Center for Agricultural Policy (CAP)

1. Center for Agricultural Policy (CAP) Hanoi, March, 2007

2. Director Board CÁC PHÒNG CHỨC NĂNG Administrative Division Centers Personnel Scientific Management Policy Commodity Agrarian System NRM CAP RUDEC Agroinfo SCAP IPSARD ORGANIGRAM Finance

3. Who we are? • Center of Excellence • Autonomy under IPSARD • Secretariat for MARD’s Policy Advisor Group

4. What we are doing? • Research • Consultancy • Training

5. Our Staff Director Dr. Dang Kim Son Administration Office Vice Director Mr. Nguyen Ngoc Que Market Analysis Unit Resource Management Unit Rural Economics Unit Manager Dr. Nguyen Do Anh Tuan Modeling Unit

6. Vietnam Network of Policy Research Institutes Universities: Economics, Foreign Trade, Agriculture, International Relation Local Network Consultancy Service Business International Universities: Harvard, Stanford, Michigan, Toronto, Paris 1, Sussex, Stockhom, Copenhaghen, Wageningen, ANU, Adelaide, Queensland, UWA Institutes: ERS, IFPRI, ISS, ABARE, ILRI, IRRI Our Partners

7. Vietnam MARD MOST Private Sector International Multilateral: World Bank, ADB, UNDP, FAO Bilateral: AusAid, SIDA, DANIDA, SDC, French MISPA, Spanish, DFID Foundation: Ford, Oxfam, Rockefeller, CEEVN Our Sponsors

8. New Challenges • Increasing industrialization, urbanization • Completing the transition to the market economy • Intensive international integration • Low competitiveness • Social problems: labor surplus, inequality • Environmental sustainability • Climate change and natural disasters

9. New Opportunities • S&T development • Investment fund, both from foreign and domestic sources • Good human resource. Available demand for skill and educated labor. • Open demand for high quality agricultural products and services.

10. New Policy Orientation • Prioritize R&D as the main momentum for agricultural growth. • Mobilize capital for rural SME development. • Integrated approach for rural development, focusing on rural community, mobilization of internal strength and development of grassroot democracy. • Improve competitiveness for rural commodities to serve the high-growth domestic and export demand. • Sustainable development, basing on the improvement of risk management, natural disaster management, and environmental protection.

11. Research Orientation • Rural investment climate. • Efficiency of agricultural R&D. • Agricultural demand/supply analysis, impact of international integration. • Rural institutions. • Environmental and ecological sustainability: natural disaster, climate change, animal diseases Overall objective is to create high and stable agricultural growth, narrow urban-rural gap, sustain the rural cultural, ecological and environmental system.

12. Issues of Livestock Sector in Vietnam Competitiveness of export pork meat is low: scale, feed availability, technology (variety, feeding, processing, transportation) Numerous epidemic diseases: weak monitoring, fragmented, not concentrated slaughtering Low rate of contract farming Ineffective veterinary system

13. Policy Recommendation

14. Planning of livestock farming area: large-scale and concentrated, modern, monitoring, registration, orientation towards domestic market • Herd cow: North, South. Intensive-farming pasture • Diary: only concentrate on areas with competitive advantages, proximity to urban centers (Moc Chau, Da Lat), and not advisable for large-scale production • Pig: outside-village farms in combination with industrial zone development, veterinary guarantee, anti-epidemic area development • Sheep, goat: Central region • Poultry: • Chicken: rule out farming inside residential areas, proximity to consumption market with available feed • Duck: develop settled farms, apply modern techniques for grazing duck

15. Slaughter-house: close linked to input and output market outlets, registration, quality standard warranty • Animal feeds • Transform agricultural production toward raw material zone for animal feeds • Move forward self-sufficiency in raw materials, only import some high protein materials • Focus on supporting enterprises with large-scale production, providing feeds both for cattle, poultry and aquaculture; limite the development of small-scale enterprises

16. Veterinary: • Trade agreement with China to rule out cross-border trade • Establish monitor and protection line for livestock products • Strengthening the veterinary system • Develop system of warning, prevention and diagnosis of epidemic diseases • Transportation • Invest in frozen transportation, special car to transport live animals • Invest in developing transportation station of animals • Develop market system of cattle auction

17. Research • Support private enterprises to adapt new breed • Research of special local breed • Research of animal nutrition • Not move too fast with GMA, but concentrate on breed with high quality serving for domestic market • Trade support • Develop vertical livestock associations, outsource and support agricultural extension, price and market information monitor • Support to strengthen linkages between farmers, processors and supermarkets

18. Research Orientation

19. Database on price and cost of production Profile of value chain from service provision to production, processing, marketing and consumption Market organization analysis of animal feed and livestock sectors. Analysis of livestock market demand Analysis of epidemic risks and market Analysis of competitiveness in each livestock sub-sectors Review food safety and sanitary standards committed for WTO integration Scientific basis for clean livestock development Planning for raw materials and livestock production zoning

20. Contact Center for Agricultural Policy (CAP) B3, Alley 128 Thuy Khue Str., Hanoi, Vietnam Tel: +84-4-7280491 Fax: +84-4-7280489 Email: cap@ipsard.gov.vn truongquynhbao@gmail.com