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Country report 2015 Vietnam
Vietnam program overview
IDH Programs MDG targeted globally Key sustainability issues
Aquaculture MDG 1, 7 and 8 Mangrove deforestation
Farm effluents and cross
contamination
Disease surveillance and
environmental monitoring
Farm siting and traceability
Cocoa MDG 1, 7 and 8 Small farm sizes
Low productivity
Lack of access to formal finance
Coffee MDG 1, 7 and 8 Sustainable input use
Farmer organization
Farmer access to finance and
bankability
Effectiveness of extension services
Climate change adaptation
Involvement of women and youth
Income diversification
Livelihood of farmers
Spices MDG 1, 7 and 8 Excessive pesticide use
Labor conditions
Tea
MDG 1, 7 and 8 Excessive pesticide use
Livelihoods of smallholders
Working conditions of tea workers
Apparel MDG 1, 7 and 8 Working conditions
Health and safety of workers
Environmental performance
Energy use
Initiative for Sustainable
Landscapes (ISLA) MDG 1, 7 and 8 Natural resource governance and
spatial planning
Deforestation
Peat subsidence
Social (land) conflicts
Rural livelihoods
i
Contents Executive Summary ............................................................................................................................. 1
1 Introduction ....................................................................................................................................... 3
Sector-specific introductions ............................................................................................................... 3
2. Program achievements ................................................................................................................... 8
Aquaculture Program .......................................................................................................................... 8
Cocoa Program .................................................................................................................................. 10
Coffee Program ................................................................................................................................. 11
Spices Program .................................................................................................................................. 13
Tea Program ...................................................................................................................................... 15
Apparel Program ............................................................................................................................... 16
Cotton Program ................................................................................................................................. 17
Initiative for Sustainable Landscapes (ISLA) ...................................................................................... 18
3. Project overview per program .................................................................................................... 20
4. Key performance indicators per commodity on country level .............................................. 37
5. Lessons learnt ................................................................................................................................. 39
Cross program lessons ....................................................................................................................... 39
Program specific lessons ................................................................................................................... 39
Conclusion and outlook ..................................................................................................................... 41
1
Executive Summary
Having started working in 2010 primarily in aquaculture, by 2015 the IDH Vietnam portfolio
included 6 sector programs and 1 landscape program. The landscape approach brought a
shift in the way IDH approaches the sector programs and “landscape thinking” started to
emerge also e.g. in the aquaculture program. 2015 was also the year when IDH, through the
apparel/footwear program, expanded its focus from agriculture to manufacturing, bringing
broader partnerships at both public and private level.
The most important highlights and key achievements per program were:
Aquaculture: 9,251 tons of shrimp, 7,676 tons of pangasius and 688 tons of tilapia obtained
sustainable certification, a public-private cooperation agreement signed by key partners in the
sector, an action plan for the sustainable development of Vietnam’s Aquaculture under
development
Cocoa: 2,426 farmers received training, 2,866 tons of cocoa bean received sustainability
certification, the PPP governance was expanded and enhanced its activities
Coffee: 21,035 farmers received direct training, 8,000 farmers were trained indirectly, the
Vietnam Coffee Coordination Board (VCCB) was strengthened further in its ability to influence
policy, the National Sustainability Curriculum was consolidated with six training modules and
approved by MARD (Department of Crop Production), the Rejuvenation Action Plan was
approved by MARD, the 5th
Coffee forum was organized with 150 participants from public,
private and NGO sector.
Spices: the Spices Taskforce under the Partnership for Sustainable Agriculture in Vietnam
launched and convened key PPP partners to jointly address the agrochemicals issues. Through
the only remaining “traditional” field level project 89 farmers received training and 89 ha of land
managed using sustainable techniques.
Cotton: a supply chain platform was created to increase visibility of Better Cotton Initiative in
cotton trading system of Vietnam.
Tea: 2,282 farmers received training and Rainforest Alliance certificate, 11,093 tons of tea was
RA certified, the Tea Taskforce was strengthened to present sector issues to the government,
jointly address the agrochemicals issues while utilizing public and private sector impacts. A new
project with the Vietnam Tea Association was also launched to bring sector-level changes on
pesticide use.
Apparel: alignment of key brands and government agencies on the key issues needing to be
addressed was reached. Two conference and various bilateral meetings organized to raise
2
awareness on sustainable issues of the sectors to the public and private sector, on a national and
precompetitive level, took first steps in designing the field level activities in Vietnam.
Initiative for Sustainable Landscapes (ISLA): Trend and problem analysis was shared as a basis
for establishing a joint governance, the water working group and agroforestry working group
were established to create an integrated landscape approach among stakeholders, devising an
action plan and design interventions.
3
1 Introduction
Vietnam has become the top producer of pepper, 2nd top-most producer of coffee, 3rd producer of
aquaculture products and 5th producer of tea globally. For these reasons, in January 2012, Vietnam
became the first country where IDH established a presence. Starting from a role as “eyes and ears for
IDH programs in Vietnam”, IDH increasingly played a role in driving the IDH program agenda in the
country. This role grew over the years and expanded further in 2015.
IDH convenes public and private partners as to develop a shared agenda towards sustainability,
benefiting not only both small and large-scale producers but also at governmental level. The
combination of being a neutral player who co-finance activities that simultaneously benefit the
public and private interests generates a unique level of trust in IDH, who is often asked to lead
programs and platforms. IDH programs bring about systematic changes via creating a common
understanding, a suitable legal framework and, at field level, interventions using innovative business
case approaches and a clear exit strategy, ensuring its impact and scalability in the long term.
In 2015, IDH was in the final stage to receive its official registration certificate in Vietnam. The
certificate is expected to be granted in the first quarter in 2016.
