Madame Tran Kim Lien, MARD has a policy of restructuring the rice industry towards improving quality, specialized production, large-scale. How do you recognize the need to restructure this industry?
Ms. Tran Kim Lien: That is the right policy, the direction that our Vietnam Seed Group (Vinaseed Group) and many other businesses are taking part.
Vinaseed has the function of supplying rice seeds to the whole country and found that if Vietnam does not restructure the rice industry towards increasing value, it will be difficult to increase the competitiveness of the Vietnamese rice industry with rice exporting countries. as big as Thailand or even Cambodia.
2020 is an extremely successful year for Vietnam's rice industry, rice production in many places has good seasons, high resale prices, people and businesses are all excited. One of the reasons for this success is the result of the restructuring of the rice industry, the export of fragrant rice has accounted for 35%, although the high price is known, the Covid-19 epidemic increases the demand for storage.
Currently, enterprises involved in rice production and trading have changed a lot, focusing on improving infrastructure, renovating the processing, preservation and production organization.
For example, Tan Long Group or Vinaseed has spent tens of millions of dollars to modernize facilities, expand production and improve processing and storage capacity.
Specifically, how is Vinaseed's rice value chain invested?
Ms. Tran Kim Lien: Vinaseed is in the PAN Group with a very macro slogan: "Born to nurture the world" with the goal of FARM - FOOD - FAMILY, which means building an agricultural production chain from the field. to the table.
PAN has many value chains, such as seafood, food or rice. Vinaseed rice is starting from what people are talking about: Research and development (R&D), application, transfer of science and technology, production organization and management of raw material areas according to standards. to preserve, process and brand rice.
Vinaseed wants to build a pilot model of production transformation, building a rice supply chain from seed to Vietnamese rice brand.
Up to this point, Vinaseed can be said to have been relatively successful and is one of the businesses with different value chains.
The company has transferred technical progress, production process management. Even after doing this, Vinaseed has achieved certain successes. Vinaseed's revenue from rice in 2020 will be around VND 400 billion including domestic consumption and export. Vinaseed rice has a brand name and we set up the criteria to identify Vinaseed rice as: FRESH, CLEAN RICE retains its full natural flavor.
That means, if you want to be a brand, you must participate from the beginning, right from the field, ma'am?
Tran Kim Lien: I think so, must organize the supply chain. Our way is to plan each production area separately, using market standards as a research target to meet right from the start.
Like the high-end rice lines ST, Thom RVT will be completely grown in the coastal rice-shrimp areas (eg Soc Trang, Bac Lieu, Ca Mau ...). Please add, we exported rice to the European market before EVFTA, tested to EU standards absolutely free of pesticide residues and nitrate content, never returned. again.
Vinaseed's rice has not been preserved for more than 6 months and, as said, regional zoning for each type of rice.
For example, the Ca Mau peninsula will be planted with high quality rice for more than 1,000 USD and sold to the domestic market. At the end of the shrimp rice area, the company will switch to rice cultivation in the Central Highlands.
This area has a lot of daylight during the day, the difference between day and night temperature is high, so the yield and quality of rice is very high, such as RVT Rice can reach up to 8 tons / ha. The products here will be used exclusively for export, especially the Chinese market, particularly the provinces of Guangdong and Guangxi, they especially prefer rice grown on the highlands and are willing to buy at high prices.
Thus, in order to build a rice value chain, it is necessary to locate specialized farming areas, with natural incentives and follow the process to achieve the safest rice quality.
In this production chain, farmers will be invested and signed contracts for product consumption through cooperatives. We lend to farmers, use Vinaseed standards and under the management of the field for traceability. The processes are very clear right in the contract, from the regulation of time to seeding, and the active substances are strictly prohibited. During the production process, Vinaseed's technical staff will closely follow the farmer, ensuring that the processes are implemented correctly.
To do this, Vinaseed is supported by the banking system, providing credit to the production chain, and lending to farmers to grow rice. In addition, Vinaseed is also affiliated with Loc Troi Group, through many large cooperatives to perform mechanization services.
After being harvested, the rice is brought back to the processing system with very modern lines, especially not to lose its natural flavor. Currently, Vinaseed is continuing to invest in expanding facilities to implement the strategy and participate deeply and extensively in the global rice value chain with its rice brand (investing to expand facilities in Dong Thap, currently mergers, acquisitions ...).
