JSTPM Vol 8, No 3+4, 2019 51

VIETNAM ORGANIC AGRICULTURE TOWARD SUSTAINABLE

CONSUMPTION AND PRODUCTION

Bach Tan Sinh1

Vietnam Institute of Science, Technology and Innovation

Abstract:
The trend of organic agriculture formation and development is happening very fast not
only in developed countries but also in developing countries including Vietnam. In
Vietnam, there have been many studies on sustainable industry towards consumption and
sustainable production from economic and ecological aspects. However, there is very little
research on organic agriculture especially from the perspective of science, technology,
and innovation. This paper provides an initial picture of the status, challenges, and
opportunities of organic agriculture, analyzing the policies and institutions that promote
organic agriculture from the approach of ecological innovation with the principle Product
cycle and value chain of agricultural products. Through the in-depth study of the case of
Viet Lien Investment and Trading Limited Company, the paper offers some lessons learned
related to the philosophy and goals of Viet Lien Company operation. The paper also
provided some recommendations concerning the development of organic agriculture
toward sustainable consumption and Production.
Keywords: Sustainable agriculture; Organic agriculture; Eco-innovation.
Code: 19100801

1. The sustainable agriculture toward sustainable consumption and

production - concept and its interpretation in Vietnam
There has been a number of definitions on sustainable agriculture. The
broadly accepted definition of sustainable agriculture, from a biological
perspective, has been proposed by the Consultative Group on International
Agricultural Research (CGIAR) as “Sustainable agriculture involves the
successful management of resources for agriculture to satisfy changing
human needs, while maintaining or enhancing the quality of the
environment and conserving natural resources” (Dumanski, J, at al. 1998).
For him, this is practical approach to sustainability since it recognizes the
legitimate use of natural and manmade resources for satisfaction of human
needs, but it cautions against the exploitation of these resources in a manner
which would degrade the quality and potential of the resources on which
production depends. It also recognizes that human needs change and

1
Author’s contact email address: [email protected]
52 Vietnam organic agriculture toward…

therefore the systems of production also must change. In addition, he argues

that to best achieve these objectives, sustainable agricultural systems must
always be in a position to respond and capture the opportunities provided
by changing markets, technologies, global environmental conditions and
that the foundation for this flexibility and resilience is based on
maintenance of natural resource and environmental quality. This leads to
the concept of sustainability as opportunity, which can be identified as
ensuring that the choices for future production systems are not reduced by
decisions made in the present. The view of sustainability is not based on
overcoming constraints, but rather as a process to capture concomitant
economic and environmental opportunities.
In this paper, the concept of sustainable agriculture is interpreted more to
what is called organic agriculture or eco-agriculture. Organic agriculture is
a production system that allows the optimal exploitation of resources such
as soil, energy, nutrients, biological processes to take place in nature with
the most appropriate management method. The aim is to create products
that meet the requirements of food hygiene and safety, and at the same
time, ensure the environmental, social and economic sustainable production
system. By this definition, organic agriculture can also be understood as
ecological agriculture. Thus, the term “organic” not only refers to the type
of nutrition provided to plants but is expanded as a perspective, in which
sustainability is the key (highlighted by the author) (Nguyen Van Bo and
Ngo Doan Dam 2017). According to Dumanski 1998, “the sustainability
that leaves future generations at least the opportunities we have”. This is a
very practical perspective, ensuring that total assets in four forms (natural
assets, man-made assets, human beings and society) are always preserved
during the development process. Unfortunately, we have been fully
exploiting the resources, there is almost no opportunity for the next
generation.
The serious impacts of current consumption and production trends across
the world requires the need for a transition towards Sustainable
Consumption and Production (SCP), as a key element for sustainable
development. The widely used and more recent definition is provided by
UNEP: “SCP is a holistic approach to minimise the negative environmental
impacts from consumption and production systems while promoting quality
of life for all”. Regardless of definitions, the underlying principles of SCP
should be the followings (UNEP, 2011):
(1) Improving the quality of life without increasing environmental
degradation and without compromising the resource needs of future
generations.
JSTPM Vol 8, No 3+4, 2019 53

(2) Decoupling economic growth from environmental degradation by:

- Reducing material/energy intensity of current economic activities and
reducing emissions and waste from extraction, production, consumption
and disposal;
- Promoting a shift of consumption patterns towards groups of goods and
services with lower energy and material intensity without compromising
quality of life.
(3) Applying life-cycle thinking which considers the impacts from all life-
cycle stages of the production and consumption process.
The SCP for development approach developed by UNEP with the life-cycle
thinking provide a useful and practical way to assess the sustainability of
Agriculture. In addition, SCP is addressing one of the 17 sustainable
development goals of the Agenda 2030 - the Goal number 12 “ensure
sustainable consumption and production patters”.

