Stimulating Local Economic Stimulating Local Economic
Development along the Pangasius Development along the Pangasius
Value Chain in Mekong DeltaValue Chain in Mekong Delta
Presentation Event
Long Xuyen
December 2004
Participatory Appraisal ofCompetitive Advantage (PACA®)
Structure of this Presentation
1. Structure and Objectives of the PACA Exercise Along the Pangasius Value Chain in the Mekong Delta
2. Diagnosis of the Pangasius Value Chain in the Mekong Delta
3. Short- and Medium- and Long-term Proposals to Impove the Performance and Efficiency of the Pangasius Value Chain
1. Structure and Objectives of the PACA Exercise Along the Pangasius Value Chain in the Mekong Delta
What is Local Economic What is Local Economic Development (LED)?Development (LED)?
Activities by local government local business associations local companiesother stakeholders
which remove bureaucratic obstacles and transaction costs
for local firmsstrengthen the competitiveness of local firmscreate a unique advantage for the locality and its
firms
What is Participatory Appraisal of What is Participatory Appraisal of Competitive Advantage (PACA)?Competitive Advantage (PACA)?
Participatory
Appraisal of
Competitive Advantage
Involve local stakeholders Motivate local stakeholders to take an active
role in an LED initiative Transfer know-how to local stakeholders
and businesses
Do a quick scan of the local economy Assess and refocus ongoing local economic
development activities
Identify strengths, skills, talents and opportunities
Identify business and LED opportunities
What is the sequence of activitiesWhat is the sequence of activitiesin a PACA?in a PACA?
Prepa-ration:* Orga* Ad-vanceinfo
Kick-off
Wks
Results-Workshop:Diagnosis
+ Proposals
Interviews
Mini-workshops
Pre-sen-tationevent
Imple-mentation
PACA-Project
PACA-Exercise (1.12 – 10.12.)
Fieldwork (2.12 – 8.12.))
Hy-po-the-sis
Wks
Wayfor-
wardWks
Presen-tationEvent
What is the objective of PACA?What is the objective of PACA?
Identify, with a rapid appraisal, the main strengths and weaknesses of the local economy and its main sectors (duration: 1 - 2 weeks)
Identify options for practical activities to strengthen the competitiveness of firms -- Criteria:– feasible with local resources– quickly implementable (starting next week)– quick, visible results (with 3 months)
What is the immediate result of this What is the immediate result of this PACA?PACA?
A diagnostic of the fish value chainA set of proposals for practical activities
– to strengthen the cooperation along the fish value chain
– to stimulate the competitiveness of companies– to create new business opportunities
Numerous local stakeholders who have a clearer idea about value chain promotion and Local Economic Development
What have we been doing?What have we been doing?
Kick-off workshop (2 December 2004) Interviews with businesspeople and stakeholders in Long
Xuyen, Can Tho, HCMC (2 – 8 December) Mini-workshops (6) with
– Fish Farmers (3 December / 9h00)
– Fish Processors (3 December / 15h00)
– Distributors / Buyers (4 December / 9h00)
– Fingerling Producers (6 December / 9h00)
– Supporting Institutions (6 December / 14h00)
– Medical Treatment (7 December / 9h00)
Internal Results Workshop (9 December 2004) Presentation Event (10 December / 9h00) Way-forward workshops (from 10 December onwards)
Why conducting PACA with the Why conducting PACA with the PangasiusPangasius Value Chain in the Value Chain in the Mekong Delta?Mekong Delta?
To stimulate the competitiveness of companies engaged in Pangasius production and processing and to create a unique locational advantage
To increase the efficiency along the value chain by overcoming bottlenecks in the interaction between different elements of the Pangasius value chain in Mekong Delta
To get profound understanding of the fish Pangasius value chain in Mekong Delta and to provide an opportunity for business contacts
To jointly formulate practical proposals that will bring about more effective communication and collaboration along the value chain
2. Diagnosis of the Pangasius Value Chain in the Mekong Delta
Map of the PMap of the Pangasiusangasius Value Chain Value Chain in the Mekong Deltain the Mekong Delta
GrowingFarmers
Process-ing
Distribut-ors:
Local Markets,Supermarket,Restaurant,
Hotels,Retailing Agents,
Export Agents
Hatchery
Nursing
Feed MillsOrganic & Non-
Organic feed
Custom-ers:
Domestic,US, Europe,
Japan,China,
Australia
Suppliers (other Value Chain):Equipment, Transportation Means, Wood,
Nets, Salt, Limestone, Medicine
Service Providers(Insurance, Transport, Laboratories,
Medical & Environment Services,Packaging, Maintenance
Support Institutions InfrastructureAFA, VASEP, Universities An Giang and Can Tho, Center of Techn. Application and Transfer, Banks, Center of Extension No. 9, Development Assistance Fund, Farmer‘s Association, NAVICOVET, TPCs, VCCI