It is true that it must be a great feat to get the "fresh and clean" rice grain as the business she is pursuing. But madam, we are a major rice exporter, but Vietnamese rice has not had many names in the world market?
Tran Kim Lien: I think that in order to build a national rice brand, it must be from an enterprise because it produces products and trades them. Enterprise brand makes the national brand.
Vinaseed has just entered the rice market, not many exports, but we determined that the business products must be branded, not white-bag type rice, never.
Currently, rice produced at Vinaseed is completely capable of meeting the standards from demanding markets such as Europe, Japan, and America. In Europe, for example, their technical barriers are huge and are extremely demanding markets, with very strict requirements for pesticide residues and nitrate content.
These criteria are completely public. American school); businesses that want to participate in this market can refer to and comply with the standards they have set.
Another special point is that the EU only believes in their standards, no matter how certified our rice is, when exporting to Europe will be tested. Only one unsuccessful sample, the entire shipment will be returned.
After exporting rice to Europe, many countries want to import Vinaseed products, but this is the time when the company will have to choose customers.
In terms of products, unlike exporting white rice bags of 50kg, the company now focuses on producing high quality rice with a clear brand name. companies, where the production and packaging on the packaging, then cooperate.
Some export markets and OEM rice under the brand name of Vinaseed today can be mentioned as: Philippines, Australia, Europe, Japan, Canada, Russia, Turkey and the upcoming US. Vinaseed's export brands are VJ Pearl, VJ Platinum, VJ Gold, Phuc Tho Rice, Hoa Vang Glutinous Rice, RVT Rice.
Thus, if there are products of stable quality, the quantity meets the committed standards, the market will not be the problem of the enterprise anymore and when there are stable customers, the production of the business is also very good due to the price has been planned in advance.
Just have a vision, a strategy with investment, you will have a brand and inevitably sell at high prices.
Madam, very happy that there are now signs that quite a lot of businesses are starting to make real rice brands?
Ms. Tran Kim Lien: Like Loc Troi, Vinacam, Sunrice ..., businesses are oriented towards chain production and systematic quality control, right from the seeding stage.
They are willing to buy our exclusive seeds (Vinaseed) for planting and conversely we also buy good seeds from other companies to serve our business plan.
National rice brands need to start from such businesses with an increasingly sustainable development orientation and strategy to maintain quality because quality is the deciding factor for the brand.
From there, the Vietnamese rice brand will be more stable, selling at higher prices, like products of other countries. If this cannot be done, the national rice brand is still only on aspirations.
How do you see the trend of domestic rice consumption?
Ms. Tran Kim Lien: Currently, the domestic market has 3 demands for rice. The first is the staple food of the Vietnamese people. When economic conditions increase, people's lives are improved, especially in urbanization trend, consumption habits change. Branded, pre-packaged rice produced by large companies is growing in popularity.
The second demand is the processing industry, all kinds of vermicelli, cake, rice flour are also consumed a lot in Vietnam. Therefore, we define strategies to serve this region, producing rice varieties suitable for the processing industry.
Finally, the demand for livestock and a number of other industries, is also an area with great potential.
The nearly 100 million people 's domestic market space for rice is huge, with high efficiency and less risky than for export. Therefore, our export target for 2021 is only about 20,000 tons of rice, the rest will focus on development, serving the domestic market.
We are interested in exporting, but the domestic market is especially important to pay more attention. Must Vietnamese people eat better and consumers have the right to know the origin of products, especially rice, which we eat every day must be guaranteed?
Ms. Tran Kim Lien: For a product to have a clear origin, there is no other way than to follow the chain. It is the new chain that makes the difference for the business.
Starting from the variety, the rice like that, the variety must ensure quality, maintain its preeminent characteristics (such as maintaining the aroma gene for fragrant rice ...) hundred seeds as one to get copper. evenly grain later. After that, the planning of production areas, where, what varieties must be planted must be clearly defined and large enough in scale.
Our production chain through a system of cooperatives and large-scale farmers (from 20 hectares or more) to get rice grain uniformity as well as convenient for production management and public application. high technology, mechanization.
The production management process is bound by contracts and by take-off and capital advances. Farmers have many incentives but must ensure the requirements we give, about the process, the substance that can be used. All will be monitored by technicians and some software such as Farmrecord. These are factors to ensure the quality of rice grains, serving traceability later.