2. Challenges and opportunities Vietnam faces in term of organic

agriculture

2.1. Challenges
Despite the difficult situation, affected by the financial crisis and global
economic recession during late 1980s, Vietnam's economy still ensures a
relatively rapid growth of 5-8% in the past 20 years. As a result, GDP has
exceeded 2.500 USD/person, ensuring Vietnam entered the group of
middle-income countries. Rapid growth is also reflected in the
manufacturing of products and services. In the field of agriculture, forestry
and fisheries, Vietnamese branded products have quickly dominated the
international market, although the competition is quite fierce. Many
agricultural products have a production and export scale exceeding US$ 1
billion/year (MPI, 2012). Overall, with the dynamic economic development
and innovative policies implemented, Vietnam's Global Competitiveness
Index (GCI) according to the World Economic Forum (WEF) in 2010 has
increased sharply, among 67 most powerful global competing countries,
compared with 141 other nations and economies in the world.
However, when looking deeply into the development of the past years, it
can be seen that besides great achievements, there are still many limitations
and weaknesses. The highest focus is still on the issue of low quality of
growth, low macroeconomic stability. Facing the challenges of integration
and global climate change, Vietnam's economy is facing significant risks,
affecting the quantity, quality and results of rapid growth, due to economic,
social and environmental un-sustainability.
54 Vietnam organic agriculture toward…

In terms of the criteria of sustainable development, the rate of material

consumption is still large, making the rate of added value of industry and
economy become less. In production consumption, due to priority given to
increase number of the products, many industries and localities have
adopted outdated technologies, thereby reducing production efficiency and
the competitiveness of the economy, consuming a large amount of
resources, energy and discharged a lot of waste goes into environment.
Projects on manufacturing energy-saving products, or on importing goods,
raw materials, machinery, equipment for manufacturing energy-efficient
products have been not listed as those projects receiving investment
promotion incentives stipulated in the 2005 Investment Law and Decree No
108/2006/ND-CP providing guidance in implementing the Law. The
industries that manufacture and import energy-saving products are not
entitled to import tax exemption or import policies and preferential policies
on post-investment interest rate support or credit guarantees. Other
solutions such as guiding reasonable consumption, restructuring production,
changing products, etc. have not been studied and applied.
The environment in many rural areas is increasingly polluted by domestic
waste, animal husbandry and agricultural medicine. The suburban areas,
industrial parks and trade villages are seriously polluted. While only 51% of
households have hygienic latrines; 74.7% of households have a bathroom;
38% of households have hygienic breeding areas; 12.2% of communes have
drainage works; 28.4% of communes organized waste collection. Clean
water has been the most heavily invested sector in recent years, but up to
now, only 70% of the population has access to hygienic drinking water (of
which about 30% of the population has access to water that meets the
standards of the Ministry of Health). Most rural production and business
establishments do not meet environmental standards (MPI, 2012).
Vietnam is an agricultural country, the land is crowded with people and the
area of agricultural land per capita is declining, from 0.13 ha in 1980 to
about 0.1 ha today. That is not to mention, in the concentrated agricultural
production areas such as the Red River Delta, only nearly 400m2/person
(MPI, 2012).
Looking back at history, Vietnam just started using chemical fertilizers in
some French plantations at the beginning of the last century and most
farmers' fields only applied manure, some green manure like mulberry, fill
bar. Agricultural residues are mainly used for roofing and fuel needs.
Chemical fertilizers were only really widely used after the reunification of
the country (1975). However, the speed of using fertilizer increased too
fast. In 2012, Vietnam used nearly 12 million tons of fertilizers of all kinds
JSTPM Vol 8, No 3+4, 2019 55

and nearly half a billion USD for plant protection drugs. One thing to worry
about is that the agricultural extension of fertilizer has not been paid enough
attention, so the use of fertilizers is arbitrary, unbalanced, not the right trees
and the right soil so the coefficient of fertilizer use is very low. Currently,
the nitrogen using ratio is only above 40%, the potassium fertilizer is about
55-60%. But phosphate is much lower. Thus, every year, Vietnam has lost
nearly half of its fertilizer due to runoff, volatilization or compaction. This
harm not only causes material damage due to waste, but also causes other
harms such as vulnerability to pests, spilled tires, reduced product quality or
enrichment of water sources. Organic use itself has the potential to cause
environmental pollution such as heavy metal accumulation, toxic
microorganisms (worm eggs, ecoli,...) or eutrophication of water resources.
Many people still believe that only chemical nitrogen fertilizer is the source
of nitrate pollution (Nguyen Van Bo and Ngo Doan Dam, 2017).

