Headline

Deep dive activities focus on greening Viet Nam’s agricultural production chains for dragon fruits and oranges/grapefruits. The activities contribute to the World Bank’s Deep Dive on agricultural production.
 

Objective

The agricultural sector plays a key role in the Vietnamese economy. In 2018, it accounted for 14.47 per cent of the GDP, and its export turnover reached a new record of more than $40 billion. The agricultural sector has enormous potential for green investment opportunities to support more sustainable development at all stages of the food value chain. According to the World Bank, however, the impacts of climate change on the agriculture sector may reduce up to 2.4% GDP of Viet Nam by 2050. It is, therefore essential to support business to climate-proof their investments, build transformative solutions for vulnerable farmers and empower private sector to adjust their business plans to disasters and climate shocks. Green investments in low-carbon agriculture could save millions of US dollars every year that could in turn be invested in the much needed income for farmers and in adapting to the adverse consequences of climate change. The project primarily targets micro, small and medium enterprises open to promoting green agriculture products and supply chains. Women entrepreneurs are being engaged into project planning sessions with UNDP and the Ministry of Agriculture and Rural Development.

 

Context

Deep Dive activities focus on the agriculture sector, which was had not been strongly represented in Viet Nam’s climate change work despite of its large mitigation and adaptation potential. Complementing the World Bank’s broad Deep Dive approach in the agricultural sector, UNDP’s Deep Dive is zeros in on two fruit production chains - dragon fruits and oranges/grapefruits - to showcase how green production can work along the full production chain. The groundbreaking nature of the Deep Dive work involved gradual trust building and consultation exercises to get producers on board (there was no previous relationship with UNDP). After a scoping mission in March, the project was officially launched in August 2019.

 

Green Commodities Network Members
 
  • Private sector platform ‘Partnership for Sustainable Agriculture in Viet Nam'
  • Agriculture advisors and policy makers of the Ministry of Agriculture and Rural Development
  • Viet Nam Chamber of Commerce and Industry
  • Viet Nam Union for Science Technology Association
  • Viet Nam Cooperative Association
  • Bac Lieu and Binh Thuan small holder farmer associations and agriculture cooperatives
  • Private companies who providing green renewable energy and energy efficiency solutions
  • Selected e-commerce platform
  • Domestic wholesaler (Coop-Mart), and technology firm for block chain
     

Activities and Milestones

  • Assessments of business gaps and entry points for green business practices have been conducted for the two provinces Binh Thuan and Bac Lieu.
  • Establishment of a solid network of key like-minded stakeholders willing to contribute collectively in greening agricultural commodities, dragon fruits and shrimp.
  • Coordination with complementary initiatives on the sustainable development of select agricultural commodity and supply chains, including GIZ, SNV, New Zealand, IFC/WB, UNIDO.
  • A UNDP-MARD policy dialogue on “Accelerating Agriculture Business Towards Low-Emission and Climate-Resilient Pathways in Viet Nam” on 15 November 2019. The objective was to consult with producers and identify agricultural commodity to target. Nearly 50 participants, of which 20 are female, participated. Participants came from MARD ICD, PSAV, Crop Department, Binh Thuan People Committee, Ham Thuan Nam Districts, Binh Thuan Agriculture Department, TE-Food, Lavifood (leading fruit processing firms), Farmers from Cooperatives of Dragon fruits, IFC representative, SNV.
  • Organization of a consultative workshop by UNDP-VUSTA with technology businesses on 17 December 2019 to discuss engagement in sustainable business in Southern Viet Nam. A network of interested businesses promotes technology application in sustainable and climate smart agricultural supply chains. Approximately 150 participants (of which 30% are female participants) discussed cooperating to enhance market access for green commodities to retailers and exports. Relates to Climate Business Index and Greening supply chains. 

 

Next Steps

Consultations with producers to make production sustainable, and agree on the scale of supply chain intervention (seeds to packaging). For dragon fruit, discuss change of energy source for lighting and encourage switch to renewables.

 

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