Sector-specific introductions
Aquaculture
Vietnam has been a leader in aquaculture production and a destination for international buyers for
decades, ranking 3rd globally, after much larger countries i.e. China and India. As the top global
producer of pangasius (responsible for almost 100% of the internationally traded pangasius),
pangasius was the first species group targeted by the aquaculture program, starting in 2010 with a
relatively small PPP and expanding in 2012 to a sector-level intervention. From 2013, the program
expanded to include also other species groups, especially shrimp.
Different sub-sectors face different sustainability issues. Pangasius went through a process of vertical
integration, consolidation and intensification. The fierce competition between companies led to low
prices and the need to focus on quantity rather than quality production. This lead to growing issues
associated with water pollution (due to often untreated discharge of water and sludge) and negative
impacts on local communities. Decreasing water quality and appetite to pay for quality inputs (e.g.
seed) led to high mortality (compared with similar intensive farming systems in other geographies)
resulting also in high use of feed, feed for which producers have limited requirements on
sustainability of feed ingredients. Although shrimp farming also went through a process of
consolidation, hundreds of thousands of small-scale producers still play a key role in the sector. The
single most important sustainability of the sub-sector globally and in Vietnam is the occurrence of
(old and new) diseases.
In order to address the above sustainability issues and develop a roadmap for the steps needed to
promote the sustainable production and trade in aquaculture sector IDH, initiated the process of
establishing an industry-wide Public-Private Partnership platform at national level. This was possible
4
because of the role IDH has been playing within the Partnership for Sustainable Agriculture in
Vietnam (PSAV) and the positive leadership experiences generated from other sectors (e.g. coffee).
The Platform allows synergies, utilizes resources and identifies areas where improvement is needed
and which interventions are suitable. The key players have included both national (MARD) and local
(DARD) public sector, international traders, local exporters and producers, producer organizations
(VASEP, VINAFIS) and NGOs such as WWF. Since moving into Vietnam, IDH established close
partnerships with these organizations especially to upscale ASC certification in pangasius, shrimp and
tilapia. In 2015, IDH signed a Cooperation Agreement with the 2 key MARD departments involved in
fisheries (Directorate of Fisheries, D-Fish and VIFEP), VASEP, VINAFIS, WWF and GIZ as to align
agendas on PPP for responsible aquaculture.
Because IDH is active in both the field level and national level and (contrary to other non-profit
organizations) has a broad sustainability agenda, it is well positioned to ensure the sustainability
policy and development strategies are translated into practice by working with the producers and
smallholders on the ground. Vice versa, experiences with the producers and smallholders also
provide feedback to the pledges and policies of the buyers and users.
Cocoa
Although Vietnam is a small player in the global cocoa sector, the increasing demand for cocoa to
satisfy a growing middleclass (especially in Asia), the stagnant production of cocoa in other countries
(e.g. Ivory Coast) and the track record of Vietnam as a country capable of becoming a global player in
very short times prompted several IDH partners to grow an interest in Vietnamese cocoa and to build
a case for IDH involvement in the sector. For this reason in 2012, IDH joined signed a Cooperation
Agreement with public, private and non-profit partners to address the sustainability issues of the
sector.
Contrary to other agriculture sectors in Vietnam, the key sustainability issue to be addressed in cocoa
is productivity through the implementation of good agriculture practices. In addition, because of the
its early stage of development, the sector is still lacking a stable public-private governance.
To address these challenges partnership with MARD, provincial authorities, key chocolate
manufacturers (i.e. Mars and Puratos Grand Place) and cocoa traders (e.g. Cargill) is essential. With
prior experience in other countries, IDH has pioneered and promoted the cooperation between
these partners by creating multiple dialogues for sector-wide discussion, to agree on intervention
design and points of leverage. Using the experience generated in developing similar programs in
Vietnam, IDH guided Helvetas, as our implementing partner, to collect feedbacks from different
stakeholders and to strengthen the PPP foundations of the sector.
Coffee
Vietnam is the 2nd largest producer of coffee and the largest robusta coffee producer globally,
becoming a major sourcing destination of international roasters and traders. In 2011 IDH engaged
with Institute of Policy Strategy in Agriculture and Rural Development (IPSARD) to develop a National
Strategy Action Plan for the sector, which guided the sector level interventions until the
establishment of the Vietnam Coffee Coordination Board (VCCB) in 2013, bringing for the first time in
5
Vietnam the private sector in the driving seat of an important agriculture sector. The VCCB is now the
focal point for the coffee sector within MARD and its role was strengthened further throughout 2015.
The sector is dominated by an estimated 0.5 million small-scale producers. Contrary to other coffee
producing countries with a similar small-holder structure, the key sustainability issues in the Vietnam
coffee sector are not linked to low productivity or profitability, but to arguably excessively high
productivity at the expense of natural resources e.g. water, forests, soil fertility.
The sector has been traditionally very polarized with public, domestic private and foreign private
players addressing sustainability issues almost independently. This has changed dramatically over the
years and culminated with the establishment of the VCCB, which brings together public and private
sector (including domestic and foreign enterprises and farmers) in equal proportions. Benefitting
from the leadership of the Minister of Agriculture and leveraging on the roaster-led coalition created
through its Sustainable Coffee Program (SCP), IDH has been instrumental in the development of the
VCCB.
Spices
Vietnam is responsible for the production of more than 50% of the internationally traded pepper. As
such the sustainability of Vietnamese pepper sector is critical for the stability of the global pepper
trade. Starting with value chain interventions focused on upgrading to Rainforest Alliance
certification several hundreds of farmers, the program shifted to a more sectoral approach as to
bring large scale change in pepper production.
Similarly to coffee, possibly because of the proximity to and in some cases intercropping with coffee,
productivity of pepper in Vietnam has been very high at the expense of natural resources. Overuse of
agrochemicals has led to growing global concerns on the ability of Vietnamese pepper to maintain its
pepper trading status, in addition to raising concerns on the safety of agrochemical use for the
workers and the domestic consumers.