2.2. Opportunities
The overuse of fertilizers and pesticides as mentioned above has been
causing environmental pollution and reducing the quality of agricultural
products. Therefore, the development of sustainable ecological agriculture
is an indispensable trend to improve product quality and minimize negative
impacts on community health and living environment. For Vietnam, in
order to successfully switch from self-sufficient production to an export-
oriented commodity production industry, food safety issues as well as
quality improvement, meeting the requirements of the domestic market and
international will be increasingly urgent.
Opportunities for the development of organic agriculture must also include
the rising domestic and international demand for safe products. Therefore,
some organic products have a strong foothold in the market such as clean
vegetables, organic tea, clean meat,... However, it can be said that
Vietnam's organic agriculture still accounts for an unreasonable proportion
compared to the total agricultural production. In 2012, Vietnam's export
turnover of agricultural products reached US$ 27.5 billion through many
leading products in the world group such as rice, rubber, coffee, pepper,
cashew, tea, etc. However, most of the agricultural products Vietnam
exports are in raw form, unprocessed and of low quality, so the added value
is very low.
In the near future, in Vietnam's agricultural development strategy, ensuring
national food security, raising production efficiency and increasing people's
income are top priority. However, there is a tendency to reduce the rice
cultivated area, reduce rice export to grow more quality rice varieties, raise
the percentage of specialty and indigenous seeds with quality. Vietnam
56 Vietnam organic agriculture toward…

cannot keep exporting rice for less than 500USD, while many cities import
rice for more than 1.000USD. And so, the opportunity to return to organic
farming with some rice varieties is present. With the natural and social
conditions of Vietnam, organic agriculture has opportunities in the industry
of vegetables, fruits, alpine tea, spice plants, medicinal plants, and aquatic
products according to the mode of ecological farming (Nguyen Van Bo and
Ngo Doan Dam. 2017).
A very important factor is the increased interest of the Government and the
people in organic agriculture. As proof, on May 22nd, 2013 Vietnam
Organic Agriculture Association was officially established. The Ministry of
Agriculture and Rural Development (MARD) issued Sector Standard 10
TCN 602-2006: Organic - Standard for Organic Agriculture Production and
Processing on December 29th, 2006 as an important legal basis. Many
businesses have boldly invested in the production, processing and export of
organic agricultural products.

3. Policy and institutional framework promoting organic agriculture

toward sustainable consumption and production

3.1. Key strategies/policies and laws promoting organic agriculture

toward SCP in Vietnam
Key
Key
Associated
strategies/ Lead
Decrees, Remarks/Comments
policies agency
Circulars &
and laws
Decisions
Environm MONRE Article 44. Production and consumption of
ental new environmental products
Protection - Agencies, organizations, households and
Law individuals are responsible for participating in
the production and consumption of
environmentally friendly products and services.
- Heads of agencies and units using the state
budget are responsible for giving priority to
using eco-friendly products and services
certified with eco-labels as prescribed by law.
- The Ministry of Natural Resources and
Environment (MONRE) shall assume the prime
responsibility and coordinate with the
information and communication agencies in
introducing and promoting environmentally
friendly products and services.
Decree No. MONRE Article 46. Subsidies on products and
19/2015/ services of environmental protection
JSTPM Vol 8, No 3+4, 2019 57

Key
Key
Associated
strategies/ Lead
Decrees, Remarks/Comments
policies agency
Circulars &
and laws
Decisions
ND-CP The project owner carries out activities and
detailing the provides eco-friendly products which are
implementati labeled by MONRE; products from recycling
on of a and waste treatment activities certified by
number of competent state agencies, shall be entitled to
articles of price subsidies under the provisions of law on
the Law on production and supply of public products and
Environment services.
al Protection Article 47. Consumption support for
products
Heads of agencies and units using the state
budget shall prioritize public procurement of
environmentally-friendly products, which are
labeled with Vietnam's Green Label by the
MONRE; products from recycling and waste
treatment activities certified by competent state
agencies when purchasing such products.
National Decision No - Promote eco-labeling and dissemination of
strategy 1393/QD- information about eco-friendly products to the
for Green TTg 25th society. Develop a roadmap from now to 2020
Growth September to apply green procurement.
2012 of the - To study and promulgate regulations on green
Prime public spending, in which investment and
Minister recurrent spending of the state budget must
approving prioritize procurement and use of eco-labeled
the National goods and recyclable goods.
Strategy on
green growth

3.2. National key policies promoting ecological value cycles

Key Associated
Key Lead
Decrees, Circulars & Remarks/Comments
policies agency
Decisions
Policies Support to apply Good MARD, - Currently, there has not been
promoting Agricultural MOST any organization in the country
village/ Production (GAP) and MOH certifying organic products;
farming - The state budget mainly supports
households inputs in the production process,
not yet supported in the chain
from production, certification to
product consumption in the market.
58 Vietnam organic agriculture toward…

Decision No - The State budget invests 100%

01/2012/QD-TTg dated of the fund for basic surveys,
09th January 2012 of the identifying concentrated production
Prime Minister on the areas applying VietGAP approved
policy supports the by the competent authorities.
application of Good - State budget support: No more
Agricultural Production than 50% of total investment
Practices in agriculture, capital for construction and
forestry and fisheries renovation of infrastructure of
concentrated production areas;
- Support one-time funding for
hiring evaluation organizations to
be granted safety product certificates;
- Support training and training in
the application of VietGAP in
production and preliminary
processing of safe products.

Policies Building and developing Provincial - There is a process and

promoting models of safe PPC mechanism for supervising food
cooperatives agricultural supply safety throughout the product
chains chain and has been inspected by
Decision No. 3073/QD- competent authorities to ensure
BNN-QLCL dated food safety requirements at all
December 27th, 2013 of stages of production and business
the MARD regulating in the food supply chain (The
the development and initial production facilities of the
development of safe chain do not require VietGAP
models of food supply certification, equivalent certificates
chains for safe or food safety eligibility);
agricultural, forestry and - Products sold at business
fishery products establishments to individuals or
nationwide. organizations directly subject to
supervision by functional agencies,
Safe food supply chain which have been sampled and
tested at laboratories designated
(National strategy for
by the MARD, and meet the
food safety during 2011-
current regulations and technical
2020, Decision No.
regulations on food safety;
20/QD-TTg dated
January 4th, 2012) - The certifying body is Quality
Management Agency for agricultural,
forest and aquaculture products
of provinces, cities or agencies
assigned by the Department of
Agriculture and Rural Development
to manage the quality of food
safety in agriculture, forestry and
forestry.
- Funds for inspection and
JSTPM Vol 8, No 3+4, 2019 59

certification of establishments
meeting food safety conditions
shall comply with current
regulations of the Ministry of
Finance.
- There is no specific guidance
and funding for initial support of
certification fees for businesses,
cooperatives, and households that
are owners and managers of the
entire supply chain.

Supporting policy for MOST - Exploiting the comparative

hi-tech zones and areas and advantage of natural, resources,
applying high MARD economic and social conditions
technology of each ecological region;
- The hi-tech application
Decision No. 575/QD- agriculture zone is the
TTg dated May 4th, 2015 technological centre for
General planning of replication into high-tech applied
agricultural hi-tech agricultural production areas.
zones and areas to 2020, - Maximize the investment in
orientation to 2030. building high-tech agricultural
zones and zones;
- By 2020: Establishing a number
of agricultural areas to apply high
technology, focusing on the
following subjects: Vegetables,
Decision No. 1895/QD- flowers, coffee, tea, dragon fruit,
TTg dated December milk cows, beef meat, beef,
17th, 2012 of the Prime shrimp (salty, brackish);
Minister on the Program
- Research and transfer of
of developing high-tech
scientific and technological
applications of
applications to high-tech
agriculture under the
application areas has not yet gone
National Program of
into the form of ordering and
high technology
researching and transferring in
development till 2020
conditions of adaptation to
climate change and saltwater
intrusion.
Support for land MONRE, - MONRE is responsible for
consolidation and MOST, formulating policies to encourage
innovation MPI and concentration and accumulation
MARD of land for agricultural
Decision No. 19- production under a large-scale
2016/NQ-CP dated 25th concentration model.
April 2016 on major - MOST is responsible for the
tasks and solutions to followings:
improve the business + Establishment and development
60 Vietnam organic agriculture toward…

environment, improve of national innovation system,

national competition in innovation centers and technology
the two years 2016- incubators.
2017, orientation to + Early implementation of the
2020. Scheme to support innovation
start-up ecosystem after the Prime
Minister approves it.
Decision No. 35/NQ-CP
dated 16th May 2016 on - MPI is responsible for the
support and followings:
development of + Reviewing and assessing the
enterprises to 2020 implementation and effectiveness
of policies to support businesses,
especially policies to support
startups and businesses to innovate;
propose measures to promote the
implementation or addition of
functions and tasks to the SME
Development Fund, together with
the National Technology Innovation
Fund and private-sector funds in
order to increase capital sources
for startups, especially innovative
businesses with high growth
potential'
+ Study the establishment,
organization and operation of
business incubator models, business
support centers, accelerated
innovation and start-up programs
in the form of public-private
partnership with the participation
of domestic and foreign business
associations, organizations.

- MARD is responsible for the

followings:
+ Proposing mechanisms and
policies to create favorable
conditions for enterprises to
access land and effectively use
agricultural land;
+ Review and evaluate the
implementation and propose
amendments and supplements to
policies for enterprises investing
in agriculture and rural areas.
JSTPM Vol 8, No 3+4, 2019 61

4. The status of Vietnam's organic agriculture

4.1. Production
Like many other countries in the world, Vietnamese farmers have known
traditional organic farming for thousands of years, but organic agricultural
production follows the current concept of the International Federation of
Organic Agriculture Movements (IFOAM) are still new. IFOAM's
conceptual organic agriculture was actually just started in Vietnam in the
late 1990s with a few initiatives, mainly focused on the exploitation of
natural products, such as flavor and vegetable oils, to export to some
European countries.
According to IFOAM data released in 20122, Vietnam had 19,272 hectares
of certified organic agricultural production (equivalent to 0.19% of the total
cultivated area) in 2010, plus 11,650 hectares of organic/ecological
aquaculture water surface and 2,565 ha of primary forest to exploit natural
organic products. According to a report of the Vietnam Organic Agriculture
Association, the total export value of Vietnam's organic products is
estimated at US $12-14 million. The organic products being exported are
tea, shrimp, rice, cinnamon, anise and essential oil, but the quantity is still
very limited.

4.2. Quality certification

Currently, Vietnam has no system of national standards and legal
framework for production, certification and monitoring of quality of
organic agricultural products. In early 2007, MARD issued Sector Standard
No. 10 TCN602-2006 for organic products in Vietnam, but this standard is
still very general and has not been specifically instructed for organic
certification, to serve as a basis for production, processing, and other
interested entities. Currently, there are 13 organizations in the country
which are farmer groups and enterprises certified by international
organizations meeting standards to export organic products to European and
American countries (MARD, 2007).

4.3. Consumption
The domestic market for organic agricultural products is currently
underdeveloped. There are no detailed statistics on the types and quantities
of organic produce produced and consumed annually, but it is easy to see
that organic vegetable products are for domestic consumption, while other

2
FiLB and IFOAM, 2012: The World Organic Agriculture: Statistics and emerging trends 2012.
62 Vietnam organic agriculture toward…

organic products such as tea, shrimp, rice are for export. There is also no
data on the category and quantity of organic products imported for domestic
consumption, although there have been online report that the import and
consumption of such products is increasing in Hanoi and Ho Chi Minh
City.

4.4. Policy
Vietnam Government always strongly supports efforts to develop a
sustainable and environmentally friendly agriculture, improving the
productivity and competitiveness of agricultural products, including organic
agriculture. However, there is a lack of specific policies on strategic
orientation and national action plan to really promote the development of
organic agricultural production. At the end of 2011, the Government
allowed the establishment of the Vietnamese Consumers Association and
from the beginning of 2012, the Association started to operate. In early
2012, the Prime Minister issued Decision No. 01/2012/QD-TTg on a
number of policies to support the application of Good Agricultural
Production Practices in agriculture, forestry and fisheries, in which have
organic agriculture. Recently, MARD affirmed its stronger support for
organic agriculture, through the approval of the Science and Technology
Research Framework Program for Agriculture and Rural Development for
the period 2013-2020, including organic agriculture.3

4.5. Agencies and organizations operating on organic agriculture

State agencies involved in the field of organic agriculture include: MARD,
MOST, MONRE, Ministry of Education and Training. Most institutes and
research organizations interested in organic agriculture are directly under
MARD, with functions and tasks related to crops, livestock and fisheries,
including the Vietnam Academy of Agricultural Sciences (VAAS) and
other research institutes/centers, Animal Husbandry Institute, Research
Institutes for Aquaculture (RIA1, RIA2, RIA3...) and agricultural
universities.

4.6. Non-governmental organizations and businesses interested in

organic agriculture
They include Vietnam Farmers Union (VNFU) for organic vegetables,
ECOMART Company for organic tea; Organik Dalat for organic
vegetables; Vien Phu Green Farm Enterprise for organic rice and organic

3
MARD (2013): Decision No. 1259/QD-BNN-KHCN of MARD approving the Program of scientific and
technological research framework of Agriculture and Rural Development period 2013-2020.
JSTPM Vol 8, No 3+4, 2019 63

shrimp farming models in Ca Mau province... There are very few

international agencies and organizations supporting the development of
NNHC in Vietnam, except Dan Dan's ADDA organization. Circuit, GTZ of
Germany and more recently the Rural Development Agency of Korea.

4.7. Current status of research and training on organic agriculture

While Vietnam's agricultural production has achieved great achievements
over the past time, the field of research and training to promote the
development of organic agriculture has not received adequate attention and
investment. Information on research and training/training on organic
agriculture officially published in national and international journals is
currently too limited. Research and development programs and projects
have been carried out, mainly focusing on the selection of new plant
varieties and animal breeds and the development of production techniques
suitable to the plant varieties and animals; produce high quality and safe
crop products based on GAP principles. The above research results are
compiled and summarized to provide additional recommendations for
organic agriculture production. The field of training and training in organic
agriculture is in the same situation. Hanoi University of Agriculture
recently established the Center for Organic Agriculture Promotion and
Studies (COAPS), but the Center currently lacks operational resources.

