Chain Analysis of Safe Vegetables in Viet Tri and Lang Son Cities

Benoit Trudel
Dang Vu Hoai Nam

J une 2009
Safe Vegetables in Viet Tri City, Phu
Tho Province and
Lang Son City, Lang Son Province
Chain Analysis Report

Chain analyis Safe Vegetables in Viet Tri and Lang Son. Benoit Trudel, Dang Vu Hoai Nam, J une 2009.
2
Table of Content

1. INTRODUCTION
1.1 Background 4
1.2 Objectives of Chain Analysis 4
1.3 Methodology 5
2. SAFE VEGETABLE PRODUCTION IN VIETNAM
2.1 Overview of safe vegetable production 6
2.2 Definition of safe vegetables 8
2.3 State management of SV 8
2.4 Conditions for production of safe vegetables 9
2.5 SV training by DARD 10
2.6 Procedure for certification of SV production area 12
2.7 Procedures for certification of safe vegetables 13
2.8 Self-certification of SV products 14
2.9 Cost analysis for regular vegetable and SV in Viet Tri 16
2.10 Safe vegetable production investments costs 18
3. MARKET RESEARCH
3.1 Safe vegetables the Hanoi market 19
3.2 Safe vegetables - Viet Tri City Market 23
3.3 Safe vegetables Lang Son City market 28
4. TAN DUC FARMER GROUPS
4.1 Organization Tan Duc farmers groups 36
4.2 Production plan for 2009 38
4.3 Marketing 39
4.4 Information sources 40
5. NA CHUONG COOPERATIVE FARMERS
5.1 Organization of the cooperative 42
5.2 Production plan for 2009 44
5.3 Marketing 45
5.4 Information sources 46
6. CONSTRAINTS, STRATEGIES FOR CHAIN INTERVENTION
6.1 Main constraints in the safe vegetable chain 47
6.2 Main strategies for chain intervention 49
6.3 Conditions for success 50
6.4 Strategy selection for CD programand potential partners 50

Annex 52

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LIST OF ACRONYMS

ASD-VASI Agrarian System Department-Vietnam Agriculture Science Institude
CD Chain Development
CERDESTA Center for Research and Development of Sustainable Agriculture
CIDA Canadian International Development Agency
ED Economic Department
ICM Integrated Crop Management
IPM Integrated Pest Managment
DARD Department of Agriculture and Rural Development
MARD Ministry of Agriculture and Rural Development
MOA Memorandum of Agreement
NGO Non-Government Organization
PIP Project Implementation Plan
PPC Provincial Peoples Committee
PPS Plant Protection Station
SACD Sustainable Agriculture in Chain Development
SV Safe vegetables
VIETGAP Vietnam Good Agricultural Practices

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1. INTRODUCTION

1.1 Background

VECO-Vietnam is the country office of a Belgian NGO named
Vredesieilanden and has been initiating projects in Vietnam since 1994.
Since 2002, it implemented its Farmers Participation in Sustainable
Agricultural Development and Poverty Reduction program in 3 Northern
provinces of Vietnam Phu Tho, Tuyen Quang and Lang Son. The program
aimed to improve food security of farmers through sustainable agricultural
practices while increasing their participation in the supply chain.

In 2008, VECO-Vietnam launched its new program on Sustainable Agriculture
for Chain Development (SACD) with 5 commodities tea, fish, pig, plum and
safe vegetables. The intervention in the safe vegetable chain has already
begun and MOAs have been signed with 2 parnters The Economic
Department mainly for production support and VINASTAS, a consumers
organization for its promotional activities and public awareness campaign. In
2008, VECO also contracted the services of an expert consultant, Fresh
Studio, to undertake a market survey and a consumer preference survey.

VECO has as well identified its target groups in 2 safe vegetable production
areas of its project sites Tan Duc commune near Viet Tri City in Phu Tho
Province with 2 farmers groups representing a total of 83 farmers. And Lang
Son city in Lang Son Province with Na Chuong cooperative and its 40
members.

1.2 Objectives of the Chain Analysis

The need for a chain analysis became apparent in order to better understand
the safe vegetable farmers, other actors in the chain such as collectors,
wholesalers, restaurants and to identify constraints as well as intervention
strategies. To this end, the analysis aims to bring forth:
An in-debt understanding of what safe vegetables are, its standards,
production techniques, supporting organizations, costs and certification
process;
A detailed overview of the 2 farmers groups in Viet Tri City as well as
Na Chuong Cooperative in Lang Son City, their management, services
offered to members and most of all, a simple production plan for 2009;
Retailing and packaging options in marketing of safe vegetables;
A general overview of some key potential buyers, their supply chain,
pricing, payment method and overall demand in vegetable;
Main chain constraints, potential strategies and key intervention
activities to be undertaken by the chain development program.

5

The chain analysis report will not provide a comprehensive portrait of the
vegetable chain in Viet Tri and Lang Son cities. But it is hoped that enough
information will be provided to help understand how the chain works, its main
actors as well as how VECO can support small scale farmers to strengthen
their position in the chain.

1.3 Methodology

The main research question of this project is:

What are the constraints in safe vegetable production and potential chain
interventions for Tan Duc farmers groups and Na Chung Cooperative?

To answer this question, the research focused on several sub-questions:
What are safe vegetables and how do they compare to regular vegetables?
What role can the 2 Tan Duc farmers groups play in supplying safe
vegetables to Viet Tri markets? Idem for Na Chung Cooperative and Lang
Son markets
What are the characteristics of the marketing channels for produce in Viet Tri
and Lang Son cities?

The analysis was made with very limited resources mainly one field staff
who conducted most of the interviews and one office staff for writing of the
report. Still, it is estimated that key players were contacted and interviewed for
their input during field visits in February and March 2009 for Viet Tri, and April
and May for Lang Son.

The methodology used was
Semi-structured interview with the help of board members with 83 farmers in
Viet Tri and 40 farmers in Lang Son who produce safe vegetables
Semi-structured interviews with over 20 regular vegetable farmers
Chain mapping analysis and interview with retailers, wholesalers, restaurants
and canteens in markets in Viet Tri and in Lang Son cities
Partipatory observation to 4 supermarkets, 11 SV stalls in 2 wet markets and
3 safe vegetables shops in Hanoi
Historical analysis through research Internet as well as printed documents
Interview with experts from the:
o Plant Protection Station in Viet Tri and in Lang Son
o Economic Department in Viet Tri and in Lang Son
o Center for Research and Development of Sustainable Agriculture of
Hanoi (CERDESTA)
o Cultivation Department of MARD in Hanoi
o ADDA organic project, Hanoi
o Thanh Xuan organic project

It is believed that further focussed analysis may be required during
implementation of the chain development program for safe vegetables.

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2. SAFE VEGETABLE PRODUCTION IN VIETNAM

2.1 Overview of safe vegetable production

The Vietnamese economy has developed and evolved quickly since the later
1980s following government reforms. State run agriculture became managed
by farmers directly for the market and saw the use of agrochemicals increase
significantly in the 1990s. Generally, farmers have overused chemicals, often
not following instructions and even using banned and restricted pesticides.
This resulted was many reported cases of food poisoning from chemical
residues and other contaminants such as nitrate and heavy metals.

In 1998, MARD issue the Temporary Regulation for the Production of Safe
Vegetables which was then finalized in January 2007 as the Regulation for
the Management and Certification of Safe Vegetable Production
(No.04/2007/QD-BNN). It was then replaced in November 2008 by Decision
no 99 titled Management of safe vegetables, fruit and tea production and
trading. These regulations introduced guidelines for safe vegetable
production as well as tables showing the Maximum Residual Levels (MRLs)
for permitted pesticides, nitrate, heavy metals, bacterial pathogens and
intestinal parasites which are allowed in soil and in harvested vegetables (see
Annex 1). Many other decisions were promulgated by the government to
somehow guide and support safe vegetable production (see Annex 2 for list)
The government followed the policy initiatives by offered training to farmers on
safe vegetable production and integrated pest management (IPM) in a effort
to improve food safety.
1

Still, despite these initiatives, there were nearly 23, 000 reported cases of
food poisoning in Vietnam including vegetable produce between 2001-2005
(Ministry of Health, 2006). A study done by the Institute for Ecology and
Biology Resources in 1998-9 found nitrate levels from fertilizer use much
higher then MRLs (see Annex 3). In peri-urban areas such as Hanoi where
the majority of vegetables are produced, over-use of chemical fertilizers and
pesticides as well as toxic waste from large industries have resulted in severe
soil contamination and environmental pollution. Health concerns are thus the
primary divers of safe vegetable production in Vietnam.

The production of SV has been increasing over the years in terms of
cultivating land, productivity and yield. So far, there are 40 provinces & cities
nationwide involved in SV production with a total area of 60,000ha accounting

1
Simmons and Scott. Organic Agriculture and safe vegetables in Vietnam: implications for agro-
food system sustainability. p.1-2.

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for 8.5% of total vegetable cultivating area (705 300 ha). There are also
consolidated SV production areas in five provinces which represent the Red
River Link: Hanoi, Vinh Phuc, Hung Yen, Hai Duong and Bac Ninh. The SV
qualified area consists of the current SV production area. For Hanoi, it stands
at 6,320 ha. The planned area for SV prodution for Hanoi is 6,820, although
no time frame is provided.

Table 1: Vegetable and SV production area in Vietnam
Source: Green Earth Magazine. Plant Protection Department. Vol. 26, J anuary 2009. p 7-8.

The Vietnamese Government with the support of INGOs have launched a
variety of programs & projects to develop SV production. So far, MARD and
DARDs have been seeking fund from national budget, local budget and NGOs
to implement different SV projects. This initiative resulted in the following
projects being launched:
Project on food safety in agriculture, an integrated part of the national
action plan 2006-2010;
Project on agricultural products safety and sanitary guarantee
sponsored by CIDA (Canada) with support for SV production and
trading in the period of 2008-2012;
Project on enhancing quality and safety of agricultural products
sponsored by ADB in the period of 2009-2013.

According to the MARD annual report for 2008, training activities were
consolidated, especially for safe vegetables with training on IPM technique
and on SV compliance with the new VietGap system. In localities, some PPCs
allocated budget for SV production models and training. Especially in Hanoi,
there were 100 short training courses on SV production technique; 65 on IPM
for farmers; directions and guidelines to 70 radio stations of 6 districts and to
33 extension clubs to broadcast, promote and disseminate information about
SV production and consumption.
No Province,
city
Vegetable
production
area
(1,000ha)
Productivity
(100kg/ha)
Yield
(1,000ton)
Planned
area SV
production
(ha)
SV
Qualified
area (ha)
Qualified
growing
locations
1 Whole country 705.3 155.5 10,969.3
2 South 368.8 165.1 6,090.1
3 HCM city 9.2 193.9 178.4
4 North 336.5 145.0 4,879.2
5 Red River delta 160.9 185.4 2,982.3
6 Red River link 100.2 185.0 1,862.3 14,816 6,755
7 Hanoi 25.7 175.0 449.8 6,820 6,320 400
8 Hai Phong 13.1 218.3 286.0 2,500 57 3
9 Vinh Phuc 8.5 169.1 143.7 1,500 -
10 Hai Duong 30.5 195.5 596.3 3,000 378 -
11 Bac Ninh 10.3 177.9 183.2 800 13
12 Hung Yen 12.1 185.5 224.5 196 4

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The number of policies put forth by the government to regulate safe
agricultural practices, the rapid development of safe production areas as well
as extensive programs to support its development all indicate an opportunity
for safe vegetable production and marketing in the coming years. VECOs
support should focus on how Tan Duc farmers can take advantage of the
trend and compete in this new market which will surely become more and
more competitive and regulated by government and market leaders.

However, all government policies only focus on SV production and do not
regulate the whole process from production to the consumer. Is there an
organization that has the mandate to take samples of SV in retailing shops in
Vietnam to test whether they meet the MLRs set by the SV regulation? What
would happen if samples fail? Will the farmer lose his SV production area
certificate? The lack of regulation on marketing of SV makes it very easy for
retailers to claim safety of vegetables and sell as SV. So the next step in
government regulation must address marketing of SV, certification of SV,
sample taking of SV and sanctions in order to build consumer trust. As for SV
outlets, it should be compulsory for the shops to clearly display the certificate
of full satisfaction of SV production conditions as well as results from sample
testing or eventually the certificate of SV products.

2.2 Definition of safe vegetables

According to the safe cultivation regulations (Decision no 4/2007/QD-BNN)
safe vegetables mean products of fresh vegetables which are produced,
harvested, preliminarily processed, packaged and preserved in accordance
with the technical process to ensure that the microorganism or toxic chemical
residues are below the permitted maximum limits.

2.3 State management of SV

When dealing with safe vegetable production and certification, it helps to
know the responsibilities of each government body involved. At the national
level, the Cultivation Department which is under MARD is responsible for the
overall planning of SV production in Vietnam. They coordinate trainings and
guide DARD in delivering the certificate of full satisfaction of conditions of SV.
They supervise inspection of SV production areas, organized by the Quality
Control Department of Agriculture, Forestry and Aquatic Products which
would also most likely be responsible for sample taking of SV in retailing
outlets for testing for MLRs if/when produce certification comes into effet and
is regulated by the government.

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The Plant Protection Department is responsible for organizing training on IPM,
ICM and SV production process in coordination with DARD. The Department
for Science, Technology and Environment assumes the prime responsibility
for revising and proposing amendments and formulation of standards and
technical norms for SV production. They also manage research subjects and
trial SV production projects in coordination with the National Agriculture and
Fishery Extension Centre.

Finally DARD is directly in contact with the farmers and has the responsibility
of planning and implementing SV production areas, organizing training on SV
production process, and managing the grant of certificates of SV production
conditions. For more detailed responsibilities for each government body, see
Annex 4.