Until recently MARD did not realise the seriousness of the issue, mainly because governments often
rely on government to government notifications on sanitary or phyto-sanitary issues. On the
contrary, pepper traders have been quite active at addressing the issue but within their supply base
and with limited success. Thanks to the extensive exchanges and dialogues with partners from both
sectors, IDH acknowledged the urgency of the official establishment of a common platform where
different agendas can be discussed, and realized it by recommending and promoting the
pepper/spices taskforce under the leadership of MARD, IDH and the Vietnam Pepper Association
(VPA). This was possible because of the unique role played by IDH in managing the Sustastainable
Spices Initiative (SSI), which brings together the key private and non-profit players in spices, and the
credibility generated in Vietnam in managing similar PPP discussion in other sectors. The Spices
Taskforce was launched in 2015 during which communication on the sectors’ sustainability
challenges has been strengthened, alignment on the challenges reached and joint actions initiated.
Tea
Vietnamese tea is an example of what can happen in an agriculture sector when things go wrong.
Historically a global player in tea production and trade, the sector was caught into a race to the
6
bottom, where the focus on quantity rather than quality brought prices down, leading to cutting
corners, which affected quality and spiralling down till Vietnamese tea faces among the lowest prices
globally and is accepted only on a handful of markets. Starting our engagement in the sector with
Unilever in 2013, IDH leveraged on that unique relationship to promote broader pre-competitive
engagement and has become a reference organization in sustainable tea production in Vietnam
through partnership with the Vietnam Tea Association (VITAS) and MARD.
At present the single biggest challenge faced by the sector is the improper use of agrochemicals,
which affects quality, price, safety and market access of Vietnamese tea. Key players involved in
addressing this issue include MARD, VITAS and some front running local companies. IDH has played a
key role in creating public private dialogue in the sector. In 2015 this role was scaled up further with
the contracting of VITAS to work with 13 local factories to address the agrochemical issue through
the establishment of company agri-teams and the inclusion of the Unilever/IDH project as a pilot to
receive PPP funds from MARD.
Apparel
Vietnam is the fifth largest apparel exporter and second biggest footwear exporter globally.
However, the sector is facing numerous sustainable issues. Spinning, weaving and dying mills with
their current practices are posing negative impact on the environment, while at the other end of the
supply chain, the social issues including working conditions and workers dialogues in apparel
manufacturing factories are becoming a threat against the competitiveness of the sector.
Considering Trans Pacific Partnership and EU-Vietnam Free Trade Agreements will be finalized and
become active in the near future, key Apparel and Footwear stakeholders in Vietnam need to
address these issues to comply with the social and environmental requirements set by these
agreements, by the legal framework and by the brands.
Acknowledging the challenges, in late 2014, the Race to the Top was initiated under the umbrella of
the Global Green Growth Forum (3GF), aiming at creating a sustainable apparel and footwear
industry that serves as the foundation for sustainable (financial, social and environmental)
economies in Vietnam. The initiative is driven by a Global Steering Group consisting of
representatives of Race To The Top participants (GAP, Levi’s, Nike, Puma, Saitex, Sustainable Apparel
Coalition – SAC, IFC, Dutch and Danish Government, Better Work/ILO), whose secretariat is managed
by IDH. In Vietnam, other key players include public representatives from Ministry of Industry and
Trade (MOIT), Ministry of Natural Resources and Environment (MONRE), Ministry of Labour – Invalids
and Social Affairs (MOLISA), local and foreign companies, associations such as Vietnam Textile and
Apparel Association (VITAS), Vietnam Leather Footwear and Handbag Association (LEFASO), Vietnam
Cotton and Spinning Association (VCOSA), and relevant Civil Society Organizations like Better Work
Vietnam. The public sector showed strong commitment to drive necessary changes in legislation
framework as well as lead the discussion, while local companies and brands indicated their
commitment to cooperate with the program and improve on their practices. Due to the highly
competitive characteristic where rarely the cooperation among competitors is reached, Race to the
Top Initiative with the brands commitments is acknowledged as a milestone in the Apparel and
Textile sector. IDH was perfectly positioned to manage this pre-competitive PPP because of the
relationships established globally with the brands through its Cotton Program and because of the
history of successful PPP in Vietnamese agriculture.
7
In accordance with the Apparel Program Impact Claim, in 2015 IDH has been setting the first steps to
develop Race to the Top activities packages in Vietnam. IDH created a platform for collaboration on
sustainability improvements in Vietnam via two workshops organized in Ho Chi Minh City with the
participation of the key public and private actors, who showed clear interest for synergies and efforts
to shape program interventions. As a result, five program concepts to drive sustainable growth in the
industry were drafted and circulated publicly for comments and revisions.
Initiative for Sustainable Landscapes (ISLA)
The Central Highlands region covers an area of 54,700 km2, accounting for 16.3% of Vietnam. This is
an ideal area for growing perennial crops including coffee, pepper, rubber, cashew, tea and cocoa.
The agriculture development of the region came at the expenses of natural resources such as water
and forest. As a result, the region now has to face critical challenges including water scarcity,
deforestation, land degradation and improper use of agrochemical. On water scarcity, the decreasing
surface water availability, due to a combination climatic and water management reasons, made
farmers shift toward groundwater usage (which is economically cheap but expensive for an
environmental and social perspective). At present, ground water accounts for more than 55 percent
of the water used for irrigation, leading to severe declines in the ground water table, fundamental to
the sustainability of key crops such as coffee. Rapid population growth creates additional demand for
land in the Central Highlands, which has partly been met by clearing forests. The reduced forest
cover leads to increased soil erosion, which causes low agricultural yield and quality and hurts farmer
incomes. In addition, improper use of agrochemicals, especially pesticides, degrades the soil, pollutes
water, harms human health and leads to high production cost and lower competitiveness of
agricultural sector. Many of these issues have to be tackled at national level and translated into the
landscape. That is why IDH selected the Central Highlands as one of its ISLA landscapes.
