VIETNAM SHRIMP VALUE CHAIN: GOT MARRIED – BECAUSE OF LOVE

Vietnam aquaculture sector in generally and especially shrimp industry are facing difficulties: i) shrimp raising is still risky; ii) unstable exporting market; iii) Dense/complicated standard systems; iv) the clean products are not sold with good prices… therefore Vietnam shrimp industry needs to have a new direction – linking closely from technology, production inputs to production outputs in shrimp production to increase effectiveness of production as well as exporting. In addition the new direction will uplift Vietnam shrimp value and image.

However, signing “linking contracts” likes signing “marriage registration” paper. In order to have long lasting marriages – sustainable linkages, it needs to have “true love”. We - the SusV project management team facilitates shrimp value chain linkages, playing a role as a matchmaker, it needs trust to have the shrimp value chain actors to sit together and it needs love to link them together.

We are building the linkages, facilitating “shrimp industry marriages”, however it is not easy to form a good Marriage, we often talk the arrangement as the dialogue of “facing – challenging – being open hearted”.

- Facing: it is to meet bilaterally to directly share and discuss all issues, expectations

- Challenging: the shrimp industry have formed and developed for 20 years, Vietnam government, NGOs, private sectors have tried to form chain linkages but only a few linkages worked successfully because of shrimp industry is quite risky, 80% of shrimp producers are small-scale and segmented hence any organizations, companies want to join the value chain linkages, it means that they join a challenging game.

- Open-hearted: As reviewing the value chain linkages in recent 10 years by ICAFIS, it shows that “value chain linkages are weak”, most of value chain linkages broken because value chain actors lacked commitment and they did not build strong enough “TRUST”. So that any company, Farmer group/cooperative wants to join a value chain linkage, first of all they need to come together by heart and build “trust” to each other’s.

On 12, 13 April 2017, In Bac Lieu, has a company bring love to get married like that.

South Vina Shrimp Joint Stock Company: the company was established in March 2015, it has fast and stable growth speed, it has become the fourth biggest company in Bac Lieu province with the exporting revue of US$ 40 billion in 2016.

Vision: becoming a symbol of Vietnam clean shrimp with mission: i) committed to provide exclusive clean shrimp, protect customers’ health and ensure social responsible; ii) protect of Vietnam clean shrimp brand. With the vision, South Vina Shrimp Company always links with communities (shrimp farmer groups/cooperative) in order to create real values.

Ensure the clean quality: Via building value chain linkages with strictly control of inputs, outputs in all steps of shrimp production and processing as well as ensure the product’s traceability in order to get international standards such as ASC, BAP, SEASAIP. South Vina Shrimp Company commits to “Clean from Production inputs, Delicious taste”

Sharing with communities: Realizing the difficulties that shrimp producer communities are facing in Vietnam, with the mission “committed to bring different value by providing clean shrimp”, South Vina Shrimp Company committed to link with smallholder shrimp farmers to build “clean shrimp” brand together by joining value chain linkages and sharing with communities.

“Sharing with communities” policies: The Company support: i) buying clean shrimp and ASC certificated shrimp with higher prices (3 – 5%) in comparing with market prices; ii) support the cost of harvesting, transferring, taking and analyzing sample; iii) Support 50% of shrimp seed for farmer groups/cooperatives apply extensive method to get ASC certification; iv) Support cost of ASC auditing and maintain the certification.

Coming to communities by “Heart – Love” with the “sharing with communities” policies, the company has signed linking contract with 02 farmer groups (30/4 and Vietgap farmer groups), 01 shrimp production area in Vinh Loc commune, Hong Dan district, Bac Lieu province. On April 12, 13, the company has signed linking contract with Thanh Cong 1 farmer group (on Gia Rai district) and Thanh Dat cooperative (in Dong Hai district, Bac Lieu province)

 

Mr. Bien Viet Nhu, the General Director of South Vina Shrimp Company shared “The linkages are very profitable for the company: i) ensure the input source; ii) ensure produced shrimps are clean and it is convenient for buying shrimps; iii) Getting awarded ASC and other international standards… it helps the Company to stabilize production, product’s quality and ensure the Company’s competiveness on the market”.

Xuân Lập, Thế Diễn - ICAFIS

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