Roads, Bridges, Ferries, Public Utilities ,Land, Water Area, Communication, Wells
Waste Usage
Middle Traders
Cooking Oil / Cosmetics
Nursery/ HatcheryNursery/ Hatchery
Problems & Shortcomings
Imperfect technologySmall scale & scattered production Infrequent quality control checkingUnstable qualityLacking space for building nursery/ hatchery
farms
Nursery/ HatcheryNursery/ Hatchery
Potentials & Opportunities
Big demand Strong support from the governmentClose to the fish farming companies in the
Mekong delta (market proximity)Favourable natural conditionsSimple procedures, small capital required
Fish FarmingFish Farming
Problems & ShortcomingsMaster plan is not strictly followedWeak bargaining power towards processing
companies and export companiesLack of long term business plansHigh threat of pollutionNot fully meeting international standards on fish
farmingLack of working capitalUnstable price and quality of non-industrial feedNo active disease prevention
Fish FarmingFish Farming
Potentials & Opportunities
Good marketExperienced farmersEasy access to bank loansReceiving technical support for organic fish
farming from foreign organisationHigh profit margin
Fish ProcessingFish Processing
Problems & Shortcomings
Underdeveloped product distribution Weak market access Weak cooperation between processors & farmersLittle product diversificationLack of modern managementLack of long-term contracts with customers Lack of capital for stock keeping
Fish ProcessingFish Processing
Potentials & Opportunities
Increasing market demandAbundant material resourcesStrong support from Government and
professional support institutionsPangasius is a proper substitute for other white
fish productsMeeting demand of international customers
DistributionDistribution
Problems & Shortcomings
Small and scattered distribution, lacking stable distribution system in domestic and foreign markets
Limited marketing capabilitiesMarket approach still limited by short term profit
orientation instead of stable, long term market development
Research on consumer behaviour is still limited
DistributionDistribution
Potentials & Opportunities
Stable domestic demandReasonable Price of raw materialDiversified product fulfilling domestic consumer
needsStable raw material resources
Feed production and supplyFeed production and supply
Problems & Shortcomings
Mostly imported raw materialDelayed payments affect feed producers and
business service providersUsage of home-made feed is still prevalent
Feed production and supplyFeed production and supply
Potentials & Opportunities
Strong market demandDiversified product meets market needsBargaining power with customers is strong due
to limited number of feed producersBuyers are easily satisfied with the quality of the
feed productsGood conditions to develop distribution network
Supporting Services Supporting Services (transportation, veterinary..)(transportation, veterinary..)
Problems & Shortcomings
Supporting services are not diversifiedQuality of veterinarian medicine does not meet
the demand and is not tightly controlledUndeveloped medical services to diagnose fish
diseasesHighly risky fish insurancesHigh cost for transportation services
Supporting Services (transportaion, Supporting Services (transportaion, veterinary..)veterinary..)
Potentials & Opportunities
Strong demand and developed marketLow competitionHigh profit marginGreat potential for development of veterinary
services and vaccination for fish
Supporting Institutions Supporting Institutions
Problems & Shortcomings
Little researching on need of “clients”
Supporting institutions are not diversified and not suitable with the need of the sector
Limited foreign language and management skills
Limitations to provide quick services
Limited infrastructure
Lack of ability to approach donors
Weak cooperation among supporting institutions
Supporting InstitutionsSupporting Institutions
Potentials & Opportunities
Value chain sub-sectors cooperate with institutions
Agriculture Extension Centre cooperates successfully with farmers
Supporting activities becoming more diversifiedStrong demand for supporting activities from all
sectors in the value chain
Cross-Cutting Issues along the Cross-Cutting Issues along the Pangasius Value ChainPangasius Value Chain
Problems & Shortcomings Trade mark for Pangasisus is not developed Lack of cooperation among provinces No habit in using consultancy service No final customer focus along the value chain No codes for traceability introduced Little concern on environmental protection Lack of close cooperation between elements of the value
chain (nursery/hatchery - fish farming-processing - consuming/distribution, etc.)