Key players involved in addressing these sustainability issues include MARD, the Ministry of Natural
Resources and Environment (MONRE), Provincial People’s Committee of Lam Dong and Dak Lak
province, and several front running companies. IDH has played a key role in building coalitions of
public & private stakeholders to jointly formulate and invest in sustainable land, water and resource
management in landscapes at risk. In 2015 IDH established a provincial-level steering committee
made up of public and private stakeholders in Lam Dong. We also set up technical working groups of
experts for water and agro-forestry issues to support the steering committee. Together, they created
an integrated landscape approach among stakeholders, devised an action plan, and designed the
interventions in the province. As a result, in 2015, IDH received 20 project proposals for field
interventions from both public and private sectors. From these 7 projects were selected for
implementation in 2016, namely 4 projects focused on responsible coffee production, 1 PPP project
on water and vegetable production, 1 PPP project on landscape planning and implementation and 1
project on applying the “production and protection” model in Dak Lak and Lam Dong provinces.
8
2. Program achievements
Aquaculture Program
The IDH Aquaculture Program, officially started in 2010 in Vietnam to accelerate the adoption of sustainable practices by leveraging retail and trade
demand, as well as supporting availability of responsibly farmed seafood. In 2015, the program has further strengthened the sector partnership within the
framework of the MARD Partnership for Sustainable Agriculture in Vietnam (PSAV), to address responsible aquaculture more broadly under a Cooperation
Agreement signed by key public, private and non-profit representatives. At the field level through the Farmers In Transition (FIT) Fund, IDH also supported
the sector towards the responsible production of an additional 45,000 tons of seafood.
Program impact claim
on the global level
Planned country activities
for 2015 Progress
Explanation for any type of
deviation
15% of EU imports of
pangasius,
shrimp and tilapia to
be responsibly
produced by 2015
Through the FIT Fund,
monitor 2014
contracted project results
and further
co-invest in scalable and
cost-effective producer
support (with a focus on
shrimp farming).
The FIT Fund has grown and invested in Vietnam a total of 6 field-level
projects, with €4.6 million in private sector investments, targeting
reducing environmental pollution and improved health and feed
management through implementation of good farming practices.
Continue supporting the
Aquaculture
Stewardship Council (ASC)
standard (including their
feed dialogue work) as
one of the most credible
certification schemes.
5/6 FIT Fund FLPs target ASC certification for shrimp, pangasius and
tilapia. A new partnership agreement signed with (among others) WWF
Vietnam will ensure continued synergy in supporting, albeit not
exclusively, ASC certification
9
Identify key business
drivers and mechanisms
towards responsible
production and
consumption, to
strengthen the business
case for responsible
aquaculture (e.g. through
disease control).
In 2015, IDH partnered with University of Prince
Edwards Island (UPEI), the Collaborating Centre for aquatic epidemiology
of the World Organization for Animal Health (OIE), on an innovative tool
to analyze disease risk factors associated with shrimp farming in Vietnam.
The pilot has been rolled out across all field-level projects in Vietnam.
Strengthen scalable
public-private
partnerships in at least
four key countries of
production.
The scoping studies to work on responsible health and feed management
have started to focus on Vietnam, outlining the potential future role of
IDH to convene public and private-sector actors. In
Vietnam, in September 2015, a cooperation agreement was signed
between MARD, VASEP
VINAFIS, IDH, GIZ and WWF to create a restructured PPP taskforce for fish
(PPP Fish). IDH envisions the PPP Fish to be the vehicle for direct
involvement of companies or by conveying the voice of the companies
through the existing partners.
10
Cocoa Program
IDH plays a key role in involving and aligning the cocoa industry around a ‘productivity package’. In 2012, together with multinationals like Cargill and Mars,
IDH, the Dutch Government, Rabobank Foundation, and the Vietnamese Government launched a public-private partnership aimed at developing policies
and building capacity to improve the sustainability and quality of Vietnamese cocoa production. In 2015, the program has been expanded to include also
Puratos Grand-Place in partnership with the Swiss NGO Helvetas to develop a PPP governance for the sector as to enable its sustainable development
beyond the timeframe of the program activities.
Program impact claim
on the global level
Planned country activities
for 2015 Progress
Explanation for any type of
deviation
300,000 farmers to
have improved
livelihoods by 2015
Support PPP in Vietnam:
• Develop the capacity of
farmer extension services
to deliver training.
• Enhance training
curricula provided through
extension services and
technical colleges.
• Develop demonstration
farms in strategic areas.
By the end of 2015, numerous outreach workshops and trainings were
conducted to motivate and train cocoa farmers on good farming
management.
National technical guidelines were developed by
NAEC, leading cocoa experts and corporate partners, and supported by
IDH. The guidelines can be used by any actors in the supply chain. The
guidelines will be used by NAEC to conduct training for government
extension service providers at the provincial and district level. In
collaboration with Nong Lam University in HCMC, a curriculum was
developed for agronomy students on cocoa plantation.
To motivate farmers to invest in cocoa and support technical transfer, the
PPP cocoa program
has supported the setup of 40 demonstration
farms in strategic areas of Mekong Delta, Central
Highlands and South East region. Demo farms are
used extensively to conduct field trainings
11
Coffee Program
IDH’s Sustainable Coffee Program started in Vietnam since 2011, aiming to tackle the sustainability issues of this important exporting sector of Vietnam,
ranging from production practices and planning, access to finance to farmers’ livelihood, hence jointly benefitting the public and private interests. In 2015,
SCP has facilitated field level projects with more than 20,000 farmers directly trained on sustainability agenda, promoted the adoption of National
Sustainability Curriculum as common training materials to reduce overlapping, and supported further the Vietnam Coffee Coordination Board to drive
improvement in legislations and development strategy of the sector.
