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On 9 September 2015 in Hanoi, Viet Nam Institute for Economic and Policy Research (VEPR) cooperated with Japan International Cooperation Agency (JICA) and Oxfam Vietnam to organize the Workshop: “The impacts of Transpacific partnership (TPP) and ASEAN economic community (AEC) on Vietnam’s livestock sector”. This workshop is funded by Oxfam and is the 4th event in the event series of Vietnam Agriculture Policy Forum (VAPF).
Overview of the forum
At the forum, Mr. Okiura Fumihiko, Deputy Chief Representative of Japan International Cooperation Agency (JICA) Vietnam Office stated that while Vietnam was the leading country in rice and coffee export, the livestock sector was lagging behind, especially when Vietnam join AEC and TPP
Mr. Okiura Fumihiko, Deputy Chief Representative of JICA Vietnam Office gave opening remarks
VEPR’s research showed that small production, import dependence, diseases, environmental pollution, low food safety and loose linkage lead to low productivity, weak competitiveness and create disadvantages for trade in the integration period. Domestic production will be resized due to the competition coming from other countries in TPP, especially the meat industry. In the meantime, consumers and importers will benefit the most from the economy integration.
VEPR’s research team
The researchers pointed out that the small scale households involve in dairy cow will suffer the most because they have low position, inability to negotiate on prices. Milk price is decided by the company. Besides, they have not been totally active in source of food, while the support from the state has been slow. Cooperatives are affected less thanks to the link between livestock producers to improve the status of negotiations. The large-scale farms, with modern technology, which reduces production costs, autonomous source of food, quality assurance and food safety will have high competitiveness.
According to the research group, the cattle market will also suffer negative impacts, but the impacts will be rather less and slower due to customers’ spending habits. Dr. Nguyen Thi Thu Hang, Chief Economist of VEPR said that beef production is mostly at small scale. Therefore, traders play a very important role and they are the biggest competitors of large livestock farms. Traders established or associated with small slaughterhouses to reduce costs, while large slaughterhouses require large investments and food safety process assurance.
The habit of using fresh meat rather than frozen imported meat will reduce the impact on the livestock and poultry sector after integration. However, Dr. Nguyen Duc Thanh warned that this habit will change over the time, as more and more people care about food safety and they will switch to frozen meats to be safer.
The study also gave recommendations to improve the productivity and competitiveness of domestic product by encouraging investment in large-scale farming, along with centralized systems slaughterhouses, distribution and retail with cooling system.
The team said that the livestock household model should not be encouraged too much. The support to farmers should focus primarily on the shift from small scale to large scale by the links through cooperatives, or switching to other occupations.
Other photos in the forum: Dr. Nguyen Duc Thanh – Director of VEPR answering questions from the media The forum has the participation of many reporters, editors from different newspaper Delegates show interest in the research Dr. Dinh Quang Ty said that similar research like this should be encouraged Media coverage (in Vietnamese)
The Saigon Times:
Economy and Urban Newspaper
Vietnam Countryside Newspaper:
The Business times:
People Communist Party Newspaper
Vietnam Enterprises Newspaper
The Vietnam Finance Times:
Hai Phong Newspaper:
Industry and Trade Newspaper:
People’s delegate Newspaper: