Export Opportunity for OCOP Products

According to the Central Coordinating Office for New Rural Development, a great number of distributors, retailers and e-commerce sellers have signed major sales contracts for many products qualified for standards of One Commune One Product (OCOP) Program. The sales of certified OCOP products have increased significantly year after year.

Strengthening connectivity

With the potential and advantages of agricultural products, along with government-backed support mechanisms and policies, the OCOP Program has effectively tapped the strengths of each locality. Mr. Ngo Tat Thang, Deputy Chief of the Central Coordinating Office for New Rural Development, said that in order to promote the OCOP product marketing chain, the Government issued many pressing documents but the progress of OCOP Program in some provinces and cities is still slow, typically Lang Son, Lai Chau, Tay Ninh, An Giang, Bac Lieu, Ca Mau, Cao Bang, Thai Binh, Binh Duong, Binh Phuoc and Kien Giang, because of insufficient knowledge and unresolved direction of local leadership and shortage of qualified consultants.

Ms. Pham Thi Thuy Linh, Business Development Director of Central Retail Vietnam, pointed out limitations that make OCOP products out of reach of consumers and exporters. Many businesses and cooperatives with OCOP certification do not really care about bringing products to supermarkets to reach more customers, she explained. Therefore, Big C has been trying to support businesses, cooperatives and producers to bring their OCOP products to modern distribution systems, develop markets and boost brand names. At the same time, they are advised to complete final documents and procedures to bring 50 more OCOP products to Big C and GO systems!

Export opportunity

The OCOP Program has encouraged many businesses and producers to actively tap the potential of rural specialties. This is a startup opportunity for farmers, cooperatives and many smallholding businesses in Dong Nai to invest in agriculture.

Although according to evaluation results, Dong Nai has only two 4-star products but it has many 3-star products, some of which even satisfy 4-star class in some criteria. Participating businesses and producers are also very keen on upgrading certified OCOP products. Seeking export markets is also one of the important criteria to improve OCOP products.

Ms. Hoang Thi Kim Anh, Director of An Hoa Hung Agricultural Cooperative (based in An Hoa Ward, Bien Hoa City), said that the OCOP Program of Dong Nai has successfully promoted the so-called OCOP spirit - a spirit of community, encouraged and marketed local products and specialties. Therefore, although the cooperative has many product lines, it only chooses a specific product drawing interest from consumers; that is Cao An essence, as an OCOP product. Since it was registered to become an OCOP product, the cooperatives has been supported by the province to join many product marketing and promotion programs. Consumers everywhere know this is a unique product of Dong Nai.

According to Mr. Tran Quang Tinh, Director of Viet Farm Trading Co., Ltd., the company's products fully meet 4-star or 5-star OCOP standards because they have GlobalGAP certification. In 2020, the company will export the products to Japan and Europe because importers have already discussed cooperation plans with the company to export products. "In the coming time, the company will focus on adding more requirements and perfecting the profile to further raise the product quality. And, the most important requirement is export market development,” he said.

Sharing the same view, Mr. Dang Tuong Khanh, Director of Trong Duc Cacao Co., Ltd (based in Phu Hoa commune, Dinh Quan district), which has one of two 4-star OCOP products in Dong Nai province, said, “In the coming time, we will continue to adjust OCOP criteria to upgrade the certified product.” To have an OCOP product, the company has to meet a lot of criteria like using 70% local inputs, ensuring safe production and meeting export requirements, he said. The company’s product is rated 4-star because it is made from organic products in Dak Nong province and qualified for export.

However, according to some companies participating in the OCOP Program, to scale up the program, the government should have more consistent policies, from management to sanctions, to select right companies to invest in the agricultural sector. Production must be directed toward sustainability rather than hit-and-run interests. Investing to build processing facilities right on input locations is an advantage to scale up the sustainable OCOP Program.

In addition, the OCOP Program should have more support policies for suppliers rather than mass support for farmers in general. Here, suppliers can be qualified farmers, farms and cooperatives and especially must be engaged in the supply chain. Therefore, this will encourage farmers and cooperatives to become professional and sustainable suppliers, helping address difficult problems: Fragile connectivity of enterprises and farmers lack of mutual confidence in building a production chain.

By Minh Ngoc, Vietnam Business Forum