Log in
Business

Hanoi expands supply chain model of agricultural product

The integration of production along the value chain has brought benefits to cooperatives and farmers, helping to reduce many intermediary stages, lower production costs, and increase product value.

In recent years, Hanoi's agricultural sector has developed and expanded reliable supply chain models from production to processing and consumption of agricultural products. According to local insiders, these supply chain models not only offer high economic efficiency but also assist farmers in using modern manufacturing techniques, maintaining control over the product's origin, cutting out intermediary stages, and raising the value of the finished product.

Models with high economic value

 The rice production area, a link in the supply chain of quality rice in Ung Hoa district. Photo: Lai Tan

The Doan Ket Agricultural Service Cooperative (in Ung Hoa District) is committed to buying the entire rice production of 2,181 households from ten cooperatives in various neighboring villages, under a partnership agreement signed during the last spring harvest season.

The Director of the Doan Ket Cooperative, Cao Thi Thuy, says the cooperative has planted japonica rice and premium commercial rice that meets export criteria on an area of 100 hectares. The government has fully funded the cooperative for rice seeds, fertilizer and pesticides.

To further boost sales, the cooperative has also partnered with Chau Anh Company, which operates nearly 20 rice retail outlets in Hanoi and distributes to the northern provinces of Bac Ninh, Thai Nguyen, Vinh Phuc and Phu Tho. On average, the cooperative sells around 3,000 tons of paddy and 1,000 tons of Japonica rice produced by local farmers each season at a stable price.

Another typical model can be seen in Thanh Tri District, where Yen My and Duyen Ha communes have successfully integrated the supply chains for growing, harvesting and selling safe vegetable products. So far, more than 200 households have signed contracts to participate in the safe vegetable supply chain with An Phat Cooperative, Dai Lan Commercial and Service Cooperative and Davicop Company, according to Nguyen Thi Tuyet Anh, Head of the district's Economic Division.

She explained that by producing within the supply chain, the buying companies provide stable offtake (around 30% of production volume) at prices 10-15% higher than the market, which helps to increase farmers' incomes.

"In order to sustain the supply chain model, the district has subsidized 50% of the cost of fertilizer and pesticides for participating households," she pointed out.

According to Luu Thi Hang, Director of the Hanoi Sub-Department of Crop Production and Phytosanitary Protection, the spring 2024 season saw the effective implementation of several crop production supply chain models in Hanoi, such as high-quality rice in Ung Hoa District and safe vegetables in Thanh Tri District.

She cited the example of the chilli pepper supply chain model between T9 Agricultural Export Import Company (in Dan Phuong district) and Ung Hoa and Chuong My districts, which has generated significant economic value. The company's director, Bui Thien Truong, said they had provided seedlings, technical advice and purchased products from farmers.

According to the Hanoi Sub-Department, the city has established and developed 159 supply chains, 93 of which are based on crop products. By participating in these supply chain models, farmers have received guidance on production processes, management and community-based organisation, as well as the application of new scientific and technological advances. In particular, they are guaranteed a market for their products.

For the companies and cooperatives, the supply chain model ensures a steady supply of high quality raw materials, large and consistent product volumes and the ability to meet the growing demands of the export market, the agency said.

Quality control

 Growing seedlings at Thanh Ha Agricultural Production and Service Cooperative, Thuong Tin District. Photo: Lam Nguyen/ The Hanoi Times

The integration of production along the value chain has brought benefits to cooperatives and farmers, helping to cut out many intermediaries, reduce production costs and increase product value. However, the linkages are still loose, leading to easily broken contracts, according to local insiders.

Bui Hanh Hieu, Director of Bao Minh Agricultural Processing and Trading JSC (Hoang Mai District), said that localities should plan to build production areas with appropriate scale and types of agricultural products, apply safe production methods such as VietGAP, GlobalGAP, ensure quality, and facilitate enterprises to sign large consumption contracts with stable prices.

She recommended that Hanoi focus on establishing production area codes to trace the origin and make information on the production area transparent and the agricultural products produced in the chain.


Nguyen Manh Phuong, Deputy Director of Hanoi's Department of Agriculture and Rural Development, confirmed that the city will continue strengthening production-consumption linkages in the coming period. Localities will focus on building large-scale agricultural production areas, attracting enterprises to invest in production linkages and product consumption.

He added that Hanoi has also supported farmers and cooperatives to participate in product promotion programs, and strengthened the inspection, monitoring and certification of the quality of farm produce.

In addition, local authorities are helping cooperatives improve their management capacity, develop production plans, and connect with the market, acting as intermediaries between farmers and businesses. They will regularly assess and forecast the supply and demand of agricultural products in the market to help the chains adjust their production and business activities accordingly, Phuong said.

"Enterprises and cooperatives have cooperated with provincial and municipal postal services to list their products on e-commerce platforms PostMart.vn and Voso.vn. They have also set up outlets in some localities to sell safe agricultural products to consumers nationwide, thus ensuring a market for the linkages," Phuong said.

Reactions:
Share:
Trending
Most Viewed
Related news
Hanoi pilots digital document exchange platform to support businesses

Hanoi pilots digital document exchange platform to support businesses

Once fully operational, the system could establish a comprehensive digital ecosystem linking the government and businesses.

CMC to build US$250 million green data center in Ho Chi Minh City

CMC to build US$250 million green data center in Ho Chi Minh City

Construction on the hyperscale data center is expected to begin in 2026.

Green logistics becomes a must for Vietnamese firms

Green logistics becomes a must for Vietnamese firms

Experts have called for greater policy dialogue, technology transfer and investment collaboration to enable Vietnamese logistics companies to implement green transformations effectively.

Coca-Cola inaugurates US$136 million green-certified plant in Vietnam

Coca-Cola inaugurates US$136 million green-certified plant in Vietnam

The new plant is the company’s largest of its three production facilities in Vietnam.

Vietnam pledges deeper reforms: Prime Minister

Vietnam pledges deeper reforms: Prime Minister

The government is transitioning from a passive management approach to an active service delivery model to optimize conditions for both citizens and enterprises.

Hoa Phat to build US$130-million industrial park in northern Vietnam

Hoa Phat to build US$130-million industrial park in northern Vietnam

The Hoang Dieu Industrial Park is poised to become a premier destination for domestic and international investors in northern Vietnam.

Vietnamese firms seek to export to South Korea

Vietnamese firms seek to export to South Korea

The goal of Vietnamese businesses aims to seek buyers and connect with strategic partners at the fair.

No eco-industrial parks certified in Vietnam

No eco-industrial parks certified in Vietnam

High costs, technological limitations, and a lack of regulatory policies prevent industrial parks from going green.