Efficiency of supporting institutions to be improved Information is not up-to-date and delivered on time
Cross-Cutting Issues along the Cross-Cutting Issues along the Pangasius Value ChainPangasius Value Chain
Potentials & Opportunities
Extensive experience in Pangasius fish farming, fish processing and feed production
Strong support from ministries, other supporting institutions, different levels of local Government
Good logistical management despite limited infrastructure
3. Short-term, mid-term and long-term proposals to improve the Pangasius value chain
Nursery / HatcheryNursery / Hatchery
Mid term proposals:
Training of highly professional staffs in nursery/ hatchery- Proposed institutions: Agriculture Extension Centre,
Department of Agriculture & Rural Development- Intended funding: Government/ cost sharing by
companies
Fish FarmingFish Farming
Short term proposals:
1. Information workshop for farmers about traceability- Proposed organisation: AFA- Possible budget: AFA
2. Business management training for farmers- Proposed organisation: Agriculture Extension Centre
(Department of Agriculture & Rural Development)- Possible funding: Agriculture Extension Fund / cost
sharing by farmers
Fish FarmingFish Farming
Mid term proposal:
Developing quality standards in fish farming
- Proposed organisation: Agriculture Extension Centre/ Department of Fishery Control
- Possible funding: Government
Fish FarmingFish Farming
Long term proposals:
Study tours- Proposed organisation: AFA- Possible funding: Farmers’ contribution (50%) +
AFA’s budget
Fish ProcessingFish Processing
Short term proposals:
Marketing-strategy development training for processing companies
- Proposed project champion:• Consultant companies • Foreign buyers
- Possible funding: Financed by participating companies
Fish ProcessingFish Processing
Long term proposal:
1. Customer needs survey
- Proposed organisation: VASEP/AFA
- Possible funding: Contribution from associations
2. Business management training for companies
- Proposed organisation: VASEP; VCCI Can Tho, consultant companies, training centres
- Possible funding: Contribution from participating companies (50%) + VASEP (50%)
Fish ProcessingFish Processing
Long term proposal:
3. Workshop to Improve information exchange between farmers and processors
- Proposed organisation: Ministry of Aquaculture (champion), VASEP, AFA
- Possible funding: Contribution from associations and companies
Feed Production and SupplyFeed Production and Supply
Mid term proposal:
Improved quality control of feed
- Proposed organisation: Inspection department (Department of Agriculture and Rural Development)
- Possible funding: Government
Introduction of codes for traceability
- Proposed organisation: Ministry of Fisheries, Ministry of Trade
- Possible funding: Government
Supporting ServicesSupporting Services
Mid term proposal:
Researching customers‘ needs
- Proposed organisations: AFA, VASEP, VCCI
- Possible funding: companies’ contribution(50%) + associations, chambers (50%)
Supporting InstitutionsSupporting Institutions
Short term proposal:
1. Training farmers in quality standards- Proposed organisation:s: Department of Agriculture &
Rural Development, AFA- Possible funding: Government
2. Workshops for farmers and processor about environment
- Proposed organisation: Department of Science, Technology and Environment with Department of Agriculture & Rural Development and AFA
- Possible funding: Government
Supporting InstitutionsSupporting Institutions
Mid term proposal:
1. Technical support for AFA to build development strategy for consulting services
- Proposed organisations: donors (ACDI/VOCA, GTZ)
- Possible funding: donors
2. Survey on needs for supporting services jointly conducted by different supporting institutions
- Proposed organisations: AFA, VCCI, Department of Agriculture and Rural Development
- Possible funding: Government budget
Supporting InstitutionsSupporting Institutions
Long term proposal:
1. Improving technical and management skills of AFA
- Proposed organisation: AFA
- Possible funding: AFA, donors
2. Research on water pollution and its effects on the quality of Pangasius
- Proposed organisations: Department of Science, Technology & Environment (champion) with department of Fishery control, Department of Agriculture & RD
- Possible funding: Government
Cross-Cutting Issues Cross-Cutting Issues
Short term proposals: 1. Newsletter about fish value chain (market, international
standards...)- Proposed organisations: Department of Agriculture &
Rural Development, AFA, VCCI Can Tho, 2. Frequent round table discussion (every 3-6 month) of
different súb-sectors in the value chain- Proposed organisations: AFA with Department of Agriculture & Rural Development
3. PACA presentation at the Pangasius seminar in AN Giang (14.12.04)- Proposed organisation: VCCI Can Tho
Cross-Cutting IssuesCross-Cutting Issues
Mid term proposals:
1. Build brand name for Vietnamese Pangasius
- Proposed organisations: Ministry of Fisher + VASEP
- Possible funding: Government funds / cost sharing by companies
2. Develop distribution network abroad
- Proposed organisations : Ministry of Trade, Ministry of Fishery, VASEP
- Possible funding: Trade Promotion Fund, Companies
What about the follow-up?What about the follow-up?
Start of the implementation through the way-forward workshops (10 December onwards) with local stakeholders to define priorities, activities and responsibilities for implementation and monitoring
Implementation of activities by local stakeholders
Workshops for evaluation and definition of further activities
Who is supporting this PACA Who is supporting this PACA Exercise?Exercise?
DPI An Giang
DARD An Giang
VCCI Can Tho
German Corporation for Technical Assistance (GTZ)
Who is the PACA Team?Who is the PACA Team?
Christian Schoen (mesopartner)
Phan Xuân Hoàng (Consultant, Aqua Service Vietnam)
Đoàn Ngọc Phả (Department of Agriculture & Rural Development)
Lê Quốc Chánh (Dong Thap Department of Industry)
Đái Hữu Huân (VCCI Cần Thơ)
Lê Thanh Tâm (Consultant, Mekong Economics)
Phạm Thanh Tùng (Ministry of Industry)
Vũ Thị Thuý Quỳnh (GTZ)
Thomas Ganslmayr (VCCI Can Tho)
ContactsContacts
Christian Schoen ([email protected] / 0909 117201)
Phan Xuân Hoàng([email protected] / 0903 756789)
Doan Ngoc Pha ([email protected] / 0918 065011)
Lê Quốc Chánh (067 851022)
Đái Hữu Huân ([email protected] / 071 824918)
Lê Thanh Tâm ([email protected] / 0953 356696)
Phạm Thanh Tùng ([email protected] / 0903 425822)
Vũ Thuý Quỳnh ([email protected] / 0912 566588)
Thomas Ganslmayr ([email protected] / 0908 565355)