VIETNAM – Ha Tinh Farmers’ Union and IFAD cooperation results in a sustainable economy and harmony in the community

Ha Tinh, Vietnam — In the cooperation framework between Viet Nam Farmers’ Union (VNFU) and International Fund for Agricultural Development (IFAD), Ha Tinh provincial Farmers’ Union and provincial IFAD signed the Agreement “Establishing partnership of cooperation on the implementation of activities under the design of provincial IFAD project” (Sustainable Rural Development for the Poor Project in Ha Tinh province- SRDP) on February 21, 2014, in order to implement general missions on the development of agriculture, farmers and rural areas.

Some of the activities of Ha Tinh FU in cooperation with provincial IFAD:

• Promotion of enterprises with potential investment in the agricultural sector in the areas of the project according to PPP model
• Coordinating to organize training courses
• Coordinating to organize and make a demonstration of agricultural development of climate change adaptation and financial feasibility
• Support for the development of collective economic forms
• Support for loans for the production of models from sources: Supporting Fund for Farmers of Ha Tinh FU, Agricultural bank, Policy bank

The collaboration between Ha Tinh FU and IFAD resulted to the following:

1. Capacity building courses

• Vocational trainings for rural labors: 36 classes, 1,116 trainees
• Skill trainings: 167 training classes, 6680 trainees
• Training of Trainers (TOT): 1 training course, 30 core trainers  (the fields of animal husbandry, cultivation)
• Training to improve the management capacity of FU staff
• Field visits to learn from successful models in other provinces

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2. Promotion of enterprises with potential investment in the agricultural sector in the areas of the project according to PPP model

• 10 seminars on “Replication of  value chain production and business models”
• 800 participants: farm owners, enterprises, Department of Agriculture, Department of Industry and Trade, commercial banks
• Establishing value chain models of agricultural production that  linkage with some enterprises as followings: medicinal plants model (scale of 20 ha), passion fruit model (15.85 ha), gingers planting in bag model (50,000 bag/ha x 2 ha), pig, cow feeding models, Solanum procumbent trees (30ha)

3. Organized demonstration of agricultural development of climate change adaptation and financial feasibility

• Value chain models: Medicinal plants; passion fruit trees; Solanum procumbent trees; gingers planting; pig, cow feeding

To support the models, Ha Tinh FU conducted activities:

• Provided support for the development of collective economic forms
  • 2016: Guiding the formation of 302 cooperatives, cooperative groups (in which: 54 value-chained cooperatives).
• Provided support for loans for production models from sources
  • Supporting Fund for Farmers of Ha Tinh FU, Agricultural bank, Policy bank

Result of the partnership

• Through vocational training: changing the methods from theory to “learning by doing” (practicing at farms and vocational training models of FU); improving skills for farmers: writing business plan, negotiation skill and signing contract, market approach, marketing
• Through the seminars: identifying the roles of relevant stakeholders: the State, Farmers Union, Enterprises, Scientists and Farmers.
• Impact on policies:
  • Loan policies: loan supporting with low-interest rates, high level of borrowing with simple procedures
  • Land policies: Enlarge scale, reduce tax, reduce the fee for renting land
  • Policy on manufacturing infrastructure: Traffic, irrigation, electricity
  • Policy on Science and technology transfer: support the transfer of Israel’s irrigation system
  • Market access policy: fair organization, support for building a brand name of the products
• Impact on policies of supporting agriculture, rural in the province: FU together with relevant Departments and Agencies have supervised and reviewed some supporting policies to suit the reality of the province.

The impact on policies, methods, and forms of vocational training shows that the Ha Tinh FU activities that were better supported lead to the development of the agricultural production chain, creating both sustainability in the economy, harmony in the community, and benefits for the environment.

The Passion Fruit Model was established in 2015 under the cooperation between Ha Tinh FU and provincial IFAD, complemented with linkages with local authorities, enterprises, and farmers.

• Scale: 15,85 ha/ 16 households/ 2 communes.
• Place: Đức Hương and Hương Quang communes, Vũ Quang district, Ha Tinh province
• Cooperative name: Hương Giang cooperative
• Engaged company: Nghe An Passion fruit Company Ltd,.

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The Roles of Relevant Stakeholders

• Authorities: Provision of support with regard to land, creating a good condition for enterprise signing contracts with farmers
• Farmer’s Union: Propagandizing, mobilizing, and guiding the establishment of co-operative, transfer technology, organizing training courses, connecting enterprises to sign contracts on product consumption, supporting with loans
• Provincial IFAD Coordination Board: Provision of support for funding for the model
• Enterprise: Provision of support with varieties, production process, product consumption

Results for farmers

• The custom production changed from small scale to centralized productions to improve high quantities of goods.
• Stable production from input to output (enterprise contracted on seed supply, technology transfer, product consumption)
• Economic efficiency is higher, the average yield is over 107 million VND / ha/year, models with high productivity (30 tons/ha/year), a profit of over 187 million VND / ha/year

Results of the implementation of the agreement

• The agreement facilitates FU to participate in the IFAD project’s activities in the province.
• The Provincial FU has developed the pilot models to replicate.
• The capacity of FU staff has been improved.
• The relationship between the Provincial FU and relevant departments, agencies have been strengthened.
• The position, prestige of the Provincial FU has been strengthened in actively advising the authorities to issue guidelines and policies to better meet the demands of farmers
• FU is facilitated to participate and implement some parts of the IFAD project, as well as some socio-economic development programs of the province.
• Other resources, programs, and projects have been mobilized to invest in the program.

Challenges

• The staff capacity of the FU is limited in approaching the project and knowledge of the market economy.
• The approval of the plan sometime is delayed, affecting the progress of activity implementation.
• The impact of the project on the policies of the local authorities at all levels in the fields of agriculture, farmers, and rural is limited.

Lessons learned

• Develop a suitable cooperation program with the capacity of each side, close to the actual needs of the farmers
• Publicity, transparency, strengthening inspection, and supervision
• There is a need to attract more resources
• Build and replicate successful models
• Raise awareness and self-awareness of participants