Program impact claim
on the global level
Planned country activities
for 2015 Progress
Explanation for any type of
deviation
25% of coffee sales
worldwide to be
sustainable by 2015
Conclude the “first wave”
of pre-competitive
national-level work
streams (so-called
Requests For Funds (RFF))
started in 2013/2014.
4/6 national level work streams are concluded. These include the
established national public-private platforms (VCCB) and the pre-
competitive national-level work streams (NSC development and
promotion, coffee rejuvenation, farmer association establishment), both
started under SCP, are designed to continue “self-propelling” with
stakeholder ownership. The conclusion of the remaining 2/6 national
activities was purposely delayed to ensure the quality of the deliverables.
RFF on NSC development delayed to
ensure visible endorsement by
MARD. RFF on NSC promotion
delayed to ensure that all the
comments received by stakeholders
were properly addressed.
Endorsement of the
National Sustainability
Curriculums (NSCs) by
national government
followed by public and
private extension rollout
including rollout of
already approved NSC in
Vietnam.
Rollout of NSC started with National Agricultural Extension Center’s
training. Engagement with key government authorities and other
stakeholders has been strengthened to encourage commitment of all key
stakeholders towards the NSC process.
Finalization and rollout of the NSC
Training of Trainers (TOT) and
Training of Farmers (TOF) has been
delayed, as a result of the complexity
of aligning the different institutions
and initiatives involved. However, by
aligning with the World Bank’s Viet-
nam Sustainable Agriculture
Transformation (VnSAT) program,
and ensuring the NSC’s use in the
implementation of this program, the
NSC rollout process is back on track
and has a higher upscaling potential
than before.
12
Strengthen the monitoring
and evaluation framework
to ensure positive impact
by field-level projects.
The work stream to align on common indicators together with the private
sector has been finalized. This paves the way for field-level results of pro-
jects to be measured and compared so that there is better alignment.
A specified new Result Measurement Framework (RMF) has been
developed for the coffee program and communicated with on-going
projects.
Measure the impact of
national level activities
Successfully measured activities at national levels but ongoing challenges
are faced to get meaningful and mandatory data from our implementing
partners.
Develop and implement a
focused learning agenda
on service delivery
models.
To better understand the current economics of service delivery models,
one case study was conducted in Vietnam (out of the five case studies
conducted by IDH in 2015). The outcomes of these case studies will be
discussed with the implementing partners in a workshop in May 2016. This
workshop should lead to a publication on lessons learned, and our aim is
to further engage with these partners to see how they can improve their
service delivery models to better meet the needs of farmers.
Align on sustainable water
management initiative
Good coordination achieved with the landscape (ISLA) program on funding
and progression of on- and off-farm activities, studies and working groups.
Used coffee program network with private sector for continuation of
projects under ISLA, focusing more on water and resource management.
Linked core farmers/beneficiaries of coffee projects with new projects
under ISLA program to work on landscape-related issues rather than just
farm-specific issues.
Integrated discussion on ISLA intervention into Vietnam Coffee
Coordination Board’s (VCCB) meetings/dialogues for better cooperation
and alignment among stakeholders. The VCCB was established with
support from the coffee program.
The ISLA approach has allowed us to build better relations with the Lam
Dong and Dak Lak provincial authorities, which helps us to make our
coffee intervention more effective.
13
Spices Program
The Sustainable Spices Initiative (SSI), powered by IDH, brings together leading international companies and NGOs, aiming to sustainably transform the
mainstream spices sector. Through the SSI – funded by IDH and leading spice processors and brands – Local Interpretation Guidelines (LIGs) to facilitate
Rainforest Alliance (RA) certification of Vietnamese pepper have been developed. IDH moved from supporting individual projects within the SSI to
convening public-private stakeholders in the Spice Taskforce under Partnership for Sustainable Agriculture in Vietnam, as to address sustainable issue in the
sector, i.e. the misuse of Agrochemicals. In 2015, there was still one producer support project ongoing although most of the attention was devoted to
bringing sector-level changes.
Program impact claim
on the global level
Planned country activities
for 2015 Progress
Explanation for any type of
deviation
20% of all pepper
imported in the EU to
be sustainably
produced
Broaden the scope and
reach of SSI and of
sustainable spices in the
market by concluding
work on the
benchmarking tool,
including reference to
retail standards, and
embracing more
sustainable standards.
Built up useful experience with sustainable production and sourcing
through field projects.
Build local spices platform
in Vietnam to address
critical sector issues, with
a focus on responsible
agrochemical use, by
setting up SSI working
groups in Vietnam, driving
proactive agendas on
responsible agrochemical
use in collaboration with
Launched the pepper/spices taskforce under the Ministry of Agriculture
and Rural Development in Vietnam, with a defined agenda on
agrochemical issues through a special agrochemical taskforce
14
the World Economic
Forum (WEF) Vietnam
Continue producer
support of SSI members’
pilot projects through the
SPIF fund, building first
availability of certified
spices to the market.
Collect learning from first-
phase experiences,
including sharing
knowledge on service
delivery models and
private extension.
In Vietnam, by 2015 most FLP were completed to allow deeper focus on
the crosscutting pre-competitive activities implemented through the
pepper/spices taskforce.
Through the only ongoing FLP 89 additional farmers were trained.
Broaden the SSI private
partners to 18 front-
running international and
local processors.
Reached out to new possible members through conferences and bilateral
meetings
15
Tea Program
The IDH Tea Program is a consortium of the largest tea packers in Europe and Asia, and the most important certifiers and NGOs in the sector. In 2015, IDH
has promoted sustainable tea production and sustainable procurement in Vietnam, via field level projects with Unilever, Vietnam Tea Association (VITAS),
Vietnam tea producers and exporters in alignment with Ministry of Agriculture and Rural Development. In close collaboration with VITAS, IDH is also
conducting broader activities aimed at addressing the sustainability of the Vietnamese tea sector though inclusive public-private discussions, in which the
responsible use of agrochemicals is of key importance.