2.4 Conditions for production of safe vegetables

During the course of the chain analysis, it seemed important to clearly
understand the difference between safe vegetables and conventional
vegetables. How does the production process really differ? The many
decisions delivered by the government as mentioned before highlight some of
the key points that must be followed when complying with safe agricultural
practices:
Farmers must take the SV training delivered by DARD or the Plant
Protection Deparment (see section 2.5 for details)
Only chemicals permitted for SV production can be used and
instructions must be followed
SV production must implement IPM practices
Test of irrigation water, soil and produce cannot exceed maximum level
of residue (MLSs)

Below are more detailed guidelines issued by DARD on safe vegetable
production:

Personnel
SV-producing organizations must be staffed with technical personnel or
sign contracts to hire personnel specialized in cultivation or plant
protection of intermediate or higher level to provide technical guidance
on SV production.
SV producers must go through courses of technical training on SV
production and get certificate from DARD or from any organization
authorized to launch traning courses on VietGAP and regulations on SV
production and trade.

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Cultivation land
Land for safe vegetable production must be approved by the Peoples
Committee and not directly affected by industrial waste or other types of
harmful wastes.
Soil must be tested and quantities of heavy metals must be below
permitted maximum limit.

Irrigation water
Industrial waste water and contaminated water from other discharges
cannot be used.
Water must be tested and quantities of chemicals and heavy metals
must be below permitted maximum limits.

Fertilizers
Safe vegetable production can only use fertilizers permitted for
agricultural use in Vietnam according to prescribed doses, instructions
and methods.
Fertilizers such as barnyard manure, urine, daily-life waste, industrial
waste cannot be used.
Ntrogen fertilizer can only be used 7-10 days before harvesting.

Disease prevention
Safe vegetable production must apply IPM techniques
Use biological insecticides and biological measures
Minimize use of chemicals and comply with use of only allowed types,
proper doses, proper time and proper method for its application.

Production process
Must be in accordance with the new regulation on food safety in
VietGAP.

2.5 SV training by DARD

In order for farmers to be able to obtain the certificate of SV production area,
they must first undergo technical training on SV production.

Tan Duc farmers

The training provided to Tan Duc farmers was only 3 afternoons of class
lessons.

The training manual includes the following sections:

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Part 1 Basic conditions for SV production (referring to government decision
no 99/2008/QD-BNN)

Part 2 - VietGap practices with its 11 articles on soil, fertilizer, water, chemical
use, harvesting and handling of produce, waste management and
treatment, recording and traceability.

Part 3 - IPM practices with a list of 5 main pests and 5 main diseases with clear
Characteristics regarding appearance
How the pest/disease grows and develops
How to prevent (natural precautions) and cure (names of pesticides)

Part 4 - Safe and effective application of chemicals allowed in SV
production
Categories of poisons, appearance of the chemicals (powder, capsule,
liquid), dangers to health when using chemicals and safety measures
(dos and donts), how to use chemicals safely (4 rules right
chemical/time/quantity/method). List of chemcals with clear guidelines
per vegetable on how many days before harvest it can be used.
Long list of pests/diseases with a list of chemicals which can be used,
poison category, quantities, time before harvest.
Long list of chemical herbicides and fertilizers with poison category,
quantities, time before harvest.

Part 5 - Compost concept, material, production techniques, using instructions

Generally, Tan Duc farmers claim that the training gave them a good idea of
what safe production is and they understood better about responsible use of
chemicals. VietGap practices seemed clear but part 3 and 4 on IPM and use
of proper chemicals was too limited. The compost component was the least
effective and they could not understand and apply the techniques.

Under the VECO agreement with the Economic Department, new training on
IPM was provided to Tan Duc farmers since March 2009. Farmers will get in-
field practical training every week for 3 months so this should contribute to
improve SV production techniques and understanding of IPM process.

Na Chuong farmers

The original safe vegetable production and VietGap training offered to Na
Chuong farmers lasted 3 months including in-class and in-field practical
components. It followed a whole crop cycle and provided farmers with
templates for recording farming data.

The training manual itself is quite different than the one for Viet Tri and here
are some key differences:

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- The Viet Tri document describes in detail the new VietGap norms
whereas the one for Lang Son only briefly mentions general Gap
standards in the world;
- Viet Tri document has a detailed list of pests and diseases with
characteristics, prevention and cure whereas LS does not have this
section;
- Both documents have detailed information on chemicals which can be
used for SV production including instructions on application;
- LS document does not cover composting.

We were surprised to find that the SV training document is not
standardized by MARD and can be quite different from one location to
another. This will undoubtedly lead to variation in quality and knowledge
of safe vegetable production process throughout Vietnam.

2.6 Procedure for certification of SV production area

In order for the farmers production area to be certified as safe, the SV
producer must submit to the Plant Protection Department their registration
dossier requesting the recognition of full satisfaction of safe vegetable
production conditions with:
Farmer groups registration with authorities and internal regulations;
An application form for certification of full satisfaction of safe vegetable
production conditions;
A written declaration of safe vegetable production conditions

When the dossier is deemed complete, it is then forwarded to the Agriculture
and Rural Development Department. Within 20 days after the receipt of valid
registration documents, DARD will send a team of 3-5 officers to check the
dossier and cultivating field. They will also take sample of soil and irrigation
water if necessary. If the prescribed conditions are fully met, they shall issue
the certificate of full satisfaction of safe vegetable production condtions. There
are no costs for the farmers in the certification process. The certificate is valid
for 3 years after which re-registration must be made along with a report on
past production results.(Decision No.99/2008/QD-BNN).

Tan Duc farmers have already passed water and soil sample testing but they
are still in the process of preparing all the documents for the application of
certification. This is a critical first step so that they can claim SV production to
their consumers.

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2.7 Procedures for certification of safe vegetables

SV production is being regulated and through this process, MARD has
recognized 7 organizations in Vietnam with the authority to certify the whole
SV process from production soil and water to the produce themselves with
samples sent to a contracted laboratory for testing (see Annex 5 for contact
details).

The Center for Research and Development of Sustainable Agriculture
(CERDESTA) is a non-government organization which falls under the Plant
Protection Association of Hanoi. It is one of those 7 agencies which started
its operations only one year ago along with 3 others in Hanoi. Each agency
seems somewhat independent and can develop their own certification logo,
although they all share the high fee which they charge for their services.

Table 2: Cost for the certification process
Less than 5 ha 6-10 ha land 11-50 ha land
Consulting 15 million 15 million 15 million
Technology
transfer
24 million 36-40 million 48-60 million
Certification 36 million 54-60 million 72-90 million
TOTAL 65 million 105-115 million 135-165 million

The center has an agreement with a laboratory in Hanoi to test soil, water and
products to make sure they do not exceed the maxium levels of residu as set
by the government. Hence, the testing is quite complex and covers a wide
range of:
micro-organisms
nitrate levels
chemical residue
heavy metals

Only 3 labs in Vietnam are recognized by MARD to do these tests one in
Hanoi, one in Danang and the other in HCMC.

A farmers group or company which has completed the certification process
and has met the requirements is then able to use the certification logo of
CERDESTA. At this time, the center has not completed a full certification
cycle for safe vegetable. It has begun the process in Yen Lac district in Vinh
Phuc province with a safe vegetable production company. Once certification is
obtained, the product must be certified again each year at the above
mentioned certification cost.

The high cost of certification for soil, irrigation water and produce will likely
make it impossible for small farmer groups like Tan Duc to apply for, unless

14
they can get the financial backing. This will likely lead to larger agricultural
enterprises working for supermarket chains like HADICO who will be able to
cover such high certification cost thus leading to market concentration for safe
production. However, it is still unclear whether these organizations will
emerge as legitimate certifying organizations warranting the trust of
consumers. The fact that there is no unified logo will surely lead to some
confusion as to which organization has the authority to grant certification.

2.8 Self-certification of SV products

The high cost of using the services of one of the Hanoi certifying organization
leads to the consideration of alternatives for Tan Duc farmers. One of them is
to implement self certification which is often done by organic production
groups. According to Decision no 99/2008, in the event that farmers want to
certify their vegetables as safe by their own means, they must:
Have a certificate of SV production area;
Have nominated a certified lab for inspection to examine food safety
criteria of vegetables;
Have or hire a qualified sample taker;
Have or hire a cultivation or plant protection officer with a university
degree, at least 3 years of working experience and certified for
assessment and internal inspection;

Procedure and content for internal assessment and inspection:
A plan for internal assessment and inspection;
Disseminate and instruct farmers about plan, scheduled figures,
internal assessing and inspecting method, production recording
formats;
Take sample of typical vegetables in cultivation to determine food
safety criteria that meet MLRs;
Based on self-assessment, if conditions are met, producers can
proclaim SV.

Participatory Guarantee System (PGS)

Participatory Guarantee Systems are locally focused quality assurance
systems. They certify producers based on active participation of stakeholders
and are built on a foundation of trust, social networks and knowledge
exchange.

In Vietnam, ADDA has launched an organic project based on PGS. It is an
economical way to certify organic production while at the same time involving
the farmers and consumer in the process to make them accountable. It is

15
thus a grassroot and horizontal process based on trust, transparency and
participation. The farmer must learn and apply the production process, follow
standards, and keep basic farming records. The farmer is individually certified
but must be part of a group and submit to regular inspection to ensure
compliance. A PGS system is managed by a multi stakeholder group
representing farmers, consumer and local organizations.

Inspection is done by taking samples of the soil, irrigation water and produce
at random and taking them to a certified lab for testing. However there are
many chemicals, contaminants and heavy metals to test for and each test
cost around 200 000 VND. So if one wants to test for 20 different residues in
one sample, the cost is around 4 million VND. When chosing lab testing, the
group must carefully choose which residue to test for and keep samples to a
minimum.

An expert on the PGS certification approach, Mr. Chris May, has currently
designed a framework for adapting PGS to a SV production area in Quy Nhon
district, Binh Dinh Province. He believes that the conditions for SV as
presented in section 2.4 of this document could serve as basis for SV
production standards and could be further developed by the multi stakeholder
group. He proposes to create a brand and logo for all SV in the province.

The steps in forming a PGS for SV could be as follows:
Step 1: Farmers interested in producing safe vegetables with a PGS sign a
letter of commitment or pledge to follow SV production process
Step 2: Then, they set up a farmers group with working regulations.
Step 3: The group then invites stakeholders including farmers, local people,
local authority, consumer groups, technicians, possibly environmental groups
to form a local steering group which can then determine and agree on the
standards for SV production
Step 4: They then take part in a training course on PGS dynamics (organized
by ADDA)
Step 5: They set up an internal assessment and inspection plan, choose
testing technique and nominate a certified sample taker and lab for testing
Step 6: When farmers in the group pass the test, they can claim products to
be SV and use logo if any.

Quick Test

The alternative is the Quick Test instead of the expensive laboratory analysis
and testing. With a simple kit, one can quickly test soil, irrigation water and
produce for insecticides, pesticides and fungicides residue. However it gives
only an approximate reading on one or two residue types and does not
measure the exact amount. It does not seem to test for heavy metals or
nitrate content although further study on this needs to be done. For safe
vegetable production where residue is allowed under established maximum

16
levels, the quick test may not be able to give an exact reading on enough
residue types. However, it does seem to be the cheapest and quickest
method of doing soil, irrigation water and produce testing so it requires further
investigation
2
.

In Hanoi, the Saigon Plant Protection Company markets the a Quick Test Kit
for 1,1 million VND which can test for only two categories of pesticides. The
cost for the equipment accounts for 700 000 VND whereas the solvent
represent about 400 000 VND which can be used for 10 tests. So the cost per
test is 40 000 VND (excluding cost of initial equipment). The kit comes with an
instruction manual and more information can be found on their web site -
www.spchcmc.com.vn

ADDA is currently researching the whole testing issue and will need to soon
decide on which chemicals to test for, budget and number of samples which
will form the basis for their inspection. The new organic project in Thanh Xuan
has no experience in sample-taking and lab testing. They have asked ADDA
to support them in this process.

2.9 Cost analysis for regular vegetable and SV production in Viet Tri

In meeting with SV farmers in Tan Duc communes and in discussions with
involved authorities, it seems difficult to assess whether SV production
process is actually more costly than regular production. A general consensus
seems to lean towards affirmative, and quantifying this at around 20-30%.
Farmers and agricultural experts agreed that SV production is more labor
intensive preparing compost, using IPM and manual techniques of dealing
with pests and the yield is less especially at first. Also some farmers use
natural or biological fertilizers, pesticides and herbicides which are
significantly more expensive. One example is the use of bean oil herbicide at
a cost of 160 000 VND/litre which covers one sao. Altho it is very effective, it
is also more expensive than chemical herbicides.
In order to further our understanding of the cost difference between regular
vegetable and safe vegetable production, we interviewed 6 farmers from Tu
Xa communes and 2 from Dai Dong commune who all do conventional
vegetable production. The aim was to get an idea of the main production cost
such as seedlings, fertilizers and pesticides and compare these with SV
production process.

2
Food and Fertilizer Technology Center web site - http://www.agnet.org/library/pt/2002018/

17

Table 3: Regular vegetable production costs
Costs Product Area
(m2)
Crop
/month
Yield
Kg Seed Fertilizer Pesticide Total
Cost/kg
VND
Kale 360 2.6 1,714 40,5 164 110 314,5 183,4
Chayote 360 4.7 2,500 183 200 383 153
Squash
buds
360 3 1,000 60 267 327 327

For the safe vegetable process, 6 farmers from Tan Duc commune and 1 from
Van Noi commune north of Hanoi were interviewed to get the same
production costs for the same vegetables.

Table 4: SV production costs
Costs Product Area
(m2)
Crop
/month
Yield
Kg Seed Fertilizer Pesticide Total
Cost/kg
VND
Kale 360 2,2 1,333 50 183 108 342 292
Chayote 360 5 1,500 134 92 226 159
Squash
buds
360 4 1,100 92,5 287,5 380 342,5

Here are a few of the findings that we can draw from these numbers and from
the individual reports:
Yield for regular production is generally higher than for SV especially
for Chayotte which tops 2000 kg for many farmers while for SV, it turns
around 1000 kg. But the higher cost of regular production results in a
very similar cost per kg for that vegetable.
Kale shows the highest cost/kg difference between the 3 vegetables
resulting from higher production cost and lower productivity

Table 5: Cost comparison
Product Regular production
(VND/kg)
Safe production
(VND/kg)
Difference
%
Kale 183,4 292 37
Chayote 153 159 3,7
Squash buds 327 342,5 4,5

We certainly would need a much broader sample data to be able to draw
conclusions. But still, we were able to notice 2 trends which distinguishes cost
for SV production:
At times production costs are lower because of use of less chemicals which
results in lower yield and similar cost per kg compared to regular vegetables

18
Other times the production cost is higher because of use of natural chemicals
while yield remains low, resulting in a higher cost per kg for SV.

