stimulating local economic development along the pangasius value chain in mekong delta presentation...

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 (cs@mesopartner.com / 0909 117201)

Phan Xuân Hoàng(aquaservice-pxh@hcm.vnn.vn / 0903 756789)

Doan Ngoc Pha (doanngocpha@hcm.vnn.vn / 0918 065011)

Lê Quốc Chánh (067 851022)

Đái Hữu Huân (cantho-vcci-hv@hcm.vnn.vn / 071 824918)

Lê Thanh Tâm (so-tam-ngoc@yahoo.com / 0953 356696)

Phạm Thanh Tùng (tungpt@moi.gov.vn / 0903 425822)

Vũ Thuý Quỳnh (Thuyquynh@sme-gtz.org.vn / 0912 566588)

Thomas Ganslmayr (tga@hcm.vnn.vn / 0908 565355)