Program impact claim
on the global level
Planned country activities
for 2015 Progress
Explanation for any type of
deviation
20% of global tea
production to be
sustainable, and
700,000 smallholders
and 500,000 workers
to have better
livelihoods by 2016
Address agrochemical
issue in Vietnam Tea
Sector at both national
and field level project by
partnering with the
Vietnam Tea Association
(VITAS) and front-running
local businesses.
Project focused on agrochemical control contracted to VITAS and 13 local
tea factories and activities started with the first meeting of 13 factories
leaders organized in December 2015.
Tea Taskforce empowered and proposed key solutions to MARD Minister.
Continue producers
support towards
sustainable certification
(RA) via the project
"Integration of
Smallholders into Quality
and sustainable tea supply
chains in Vietnam" with
RA and Unilever.
The project continued being implemented through partnerships with RA
and VECO as the implementing partners. MARD support for project
activities led to the Minister’s inclusion of the Unilever/IDH partnership
among the pilots to receive PPP government funding in 2016.
The project fell short to achieve its
target mainly because most local
companies did not have their own
farm and many found it difficult to
develop linkages with smallholders.
In addition, middle men activities
were poorly regulated leading to
weaker value-chain relationships.
Poor commit by farmers and middle-
men to quality and responsible
agrochemical usage also led to the
use of banned and restricted
agrochemicals which affected the tea
quality.
16
Apparel Program
The IDH Apparel program aims to create a win-win through increased productivity and competitiveness, as well as improved social and environmental
performance. One of its key initiatives, the Race to the Top (RttT), was launched in 2015 in Vietnam, convening the Sustainable Apparel Coalition, Levi-
Strauss & Co, GAP, Nike, Saitex, IFC, ILO/Better Work, 3GF, the Vietnamese, the Danish and the Dutch government in a common PPP platform managed by
IDH. With 2 major conferences and various bilateral meetings organized, RttT has set first steps in designing comprehensive intervention packages to
implement at factories/mills in upcoming years.
Program impact claim
on the global level
Planned country activities
for 2015 Progress
Explanation for any type of
deviation
Improve working
conditions and
environmental
performance of textile
manufacturers
Support SAC institutional
and stakeholder
engagement
SAC office grown and well embedded in institutional discussions. SAC
introduced and connected to the public and private stakeholders in
Vietnam.
Leverage SAC platform
efforts with factories
committed to increasing
the Higg Sustainability
Index score in Vietnam.
Improve the enabling
industry environment (e.g.
availability of soft loans
for infrastructure
investments) to support
suppliers that (aim to)
perform well on the Higg
Index.
Created and formalized a dedicated global steering group to drive RttT in
Vietnam with the participation of brands, suppliers, IOs, governments, and
other CSOs, with IDH as program manager.
Conducted intensive scoping and program development with broad
participation of key stakeholders, including at a well-attended agenda-
setting RttT workshop in Ho Chi Minh, Vietnam.
Organized a workshop (also in Ho Chi Minh, Viet Nam) that delivered a set
of program concepts to drive sustainable growth in the industry, which is
perceived by the private and public sectors as key
to system change.
17
Decide which country-
level intervention(s) have
the highest potential for
impact and require IDH’s
further support and
convening.
Finalized this process by creating and supporting efforts in Vietnam, after
many conversations with sector stakeholders, which indicated big industry
interest and challenges in Vietnam.
Specific interventions not yet
finalized as reaching agreement with
all partners on the specific actions to
be taken took longer than envisioned
Cotton Program
The IDH Cotton Program accelerates sustainable market transformation of the global cotton fiber market by leveraging both supply and demand of Better
Cotton. On the supply side, the program works with local producers to ramp up the share of sustainable fiber through the Better Cotton Fast Track Program
(BCFTP). Vietnam can hardly be considered a cotton supplier. However, on the demand side the Cotton program convenes front-running retailers and
brands who commit to a publicly stated goal on procurement of sustainable fiber in the future. It is at this demand level that Vietnam, as a top apparel
manufacturer, plays a key role. In 2015 in Vietnam, one event was organized, supported by the Vietnam Cotton and Spinning Association to promote Better
Cotton supply chain among Vietnamese spinners and textile suppliers. The event was well attended by representatives from brands, local
companies/producers and Department of Crop Production (MARD).
Program impact claim
on the global level
Planned country activity
for 2015 Progress Explanation for any type of deviation
1.5 million MT of
Better Cotton lint to
be produced by 2015
Supply chain engagement:
work closely with
brands to drive the
increase in procurement
of Better Cotton.
IDH organized (in collaboration with the Vietnam Cotton and Spinning
Association-VCOSA) and funded a BCI supply chain
event in Vietnam, contributing to raising awareness on BCI and how to
use effectively BCI mechanisms to satisfy buyers’ requirements
18
Initiative for Sustainable Landscapes (ISLA)
The Initiative for Sustainable Landscapes connects relevant stakeholders, including (international) companies sourcing from the area, to facilitate discussions
and explore potential scenarios for sustainable landscape management, recognizing costs and benefits for each stakeholder. In 2015, in the Central
Highlands of Vietnam, ISLA helped to formulate the economic rationale for companies to co-invest in sustainable landscape management. Typical
interventions co-funded by public and private sectors include water management along the river basin across sectors, promotion of water saving practices,
climate change resilience for perennial crops and the development and implementation of inclusive reforestation practices. At the same time, IDH has
promoted and supported the successful launch of a Steering Committee, with the participation of local government and leading companies.