For now there are no costs for the farmer in getting the certificate of full
satisfaction of SV conditions from DARD. If it became compulsory for farmers
to also get a certificate for the produce through an national organization like
CERDESTA, then the cost for SV production and marketing would sky rocket.

2.10 Safe vegetable production investments costs

As shown in Table 6 below, the investment costs for equipment for vegetable
production are quite high with 2 main expenses:
1- Irrigation system including the frames, pipes, sprinklers and pump with
a total of 1 750 000 VND. The life for these is also surprisingly short
between 3-5 years. Maintenance cost is low at 200 000 VND per year.
2- Nethouses are used to protect plants from heavy rain and strong sun
for a total of 1 500 000 VND. Polyetilen can also be used to cover the
soil which helps to prevent insects, worms, weed and frost resulting in
less application of chemicals. However, the cost is high and the life of
the equipment very short at 2 years.

Out of the 83 farmers in the 2 Tan Duc farmers
groups, only one farmer, the leader of Groupe 1
Mr. Thanh, has the irrigation and nethouses
equipment. With Na Chuong Cooperative, none
of the members use nethouses and the irrigation
pump has broken down. The PPC has promised
to cover the cost to repair it by September 2009.
When traveling to Lam Thao district in Vinh Phuc
Province, many farmers there seem to have already installed these types of
equipment (nethouses and irrigation system). If Tan Duc and Na Chung
farmers are to compete and increase their effectiveness while reducing their
risks of adverse effects of climate on production, they will all need to consider
this investment in the near future.

Table 6: Investment & maintenance costs
Investment Value of investment
up to now
Life (yrs) Annual
maintenance cost
Irrigation pump 750 000 5 100 000
Sprinklers & pipes 1 000 000 3 100 000
Nethouses 1 500 000 2
TOTAL 3 250 000

19
3. MARKET RESEARCH

3.1 Safe vegetables the Hanoi market

3.1.1 An overview

In1999, Hanoi launched safe vegetable production in peri-urban areas to
supply its growing market. Some commune were chosen as pilot production
areas such as Van Duc and Dang Xa of Gia Lam district (150 ha), Van Noi of
Dong Anh district (60 ha), Linh Nam of Thanh Tri district (20 ha), Thanh Xuan
and Dong Xuan of Soc Son district (60 ha)
3
. Dong Anh district was made into
a model safe vegetable area with the help of local farmers and government
authorities. Three trade marks were developed Na Sao for sale to
restaurants and Bao Ha and Yen My for sale to markets.
4
The main retailing
points of the safe vegetables established in Hanoi are:
Safe vegetable stalls at Buoi market (1), Nghia Tan Market (6), 9/12
market (2), Hang Da market (2), Dong Xuan market (5) and Hang Be
market (3)
Large supermarkets chains (6) such as Big C, CTM, Hapro, Fivimart
and Intimex.
Safe vegetable stores (3) in Hanoi

According to the survey data of ASD-VASI of 2005, 85% of safe vegetables
are sold through collectors who then resell to supermarkets and retail shops
(stall and safe vegetable stores). 10% is sold by farmers to intermediary
companies who then resell to supermarkets, trade centers and retailers. A
mere 5% is sold directly by farmers to consumers.

When large volume of safe vegetable is traded, contracts are signed to
guarantee safety and quality of produce. Price of products is usually not
included in contracts but negotiated by both parties. Price of safe vegetable is
usually 20-30% higher than that of regular vegetables. However, according to
the same survey, farmers are only able to sell 10-15 % (40-50% for Dong
Anh) of their produce at safe vegetable price.

Up to now, many provinces have done the planning of SV production areas.
However, the result is limited. Hanoi has issued:
certificates of SV production for 33 organizations,

3
Ho Thanh Son, Dao The Anh. Analysis of safe vegetables value chain in Hanoi province. Agrarian
System Department Vietnam Agriculture Science Institute. March 2006.
4
Fresh Plaza web site - http://www.freshplaza.com/news_detail.asp?id=1803 Safe Vegetable Model
Reaps Success in Ha Noi. Published 6/01/2007.

20
certificates of SV post-harvest processing to 9 agencies,
certificates of SV trading for 79 organizations.

According to a report delivered by the Cultivating Department of MARD in Oct.
2008, an analysis of cultivating land and irrigating water in SV production
areas was done in Hanoi. The results showed that:
400/478 areas qualified for SV production, of which 134 areas use
irrigating water from Nhue river, Cau Bay river, Pheo river; in the dry
season, these water sources are polluted; 13 areas did not qualify; 43
areas were extremely polluted and 22 areas did not qualify for either
soil or water.

Some difficulties in the conversion to safe vegetable production have been the
continued misuse and illegal use of pesticides and the difficulty in controlling
this. Even tho the farmers get the initial certificate which appraised and tested
the soil, there is no continued control to ensure safe vegetable production.

3.1.2 Characteristic for retailing of SV

On March 19 2009, we visited 2 wet markets in Hanoi (Nghia Tan-6 stalls,
Dong Xuan-5 stalls), 4 supermarkets (Metro, Big C, CTM, Hapro) and 3 SV
shops. The aim of the visit was mainly to assess how safe vegetables are
promoted, whether clear signs are posted and to look at the packaging used.
We also briefly looked into origin and price of vegetables.

Wet markets

There are 6 stalls at Nghia Tan market that sell only SV and each one has a
clear stall sign stating that their produce are SV with
origin and contact details. All of them have a great
variety of vegetables and claim that all are SV
green leaf, potato, tomato, gourd, lettuce, herbs,
carrot, beans, and cucumbers. Some are packaged
in plastic bags labeled with Rau An Toan and the
origin of products. Often, it is clearly stated that the
vegetable production area has been certified by
DARD. For the leafy vegetables, they are usually
tied with a plastic wrap with label name and product
data printed on it. However many vegetables sold at
the stall are not packaged or wrapped and one can
only trust the seller that they are indeed SV. When
asked, shop sellers said that they do have the

21
production area certification with them. Vegetables seemed very fresh and are
delivered to the shops each morning. All SV were from Dong An district north
of Hanoi. Prices were a bit higher than regular vegetables at nearby stalls.

Product Price SV Price regular vegetable
Potato 15 000 10 000
Carrot 15 000 10 000
Tomato 10 000 8 000

When we visited Dong Xuan market, we
found 5 stalls that claimed with their sign to
sell safe vegetables. However, none of the
produce was packaged or identified in any
way as being SV. Whatsmore, none of the
signs stated the origin of the vegetables or
contact details if one wanted to check.
Vegetables were simply displayed just like
any regular vegetable, with only the word of
the shop keeper as assurance that they
were indeed SV.

At both markets it is hard to believe that the extensive variety of vegetables all
comes from certified safe production. It is clear that when vegetables are
packaged and clearly identified as certified SV products, this provides some
kind of guarantee to the consumer. It is easy to claim the safety of vegetables,
which anyone at the market can do. It is another to guarantee that the
vegetables come from a certified SV production area.

Safe Vegetable Shops

We visited 2 shops on Phung Hung street that both claim to sell safe
vegetables with a large sign. However, none of their produce is packaged or
labeled as coming from a SV production area. The shop keepers buy from a
collector from Van Noi commune in Dong Anh district.

On Pham Ngoc Thach Street, there is a very
professional looking safe vegetable shop operated by
the Seeds for Fruit & Vegetable Corporation of
Vietnam. Products in the shop sell very well and there
were many costomers who could choose vegetables
from the racks against the wall and a platform at the
center. The shop is equipped with two big
refrigerators to store vegetables which are put in
plastic bags without label. They get their supply from a collector in Dong An
commune and have a certificate from the Food Safety And Sanitary
Department of Hanoi. They also sell safe meat and eggs.

22
Supermarkets

At Metro, we saw some green leaf vegetables labeled as Rau An Toan from
Ba Chu cooperative in Dong An. No other vegetable was clearly labeled as
being SV. When we asked the vegetable clerk if they carried SV, he said that
they all were. He was most likely referring the the fact that vegetables sold at
Metro are safe, although they probably do not come from SV certified
production areas.

At Big C, there were 2 areas where SV are placed. One set of shelves in the
refridgerated section with a small selection of not so fresh vegetables small
tomatoes, lettuce, cucumbers, green leaf, beens, etc. And in the middle a
large display with many green leaf vegetables, most of them with the SV Ba
Chu label on them. Strangely enough, SV tomatoes were cheaper at 5200
VND/kg compared to regular ones at 8,900. Regular potatoes sold at 7,400
and carrots at 8,500 which is less than the price at the wet market. The main
brand for Big C safe vegetables is Hadeco.

At Hapro supermarket on Nam Bo street, the few vegetables for sale were
labeled as SV from Ba Sao Cooperative in Dong Anh district north of Hanoi.
All produce was displayed in plastic packaging with basic origin details. They
seemed fresh although the variety was limited (rau ngot, cabbage, green
beens). Strangely enough, the wall was decorated with certificates for safe
chicken and safe pork but there was none for SV.

At CTM supermarket in Cau Giay, the small vegetable
corner in the refridgerated section had only SV from Dao
Duc Cooperative in Dong An district. The few vegetables
were not fresh green beens, cucumbers, green leaf,
squash. Most were packaged in plastic bags labeled as SV
with name of coop and origin details. Some vegetables like
squash had a simple bar code sticker with the name of the
coop on it.

3.1.3 Packaging

One of the objectives of the Hanoi survey was to get an idea of the type of
packaging that is used when selling safe vegetables. We found four types of
packaging:
1. Printed clear plastic bags or with sticker label for tomatoes,
cucumbers, beans, etc.
2. Labelled plastic string with product details for green
leaf vegetables like spinach
3. Hard plastic packaging with color label for sprouts

23
4. Price sticker with few details for pumpkins, squash.

However, all kinds packaging cannot assure that the produce is SV
indeed. It is possible for the seller or the producer to package
regular in a bag labelled SV.

For Tan Duc farmers, the printed plastic bag for tomatoes, beans,
etc. as well as the plastic string for green leaf vegetables would
seem sufficient and ideal when marketing their SV directly to the
end users.

3.2 Safe vegetables - Viet Tri city market

3.2.1 An overview

The SV programme was launched in 1996 in Phu Tho province with the
following main activities:
IPM traning,
Research programs on SV production,
SV production projects and trials.

Originally, a training course on IPM was organized in Bach Hac ward, Viet Tri
city. From 1997, 20 training courses on IPM were organized in Viet Tri city,
Thanh Ba dist., Ha Hoa dist. and Cam Khe dist. Furthermore, in 1998, the
provincial farmers union also launched 10 training courses on SV production
in Doan Hung dist., Cam Khe dist., Thanh Son dist., and Lam Thao dist.

Since 2006, the Plant Protection Department has delivered training on IPM
training for SV production in 4 districts: Lam Thao, Phu Ninh and Ha Hoa
districts as well as Phu Tho town. Today, in Lam Thao district there are 3
communes which have formed cooperatives producing safe vegetables and
certified by DARD as SV production areas Cao Xa Coop (12 ha), Tu Xa
Coop (2 ha) and Ban Nguyen Coop (2 ha). Vinh Lai Coop (2 ha) has applied
for SV production but has not yet received it. In Phu Ninh district, there are 2
communes that claim to produce SV Phu My and An Dao. However, neither
has yet been certified.
5

In Bach Hac ward, there is Tan Duc commune with 500 HH producing over
100 000kg/year of vegetables which supposedly conform to SV practices. The
Peoples Committee hopes to SV certify 40% of production area by the end of

5
Source: Ms. Thom from PP department of Phu Tho province (vice-director)

24
2010 and 100% by 2015
6
. And there is also nearby Song Lo commune which
started a SV pilot in 2006 and claims to sell SV although it has not yet
submitted an application for certification.

Even though safe vegetable production areas are increasing, it is believed
that the key to maintaining a competitive edge for Tan Duc farmers is to first
get SV production area certification and then produce certification. It is also
critical that public awareness campaigns be implemented through VECO
partnership with VINASTAS to increase demand for SV in Viet Tri city.

3.2.2 Chain mapping

One of the objectives of the chain analysis is to better understand the
vegetable chain from producer to consumer in Viet Tri city. In the research,
we found that local farmers in Viet Tri either sell their vegetables themselves
as peddlers, to local collectors or traders, or at the wet markets to the end
users. Some sell directly to restaurants or canteens. Produce from other
regions is usually gathered by collectors who then sell to wholesalers or
restaurants/canteens. The wholesalers sell to retailers, local collectors and
end-users at the wet markets. The minimart in Viet Tri which claims to sell SV
was not deemed a significant actor in the chain. Below is a chain map for
vegetables in Viet Tri, followed by a more detailed description of each actor
category.
Figure 1: Map of Viet Tri vegetable chain

6
WERTHEIM-HECK/HO. Fresh Studio Ltd. VECO Viet Tri Market and Consumer Research Report.
January 2009.
Local
farmers
Farmers other
regions
Collectors
Whole salers
Local collector/trader
Restaurants
/canteens
Street vendors
Wet market retailers
End user/Consumer

25
3.2.3 Supply chain of vegetables

A survey of the main central market in
Viet Tri as well as 3 smaller markets
(Nu, No and Hang markets) near Tan
Duc commune was realized from
February 18-20
th
2009. During the
survey, retailers, wholesalers,
collectors as well as farmers were
interviewed to get information on
product origin, quantities, and market.
It is estimated that about 200 farmers
from Tan Duc commune sell their
produce at the Central market, and
about 50 farmers sell at each of the smaller markets near the commune. The
3 smaller markets also have traders who bring produce from other areas and
about 50 farmers from nearby communes who sell their produce. Even though
retailers, wholesalers and collectors tend to rely on regular suppliers, they do
not have contracts binding them.

