VAPF No. 04: The impacts of TPPand AEC on Vietnam’s livestock sector

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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: http://www.thesaigontimes.vn/135474/Uc-My-se-thay-doi-thi-truong-chan-nuoi-Viet-Nam.html

Economy and Urban Newspaperhttp://ktdt.vn/kinh-te/tin-tuc/2015/09/8102EAC8/nganh-chan-nuoi-se-bi-thu-hep-sau-hoi-nhap/

People Newspaper: http://www.nhandan.com.vn/kinhte/hoi-nhap/item/27384502-nganh-chan-nuoi-se-chiu-thiet-nhat-tu-tpp-va-aec.html

Vietnam Countryside Newspaper:  http://nongthonviet.com.vn/nong-nghiep/201509/nganh-chan-nuoi-se-chiu-thiet-nhat-tu-tpp-va-aec-641125/

Customs Newspaper: http://m.baohaiquan.vn/Details.aspx?ID=67159&ChannelID=22

The Business times: http://thoibaokinhdoanh.vn/Dien-dan-10/Chan-nuoi-nong-ho–mong-manh–trong-hoi-nhap-17524.html

Government News: http://baochinhphu.vn/Kinh-te/Gia-nhap-TPP-Chan-nuoi-dung-truoc-song-lon/235876.vgp

People Communist Party Newspaper http://dangcongsan.vn/cpv/Modules/News/NewsDetail.aspx?co_id=10004&cn_id=732858

Vietnam Enterprises Newspaper http://doanhnghiepvn.vn/nganh-chan-nuoi-se-don-nhan-thach-thuc-lon-tu-tpp-va-aec-d54414.html

The Vietnam Finance Times: http://thoibaotaichinhvietnam.vn/pages/kinh-doanh/2015-09-09/nganh-chan-nuoi-truoc-tpp-than-trong-de-khong-bi-lan-at-24255.aspx

Hai Phong Newspaper: http://www.baohaiphong.com.vn/channel/4905/201509/nganh-chan-nuoi-duoi-suc-do-rao-can-chinh-sach-2440456/

Industry and Trade Newspaper: http://baocongthuong.com.vn/nganh-chan-nuoi-truoc-them-tpp-hay-chu-trong-lien-ket-chuoi.html

Vinanet Newspaper: http://vinanet.vn/hang-hoa/chan-nuoi-viet-nam-phu-thuoc-qua-nhieu-vao-giong-ngoai-627163.html

People’s delegate Newspaper: http://www.daibieunhandan.vn/ONA_BDT/NewsPrint.aspx?newsId=357922

 

 

 

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