Program impact claim
on the global level
Planned country activity
for 2015 Progress Explanation for any type of deviation
Main sustainability
issues targeted
Deforestation
Water management
Smallholder
livelihoods
Toxic loading
Overall targets for
ISLA in 2015:
Shared trend and
problem analysis as a
basis for joint vision of
multi-stakeholder
coalitions per
landscape
Data collection:
Make inventory of
available (baseline) data
about landscape.
Conduct complimentary
baseline studies (e.g.
remote sensing).
High-level report on key issues in the landscape finalized.
Remote sensing of Lam Dong and Dak Lak Provinces started in December
2015.
Remote sensing started only late in
2015. It is expected to be completed in
early 2016.
Project planning and
stakeholder management:
Carry out stakeholder
mapping, engagement
strategy, and meetings
with key stakeholders.
Key stakeholders were identified and brought together in Lam Dong in a
provincial steering committee and associated working groups.
Other stakeholders, especially at national level, are engaged bilaterally
on a continuous basis.
NGOs are participating in all working
groups and public events.
19
Intervention planning
for the 2016-2018
period per landscape
on the basis of the
joint vision well-
functioning multi-
stakeholder coalitions
with a clear
governance structure
in each of the six land-
scapes
ISLA learnings are
mainstreamed inside
and outside IDH
Analyses to support
intervention selection:
Give policy support and
conduct feasibility studies
to support intervention
selection, planning.
Remote sensing and mapping to identify focus areas with regard to soil
erosion, deforestation and (surface) water shortage were executed.
Remote sensing and mapping to
identify focus areas with regard to soil
erosion, deforestation and (surface)
water shortage were executed.
Joint interventions:
Define and plan
interventions.
After identifying the key issues in the landscape, we launched a call for
proposals for projects addressing these issues, open to both public and
private partners.
Call for proposals was launched late in
2015 (December). Interventions will
start in Q2 2016.
Co-funding:
Identify and secure
sources of funding.
Discussions were held with potential donors, such as World Bank, ADB
and Vietnam Environment Protection Fund and we aligned with the
governmental budget at national and provincial levels. At the end of
2015, both public and private sectors expressed intentions to co-fund
interventions starting in 2016.
Co-funding will be secured for the joint
interventions that will start in 2016
(recurring for all landscapes).
Communication:
Develop and disseminate
communication materials.
Quarterly newsletter sent out to stakeholders in English and
Vietnamese. Launch event covered by local media. Materials developed
and disseminated.
Investment case
development:
Collect and test data.
The investment case based on the
KPMG model was not completed for
Vietnam due to a lack of data.
20
3. Project overview per program
In the following table each project per program is listed, including the partners IDH works with. For each project the planned as well as the progress
on key performance indicators (KPI) are indicated and linked up to the global impact claim of each commodity program.
Project title Partners Planned key project KPIs for 2015 Progress per key project
KPIs for 2015 Contribution to global impact claim
Aquaculture
Farmer in Transition (FIT) Project with
Blue You Consulting Company (BY)
Blue You Consulting
Company Forestry
Management Board (FMB)
(Ca Mau DARD)
- ASC and/or organic aquaculture
standards compliance: 1,100 tons
per year of responsibly produced
shrimp
- 3,590 ha shrimp farms with a
fully implemented and audited
Internal Control System system
for certification according to Selva
Shrimp
- 528 small scale farmers
improved income and farming
practices*
- 700 tons of shrimp
responsibly produced
- 438 farmers benefitted
through Internal Control
System implementation
and 10% premium on farm
gate price
Aquaculture Program Impact Claim: 15% of EU imports of pangasius, shrimp and tilapia to be responsibly produced by 2015
Project contribution in 2015: 700
tons of shrimp responsibly produced
Farmer in Transition Project with
World Wild Fund VN (WWF VN)
- WWF VN
- Utxi Aquatic Products
Processing Corporation in
Soc Trang province
- QuocViet sea products
Processing Trading and
Import – Export Co, Ltd. in
Ca Mau province
- Ca Mau DARD
- Bac Lieu PAEC
- ASC certification: 100 ha farming
area, 3 farms, 1,000 tons shrimp
- Better Management Practices
(BMP) towards ASC: 214 farmers;
13 farms; 294.9 ha and 1,100 tons
- Survival rate: 25% for ASC
extensive; 60% for ASC intensive;
60 % for BMP intensive
- ASC certified 24.22 ha and
505.8 tons of shrimp; 2
shrimp cooperatives with
36 members
- BMP (towards ASC):
550 farmers in 30 farms,
860 ha and 1,294 tons of
shrimp
Project contribution in 2015: 1,799.8
tons of shrimp were responsibly
produced (ASC certified /BMP)
* Delays in receiving ASC certification (only achieved at the end of the year) because the standard was not ready for application.
21
- Soc Trang DARD
- Farmer groups/
cooperatives in Soc Trang,
Bac Lieu and Ca Mau
provinces
- Can Tho University
- Research Institute of
Aquaculture No1 and No2
(RIA 1/ RIA 2)
-Vietnam Fisheries Society
VINAFIS
- 2,800 tons responsible feed
compliant with responsible
aquaculture requirements for
feed
- 71 workers to be applied safety
labour for workers and Improved
working conditions.
- Use responsible feed for ASC
applying farms
- 19 ha other ecosystem restored
- Survival rate: 73.5% for
ASC intensive farming; 28%
for BMP extensive farming
and 67% for BMP intensive
farming
- FCR: 1.19 for large farms
and 1.20 for small farms
- 71 workers, 30 farmer
groups benefited: laborers
training, protective
equipment, insurance,
health and safety and other
materials provided
- 100% small farmers and
large scale farms don’t use
antibiotics for shrimp
production.