Retailers

Retailers were interviewed and they said that they rely on wholesalers to get a
great variety of produce from: Viet Tri (Bai Hoc,
Ban Nguyen), Vinh Phuc Province (Tam Dao, Vinh
Tuong district), Phu Tho Province (Lam Thao
district), Hai Duong Province, Da Lat and Ha Noi
(Dong An district). Few retailers seem to buy
directly from local farmers and none of the Tan
Duc farmers sell directly to fixed stalls at market.

Most retailers sell about 20-30 kg per day and
complain of the low price of produce. After the
flood in 2008, price of produce sky-rocketed which
led many farmers to plant vegetables. Now there
seems to be a surplus of offer which has led to
lower prices. Also many farmers are selling all
their produce in February to clear their field for rice paddy.

All retailers have heard about safe vegetables. 2 said that they could sell them
at a price of 10-15% more. One retailer mentioned that Tan Duc produce has
such as good reputation for being safe that she can sell them at 50-100%
more than other vegetables. Some popular vegetables are: green bean, kale,

26
bamboo shoots, pumpkin buds, celery, cabbage, kohlrabi, lettuce, onions,
potatoes, herbs, green and red capsicum, broccoli and garlic.

Wholesalers

Three out of four wholesalers interviewed deal mainly with out of province
collectors. Only one deals directly with local farmers from Vinh Phuc and Phu
Tho province. Two can sell about 100 kg per day, one sells 200 kg and
another sells up to 500 kg per day. All of them have heard about safe
vegetables one said he would pay between 10-20% more than regular
vegetables, another said between 30-50% more and another said that she
would not pay more for safe vegetables. Some popular vegetables are: green
and red capsicums, broccoli, garlic, onions, lettuce, mustard, kale, baby corn,
carrot, kohlrabi, chilli, cauliflower, green bean, cabbage. Some wholesalers
sell to collectors who then go around to canteens and restaurants. They also
sell directly to consumers, restaurants and retail vegetable stalls.

Collectors

One school collectors gets her supply from one main farmer in Bach Hac
ward, although at times she also buys from other farmers in the areas if she
needs to. She has a one-year contract with the school canteens and supplies
about 20 kg per day. Price is negotiated between both parties when there is
new produce or market fluctuations.

One collector supplies to 3 canteens of large factories in Viet Tri. He gets his
supply of vegetables 50-70 farmers from Van Hoi commune in Tam Duong
district, Vinh Phuc Province. He purchases about 400 kg per week and has
no contract with the farmers. Price fluctuates according to the market.

Another collector from Lung Hoa commune, Vinh Tuong district, Vinh Phuc
province sells vegetables to three main customers: Hoa Phong Nursery
school, a Japanese garment company and another company. He signed
contracts with these customers in which the price is a little bit lower than
market price and he must supply the best vegetables. If market price
fluctuates for a minimum of three consecutive days, he can adjust the selling
price to his clients accordingly who can then check with the local market. He
needs 300 kg per day and he buys from 3 other collectors (not farmers) in
Vinh Tuong district.

27
3.2.4 Market survey

During the survey, it seemed critical to also meet with potential market buyers
such as canteens and restaurants to better understand their needs in
vegetable supply (see Annex 6 for contact details). Other information such as
use of contract, payment method and type of supplier were collected. It was
found generally that canteens have contracts with their suppliers, be it a
collector or farmers, but restaurants do not. Here is a summary of the main
findings.

Canteens

All 6 canteens interviewed use a steady supplier and order 15-30 kg of
produce per day which is usually delivered to them every morning. Most have
a one-year contract with the supplier which often clearly outlines their
obligation to deliver safe vegetables. All canteens are aware of the need for
safe vegetables and many say that they pay a higher price to have a
guarantee on safety of produce. A factory canteen even pays 50% more than
regular market price to ensure safety of produce. A school canteen pointed
out that they have no way of proving that vegetables are safe. Most said that
they feel open to consider new suppliers on a regular basis.

Payment is done either at the end of the week or at the end of the month tho a
school canteen said that they could pay daily if required. Price of produce is
not fixed in contract but agreed upon by canteen and collector on a weekly
basis. Canteens tend to order less varieties of vegetables, typically 2-4
varieties per day such as: cabbage, kohlrabi, carrot, potatoes, carrots, kale,
squash, gourd, celery. Many factory canteens in the industrical district of Thuy
Van order meals through a catering service which deliver ready-to-eat meals
at lunch times.

Restaurants

Six restaurnats were interviewed, including two hotels who said that they do
not order vegetables regularly since they only prepare meals when booked in
advance for special occasions. Most restaurants deal directly with farmers
groups and have daily delivery of produce and payment is made daily. One
restaurant which requires special vegetables like mushrooms and zuccinis
deals with a collector for these, and farmers for the rest. One restaurant deals
with a trader from the Central market who supplies him with 10-20 kg of
vegetables per day. Payment for him is with one-two month delay. None of
the restaurants that we interviewed have contracts with their supplier. Some

28
typical vegetables ordered by restaurants were: lettuce, onions, green onions,
potatoes, garlic, carrot, mushrooms, cucumbers, turnip, chilli and lemon.

Supermarket

There is a small supermarket in Viet Tri named Phu
Cuong which has sold safe vegetable in its produce
section in the past. But when we visited the shop
twice, there were only tomatoes and green sprouts
in clear plastic packaging without a any label. The
manager still claimed that in the off season from
January to October, they sell about 80 kg per week
tho this seems hard to believe (up to 200kg/week in
the high season). They have two suppliers one
from Dong Anh district near Hanoi and the other
from the Phu Tho Center for Seed and Plant. The
manager says that she can sell safe vegetables at
a price 30-50% higher than regular vegetables and that certain criteria had to
be met in order for her to carry safe vegetables in her shop:
o Produce must be packaged in a plastic bag;
o Clear origins of produce must be on label;
o Product specifications such as weight, expiry date must be clearly presented.

3.3 Safe vegetables Lang Son city market

3.3.1 An overview

There are many vegetable production area near and
around Lang Son City which itself has the largest
production area with 284 ha in 2004. Mai Pha
commune where Na Chuong cooperative is comes in
3
rd
with only 49.4 ha although it has increased since
2001. Most farmers sell either to market retailers, to
collectors or as peddlers to end-users. Lang Son City
statistics show the main vegetable production areas
and their development over 4 years in the following
tables
7
:

7
Pilot Model of High Quanlity Safe Vegetables Production in Lang Son City. Thai Nguyen
Agriculture and forestry University. 2006.

29
Table7: Vegetable production area in Lang Son city
No Location 2001 2002 2003 2004
1 Lang Son city 323.8 304.3 269.2 284.6
2 Hoang Dong commune 90.8 62.5 49.1 49.9
3 Mai Pha commune 37.8 34.0 39.5 49.4
4 Quang Lac commune 45.1 41.6 27.4 44.9
5 Hoang Van Thu ward 16.8 18.0 10.2 7.3
6 Tam Thanh ward 32.1 34.0 21.5 15.3
7 Vinh Trai ward 20.2 22.3 28.5 14.3
8 Dong Kinh ward 76.0 87.0 89.0 97.0

A significant difference between Viet Tri and Lang Son is that the first has
many SV production areas, some certified, others not. With Lang Son, there
is only one other vegetable production area that claims to abide by safe
process like Na Chuong cooperative, with 4 ha in Xuan Mai commune, Van
Quan district. However, they are not certified and have not yet applied for
certification. Consumer awareness for safe vegetable in Lang Son City seem
low which results in little differentiation between safe vegetables of Na Chung
cooperatives and regular vegetables from other production areas.

Productivity of vegetables increased in the period of 2001-2004, from
13,870kg/ha in 2001 to 14,700kg/ha in 2004 for Lang Son City. It increased
considerably in some areas like Hoang Dong commune, Chi Lang ward. This
is due to the application of intensive cultivation and support from local
technicians. With regards to productivity per ha and total production in tons,
Mai Pha still comes in 3
rd
place as seen in the following 2 tables:

Table 8 : Productivity of vegetables in Lang Son city (100kg/ha)
No Location 2001 2002 2003 2004
1 Lang Son city 138.7 130.9 143.5 147.0
2 Hoang Dong commune 127.8 120.9 125.2 156.3
3 Mai Pha commune 135.8 155.1 128.6 139.6
6 Tam Thanh ward 142.1 125.5 117.7 135.2
7 Vinh Trai ward 123.0 124.0 122.1 113.6
8 Dong Kinh ward 170.3 141.3 185.4 162.7

30
Table 9: Yield of vegetables production in Lang Son city (ton)
No Location 2001 2002 2003 2004
1 Lang Son city 4,490.9 3,982.4 3,860.0 4,549.1
2 Hoang Dong commune 1,160.3 755.5 615.0 966.0
3 Mai Pha commune 513.5 527.6 508.0 718.0
6 Tam Thanh ward 456.2 426.7 253.0 224.7
7 Vinh Trai ward 248.3 276.6 348.0 195.0
8 Dong Kinh ward 1,294.4 1,229.7 1,650.0 1,560.0

In order to get a better idea on the availability of different varieties of
vegetables in Lang Son City, we interviewed fixed stalls, pedlars, farmers and
1 wholesaler from Bac Giang as well as 1 collector supplying to Thao Vien
restaurant. The table below shows what varieties of vegetable are sold in the
market throughout the year as well as approximate price.

The safe vegetable program was kicked off in Lang Son city in 2006. The
Economic Department was allocated a budget by the Peoples Committee to
launch training sessions on safe vegetable production for farmers in the
surrounding areas. However, farmers did not seem interested so the
Economic Department changed their focus to Na Chuong hamlet. In 2007, ED
opened a safe vegetable shop at Gieng Vuong market area but it only lasted 5
months from November 2007 to March 2008 before it was closed. Limited
quantities and varieties as well as changing staff at SV shop were blamed for
the failure. In the past, irrigation water for Na Chuong cooperative from Ky
Cung river was deemed polluted from boxit ore from a coal mining industry
nearby. But according to the Economic Department, recent processing system
of waste water from the industries solved the water pollution problem.

3.3.2 Chain mapping

It is estimated that there are 10-15 wholesalers and
30 retailers/fixed stalls at Gieng Vuong market, 10
retailers at Dong Kinh market and 5 retailers at Chi
Lang market, together with hundreds of farmers and
pedlars along the streets. Dong Kinh and Chi Lang
markets as well as peddlers, restaurants and
canteens mainly get their supply of vegetables from

31
Gieng Vuong market and partially from local farmers. A great deal of local
farmers also bring their self-grown vegetables to Dong Kinh market while only
a few to Chi Lang market. Both fixed stalls and peddlers sell their products to
end-users, a few to small restaurants. Farmers of Na Chung Cooperative sell
to collectors who come 1 km away from their hamlet in the winter season from
November to January. These collectors then resell to restaurants or operate
their own fixed stall at one of the markets. Produce from other provinces go
through collectors and wholesalers who come to Gieng Vuong market to sell
to fixed stalls. Figure 2 below shows the main actors in the vegetable chain in
Lang Son City:

Figure 2: Map of Lang Son vegetable chain

The chain map is quite different in Lang Son from Viet Tri:
One market with its fixed stalls acts as a wholesalers;
Wholesalers do not sell directly to end-users;
Many farmers sell directly to fixed stalls at markets;
Most restaurants and canteens get their vegetable supply from markets;
There are mobile stalls going around the city with a good selection of
vegetables

Local farmers
Farmers from Bac
Ninh, Bac Giang
Collectors
Wholesalers
Retailers/Fixed stalls
at Dong Kinh market
Restaurants
/canteens
Retailers/Fixed
stalls at Chi Lang
market
Retailers/Fixed stalls
at Gieng Vuong
market
Consumers
Peddlers/
Mobile stalls
Chinese traders
Local
collectors

32
3.3.3 Supply chain of vegetables

During the field trip of April 22-27, 3 main markets were visited in Lang Son
Gieng Vuong Central market, Dong Kinh market and Chi Lang market. We
also visited 1 sales point of Na Chuong farmers, 1 unofficial wet market, 7
restaurants, 6 canteens and 3 collectors.

Retailers

There are 2 types of fixed stalls at the
markets:
1. At Gieng Vuong market, the stalls act
more like wholesalers as they supply
mostly to retailers of other markets such
as Dong Kinh and Chi Lang and also sell
to restaurants, canteens but generally not
to end-users.
2. At Dong Kinh & Chi Lang markets, the
stalls sell most of their produce to
consumers, and a little to small restaurants. They also get some supply
from local farmers for vegetables such as kale, bo khai, squash buds,
amaranth, day and ngot.
In general, the stalls are open at the markets every day from 5 am to 7 pm.

Peddlers

There are hundreds of peddlers in the city who go along
the streets and supply directly to end-users. There are two
types of peddlers:
1. Local farmers: They harvest their self-grown
vegetables and bring to the city from 6-7 am. They
usually sell only 1-2 varieties of vegetables carried on
shoulder poles along the streets and at the three
big markets.

2. Trolley peddlers: They go around the city with
a trolley with a good variety of vegetables. They
get their supply from Gieng Vuong market and sell
directly to end-users with their mobile stall.

33
Wholesalers

Gieng Vuong market is the only one with wholesalers
from Bac Ninh & Bac Giang provinces with supply of
vegetables from farmers and collectors from those
two provinces which they sell to retailers. They
transport by lorries as early as 1-2 am every morning
and finish their job at around 3 am, and then return for
the next day collection. Only a few stay until 7-8 am to
sell remaining vegetables to end-users.

On average, they supply 200-500 kg of different varieties of vegetables daily.
Safe vegetables dont make sense to them since they are not aware of any
cases of food poisoning related to vegetable consumption. They generally sell
their produce at a lower price than that of local farmers.

