : The TF requested the support from public sector for the following activities: (i) Develop national curriculum to guide application of good farming practice and enhance coffee sustainable production; (ii) Coordinate meetings between authorities, traders, banks, coffee producers, coopr and companies to suuport PPP coop models. 2. Tea Presented by Mr. Flavio Corsin from IDH & Ms. Nguyen Anh Hong from Vietnam Tea Association (Pls see details in the presentation) Comments: Vietnam’s Public-Private Task Force on Sustainable Agriculture Difficulties: Producers did not have full commitment to project at start up. Most companies do not have their own farm and many find it difficult to develop linkages with smallholders. Recommendations: Develop a strategy for sustainable tea production 3. Common Commodities Presented by Mr. Nam Bui, Marketing Director, Bunge Vietnam (Pls see details in the presentation) Comments: The TF suggested the following steps for a successful conversion (rice to corn) program in Mekong Delta: (i) Encourage rice supply chain participants to participate in corn by investing to convert existing dryers or install new ones; (ii) Expand enterprise-directed rice farming scheme to allow feedmills to “contract” with farmers to plant corn – provide certainty of demand for farmers and certainty of supply for feedmillers; (iii) Draw on Thailand & Indonesia’s experience to encourage feed millers to invest in corn dryers – allowing feed millers to buy corn more cheaply and expanding the number of potential buyers for farmers Added, the TF would convene meeting to restructure the TF for more efficient operation. Pepper & Spices Presented by Mr.Flavio Corsin from IDH (Pls see details in the presentation) Comments: Pepper and Spices sub-TF is newly added under the Common Commodities TF, co-chaired by DCP, VPA and IDH. IDH can co-finance private sector pre-competitive and encourage more members to join 4. Fishery Presented by Mr. Pham Anh Tuan from Administration of Fisheries, MARD (Pls see details in the presentation) Comments: The meeting was informed that Metro would be leaving Viet Nam and would be taken over by BJC. Mr. Rashid commented that the group should involve more partners into the group. 5. Fruits and Vegetables Presented by Mr.Nguyen Phuc Trai, Pepsico (Pls see details in the presentation) Comments: The TF requested support from MARD for the followings: (i) Support for faster FL variety registration; (ii) CIPC (Sprout inhibitors) registration facilitation for local potatoes usage extension, as well as exporting opportunities of stored potatoes. 6. Agri – finance Presented by Mr.Thu Huong, IFC (Pls see details in the presentation) Vietnam’s Public-Private Task Force on Sustainable Agriculture Comments: The next steps of the TF: (i) Conduct deep dives for Coffee WG with interested banks to discuss PPP Co-op profile, farmer group/farmer profiles and create possible financing linkages; (ii) Conduct next sessions of Agri Finance Working Group with other commodity working groups and seek opportunities to link specific banks with specific value chains. III. Update from 2014 WEF Annual Meeting and Grow Asia Presented by Mrs. Kavita Prakash-Mani, Special Advisor for Grow Asia (Pls see details in the presentation) IV. Working group discussion on the VN taskforce Report to Davos Meeting Jan. 2015 Key message to be delivered at Davos meeting: + The growth of taskforce with more partners and new taskforce established (Agri-Finance, Pepper and Spices subTF). + Institutionalizing the taskforce with the establishment of Vietnam Coffee Coordinating Board & PPP secretariat. It is important step to move forwards. + Successful model of some taskforces (eg: Co-op Model of Coffee) + Having more funding from the banks. + Considering to apply simple methodology so that each taskforce can refer to and learn from each other, example tea group can learn from coffee group on the fertilize usage…. V. Charter of Vietnam PPP Taskforce Secretariat Presented by Mr.Vu Quoc Tuan, Nestlé Vietnam (Pls see details in the presentation) VI. Working group discussion on the establishment of the Secretariat + The PPP Secretariat should support for all the TFs. All TFs activities should be channelled through the Secretariat + The member of PPP Secretariat must be a legal entity. + The Secretariat will work on yearly budget mainly based by membership fee contribution and fund raising from international partners / donors + The Secretariat will be chaired by MARD & Vice chairperson from private sector + The Secretariat will facilate the policy dialogue and advocacy to review, disseminate and exchange the policy between government & companies + Secretariat can be located at MARD and has, at the beginning, 1 person from government and next step the secretariat will be independent with joined personnels from government and companies + The Charter would be endorsed by co-chairs of 6 TFs and submitted to Dr Cao Duc Phat for ratification and signature. VII. Summary & Next Steps His Excellency Mr.Cao Duc Phat thanked all members for participation in the meeting & their contribution. Through presentation of each taskforce, there are practical & concrete results as well as the expansion of taskforce can be seen. He also requested the International Co-operation Department of MARD lead the suggestions/comments from governments to taskforce groups. Vietnam’s Public-Private Task Force on Sustainable Agriculture The Minister asked to fasten the establishment of PPP secretariat – a joined organization of all taskforce members for common goal. Through Secretariat, MARD will not only work closely with each taskforce but also support office, finance and personnel for this organization.