5. Moving toward eco-innovation and organic agriculture for

sustainable consumption and production

5.1. Eco-innovation for sustainable consumption and production

In the last two decades there has been a tremendous increase of academic
works offering different formulations of eco-innovation (F. Tietze at al.,
2011). The concept of eco-innovation have been commonly conceived as a
means to achieve a more responsible and efficient use of resources and
minimise the impact of human activity on the environment. Four essential
concepts emerge from the literature on eco-innovation are the followings
(Mario Pensera, 2012):
- Eco-innovation is mostly situated within the boundaries of Innovation
Theory. The object of innovation is always a process, product, service or
method;
- Most authors think that eco-innovation should be market-oriented. It
should be a win-win process capable of preserving the environment and,
at the same time, improving the competitiveness of firms;
64 Vietnam organic agriculture toward…

- Though the concept of environmental impact is quite vaguely defined,

all the definitions share the idea that human action is a burden on the
environment that should be reduced;
- Finally, some authors advocate a broader view of eco-innovation
including institutional and social aspects.
The paper uses the ASEIC's concept of Eco-innovation as “the development
of innovative products, services, processes, or management which aims to
optimize the use of energy and resources, and promote business
opportunities while preventing or minimizing environmental impact”
(ASEIC, 2012). In addition, the Eco-Innovation strategy developed by
ASEIC with specific goals and methods within four specific types of
potential innovations will be used to examine the case study in Vietnam
concerning how eco-innovation has been used to achieve the sustainable
consumption and production in agriculture in Vietnam. The figure below
summarizes the Eco-innovation strategy:
Table 1. ASEIC Strategy of Eco-Innovation
Categories Methods Goals
Management - Improve environmental - Eco-innovation strategy
awareness- Eco-innovation - Create new business opportunities
technology - Adopt Green - Improve corporate social responsibility
SCM - Make public-private
partnership - Contribute to
local community
Marketing - Eco-design, Eco-labeling, - New types of sales strategies
Eco-packaging - Eco-efficiency
- Provide better market
research
System - Workshop and internal - Education and training
communication scheme - Improve environmental transparency
- Periodic sustainability - Establish environmental management
report system
- Comprehensive and
systematic management
guidelines
Process - Process optimization - Cleaner production
- Good housekeeping - Eco-efficiency
- Waste management - Compliance with environmental
- Material flow analysis regulations
- Environmental performance
indicators

Source: ASEIC 2012

JSTPM Vol 8, No 3+4, 2019 65

The concept and strategy of Eco-Innovation developed by ASEIC is used in

analyzing experiences of Viet Lien Company in an effort to conduct eco-
friendly/environmental innovation with the product life cycle and
management of green supply chain for organic products, in order to form a
new business and production model.

5.2. Case study of Viet Lien Company

5.2.1. Mission: For sustainable development

5.2.2. Philosophy for action

Respect for the natural law, take care of the health of the Earth, nurture
diverse ecosystems, protect the living environment with Green acts of
gratitude to Mother Earth on the principle of equality. Receiving “the best
from mother earth” to offer to life, giving people the products “Natural
clean good”.

5.2.3. Goal for action

Minimize negative impacts of production and business activities on society
and the environment through organic agriculture and application of
biotechnology to provide products that both ensure health care for users,
producers as well as environmental protection and profitability for
businesses.
Established on May 23rd, 2005, Viet Lien Trading and Investment Co., Ltd.
(Viet Lien Company) is one of the pioneering enterprises in the field of
researching, planting and processing vegetables, tubers and fruits following
the principle of “Organic with Five No”: No chemical fertilizers, no
chemical-based pesticides, no herbicides, no growth stimulants, and no
genetic modification. As an enterprise operating in the field of organic
agriculture and biotechnology, Viet Lien always puts itself in the position
of consumers today to capture and understand the concerns that consumers
always face the impact of everyday products on the health of themselves
and their families.
After nearly 15 years of operation, research, production and market search,
Viet Lien now has 4 safe vegetable gardens in Hanoi, Hung Yen and Phu
Tho to a total area of nearly 30ha, serving the needs of clean vegetables for
not only people in the local area but also for fresh vegetables in many shops
and supermarkets in Hanoi. Currently, Viet Lien has provided thousands of
people with safe organic food and created many quality organic products
such as: Sinh Do tea, Guava leaf tea, Leafresh bio-dishwashing liquid,
66 Vietnam organic agriculture toward…