There are many farmers from other provinces who come to Lang Son to rent
land and grow vegetables year-round and then sell as wholesalers. They
manage their farm on a large scale efficiently with good cultivating techniques
and sell at markets. An example of this is Mrs Tham from Thai Nguyen
province who has resided and rented land in Lang Son for many years. She
cooperates with two other farmers, Mrs Ha and Mr Nguyen, to produce
vegetables on a farm of 16 saos with an approximate yield of 200-500 kg per
day. They supply to collectors from other regions and local fixed stalls at
Gieng Vuong market. When demand is high, collectors come to the farm to
buy vegetables directly and sell at wet markets in different districts of Lang
Son province.

In the past, Na Chuong Cooperative farmers were introduced to them to sell
vegetables but those farmers insisted on high price and provided low quality
products so the partnership failed. However it could be interesting for Na
Chung Cooperative to link again with this farming enterprise to benefit from
their knowledge of market demand for vegetable, their cultivating techniques
and their marketing channels.

Collectors

One collector we interviewed claims to have a daily turnover of 5-10million
VND and supplies to 5 restaurants (Thao Vien the biggest) and also to
consumers via her vegetable shop at 67 Bac Son street. She gets her supply
of vegetables from collectors from Bac Ninh and Bac Giang, traders from
China for root vegetable and local farmers for local variteties.

34
We were not able to meet with local collectors who come near Na Chung
hamlet during the winter season to buy vegetables from farmers. But the
cooperative said that some of these collectors sell the vegetables to
restaurants in the city while others sell at their fixed stall at one of the
markets. These collectors get their supplies from other local farmers as well.

3.3.4 Market survey

In comparison with Viet Tri City where restaurants and canteens are located
along one main road, in Lang Son City they are scattered in a cirle around
Dong Kinh market. Nearby is Gieng Vuong market which acts more as a
wholesaler. Different vegetables are brought to Gieng Vuong market from
China such as roots via wholesalers at Tan Thanh border, regular vegetables
come from Bac Ninh and Bac Giang, and local produce comes from farmers
in the suburbs. Most restaurants and canteens get their supply of vegetables
from Gieng Vuong or Dong Kinh markets (see Annex 6 for more details).

Restaurants and canteens of Lang Son City seem to have little concern
regarding safety of vegetable and claim that they would not pay a higher price
for them.

Canteens

There does not exist any factory canteens since there is no industrial zone in
Lang Son City. However 5 school canteens were interviewed. All of them
supply vegetables from Gieng Vuong wet market daily. There seems to be
some concern for safety of vegetables but since the cost for each meal is
fixed, this does not allow them to pay a higher price for SV. However they
suggest that having a fixed stall at Gieng Vuong or Dong Kinh market for sale
of safe vegetables would be popular. They usually only buy one or 2 varieties
per day (one leaf, one root) in quantities of 10-60 kg per day, depending on
number of pupils and if one or two meals per day. Payment is made
immediately and they pay the market price.

Restaurants

We interviewed 7 restaurants of which only one uses collectors to deliver
produce directly to the restaurants, Thao Vien Restaurant. Other restaurants
get their supply daily directly at Gieng Vuong or Dong Kinh markets. None of
the restaurants have contracts and payment is made immediately at the

35
market or at the end of the month when dealing with a collector who usually
offers produce at lower than market price. In fact, restaurants are busier on
weekends and during holidays when people tend to go out more so
restaurants buy between 30-60 kg of vegetable per day. Especially during the
period from October to Tet holiday, Lang Son city gets a lot of tourists who
come to cross over to China for shopping.

In Lang Son city, it is very convenient for
restaurants to get their vegetable supply
directly at wet markets. They all suggested that
we open a fixed stall at Gieng Vuong market
but they insisted that if we do so, we must offer
safe vegetables at a competitive price, fresh
and with a wide variety available year round.
Off-season and new vegetables are also
particularly appreciated. The feedback
confirmed that they are not willing to pay more
for safe vegetables in Lang Son City. Typical
vegetables ordered by restaurants include kale, caisin, mustard, bo khai,
chayote buds, squash buds, kangkong, mung toi, eggplant and tomato.

36
4. TAN DUC FARMER GROUPS

4.1 Organization Tan Duc farmers groups

Tan Duc commune was recognized in 2008 by the Peoples Committee as a
safe vegetable production area because of its reputation for growing high
quality vegetables and using few chemicals in its production process.

There are two farmer groups established in
Tan Duc commune by the Economic
Department and VECO to set up pilot
models for SV production. If it proves to be
a success, the models will be replicated in
other areas to ensure a stable SV supply
for the city. Within support from VECO, the
Economic Department has cooperated with
the Plant Protection Station to launch
training courses on SV production and IPM techniques for all members.

The first group with 43 farmer households was established in August 2008
and the second with 40 farmer households in December 2008. Both groups
have applied for SV production area certification and have passed the sample
tests of soil and water. The application was forwarded to the Plant Protection
Department and then to DARD and certification should be delivered by the
end of May 2009. There are no costs related to SV certification.

Each of the farmer groups has a management board of three members and
the following details:

Table 7: Farmer groups details
Group 1 Group 2
Leader Nguyen Van Thanh Luu Thi Kim Lien
Vice Leader Cao Viet Thanh Nguyen Thi Kieu
Accountant Nguyen Thi Thom Do Thi Duong
Number of members 43 40
Time of establishment August, 2008 December, 2008
Meeting 2
nd
(of each month) 15
th
(of each month)

The two groups operate based on agreements reached during meetings and
following written regulations (see Annex 7). Each group has a fixed day each
month for meeting with all group members. However, up to now, farmers have

37
not received any services from the group such as supply of seeds, fertilizers
in large volume and at lower price, or collective marketing.

Group fund

Regarding finance, each member of the first group contributed 20,000VND
upon registration although the regulation states that the required contribution
should be 50 000 VND. There is also a provision for the group to provide low-
interest loans to its members but up to now, this has not been done. For the
second group, they were not required to contribute any money when they
formed the group so they have no fund to speak of. It seems critical to review
the groups regulation and make sure that it reflects how the group plans to
operate. If the registration fee is set at 50 000 VND, then that is the amount
that each farmer must contribute to the groups fund. As for group 2, they
must agree on an amount for the members to pay so as to have a fund to be
used for group activities.

Group functions

Clear responsibilities for each management board member is critical,
especially if the group is to undertake business planning and collective
marketing activities. A salary for each will also need to be determined. If the
groups plan on providing credit as stipulated in the regulations, then they must
also clearly communicate to the members their credit policy, how they can
apply for the fund, and conditions for repayment.

And finally, the group must decide on which services they wish to offer to the
members:
- input supply for seeds, fertilizers and/or pesticides
- technical support on SV production techniques
- promotion of safe vegetables
- training/coachin in book-keeper and farm record keeping

The group regulation is an important tool which outlines the basic functioning
mechanisms. It should be amended to reflect the real situation of the group,
and be followed diligently. The group currently offers no services to its
members and this must be addressed if the group is to have a purpose and
develop into a well-functioning grassroot organization.

38
4.2 Production plan for 2009

Production of SV is not coordinated by the group and each farmer is
completely autonomous in planning his production and marketing of his
produce. There is no business plan for the group. Getting a production plan
from each farmer proved to be more challenging that expected but with the
help of the board members, we were able to gather the following data:

Table 8: Production plan 2009 Tan Duc farmer groups
Month 2 3 4 5 6 7 8 9 10 11 12 Price/kg
Vegetable
Kg Kg Kg Kg Kg Kg Kg Kg Kg Kg Kg Low High
Pole bean 310 2475 2815 2025 775 400 3,370 7,000
Eggplant 380 2130 5300 5940 3475 1000 3,000 6,500
Squash buds 240 3640 2920 12090 9170 2760 200 130 140 120 3,500 6,250
Kale 50 50 15 20 2265 13190 15110 8920 3050 300 2,500 6,560
Mung toi 135 710 1295 1455 685 525 3,280 7,000
Ngot 35 390 670 765 705 275 190 100 20 50 5,000 12,500
White bean 830 430 100 100 970 3230 4860 4,600 12,320
Chayote 2025 2055 1750 1020 2,500 6,000
Amaranth 90 200 105 20 2,630 6,500
Coriander 130 100 50 460 940 5,460 12,650
Cucumber 100 200 60 3,000 6,000
Celery 10 50
Cassaba melon 145 300 370 40 5,000 8,000
String bean 300 290 315 300 315 165 3,670 6,000
Chayote buds 520 740 620 470 100 8,000 12,670
Green bean 1170 1140 420 100 820 2330 2705 4,000 7,350
Pea 120 200 250 170 30 30 30 30 150 320 480 5,000 7,000
Sweet potato
buds
5 5 5 5,000 10,000
Taro 200 200 4,000 15,000
Melon 50 70 360 200
Kohlrabi 70 100 2,000 5,000
Pumpkin 100 150 100 70 70 70 4,000 6,000
TOTAL 5,455 9,695 12,580 24,925 20,715 11,200 15,970 15,530 11,210 9,630 9,695

39

The production plan and the actual harvested production will probably vary
but it is still useful to know:
the general harvesting cycle of each vegetable with approximate yield
the low price and high price which is expected for each produce
the total yield per month from the 2 producers groups.

When looking at the data, we find that the lowest yield would be in February
with 200 kg per day, if delivering 6 days per week with a variety of 10 different
vegetables. During the high season in summer, yield triples and there are 9
varieties available. It is easy to assume that the numbers provided by the
farmers are overly optimistic. But even if we cut by half, the Tan Duc farmers
should be able to supply 100 kg per day, which would be sufficient to supply
restaurants, canteens and a safe vegetable stall at the market.

Setting a production plan is only a first step for Tan Duc farmers. The next
step would be for them to compare the plan with the recently set up record
keeping of all produce sold on a daily basis (as well as selling price if
possible). Only then can we see whether the plan is accurate or not, and
make necessary adjustments for the future. The more practice they get at
record keeping and planning, the more accurate they will become. However,
this requires that all 83 farmers do this in order for it to be effective. The
simple record keeping system recently introduced to Tan Duc farmers should
be closely monitored and kept up to date. The need for accurate planning will
be apparent when/if they start to sell to collectors, restaurants or canteens. It
is hoped that accurate production plan will help to find a suitable market
match. For sure, production at some point should be aligned on consumer
and market demand if the groups are to be competitive and able to seize
opportunities.

4.3 Marketing

All farmers of the two groups currently go to sell their vegetable at wet
markets. Usually, they come to the Central Market which is open daily. If they
cannot sell out their products, they then go to smaller markets in Viet Tri such
as: Nong Trang, Nam Tang, Gat or go around the city as pedlars in the
streets. When the three markets near Tan Duc commune operate, many of
them go there.

In general, most of their customers are end-users. Thanks to alluvial soil and
a tradition of not using pesticides or growth-boosting chemicals, they have a
good reputation for SV and can sell at a higher price of 20%-30%. However,
they encounter a limit in productivity and varieties. Among their products,
chayote bud is the main recognizable vegetable being paid at a higher price
by consumers. Currently, they have to sell vegetables individually without a

40
collective marketing channel which takes them a lot of time. The farmers are
unclear about market demand so they grow and sell vegetables individually
based on past experience. This results in unstable prices and surpluses of
crops they cannot sell.

Having each farmer sell his produce individually is very time consuming and
does not take avantage of more effecient opportunities. It would be ideal for
the group to collectively coordinate sale of produce to a few main buyers,
which could be either local collectors, restaurants or directly to some school or
factory canteens. They could then deliver on a regular basis produce at
agreed upon price, varieties and quantities. In order for this to work, this
would require the group to:
- coordinate production and basic business planning
- adjust production according to market demand
- agree on responsible persons as well as tasks for collection of produce
and delivery
- prepare basic group details for promotion to potential clients
- solicit potential customers and reach agreement for supply of SV

Tan Duc farmers should probably start with a 2-3 small contracts for supply of
around 20 kg per day to restaurants, canteens or collectors. The advantage of
selling to restaurants seems to be that payment is made immediately whereas
sale to collectors or canteens result in delayed payment. Then as they get the
system operational, they can later see how much they can upscale with new
customers.

The idea of opening a stall at the Central market is also valid, in that it would
provide a direct window for SV for Viet Tri consumers. The emphasis should
be on having a stall with a clear sign stating certification obtained, origin of
produce and contact details. The certificate should be framed and visible at
the shop for consumers to see. SV should be packaged in clear, labeled
plastic bags or string. And finally, any kind of brochure avaialbe from
VINASTAS promoting SV should be used to inform the public, thereby
increasing consumer awareness.

4.4 Information sources

It is of great importance for the farmers to have access to information on SV
production. However, they have an array of unreliable information sources to
turn to and there are too many official documents for the farmers to keep up
with.

In Tan Duc commune, the two farmer groups have been attending training
courses on SV production and IPM. Yet, the farmers emphasize that most
information is shared within the group and among neighbours. They have

41
regular meetings in which they consult each other about problems they are
facing and possible solutions. Sometimes, if a disease threatens the crops
and no solution can be found, they turn to authorities like the Economic
Department or the Plant Protection Department. An IPM expert is available to
offer technical support to Tan Duc farmers. The quality of this expert must be
assessed in order to ensure that Tan Duc farmers have access to qualified
technical support (see figure 2).

Figure 2: Information sources available to the farmers

A study tour other SV production areas would also be helpful for Tan Duc
farmers. SV has been produced successfully in other areas which could
benefit Tan Duc farmers. An initial assessment of which area would be most
suitable for a visit should be made by VECO. Some of the options seem to
be:
- the 3 SV cooperatives which were launched in Lam Thao district
- SV production areas in nearby Vinh Phuc Province
- the now famous Dong Anh district north of Hanoi.

The objective of the study tour would be for Tan Duc farmers to better
understand SV production techniques but also see how other farmers market
their produce.

Farmer
SV production
training
Plant Protection
Station
I PM course
Economic
Department
Group members
& Neighbours

42
5. NA CHUONG COOPERATIVE FARMERS

5.1 Organization of the cooperative

The cooperative was established by the Lang Son Peoples Committee on
January 29
th
, 2007 with its headquarter at the Culture House of Na Chuong
hamlet, Mai Pha commune, Lang Son City. It is registered to deal in:
SV production
Cattle, livestock raising according to safe production process
Agriculture, forestry, aquaculture materials and products.

