PUBLIC-PRIVATE PARTNERSHIPS: PROMOTE AND IMPROVE THE COMPETITIVENESS OF VIETNAMESE DAIRY PRODUCTS

On September 24, 2019, in Hanoi, the Ministry of Agriculture and Rural Development (MARD) organized the "Livestock Outlook and PPP Dialogue Forum: Challenges and Potential to develop dairy farming and dairy products "and" Introduction of PPP Task force on livestock".

The forum aims to enhance cooperation between public and private sectors in the livestock industry, especially the dairy sector, creating opportunities for dairy industry partners to exchange information, share experiences, and develop cooperation opportunities.

According to statistics from the General Department of Customs, Vietnam's dairy products are currently available in 46 countries and territories. It is forecasted that milk exports would still have many opportunities to make breakthroughs in the coming time, especially exporting dairy products to Chinese market.

In 2018 alone, the total revenue of the dairy industry reached VND 109,000 billion (about 4.781 million USD). Vietnam has risen to the 6th position in Asia in terms of milk production and 4th place in the productivity of milking cows. Many closed production value chains from production in dairy farming to consumption have been effectively formed and developed. The percentage of chain link in dairy farming accounts for nearly 100%, the highest in agricultural production today.

In addition to the potential and advantages, the dairy industry also faces many challenges such as: small, scattered, animal husbandry, food safety and hygiene, milk quality, animal husbandry techniques, production lines and technology as well as challenges in the context that Vietnam has been participating in many free trade agreements, especially when Vietnam joined the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Free Trade Agreement between Vietnam and the European Union (EVFTA).

Many delegates have discussed the ideas that the development of dairy herds should not focus on increasing quantity of the herds but rather in applying science and technology towards improving the quality of breeds; developing farms focusing on hi-tech application in milk production and processing; Gradually reducing small-scale and scattered dairy farming; encouraging the development scale of each farming household to gradually stabilize with the quantity from 50 to 100 heads per household.

Tong Xuan Chinh, Deputy Director of the Department of Livestock Production, said that in order for the dairy industry to develop sustainably, effectively and ensure safety, it is necessary to plan a specialized region to encourage investment on dairy sectoral development; strengthen joint ventures and close links between farmers and factories, purchasing and processing facilities, due to the fact that the dairy products must be preserved, and farmers cannot bring them to market for sale by themselves but they must go through the business channels. On the basis of public - private investment, MARD units will support businesses and farmers in terms of mechanisms, policies and build models for replication in the coming time.

At the forum, the delegates discussed the situation of dairy farming and the development orientation to 2030; assessing the impact of free trade agreements, including the impacts of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and the Vietnam-EU Free Trade Agreement on the dairy industry. At the same time, experts also provided forecast on the market potential of dairy and dairy products in the coming years; and dialogue on challenges to develop the dairy farming value chain - the roles of the Government, farmers, social organizations and businesses.

Speaking at the Forum, Deputy Minister Phung Duc Tien stated that the livestock industry in general and the dairy industry in particular need to accelerate the process of restructuring the industry, gradually shifting from small-scale animal husbandry to farming household level husbandry in line with local reality; Developing animal husbandry in association with diversifying processing, increasing added value of livestock products, forming and developing processing industry to meet the demand for food and raw materials for industrial purposes. The close cooperation in the form of Public - Private partnership is expected to help the growth of the livestock industry in general and dairy farming in particular in a sustainable and environmentally friendly manner.

Deputy Minister Phung Duc Tien reaffirmed that the Ministry of Agriculture and Rural Development had pioneered in the establishment of the Public-Private Partnership Program and is committed to promoting dialogue with businesses to grasp the issues that arise in practical implementation, to promptly remove difficulties and provide complete incentive policies to attract investment in agriculture and rural areas, especially in the livestock sector.