e-choupal_veitnam_001
TRANSCRIPT
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ITC E-Choupal Initiative
Jen
Anurag
Medel
Goldy
Carl
Ajlan
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The Context : Vietnam 72%of Vietnamese lives in its villages (rural)
Cultivated land 12.2Mn Hectares(33Mn Hectare total area)
63% of workforce related to Agriculture
Agriculture accounts for 23% of GDP (7% GDP growth rate 2010)
Principal agri. products Rice, coffee, maize, cashew, pepper, sweet potato
Major export Rice (worlds 2nd largest) ,pepper (1st), Coffee, fisheries and seaproducts
Establishment of an irrigation system (to reduce dependency on climate)
Enhancement of agricultural, forestry and fisheries technology andimprovement in the abilities of people in charge disseminating the technology
Modernization of farming villages
Construction of an appropriate agricultural production infrastructure
Agricultural policy : Government
targets
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VIETNAM: MACROECONOMIC SITUATION
Agricultural Status Lack of sufficient infra., similar vicious cycle as prevalent in India (low productivity, investment.)
Low proportion of FDI in this field, just about7%
FDI in this field has not fully promoted the country's potentials.
Unbalanced distribution among different localities
Lack of diversity of foreign partners
Agro-forestry production in general and attracting FDI in this field suffer from more risks than
other fields due to the impacts of weather, climate, weakness of infrastructure,
land
Human resources Lack technical know how lack access to latest technology & information
Infrastructure Power /Energy > self -sufficient , OIL import (Crude export, refined imports)
(12982MW peak demand , 1375 MW is reserved capacity extra than required)
Communication 75% teledensity, internet thru Wi-max till block level (conducive) Transportation/logistics -
Entry strategy Proposal discussion with MARD of the govt of the Vietnam -convincing and partnership
Pilot project in 2 villages with 5 kiosk each with total initial capital of 25Mn Peso,
(Southeast , red river delta, south central coast )
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AGRICULTURE SECTOR : CURRENT STATUS
Low Risk Appetite
Weak Market
Orientation
Low Invest entLow Margins
Low ProductivityLow Value Addition
Caught in a viciouscycle of
underdevelopment
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E-CHOUPAL : MICROECONOMICAPPLICATION
E-Choupal
Suppliers Farmers Buyers
Information flow
Capital flow
Policies, rules ®ulations
Infrastructure, &enterprise
developmentfacilities
Research &technology, &Institutional
services
Socioeconomic& cultural
considerations
Enabling Environment
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STRATEGY & IMPLEMENTATION
e
Govt
ITC
Farmers
OtherStakehol
ders
SH support
knowledge sharing
trade support
Govt. support
Liberal FDI Policy
Incentives in Agri. FDI
Favorable national
policy framework
ITC role
Technology access
Training/Knowledge
Financial support
Trade (supplier/buyer)
Enhance the
competitiveness
Farmers responsibility/Needs
Co-operation (Mutual benefit)
Productivity improvement
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EXIT STRATEGY
Partnership with govt. will ensure low risk for
the project (upfront investment of25Mn Peso).
But considering, the growth opportunity worth >
25Bn Peso in next 5 years (considering growth
of e-choupal in India and potential in Vietnam)
the project is worth considering.
THANKS
FROM.. LT# 4
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Agricultural growth 143 [12th of 149]
Agricultural land > % of land area 30.93 % of land area [49th of 198]Agricultural land > sq. km 95,920 sq. km [22nd of 198]
Agricultural machinery > tractors 1,63,000 [31st of 190]
Arable and permanent cropland 7,350 thousand hectares [34th of 148]
Arable land > % of land area 21.29 % of land area [32nd of 199]
Arable land > hectares 6,600,000 hectares [18th of 199]
Area > Rice 74,70,000 [7th of 23]Banana production 1,242,540 metric tonnes [12th of 48]
Cereal production 143 thousand metric tons [12th of 149]
Cereal yield > kg per hectare 4,780.3 kg/ha [24th of 171]
Cotton exports 0 thousand bales [79th of 109]
Cotton production 65 [42nd of 109]
Fertilizer use 285.3 kg [8th of 138]
Food production index 124.40% [9th of 182]
Grains > Rice consumption 17,700 thousand metric tons [6th of 17]
Grains > Rice production 21,000 thousand metric tons [6th of 16]
Labor share 66.90% [31st of 149]
Meat production 1,530 thousand metric tons [25th of 149]
Tractors 1,62,746 [30th of 147]
Vietnam - Key Agriculture Data
MISCELLANEOUS :