Up to now, the cooperative has only carried out the first activity of safe
vegetable production. There is no plan at this time for coop members to take
on the 2 activities of safe husbandry and aqualculture as mentioned in the
regulation. Whatsmore, the group regulation does not state as a condition to
join the cooperative that the person must carry out agricultural activities as per
the 3 defined categories (see Annex 8).

Farmers have joined the cooperative mostly to receive allowance and support
from VECO project. Na Chuong cooperative passed the water and soil tests
and has already obtained its certificate of full satisfaction of SV production
issued by DARD since July 18
th
, 2007 (see Annex 9).

Group fund

Each member contributed 200 000 VND to join the cooperative and the group
fund totals 8 million VND at this time. It has not been used for any purpose up
to now. The contribution is considered social capital of the members and is
refunded in whole if/when the member leaves the cooperative. The
cooperative regulation clearly states how MB and control board members can
be remunerated. Remuneration for 6 persons = 50% monthly profit and can
be distributed as follows:
Chairman = 30% of 50%
2 Vice Chairman = 40% of 50%
1 control person = 8% of 50%
Accountant = 15% of 50%
Cashier = 7% of 50%

However, since the cooperative does not operate any business actitivities, it
cannot generate any revenues or profits to pay the board members. If the
cooperative truly expects its board members to manage and control

43
operations, then it also needs to pay a salary. There are many ways that the
cooperative could generate revenues to pay for its board members:
- Charge members a yearly fee/contribution which can be used to cover
operational costs;
- Charge small fees to members when they attend trainings such as IPM
or others;
- When the SV stall opens, make a small margin between price paid to
farmers and retail price of produce.
- Make a small margin when supplying input to farmers

Group functions

A cooperative is much more than a simple informal community based
organization. It is a legal entity where the shareholders are the members. Its
prime objective is to operate business activities for the sake of its members.
Up to now, the cooperative has been fairly passive and has not undertaken
and business operations. The role of the management board has been mainly
to inform members of training and actities and provide to them inputs which
they supply from Mrs. Hong of the PPS. However, their role could be
broadened to take on new responsibilities:
- Production and business planning of the cooperative with in mind
collective marketing;
- Cooperative education of members;
- Networking with other agricultural cooperatives to learn about
management of organization and business activities
- Production support to farmers

The members of the MB were appointed by the PC and not elected voluntarily
by the cooperative members. So far, they have not received any salary for
performing their functions. The MB meets monthly and hold quaterly meetings
with all members. Its management is formed of:
Mr. Hoang Van Thinh Chairman
Mr. Hoang Van Hao Vice-chairman
Mrs. Ngo Thi Lanh Vice-chairperson
Mrs. Hoang Thi Cuong Head of the Control Board of the Coop

Careful examination of the by-law of the cooperative shows that they have
decided to put the duration of mandate for management board administrators
at the limit of 5 years, whereas 2-3 years might be more suitable and allow for
necessary changes in management. Also the decision to have 1 control board
member is the minimum allowed by law but could be raised to 2 to provide a
counterpart and support and to avoid having no control board member if the
one should quit.

A cooperative can only become a strong entity if it is able to provide economic
and social advantages to its members. If it fails to do so, members will not
contribute to its development.

44
5.2 Production plan for 2009

Na Chuong cooperative safe vegetable production up to now has only been
producing winter crops on 3 ha of land although they have registered 8 ha as
safe vegetable production area.

The following table shows the production plan for all 40 farmers of Na Chuong
Cooperative. Quantities are fairly low with a total yield of 250 kg in June and
the highest in September with over 9 000 kg of produce. The x represent the
harvesting period for each vegetable during which Na Chuong farmers could
extend production in the Lang Son area.

Table 9: Production Plan for Na Chuong Cooperative and harvest period of vegetables
Month
1 2 3 4 5 6 7 8 9 10 11 12 Price/kg
Vegetable
Kg Kg Kg Kg Kg Kg Kg Kg Kg Kg Kg Low High
Kale x x x 1270 2650 4620 950 3,500 8,500
Kohlrabi x x x 1030 930 1070 850 3,500 6,000
Caisin x x x 1250 5000 1000 300 1,000 3,000
Cabbage x x x x x x 200 430 1640 2900 2,000 4,000
Cove bean 150 550 410 370 x x x 3,500 7,500
Red gourd 80 330 300 300 x 200 2,000 3,500
Green gourd 150 100 120 200 150 250 x x x x x x 2,000 4,500
Bitter gourd 80 100 450 220 2820 x x x 2,500 7,000
Tomato x 100 650 1000 x x x x 350 180 x x 2,000 6,000
Capsicum x 200 2880 100 x x x x x x x x 2,500 6,500
Cucumber 200 1200 200 x x x x 1,000 3,000
Amaranth 130 1300 350 x x x x x 2,000 4,500
Sweetpo.buds x x x 120 x x x x x 3,000 6,000
Loofah 600 300 2,000 6,000
Kangkong x x 300 x x x x x x x x x 2,000 6,000
Squash buds x 370 x x x x x 2,500 5,000
Mung toi 70 x x x x x x x 1,500 4,000
TOTAL 380 1330 6640 4230 4070 250 200 300 4100 9190 8330 5000

During various meetings, the chairman has expressed the need of farmers for
support in extending their production period to summer vegetables and

45
develop production of off-season and new vegetables. However, they face
many constraints to extend vegetables production to summer crops:
- Not enough irrigating water due to hot weather and the pumping
machine has broken down
- Sandy soil which absorbs water from vegetables.
- Farmers habit to grow rice and corn in summer so that they have food
for pig & livestock raising. SV production leads to more labour working
in the field and selling at markets.

Despite the constraints in producing summer safe vegetables, this year Na
Chuong Cooperative farmers will try a summer crop from April to July with
tomato, beans, capsicum, cucumber, various types of gourd, and amaranth,
with the assistance of the Plant Protection Station,.

If we look at the production plan for Na Chuong Cooperative, we can clearly
see the varieties and total quantities planned for the main vegetables in
summer and winter crops. The following table shows the summary:

Table 10: Summary of production plan for summer and winter crops
Summer
vegetables
Total quantities
kg
Winter
vegetables
Total Quantities
kg
Cove bean 1,480 Kale 9,490
Red gourd 1,210 Kohlrabi 3,880
Green gourd 970 Caisin 7,550
Bitter gourd 3,670 Cabbage 5,170
Tomato 1,750 Tomato 530
Capsicum 3,180
Cucumber 1,600
Amaranth 1,780
TOTAL 15,640 26, 620

5.3 Marketing

There are 3 distribution channels for Na Chuong Cooperative safe vegetables,
depending on season and demand:
1. When there is a shortage of vegetables in Lang Son market like during
the fall of 2008 when there were severe floods, then local collectors
come directly to the field of the farmers and offer a high price;
2. When demand for vegetable is normal and during winter months only,
farmers bring their produce to collectors at a slope 1 km from Na
Chuong hamlet between 5 am and 7 am;

46
3. During peak harvest times in winter and during the summer months,
farmers must bring their produce to the city to sell at wet markets or as
pedlars along the streets.

In general, Na Chuong farmers either sell to collectors in winter, at wet
markets or as peddlers directly to consumer, not to restaurants or canteens.
Vegetables of Na Chuong are considered fresher than those from Bac Giang
or Bac Ninh and this helps them to sell at a slightly higher price.

Still, individual marketing of produce is time consuming and subject to great
fluctuation in price. Farmers of Na Chuong would like to have stable outlets
and a fair price for their safe vegetables. They are willing to produce off-
season and new varieties of vegetables to differentiate themselves in the
market as safe vegetables producers.

5.4 Information sources

Farmers of Na Chuong Cooperative participated in an IPM and VietGap
training course which lasted 3 months from March to May 2008. The course
were delivered by Mrs. Hong of PPS with in-class lectures and in-field
practicum. Farmers claimed that the trainings were very good and helped to
build their capacity as SV production farmers.

As for the production process, farmers have applied compost and natural
herbicides but still use some chemical pesticides. Mrs Hong from PPS
supplies these inputs to Mrs Chuong and Mrs Lanh so that they can sell to
farmers. In return, farmers can consult by Mrs Hong regarding seeds,
cultivating technique, pesticides and herbicides application.

We contacted the Cooperative Deparment under MARD to find out if there is
at the provincial or even at the national level a staff assigned to support Na
Chuong cooperative. The support expected could have been to build capacity
of the management board of the cooperative or on how to organize and hold a
successful general assembly. We we informed that they do not provide such
kind of support and that they have very limited human resources.

47

6. CONSTRAINTS, STRATEGIES FOR CHAIN INTERVENTION

6.1 Main constraints in the safe vegetable chain

6.1.1 Tan Duc in Viet Tri

The main constraints identified in safe vegetable production are:

Tan Duc farmer groups

1. The 2 farmer groups are very new and have little experience in group
management, service delivery and coordination of activities. Their
regulations may not reflect the true nature of the group and should be
revised.
2. The group has no business plan for collective marketing of their
produce. This makes it very difficult to know what varieties and
quantities of produce they have to offer, and to which markets.

SV certification

1. Tan Duc farmers do not yet have the certification of full satisfaction of
SV production issued by DARD whereas other communes nearby
already have the certification.
2. There is no system in place or planned to certify the produce sold by
Tan Duc farmers. In order to increase consumer awareness and
demand for SV, produce certification is essential to creating a
competitive advantage for SV produce.

SV marketing

1. Tan Duc farmers production is determined ad hoc by farmers and does
not necessarily respond to market/consumer demand
2. Tan Duc SV are not packaged and therefore do not distinguish
themselves clearly from regular vegetables.
3. Tan Duc farmers spend a lot of time selling their SV individually at local
markets
4. Tan Duc farmers do not have steady and profitable buyers for their
produce

48
5. Tan Duc farmers have no marketing plan to promote SV to potential
buyers and consumers

6.1.2 Na Chuong Cooperative in Lang Son

Na Chuong Cooperative

1. Na Chuong cooperative has a weak capacity in management,
coordination of production and collective marketing;
2. Na Chuong cooperative group fund is not being used to support
development;
3. Na Chuong cooperative does not function as a democratic independent
organization.

SV certification

1. There are no plans to certify the safe vegetables which results in lack
of trust from consumers and little differentiation from regular
vegetables.

SV marketing

1. Na Chuong cooperative farmers have limited varieties and quantities to
offer to consumers;
2. Farmers sell individually to collectors, at wet markets or as peddlers
which is very time consuming;
3. Vegetables are not packaged or labeled as being produced in a
certified vegetable production area;
4. Na Chuong cooperative has no fixed stall to sell its produce and
differentiate itself as suppliers of safe vegetables.

49
6.2 Main strategies for chain intervention

The main strategies for chain intervention for safe vegetables are:


Certification

1. Take steps to get certification of full satisfaction of SV from DARD
(already in progress with current partner Economic Department of Viet
Tri)
2. Set up a participatory guarantee system (PGS) for Tan Duc farmers
adapted from organic production (with support of ADDA)

SV marketing

1. Develop a simple yet comprehensive business plan including a
production plan which reflects market demand.
2. Develop different types of packaging for each type of vegetable sold
with labels details. (to be implemented by Economic Department)
3. Set up SV stalls at the Central market with clear sign stating SV
produce, certification and origin (to be implemented by Economic
Department)
4. Create linkages with potential buyers (restaurants, collectors,
canteens) and sign contracts for supply of SV
5. Use SV promotional material created by VINASTAS to increase
consumer awareness


Na Chuong Cooperative

1. Provide management training and coaching to MB members (to be
delivered by Minh);
2. Provide training on characteristics of cooperatives under the Vietnam
Cooperative Act, coaching on holding a general assembly and on MB
roles and responsibilities (Economic Department);
3. Training on basic record keeping and business planning

50
Certification

1. Set up a participatory guarantee system (PGS) for Na Chuong farmers
adapted from organic production (with support of ADDA).

SV marketing

1. Open a safe vegetable stall in Lang Son City and coordinate regular
supply by Na Chuong farmers (Economic Department)
2. Develop packaging and labeling for safe vegetables of Na Chuong
cooperative to differentiate their produce (Economic Department);

6.3 Conditions for success

The conditions for success in implementation of SV strategies are:
1. Consumer awareness for safe vegetables increases significantly and
lead to a willingness to pay a higher price for them
2. Famers plan and coordinate production to supply a wide variety of
fresh SV throughout the year
3. Frmers get SV certification for their production area and product which
is credible to the consumer

6.4 Strategy selection for CD program and potential partners

1. Adapt PGS to SV production of Tan Duc farmer groups and Na
Chuong Cooperative
This strategy would be innovative in that we would adapt a system used for
organic production to SV process. It is a bottom-up approach which would
give the farmer groups a distinct role to play in the marketing of their product.
Whatsmore, it would link them with local stakeholders who can then take part
in SV development alongside the farmers. The expected outcome would be a
well functioning group able to guarantee safety of vegetable produced to its
markets.

2. Develop a record keeping system integrated to business planning.
As safe vegetable production farmers, by law they must keep track of use of
inputs such as fertilizers, persticides and herbicides. They must also start to
measure output in varieties and quantities of vegetables produced and sold.
This data is important to plan collective marketing to supply a fixed stall as
planned in both Viet Tri and Lang Son but also for sale to regular buyers. A

51
simple record system needs to be set up as well as training and coaching on
business planning.


3. Support Tan Duc farmer groups with collective marketing of SV to
restaurants and canteens

The chain development program would also like to focus its intervention on
marketing, that is to link the farmers with steady buyers either restaurants
which tend to buy smaller quantities and pay cash on delivery, or canteens
which require less product varieties. This would ensure regular sale of large
quantities of vegetables and develop the capacity of the farmer groups to
coordinate production and delivery of safe vegetables. The expected outcome
would be 2 contracts with restaurants and/or canteens.


4. Improve functioning and management of Na Chuong as a cooperative

A cooperative is a special type of legal entity which must abide by cooperative
principles, democratic decision-making process and clear advantages to its
members. To this end, training and coaching of MB on operations of a
cooperative and member education could improve considerably the
performance and strengthen the role of the cooperative.