organic oyster mushroom... Viet Lien has become a leader in the field of
organic vegetable growing.
If anyone has ever been to Cu Khoi Ward, Long Bien District, it is not
surprising to find the whole area like a clean vegetable cooperative. The
most typical is Cu Khoi Guava. This is a delicious guava variety with high
yield and good quality. Viet has Lien brought farmers together to bring this
guava to a new level with high yield meeting VietGap standards and make
it a trademark of Cu Khoi. So far, Cu Khoi Guava has been distributed
widely in provinces such as Hai Phong, Quang Ninh, Thanh Hoa, Lang Son
and has penetrated into Hapro Mart retail supermarket system in the inner
Hanoi area.
Besides, Viet Lien officials always share their experiences, devotedly guide
farmers in vegetable cultivation and cultivation techniques. New promising
and economically viable varieties, such as moringa oleifera (a vegetable-
PV), have been researched by Viet Lien and distributed seeds to most
farmers in the region. Up to now, the cluster of Moringa Oleifera is
growing strongly, promising prospects for Cu Khoi farmers. In particular,
under the interest of local authorities, so far farmers from Cu Khoi have
their own preliminary processing plants, along with Viet Lien to increase
the value of products from their own gardens such as guava leaves, leaves
Moringa Oleifera to consumers.
Not only researching and making organic products, Viet Lien also generates
benefits to the vegetation and the land resources which are being depleted
due to perennial chemical abuse, towards clean agriculture, clean industry,
refining the essence of nature, serving the needs of the majority of
consumers.
In the coming time, Viet Lien will make efforts to expand the model of
organic vegetable cultivation, improve production, especially high-nutrient
vegetable varieties such as moringa oleifera to serve consumers. In
addition, Viet Lien will put clean vegetables into large distribution systems
with a commitment to quality and the best price, so that Viet Lien's
products can reach consumers of all classes.
With faith in its direction, Viet Lien has achieved certain success.
Typically, the Gold Cup is a well-known brand trademark in 2013 for its
products including Tue Vien Organic Vegetable, Do Sinh Vegetable and
Do Sinh Tea, Leafresh dishwashing liquid - A great reward for a young and
leading enterprise as Viet Lien Trade and Investment Co. Ltd.

5.3. The project of ecological innovation applies to guava products

In December 2014, Viet Lien implemented a project of Eco-Innovation
funded by UNEP with a new business strategy for the period 2020-2030,
JSTPM Vol 8, No 3+4, 2019 67

namely: (1) Providing guava leaf processing service into a value-added

product for farmers, reaching a minimum of US $ 20,000 in annual
revenue; Target customers are guava planting farmers who follow the
VIETGAP standard and organic in Cu Khoi area; (2) Promote eco-tourism
and natural education in the guava planting area, aiming to achieve annual
turnover of US$ 500,000 annually after Payback. Target customers are
domestic and foreign calendar travelers who prefer eco activities and
weekend relaxation.
The changes Viet Lien Company have been supported in the eco-innovation
project (see Figure 1).
(1) Proposing a new business model to the local government in Cu Khoi
Ward, Long Bien District Hanoi City to determine the area for the pilot
project implementation: The proposal was approved in June 2016 and
allowed Viet Lien to pilot VIETGAP guava farming project on an area of 5
hectares with 89 households working in it.
(2) Establishing and developing a pilot technical center to transfer organic
farming technology to farmers, change their farming practices in the
direction of organic farming methods and support them in their early stages.
They are considered essential for organic farming activities as well as
conversion of the guava monoculture ecosystem to guava intercropping
ecosystem to bring multidimensional effects not only from guava products
(guava, guava leaves and guava branches) but also attract community
ecotourism, thereby generating more income and autonomy in ecotourism
business in farmers' guava gardens. Viet Lien will have more stable input of
raw materials meeting environmental friendly standards.
(3) Operating the System of Products and Services revolves around biomass
gasification stoves to help farmers take advantage of the biomass waste
from guava tree to use for daily burning energy. This activity is coordinated
with local authorities (district and village level) in the EAP project, funded
by the US government and conducted by the Center for Creative
Consultancy and Sustainable Development (CCS).
(4) Research and experimentally develop new products from guava tree:
guava soap, guava vinegar, guava syrup and guava leaf tea.
(5) Developing an investment project to finance the expansion of a closed
guava product business model from the period of growing guava tree
planting to the harvesting, processing and consumption on the principle of
product lifecycle to minimize waste generation, and adopt sustainable
consumption and production (SCP).
68 Vietnam organic agriculture toward…

Invest in infrastructure for guava farming and

1. Sell tourism facilities
processed
guava
products with Selling clean land and compost, technical Public purchase of
local brands to support locally branded
visitors. Products from guava guava products
2. Tourist Farmers
place (guava Local Government
farm)

Technical Centre managed

by Viet Lien Viet Lien Company
Tourism companies
Processed guava
products
1. Travel and
temporary
stay services
2. Selling
local branded
products
Supermarket
Tourism

