e-choupal_veitnam_001

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  • 8/7/2019 E-Choupal_Veitnam_001

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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 &regulations

    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 :