52
ANNEX 1

Maximal tolerance of some heavy metal in land

Ser.No. Elements
Tolerance
(mg/kg dried land)
Testing method *
1 Arsenic (As) 12 TCVN 6649:2000 (ISO11466:1995)
2 Cadimium (Cd) 2 TCVN 6496:1999 (ISO11047:1995)
3 Lead (Pb) 70

4 Copper (Cu) 50

5 Zinc (Zn) 200

* Equivalent testing methods are accepted.

Maximal tolerance of some micro-organisms and toxins in safe vegetable

Ser.No
.
Factor Tolerance
Testing method*
I
Nitrat content NO3
(for vegetable)
mg/kg TCVN 5247:1990
1 Salad 1.500

2 Spicy vegetables 600

3
Cabbage, kohlrabi, cauliflower, roots,
garlic
500
4
Onion, gourd, squash, chili, violet
eggplant
400
5 Corn 300

6 Potato, carrot 250

7 Bean, asparagus, sweet chilli 200
8 Tomato, cucumber 150

9 Musk-melon 90

53
10 Onion 80
11 Watermelon 60
II Harmful micro organisms CFU/g **

1 Salmonella 0 TCVN 4829:2005
2 Coliforms 200
TCVN 4883:1993;
TCVN 6848:2007
3 Escherichia coli 10 TCVN 6846:2007
III
Content of heavy metals

mg/kg

1 Arsenic (As) 1,0
TCVN 7601:2007;
TCVN 5367:1991
2 Lead (Pb) TCVN 7602:2007
- Cabbage, leaf vegetable 0,3
- Others 0,1
3 Mercury (Hg) 0,05 TCVN 7604:2007
4 Cadimium (Cd) TCVN 7603:2007

- Leaf vegetable, spicy vegetables,
mushroom
0,1

- Stem-eating vegetables, roots, potato 0,2
- Others 0,05
IV
Residual level of some plant
protection chemicals

1
Chemicals mentioned in Decision
46/2007/QD BYT of the Ministry of
Health

Lined with Decision
46/2007/QD-BYT dated
19/12/2007
TCVN or ISO, CODEX or
equivalent
2
Chemicals not mentioned in Decision
46/2007/QD BYT dated 19/12/2007
of the Ministry of Health
CODEX or ASEAN

Based on current use of plant protection chemicals of each locality, high-risk chemicals are determined to analyse.

54
ANNEX 2

The Government of Vietnam has adopted various decisions & enactments
promulgating the regulation on management of SV production & trading:
Decision No.19/2005/QD-BNN, dated 24/3/2005 promulgating a list of
plant protection chemicals acceptables for growing vegetables.
Decision No.52/2007/QD-BNN, dated 05/6/2007 by Minister of MARD on
planning SV production areas up to 2010 with a vision for 2020.
Decision No.827/QD-BNN, dated 28/3/2007 promulgating the
establishment of a Management Board for SV production in the Red River
Delta.
Decision No.106/2007/QD-BNN, dated 28/12/2007 promulgating the
regulation on management of SV production and trading (in replacement
of Decision No.04/2007/QD-BNN dated 19/01/2007)
Decision No.84/2008/QD-BNN dated 28/7/2008 about VietGAP
Decision No.107/2008/QD-TTg dated 30/7/2008 promulgating Some
policies to support the development of SV production and trading up to
2015
Decision No.99/2008/QD-BNN dated 15/10/2008 promulgating the
regulation on management of safe vegetables, fruit & tea production and
trading
Decision No.100/2008/QD-BNN dated 15/10/2008 promulgating the
regulation on management of fertilizers production, trading and usage.

55

ANNEX 3
Nitrate content (mg/kg) in commercial vegetable products in suburb of Hanoi
NO3 (mg/kg) No. Vegetable Threshold
level
Gia lam Tuliem Thanh tri
1 Cabbage 500 4038 (+3585) 3645 (+3145) 2303 (+1803)
2 Chinese cabbage 500 4612 (+4112) 3211 (+2711) -
3 Indian mustard 500 4198 (+3698) 2984 (+2484) 2758 (+2258)
4 Lettuce 1500 1477 (-23) 1534 (+34) 1835 (+335)
5 Saurofus - 1035 1102 1468
6 Malabar spinach - 1537 1624 2223
7 Tomato 150 169 (+19) 176 (+20) 163 (+13)
8 Eggplant 400 558 (+18) - 650 (+250)
9 Cucumber 150 356 (+206) 347 (+197) 338 (+188)
10 Pea 200 448 (+228) 236 (+36) -
11 Yardlong bean 400 362 (-38) 538 (+138) 534 (+134)
12 Loofah 400 385 (-15) 409 (+9) -
13 Wax gourd 400 714 (+314) 720 (+320) -
14 Carrot 250 462 (+212) 472 (+220) -
15 Trunip 600 1987 (+1350) 1470 (+870) 987 (+380)
16 Kohlrabi 500 2105 (1605) 952 (+452) 1239 (+739)
17 Potato 250 631 (+431) 483 (+233) -
18 Yam bean - 482 - -
19 Parsley 600 645 (+45) 1228 (+628) -
20 Hoary basil 600 710 (+110) 1146 (+546) 1545 (945)
21 Perilla 600 792 (+19) 710 (+110) 1897 (1297)
22 Shallot 400 717 (+31) 758 (+358) 2017 (1617)
23 Fennel 600 1138 (+538) 940 (+340) 1038 (+538)
24 Rau ngo 600 664 (+64) 1063 -
25 Hot pepper 400 342 (-58) 349 (-151) -
26 Kang kong 600 - 670 (+70) 709 (+109)
27 Kang kong river 600 - - 1679 (+1079)

56
ANNEX 4
State management of SV

The Cultivation Department
To direct the formulation of overall planning on concentrated SV-producing areas, programs and
projects nationwide;
To train, nominate and manage sample-takers, inspecting offices based on regulations.
To nominate and supervise the certification of safe vegetables
To organize training courses on VietGAP, certification of VietGAP, and to internal inspectors of
organizations nationwide.
To guide and direct DARDs in organizing the certification of full satisfaction of conditions on SV
production, the SV production, the inspection and supervision of SV production in their respective
localities; nominate and supervise certifying organizations.
To coordinate with the Ministrys Inspectorate in directing the examination, inspection and
settlement of complaints and denunciations about SV production, certification of SV production
conditions, SV product certification in accordance with VietGAP.
To inform the public of sample-takers, inspecting offices, certifying organizations, producers who
fully meet conditions for SV production and producers with VietGAP certification.
The Quality Control Department of Agricultural, Forestry and Aquatic products
To coordinate with the cultivation department in directing the examination, inspection and
settlement of complaints and denunciations about SV production in accordance with VietGAP.
To take part in training VietGAP, standards and technical instructions for SV producers nationwide.
To organize inspection and examination and suggest repairing solutions in case of unsafe
vegetables to be detected.
To launch scheduled inspections in annual plan or unscheduled assigned by the Minister on SV
producing conditions.
The Processing, Trading Department of Agricultural, Forestry and Aquatic products
To take part in training standards, technical process for SV production nationwide.
The Plant Protection Department
To organize training on, and direct the widespread application of integrated pest management or
insect control management (IPM, ICM) process and process on SV production according to
VietGAP.
To provide professional and operational direction and guidance to plant protection systems in
localities on the performance of SV production.
To coordinate with the Ministrys Inspectorate in directing the examination, inspection and
settlement of complaints and denunciations about SV production nationwide.
The Department for Science, Technology and Environment
To assume the prime responsibility for, and coordinate with relevant agencies in revising, proposing
the amendment and formulation of standards and technical norms for SV production.
To manage research subjects and trial SV production projects
The National Agriculture and Fishery Extension Centre
To take part in training and promulgating VietGAP
To inform and disseminate SV production programme
To set up pilot models of SV production in accordance with VietGAP in specialized areas and
encourage upscaling.

57
The provincial/municipal DARD
To draw up and submit to the provincial/municipal Peoples Committees planning on SV-producing
areas and investment projects for development of SV-producing zones in their respective localities;
To propose mechanisms and policies to encourage and support SV production and trading;
To manage the grant of certificates of SV production conditions; nominate and manage the
operational, registration and certification in localities; inform receipt of SV proclaimation in
accordance with VietGAP.
Based on the real context of localities and VietGAP, to formulate and direct the implementation of
SV production processes suitable to local conditions;
To organize training in and grant certificates of SV production to producers;
To inspect, examine SV production and coordinate with local governmental departments to control
trading activities of SV products.
To announce to the public a list of producers who proclaim SV products; a list of producers fully
satisfied SV production; a list of producers cerified VietGAP; a list of sample-takers, inspecting labs,
certifying organizations in localities.

ANNEX 5
National SV Certifying Organizations

No Name Address Contact details
1 Center for Research and
Development of Sustainable
Agriculture (CERDESTA)
Vietnam Plant Protection
Association
No. 149 Ho Dac Di st.,
Hanoi city
Tel: 04 3976140 04 35334287
Email: tungtp43@yahoo.com.vn

2 Fruit & Vegetable Research
Institute
Trau Qui town, Gia Lam
dist., Hanoi city
Tel: 04 38766062
Email:
hoangchunglam@yahoo.com
3 Plant Protection Consultation,
Investment & Development
Company
Dong Ngac commune, Tu
Liem dist., Hanoi city
Tel: 04 38363119
4 ENASA Vietnam Jointstock
Company
No. 6, lane 1, Tang Thiet
Giap, Co Nhue commune,
Tu Liem dist., Hanoi city
Tel: 04 37557545
Email: enasavietnam@yahoo.com
5 National Center for Inspecting
Seedplants & Fertilizers
No. 6, Nguyen Cong Tru st.,
Hai Ba Trung dist., Hanoi
city
Tel: 04 39722079
Email: vntoplabs@gmail.com
6 Center for Sustainable Agriculture
Consultation & Development
Vietnam Plant Protection
Association
No. 172, lane 3, Nguyen Tat
Thanh st., ward 13, district
4, Ho Chi Minh city
Tel: 08 2588652
Email: ttnnbv@gmail.com

7 Center for Quality Testing
Technique 3 QUATEST3
No. 49 Pasteur st., Nguyen
Thai Binh ward, District 1,
Ho Chi Minh city
Tel: 08 38294274
Email: qt-
phapche@quatest3.com.vn

58
ANNEX 6
Market Research Contacts

Canteens interviewed in Viet Tri
Name Address Phone Number Contact
1. Hoa Mai Nursery School 273 Mai Son 2 str.,
Tien Cat ward
02103849875 Mrs Mai
2. Hermain Gmeiner School SOS village 02103840550 Ms Huong
3. Hoa Phong Nursery School Nhi Dong str., Gia
Cam ward
02103847208 Mrs. Kim Tuyen
4. SOS Nursery School SOS village 02103855613 Mr. Minh
7. Hung Vuong Beverage Thuy Van IZ 02103954732 Mr. Thinh
8. Kaptex Thuy Van IZ 02103863679 Mr. Phuc

Canteens interviewed in Lang Son
No Name Address Contact Suppliers Payment Price
1 1/6 Nursery School Bac Son st. 0253 877066 Gieng Vuong

Immediately Market
price
2 19/5 Nursery School Chi Lang ward 0253 812022 Gieng Vuong

Immediately Market
price
3 Thuy Nga Nursery
School
83 Le Loi st., Vinh
Trai ward
0253 870590 Gieng Vuong Immediately Market
price
4 Dong Kinh Primary
School
Chu Van An st.,
Dong Kinh ward
price
5 Vinh Trai Primary
School

55, lane 2; Le Loi
st., Vinh Trai ward
price

Restaurants interviewed in VT
Name Address Phone Number Contact
1 Hong Ngoc 2 Hotel 938 Hung Vuong
avenue
0210-386-2026 Mr. Dung
2 Khom Truc Vang restaurant Opposite to Viet Tri
PC
0210-327-2348 Mrs. Mai
3 Phong Lan restaurant 516 Chau Phong str.,
Gia Cam ward
0210-385-4252 Mrs. Ha
4 Quan Ca Bo Song Unit 10A, Song Thao,
Tien Cat
0210-384-6013 Mrs. Hanh
5 Coi Nguon restaurant Unit 14B, Anh Dung
Str., Tien Cat ward
0210-381-3878 Mrs. Ha
6 Phu Dong restaurant 2256 Hung Vuong 0210-395-3027 Mr. Kim Do Kyeong

59
Restaurants interviewed in Lang Son
No Name Address Contact Suppliers Payment Price
1. Dong Kinh restaurant 2 Phai Ve st.,
Dong Kinh ward
0253-873-390
0913-590-423
Gieng Vuong,
Dong Kinh
Immediately Market price
2. Nhat Chieu restaurant 388 Ba Trieu st.,
Lang Son city
0252-241-943
0986-277-594
Gieng Vuong,
Dong Kinh
3. Hoa Sim restaurant 2, Hoang Van Thu
Chi Lang War, LS
091-204-6840
4. Thao Vien restaurant 57 Phai Ve st.,
Dong Kinh ward
0253-872-278
0977-626-988
4 collectors;
farmers
End of
month
< Market
price
5. Vi Son 2 restaurant 134 Phai Ve st.,
Dong Kinh ward
0253-717-888
0904-013-558
Gieng Vuong Immediately Market price
6. Kim Khanh restaurant 96 Tran Hung Dao
st., Chi Lang ward
0253-812-125
0988-450-689
Gieng Vuong,
Dong Kinh
7. My Son restaurant 69 Ngo Quyen st.,
Vinh Trai ward
0253-873-103
0984-036-014
Gieng Vuong,
Dong Kinh

Shops in Hanoi
Name Address Phone Number
1 Pham Ngoc Thach SV shop Pham Ngoc Thach St. 043-852-3375
2 Hapro Supermarket 5 Nam Bo St. 043-733-3941
3 Thuy An SV shop A12-13, 50 Phung
Hung St.
091-2612227
4 SV shop Nghia Tan St.
5 SV shop Dong Xuan market 094-9152938

60
ANNEX 7

REGULATIONS
SAFE VEGETABLE PRODUCTION GROUP
ZONE 2 TAN DUC COMMUNE

Pursuant to Directive 151 by the Government on organization and development of economic
sectors
Pursuant to Planning for Safe Vegetables Development by Viet tri city and Decision No
22/QD-UBND on the establishment of Safe Vegetable Production Group in zone 2, Tan Duc
commune by Peoples Committee of Tan Duc commune
Based on the meeting on 26
th
August, 2008 with the voluntary participation of group
members, operational regulations of the group are approved and developed as follows:

CHAPTER 1
GENERAL REGULATIONS

Article 1: All households of the safe vegetable (SV) production group (included in the list)
having their own area for safe vegetable production join the group on a voluntary base

Article 2: All members of SV production group enjoy the same rights/benefits and take the
same responsibilities for implementing regulations on SV production and market, using no
banned chemicals, plant protection drugs

CHAPTER 2
RESPONSIBILITIES AND RIGHTS OF THE GROUP MANAGEMENT BOARD

Article 3: The group management board is responsible for well maintaining such activities as
group meetings, training courses organized by the project, organizing quarterly meetings, bi-
annual preliminary and year-end meetings.