Figure 1. New business model - Plantation, production and consumption of

guava

5.4. Lessons learned after implementing eco-innovation in Viet Lien Company

(1) A close relationship with local authorities and officials is needed to
engage local governments in building a business ecosystem where local
businesses operate.
(2) The project ecosystem should be developed (the project approach
should be combined with a bottom-up approach focusing on technical
support).
(3) Integration within the project: connecting businesses in different fields,
as well as connecting farmers to Lien Viet businesses, supermarkets and
finally customers in the extended value chain. In all of these steps of this
value change. Apart from the involvement of local governments (through
policies to promote green/environmentally-friendly production), there is a
need for technology suppliers, green investors and banks as well as
VietGAP quality standards certification bodies. In addition, it is necessary
to raise the awareness of customers as well as change the social behavior -
supporting the consumption of environmentally friendly products. In other
words, it is necessary to strengthen communication to get the support of
society in general and customers in particular on food hygiene and safety
and habit of eco-product consumption (see Figure 2).
(4) According to ASEIC's eco-innovation classification (Table 1), at
management level, Viet Lien Company has applied ecological innovation
approaches with product lifecycle and chain management thinking. Green
JSTPM Vol 8, No 3+4, 2019 69

supply of organic products, including guava products at Cu Block Ward,

Long Bien District, Hanoi City. The objective of the eco-innovation activity
is to create new business and production opportunities not only for Viet
Lien but also for farmers in Cu Block Ward, as well as other partners in the
value chain such as travel companies, shops including: supermarkets to
create organic products from rancid (guava, guava soap, guava vinegar,
guava syrup and guava tea) to meet VietCap standards, as well as
temporary and eco-tourism services for domestic and foreign tourists.
Through its operations throughout the value chain for organic products,
Viet Lien not only raises its awareness and social responsibility about the
importance of minimizing the impact of business on the environment as
well as food safety and health protects of concerned partners in that value
chain, such as farmers, product distributors and, importantly, consumers.

VietGAP program Policies promoting

green products

selling guava fruit and leaves

Farmers
Viet Lien Company Supermarket Customers

Green technologist Bank/investor Certification authorities

Figure 2. Stakeholders in the expanded value chain of Viet Lien

6. Lessons learned

6.1. Policies
- Planning and protecting land and water sources which is currently not or
less polluted and also suitable for organic agricultural production
towards commodity.
- Vietnam's organic agricultural production is still too small. Enterprises
small in scope and little in quantity have received almost no attention
and investment from the State, so it is not profitable and attractive to
investors. That is not to mention the high level of market risk for this
industry, so the State needs to issue policies to support production
capital, incentives in land allocation and lease, and income tax
exemption and reduction for organizations and individuals engaged in
production, processing and consumption of organic agricultural
70 Vietnam organic agriculture toward…

products. At the same time, for the first time, the organic agricultural
production insurance fund may be needed.
- Most of Vietnam's potential organic products are located in areas with
difficult transportation, unfavorable storage, temporary storage and
processing conditions, so the State needs to support grassroots
infrastructure investment. Especially infrastructure for processing
organic fertilizers, bio-fertilizers, on-site microorganisms to reduce
transportation costs.
- Strengthening the system of standards and regulations on production,
processing and consumption, quality certification, inspection and
supervision related to organic agriculture.
- Help businesses build brands, develop markets and promote products.
- Organic agricultural production also needs guaranteed inputs. Therefore,
production and business enterprises related to organic fertilizers, biology,
microorganisms, and biological plant protection products should also be
supported in production. Of course, there is a need for linkages between
organic agricultural enterprises and related fertilizer and plant protection
enterprises.
- Enhancing communication to all stakeholders engaged in the value-
added chains of organic agriculture from producers (farmers) to
households, companies and cooperatives for production and
consumption (supermarkets, subsidies) and consumers on the need to
move towards environmentally (organic) products that are less harmful
to people's health.

6.2. Strengthening the operating capacity of the Vietnam Consortium of

Agriculture Organic Association
Vietnam Consortium of Agriculture Organic Association needs to be
through successful model businesses, helping them to advertise and
introduce products, thereby improving understanding and interest of society
as a whole, especially the government agencies to the products of organic
agriculture. The Association needs to build a network of domestic and
foreign collaborators, NGOs to update information, support businesses in
approaching the trend of developing organic agriculture of countries, new
technologies and especially the procedures and standards set by each
importing country.

7. Conclusion
For centuries, Vietnamese farmers have had a tradition of using organic
fertilizer such as manure, green manure, north manure and agricultural
JSTPM Vol 8, No 3+4, 2019 71

residues. However, due to the increasing pressure of the population, limited

cultivation land... organic agriculture with thousands of years of history has
been unable to guarantee national food security and thus, agriculture
Vietnam has had to move from a soil-based, organic-based agriculture to a
fertilizer-based (mostly inorganic) agriculture. It is chemical fertilizer as an
important element of intensive farming that has contributed to the great
achievements of agriculture over the past time, especially in the renovation
period.
However, due to the emergence of new opportunities for organic
agricultural products in the region and the world, the organic agriculture of
Vietnam has begun to have conditions for development, despite many
difficulties in the immediate future and challenge. Vietnam hopes that with
the help of international organizations in sharing experiences, human
resources development, training, providing technology and especially
market access, together with strong support from the Government will
promote Vietnam's organic agriculture to gradually develop towards
sustainability in the entire product life cycle./.

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