Regarding the buying price, Vinaseed commits to always buy at least equal to the market floor price. If there is an increase in prices and profits, the company and farmers will share this profit with an appropriate price increase.
After harvest, the rice is processed in the factories of Vinaseed and then packed and sold, including both domestic and export markets, but the common point is that there is always the company's brand name on the package.
We always focus on traceability, the application of 4.0 technology in production management, using paid technologies from Japan and Israel (FAMRECORD software transferred by Japan. AGRITAST of Israel uses satellite technology to verify area, weather, predict, predict the likelihood of pests and diseases, yield of plots and monitor process compliance ... ). We are also cooperating with Sozit Corporation of Japan and Rynan Corporation to manage production chain of slow-decomposition fertilizer application, reduce greenhouse effect and reduce production cost.
Besides, other technologies are also applied to track the use of pesticides in the field. When the product is released, there will be a QR code on the packaging so that consumers can see where this bag of rice was produced.
This is the new way to elevate Vietnam's rice, ma'am?
Ms. Tran Kim Lien: In order to elevate Vietnam's rice, we must first instruct people to learn how to apply scientific and technical advances in the field. The rice suppliers also have to change their way of doing, more synchronous, more orderly so that there is no longer a situation where the price has to be rescued or the state has to support as recently. In particular, the split of the rice value chain leads to the unsustainable development of the industry and the most vulnerable are farmers.
When the production process is not methodical, there will be situations such as taking rice for rice seed, using improper pesticides ... That leads to low purity of the product, poor quality. high chance of going through the tests of fastidious markets.
We have to be serious and fair with each other to ensure that the product comes out as the result of a closed, quality production chain through to each stage.
It can be said that at present, there are also some rice companies that are not proactive in the market, so they have to go through many intermediaries. When necessary, buying and collecting are not identical in quality and origin, so it is impossible to build a brand, but only bags of white rice.
For varieties, branded lines such as Dai Thom 8 (exported nearly 2 million tons in the first 6 months of this year) are originally from Vinaseed, but farmers do not understand the importance of seed purity, so they still buy rice. do the same. This causes the product quality to be uncertain, the aroma gene is not maintained and leads to the inability of branding.
In Vinaseed, the rice variety is guaranteed from the beginning, even if planted over 15,000hathi only uses one variety, so the purity in the field can be up to 95%. This is the direction that the rice industry needs to take to be able to build a name for itself in the future.
Regarding the buying price, Vinaseed commits to always buy at least equal to the market floor price. If there is an increase in prices and profits, the company and farmers will share this profit with an appropriate price increase.
After harvest, the rice is processed in the factories of Vinaseed and then packed and sold, including both domestic and export markets, but the common point is that there is always the company's brand name on the package.
We always focus on traceability, the application of 4.0 technology in production management, using paid technologies from Japan and Israel (FAMRECORD software transferred by Japan. AGRITAST of Israel uses satellite technology to verify area, weather, predict, predict the likelihood of pests and diseases, yield of plots and monitor process compliance ... ). We are also cooperating with Sozit Corporation of Japan and Rynan Corporation to manage production chain of slow-decomposition fertilizer application, reduce greenhouse effect and reduce production cost.
Besides, other technologies are also applied to track the use of pesticides in the field. When the product is released, there will be a QR code on the packaging so that consumers can see where this bag of rice was produced.
The head of the cooperative must be qualified to manage his apparatus, have knowledge of the market in order to connect with businesses and become a supplier in the production chain. Enterprises cannot sign contracts and invest with several thousand farming households.
Second, is the Land Law, so there should be adjustments and amendments to the tenure policy and there is a policy to accumulate and gather land to do large. At present, the deadline for filling in is not large enough, the legal procedures for land consolidation and exchange have not yet existed, so businesses have not dared to do it because of fear of risks.
When there is a legal basis, businesses can view the areas of their cultivated fields as a form of collateral for a mortgage or mortgage for bank loans.
Third is the issue of credit support, because most of the small-scale agricultural enterprises, if they do not have an open and favorable capital mechanism, will easily go bankrupt when the market is unstable.
Source: https://nongnghiep.vn/thuong-hieu-gao-quoc-gia-bat-dau-tu-thuong-hieu-doanh-nghiep-d275005.html
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