Article 4: Members of the group management board enjoys equal rights as the other group
members, and part of profits from the groups receipts such as group fund or others (if any).

CHAPTER 3
RESPONSIBILITIES AND RIGHTS OF GROUP MEMBERS

Article 5: Group members have to contribute to group fund 50,000 vnd/members as approved
at the meeting on 28
th
August 2008
They have to participate in all group meetings for mutual assistance, economic development,
have a sense of constructive contributions to common activities of the group and trainings
organized by the project

Article 6: Under the discussion and management of the group, the group fund contributed by
all group members is used as follows:
- Time of fund contribution is at the end of 30
th
December 2008
- Loan volume providing to a household does not exceed .vnd/hh/time
- Loan rate: 0.1%/month
- Term of a loan: 6 months/a lending time

61
- Members of SV group have to follow/observe general regulations made by the group
and technical staff
- If a member is given a principal amount (loan) from the group, he/she will be
responsible for refunding in full including both principal and interest on time;
otherwise group management board in combination with local authorities will involve
in reclaiming/taking back the principal amount.
- If a member borrows production tools/instruments of the group, he/she has to give the
right borrowed tools back and observe general regulations of the group. If he/she
loses or break tools borrowed, he/she has to compensate for the loss or breakdown
according to their value

Article 7: Members have rights to participate in meetings, trainings by the group or the
project, visits, and demonstration models (if being chosen); to be given with principal amount
from the group in line with the general regulations made at the meeting on..2008

Article 8: Households who have demands for joining the group have to get approval by both
group management board and project staff.
In case a member would like to leave the group, he/she has to send a written request to the
group management board; his/her contributions to group fund will be given back in 6 months,
apart from which he/she will not enjoy any other amounts

CHAPTER 4
EXECUTION

Article 9: This regulation is developed at the meeting on the establishment of SV production
group in zone 2 Tan Duc commune on 28
th
August 2008 and revised properly on a regular
base through group meetings
* The regulation of the SV production group in zone 2, Tan Duc commune includes 4
chapters, 9 articles. It is agreed and approved by all group members and project staff
responsible for safe vegetable production and comes into effect as of 30
th
September 2008
Tan Duc, 28
th
August 2008
GROUP LEADER
(Signed)
NGUYEN VAN THANH

62
ANNEX 8
Regulation of Na Chung Cooperative
Socialist republic of Vietnam
Independence Freedom Happiness
****************
12
th
December, 2006
REGULATION
NA CHUONG AGRICULTURAL PRODUCTION & SERVICE COOPERATIVE
MAI PHA COMMUNE LANG SON CITY

Chapter I
NAME, HEADQUARTER ADDRESS, FIELDS OF OPERATION
Article 1: Name, symbol of the Cooperative
1. Name: Na Chuong Agricultural Production & Service Cooperative Mai Pha
commune Lang Son city
2. Symbol: (no)
Article 2: Headquarter address
1. Address: House for Culture, Na Chuong hamlet, Mai Pha commune, Lang Son city
2. Telephone number: (no)
Article 3: Fields of operation
- SV production
- Livestocks & cattle raising in accordance with food safety and sanitary criteria
- Supply of equipments for agriculture, forestry and aquaculture
Article 4: Representative in law
- Chairman of the Cooperative
Chapter II
MEMBERS OF THE COOPERATIVE
Article 5: Selection of members
These subjects are entitled to join the Cooperative
1. Individuals, households, officers
2. Vietnamese nationality aged from 18 with full civil rights
Article 6: Conditions for a member
1. Vietnamese residents aged from 18 with full civil rights and capital to contribute;
approve this regulation and voluntarily join the Cooperative; including: individuals,
households, officers
2. As for households: Hand in a registration letter, approve this Regulation and Rules of
the Cooperative; authorize a person based on an authorization letter
3. As for officers: Hand in a registration letter, approve this Regulation and Rules of the
Cooperative; approval letter from Head of the Department where he/she is working.
Article 7: Rights of members
1. Priority to work for the Cooperative and get remuneration in compliance with
Cooperative Regulation
2. Share profit based on contribution

63
3. Get updated on information regarding economic and technical aspects; take part in
training sessions.
4. Welfare from the Cooperative; get economic engagements from the Coop
5. Merits in case of good contribution to the development of the Coop
6. Right to take part in Boards of Members conference or vote for a representative to
join that conference
7. Vote and stand as a candidate for members of Management Board; controlling board
and other ranks.
8. Appraisals to Management Board, Controlling Board and require to be replied;
inquire Management Board and Controlling Board to summon up unusual meeting
9. Transfer contributed capital and other rights and responsibilities to others based on
this Regulation
10. Depart from the Coop
11. Retain capital and other rights in these case:
- Departure from the Coop
- Death, disappearance, loss of civil rights or limited civil rights
- Households without a qualified representative
- Inherited case
Article 8: Responsibilities of members
1. Obey to this Regulation; Rules and other enactments of the Coop
2. Contribute capital according to the Regulation; each contribution must not exceed
30% of legal capital of the Coop
3. Unite with other members; learn to enhance knowledge so as to develop the Coop
4. Realize economic engagements with the Coop
5. Be responsible for debt, risks and loss within each contribution
6. Compensate for damage incurred by oneself based on Coop Regulation
Article 9: Transferring of Rights and Responsibilities
1. After being transferred from other members, one can not exceed 30% of total legal
capital of the Coop
2. In case of transferring from a non-member, that person must be considered by the
Coop after handing in a registration letter
Article 10: Procedures for Rights and Responsibilities transferring
1. Application letter to the Management Board
2. Within 30days after receipt, the MB must reply. The time for transferring is based on
the date of approval decided by the MB. The MB is required to report on this in the
nearest meeting of Member Board
Article 11: Departure from the Coop
1. Condition
- Change residential place or take part in other economic organizations
- Other cases
2. Time for consideration of a departure letter is 30days after receipt
3. Procedures to stop member status
- A letter with clear reason
- Finish all tasks before leaving from the Coop
Article 12: Conditions to stop member status
1. A member status is stopped in these cases:
- Death, disappearance, loss of civil rights or limited ones. Households without a
qualified representative
- Get approval to depart from the Coop
- Do all the transferring regarding rights and responsibilities
- Get expelled by the Board of Members

64
2. Procedures
- The MB considers and documents to actively deal with a case of stopping member
status; adopt in a meeting of the Members Board
- In case of excluding a member, the MB finishes a dossier and gets adopted in the
soonest meeting of Members Board
Chapter III
COOPERATIVE MANAGEMENT
Article 13: Members meeting
Article 14: MB of the Coop
1. Number of members: 03
2. Period of operation: 5 years
3. Operational rules:
- A MB is appointed in the meeting to establish the Coop after adopted by Members
Board
- The MB meets at least once a month, chaired by the Chairman; unusual meetings in
cases of requirements from at least 1/3 members of MB or Controlling Board. A
meeting of the MB is valid when there are at least 2/3 members of the MB. The MB
operates collectively and makes a decision based on majority
4. Criteria to become a member of the MB
- First, be a member of the Coop with good morality; education and capacity
- Whenever become a member of the Coop, she/he must not be a member of the
Controlling Board, Chief accountant, cashier; and not their parents, brothers or
sisters.
5. Rights and Responsibilities of the MB:
- Select, expel Vice Chairman of the Coop based on proposals from Chairman; stop the
contract to hire a Chief Accountant
- Decide on structure of the Coop
- Implement enactments of the Members Board; prepare reports on business,
production plans; capital mobilization and profit sharing; reports on activities of the
MB to present to Members Board
- Prepare meetings content and summon up members
- Evaluate results of production and trading; verify financial reports before representing
to Members Board meetings
- Implement rights and res. Of the Coop based on Coop Law in 2003
- Admit or expel members
- Supervise, evaluate activities of Chairman and Vice Chairmen.
Article 15: Rights & Res. Of Chairman
- Be representative of the Coop in law
- Implement busines & production plan; coordinate daily activities of the Coop
- Nominate & dismiss positions in the MB
- Sign contracts on behalf of the Coop
- Present annual financial report
- Propose on organizational structure to the MB; recruitment and other rights
- Be responsible for all assignments; authorize one Vice Chairman to take over daily
tasks in case of absence.
Article 16: Controlling Board
1. Number of members: 01
2. Period of operation: 5 year
3. Criteria: the same as criteria to become a member of the MB.
4. Rights & Res.:

65
- Supervise the following of the Regulation and Rules.
- Supervice financial, accounting matters; revenue distribution; loss & profit; Coop
budget and other assets; debts and supports from the State.
- Receive complaints regarding activities of the Coop; take part in MB meetings
- Inform MB of the results; present at meetings of Members Board; proposals on
overcoming difficulties.
- Inquire related ones to provide books, documents and other information for
supervising activities.
- Prepare meetings content and summon up an unusual meeting in case of violation
against the law; Coop Regulation & Rules; Enactments of the Members Board.
Chapter IV
COOPERATIVE ASSETS & FINANCE
Article 17: Legal capital
Legal capital of the Coop is a total of all contributions from members
Legal capital on establishment date of the Coop (06/12/2006) is 8,000,000VND
1. This capital increases in case:
- Decision to raise at annual meetings of the Members Board
- A members contributes more but not exceeding 30% of the total
2. This capital reduces in case:
- Return capital to members
3. In case of any change in legal capital, the Coop must inform Registration Department
of the State
Article 18: Contribution of each member
1. Minimum contribution capital: 200,000VND; maximum not exceeding 30% of
the total
2. Members can contribute in cash or assets, land but must be converted to money at
time of contribution
3. Deadline for contribution: one time as registered at the first meeting to set up the
Coop.
4. Return capital to members:
- Only after finishing all tasks.
- Amount decided by the soonest meeting of the Members Board
- Return in one time within 30days (after drawing the annual balance sheet)
Article 19: Authorities and methods of capital mobilization
1. Authorities decided by the MB and Chairman.
2. Methods of capital mobilization:
- Borrow from financial institutions
- Borrow from Coop members
- Support from the State and other individuals, organizations in Vietnam or from the
outside according to the law
Article 20: Rules on remuneration
- Remuneration packages of MB, Controlling Board, Chief Accountant decided in
annual meetings of the Members Board
- Details as follow:
Remuneration for 06 persons = 50% monthly profit
+ Chairman = 30% of 50%
+ 02 Vice Chairman = 40% of 50%
+ 02 control person = 8% of 50%
+ Accountant = 15% of 50%
+ Cashier = 7% of 50%

66
Article 21: Management and usage of Cooperative budgets
1. Distribution and formation of budgets:
After using 50% for operational cost, the left is used to cover loss of year before
and to set up budgets as approved by Members Board:
- Division of profit from service renting: 40%
- Division based on contribution: 10%
- Production Development Budget: 25%
- Precaution Budget: 10%
- Other Budgets: 15%
Management and objectives of budgets:
- Production Development Budget: Reinvest, enlarge production
- Precaution Budget: Deal with unexpected difficulties
- Other Budgets: Implement social policies within the Coop and community
These budgets are entrusted to the MB to use and manage. The MB has to draw a balance
sheet at annual meetings of the Member Board.
Article 22: Loss processing
1. Loss in a year is deducted from compensation of individuals and organizations
2. If these are not enough, the left is deducted from pre-tax profit of the Coop and
Precaution Budget according to decision of the Members Board; Regulation or Rules
regarding financial management of the Coop
Article 23: Management, usage, reservation and tackling common assets; cumulative
capital of the Coop
Chapter V
EXECUTION
Article 24: Regulation infringement and internal disputes handling
Based on nature and level of infringement, the member involved is to be blamed,
warned or excluded from the Cooperative; and compensation is required in case of
damage.
Internal disputes are settled down by reconcilement between members and with the
Cooperative based on equality and cooperation. In case of unmanageability, the case
is submitted to the Members Board.
Article 25: Regulation modification and adjustment
1. Any modification or adjustment to the Regulation is based on Article 22 of
Cooperative Law.
2. The Management Board prepares modification methods and submits to the
Members Board.
3. After voting for modification, the Coop has to send the modified Regulation
together with an enactment of the Members Board to the registration department.
Article 26: Validity
1. The Regulation is adopted at , and valid from the date of attaining a business
license.
2. The MB works out Rules on assets management, labor, merits, infringement
settlement; working schedule of the MB, Head of the MB and other position.
3. Any modification or adjustment must be adopted by the Members Board
4. All members are bound to follow the Regulation
5. This Regulation is a legal document to be sent to the Registration Department and
all members of the Cooperative.
On behalf of the Cooperative
Chairman
Hoang Van Thinh

67

ANNEX 9

Chain Analysis of Safe Vegetables in Viet Tri and Lang Son Cities

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Chain Analysis of Safe Vegetables in Viet Tri and Lang Son Cities

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Benoit Trudel

Dang Vu Hoai Nam

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