Denmark Actively Supports Vietnam’s Sustainable Economic Development

Over the past 40 years, the Government of Denmark has funded a considerable amount of non-refundable ODA for agricultural, fishery and rural development projects in Vietnam, helping the Southeast Asian nation to eradicate hunger, reduce poverty and achieve sustainable economic development. On the occasion of the 40^th anniversary of diplomatic relations between Vietnam and Denmark, Vietnam Business Forum interviewed Mr Vu Van Tam, Deputy Minister of Agriculture and Rural Development and General Director of Directorate of Fisheries, on this issue. Nguyen Mai and Anh Son report.

 

It is certain that Danish Government-funded projects and programmes have generated great outcomes which significantly contribute to improving people's lives in project-benefited areas, eradicating hunger, promoting rural development and reducing poverty in Vietnam in general and in the agricultural sector in particular.

 

Currently, the Ministry of Agriculture and Rural Development is implementing and managing many Danish Government-funded non-refundable ODA projects, including the “Agricultural and Rural Development Sector Programme Support in the 2007 -2012 period” (ARD SPS) with two national components and five provincial components with a total budget of 330 million DKK (US$37 million). The project mainly focuses on the management of natural resources and human resources with the participation of local people to reduce poverty in rural areas, especially the ethnic minorities in mountainous areas. The project, which mainly focuses on public-oriented natural resource and human resource management, aims to reduce poverty in rural areas, particularly ethnic minorities in the highlands.

 

Other typical projects include the US$66 million Vietnam Water Sector and Sanitation Programme Support in the 2006 - 2011 period, the US$900,000 “Creating Flooding-tolerant and Salt-resistant Rice for Tidal Region in Central Coast of Vietnam” Project which is implemented from April 2010 to April 2012, the the VND22,746.7 billion “Optimising Environment-friendly Biogas Production from Livestock Manure for the Reduction of Greenhouse Gas Emissions” in the 2011 - 2014 period and the US$950,000 “Impacts of Climate Change and Adapting Bio-security Measures for Aquaculture in Northern Vietnam” Project (JCA) for the 2011 -2013 period.

 

These projects and programmes, both completed and ongoing, are generating positive effects on changing production practices, enhancing knowledge of farmers and grassroots officials in livelihood development in order to eliminate hunger, reduce poverty, develop sustainable agriculture, process agricultural products and access markets.

 

Fishery is a major export-driving sector of Vietnam with average annual growth of 18 percent. At present, Vietnam is ranked sixth in the world in aquatic export, third in aquacultural output, and 13^th in commercial fishing. Aquatic output rose from more than 1 million tonnes in 1990 to over 5.2 million tonnes in 2010, while export revenues climbed from US$205 million in 1990 to over US$5 billion in 2010, of which US$2.1 billion came from shrimp and US$1.43 billion from tra fish. Such impressive progress is attributed to the efforts of farmers and the fisheries sector coupled with international cooperation and support, including from Denmark.

 

In 1993, the fisheries sector was chosen as one of three sectors in Vietnam to be granted Danish official development assistance (ODA). The first phase of the Fisheries Sector Programme (FSPS I), US$41 million funded by the Danish International Development Agency (Danida), helped improve sector administration and management approaches, build sector policymaking and structuring, develop personnel training, set up management information system, networking system, fisheries resources surveying methods, promote exports by processing aquatic products of international standards, food safety and hygiene. The second phase of the Fisheries Sector Programme (FSPS II), which started in 2006 and ran to 2010, included four components applied to central ministries and branches and nine provinces. The programme is extended through June 2012. This phase supported Vietnam's fisheries sector to complete its institutional system, including relatively modern information technology which is aimed at meeting the current high demand for information. Besides, it enhanced the participation of the fisherman community for the sustainable management and development of the fisheries sector, supported developing commercialised aquaculture as well as new breeding species. The second phase mainly focused on eliminating hunger, reducing poverty for fishermen, strengthening fisheries administration (master and doctorate training), and supporting sustainable development of aquaculture in economic, social and environmental aspects.

 

In the past 18 years (1993 - 2011), Denmark’s assistance has played an important role in enhancing accessibility to international market standards from capturing and culturing to processing and consumption. Those standard requirements are not only integrated in State management policies on fisheries, but also effectuated by businesses in Vietnam. This continued benefiting poor people in many localities and presented them the opportunity to escape poverty. The access of Vietnamese seafood businesses to international partners, including Danish, is a necessary requirement to continue improving technologies, governance skills and product quality through commercial linking activities for companies of both countries initiated by the Ministry of Agriculture and Rural Development (Directorate of Fisheries) and the Danish Embassy in Vietnam. The two agencies are promoting cooperation in the next stages.

 

In the coming time, we will continue supporting two fisheries programmes. The third programme is the Vietnam - Denmark trade partnership. The programme, to be carried out with a total budget of 8 million Danish kroner (US$1.48 million), is now in the process of feasibility study, which includes the intention of establishing the Vietnamese Danish Aquaculture Technology Excellence Centre (VIDATEC). The centre comes in the form of public private partnership. It aims to become a Danish - Vietnamese platform for advancing new aquaculture technology, practices and training, with a focus on increasing the quality of Vietnamese seafood production. 

 

It is the bridge for Danish businesses to introduce high-tech fisheries products and for Vietnamese businesses to access quality control techniques in accordance with export product value chains from input stages to export processing stages. It also provides necessary conditions for international companies to contact producers of different scales to promote cooperation, business and investment on the principle of mutual benefit. It also supports capacity building for Vietnam Fisheries Society (VINAFIS) and the Vietnam Association of Seafood Exporters and Producers (VASEP). In October 2011, Vietnam sent a group of businesses and officials to attend a Danish seafood trade fair to exchange equipment and enhance trade links with other countries.