In Vietnam, the private sector is operating with previously unseen dynamism. Assigned by the Germany Federal Ministry for Economic Co-operation and Development (BMZ), GTZ (Deutsche Gesellschaft fur Technische Zusannebarbeit – or German Technical Co-operation Agency) has begun its development partnership with the private sector to develop Public Private Partnerships (PPP) programme. Under the programme, the Vietnamese coffee industry has been chosen to implement some projects, helping the industry to gain sustainable development.
Doan Trieu Nhan, chairman of the Vietnam Coffee and Cocoa Association (VICOFA), said that over the past two decades, the Vietnamese coffee industry had seen rapid development with one million tonnes of exported coffee. However, the industry faces many difficulties, in particular water resources. Nhan said that it was necessary for Vietnam to protect the environmental, social and economic factors in order to build its coffee industry.
The target of the local coffee industry is to avoid any big changes in production that the industry experienced in the past while improving the quality of coffee for export. The strategy aims to create a solid foundation for the coffee industry. However, on its stabilisation path, the Vietnamese fledgling coffee industry has to cope with many challenges and difficulties, emerging right in its rapid growth. At present, the local industry’s production output has seen a higher increase than that of the development of necessary infrastructure facilities for processing and transportation. Therefore, technological investment should be promoted in coffee farming areas. To improve the quality of coffee products is a top priority of coffee roasting and drying firms in many countries, including Vietnam.
To develop solutions, suitable with Vietnam’s situation, GTZ and two leading coffee roasting and drying firms in Europe, Kraft Foods and Sara Lee/Douwe Egberts, decided to implement an example project on coffee farming and processing. Their target is very clear as they want to create a high quality coffee supply source from Vietnam, which is produced in the best environmental and socially responsibility manner. Vietnamese partner, the Tan Lam company wants to expand its co-operation with famous coffee roasting and drying firms. After two years, significant progress in coffee farming and processing can be seen, and the experiences of the Tan Lam company have been transferred to other local coffee producers via VICOFA. Vietnamese coffee farmers and producers have benefited from the project by attending training courses.
Thomas Finker, representative from GTZ Vietnam, said that GTZ and foreign enterprises were happy to see their efforts benefiting the local coffee industry. Three pilot projects on changing Vietnamese people’s ways of doing business were implemented in three provinces, including Son La, Quang Tri and Dak Lak. For sustainability of the local coffee industry, the projects offer local farmers higher incomes and benefits as they can sell their coffee products at higher prices, while reducing their production costs. The projects have also helped foreign processing plants or companies to develop closer co-operation with Vietnamese coffee producers, helping consumers understand how coffee is produced in a sustainable manner. According to the Ministry of Agriculture and Rural Development, the project is proving a useful tool for a sustainable development strategy for the Vietnamese coffee industry. Thus, Vietnam has a favourable condition to recreate the model nationwide.
Annemieke Wign, representative from Kraft Foods, said that Vietnam was her company’s major coffee supplier. Therefore, the company has paid attention on how to help the Vietnamese coffee industry develop in a sustainable manner as consumers increasingly require coffee products supplied from sustainable supplies.
Nhan said that it was important for each country to improve its own competitiveness, meeting quality, and food hygiene and safety requirements. Wign, on the other hand, affirmed that sustainable production was a solid insurance for the industry’s development.
Kim Phuong
Vietnamese