- 2 large farms used feed
with ingredient source,
1,459.1 tons responsible
feed used
- 6.094 ha plants planted by
2 companies - 2 large scale
farms and 122 farmers of 4
farmer groups were ASC
certified
Farmer in Transition Project with
ICAFIS (Thong Thuan - Nui Tao &
Thong Thuan Cam Ranh)
ICAFIS
Thong Thuan (Nui Tao Binh
Thuan)
- ASC certification: 51 ha farming
area, 1,500 tons of shrimp
- Survival rate: >80%
- FCR: 1.15 (For Vannamei shrimp)
- ASC certified: 1 farm, 29
ha and 169.31 tons*
- Survival rate
87%
Project contribution in 2015: 169.31
tons of shrimp were responsibly
produced (ASC certified)
* As contract signing was delayed until August 2015, the figure was accumulated from September to December 2015 when activities started.
22
- TTSC, in accordance with action
plan of P-SIA will contribute to the
communities surrounding the
farm
- Water treatment system
improved to meet ASC standards
requirements
- Feed will be sourced from
certified providers
- FCR: 1.16
- Implemented some
activities of P-SIA and BEIA
to improve some problems
in aquaculture,
environment, social in farm
and around farm.
- 7 septic tanks built for
domestic wastewater base
standard QCVN
14:2008/BTNMT; culture
wastewater was handled
by EM before decanted to
sea
- Feed sourced from IFFO
Global Standard, Non
GMO, ISEAL certified
providers
- 5 USD/kg premium on
responsible products (farm-
gate); 12 USD/kg (to
processor)
Farmer in Transition Project with
ICAFIS (Minh Phu Corp)
ICAFIS
Minh Phu Corporation (Kien
Giang farm)
- ASC certification: 1 farm, 100 ha,
1,000 tons shrimp
- Survival rate: 85%
- FCR: 1.1 for Vannamei shrimp;
1.2 for black tiger shrimp
- 200 workers to be trained on
hazard protection, labor rights
- 100 ha with discharged water
quality will be monitored in
accordance with national
- ASC certified: 1 farm, 75
ha, 911 tons
- Survival rate: 73%
- FCR: 1.14 for Vannamei
- Strengthened living and
working condition for 200
workers (i.e. system
internet, transportation
means)
Project contribution in 2015: 911
tons of shrimp were responsibly
produced (ASC certified)
23
regulations as well as ASC shrimp
standards, therefore reduce
pollution. In addition, bio-
products will be used to improve
water quality.
- Use responsible feed from
Grobest
- 75 ha with water
treatment system
improved by the methods
of biological and
mechanical treatment
- 2,292.2 tons of
responsible and non-GMO-
ingredient feed used
Farmer in Transition Project with
ICAFIS (Sao Ta)
ICAFIS
Sao Ta (Soc Trang farm)
- ASC certification: 75 ha farming
area, 600 tons of shrimp
- Survival rate: 60%
- FCR: 1.6 (For Vannamei shrimp)
- 78 workers welfare improved
through a set of training courses
on labors' safety; minimum wages
and health insurance
- Feed will be sourced from
certified providers (960 tons)
- ASC certified : 1 farm,
62.2 ha, 511.3 tons of
shrimp
- Survival rate: 77%
- FCR: 1.54
- 40 workers benefited:
attending training courses
on sustainable practices
- Implemented B-EIA and P-
SIA activities for ASC
assessment in July 2015
- 786.8 tons of responsible
feed
Project contribution in 2015: 511.3
tons of shrimp were responsibly
produced (ASC certified)
Support the aquaculture producers in
the Mekong Delta moving towards
sustainable production through
achieving ASC certification
WWF VN
Hoang Long, Agifish, Hung
Vuong, Truong Giang,
Mekong Seafood Corp.,
Simmy Aquaculture,
STAPIMEX, Fine Food
Company, SEANAMICO,
CAMIMEX, Ngoc Tri
Seafood Jsc., Huy Long An
PANGASIUS
- ASC certification: 2 farmers, 63
ha, 23,400 tons
- Survival rate: 85%
- FCR: 1.55
- Employ 20 more workers,
together with 62 current workers
who will be trained in SSOP and
provided with safety equipment,
insurance, fair salary and other
bonuses
PANGASIUS
- ASC certified: 2 farmers, 3
farms, 62 ha, 7,676 tons
- Survival rate: 80-87% at
ASC certified farms
- 80 workers, 31 new staff
employed, with 50% were
local people benefitted:
trained on SSOP and
provided with safety
equipment, insurance, fair
Project contribution in 2015: 7,676
tons of pangasius, 688 tons of tilapia,
1,483 tons of shrimp were
responsibly produced (ASC certified)
24
- 2,000 m3
waste water canal
upgraded, new ponds for sludge
repository and maintain effective
waste water treatment system
TILAPIA
- ASC certification: 1 farm, 300
cages, 5,000 tons
- Survival: 82-85%
- FCR: 1.45
- 23 current workers and 20 more
workers to be hired will be trained
in SSOP and provided with safety
equipment, insurance, fair salary
and other bonus
- improve feed by using
responsible ingredients (fish meal)
SHRIMP
- ASC certification: 7 farmers, 10
farms, 6,15 ha, 4,725 tons
- Survival rate: 80%
- FCR: 1.3
- 450 workers will be trained on
health and safety working,
provided protective equipment,
health insurance and other bonus
- improve feed by using
responsible ingredients (fish
meal), and other responsible
ingredients as ASC requirements
salary and other bonuses
- 15,000 m2 of new waste
water treatment area
constructed, 14.4ha
expanded for sludge store
and waste water treatment
- 26,762 ton of feed comply
with ASC requirements
TILAPIA
- ASC certified : 1 farm, 124
cages and 688 tons*
- Survival rate:
81%
- FCR: 1.62
- 32 workers benefited with
full time, contract labor,
insurance are provided for
all full time workers
- Feed are BAP certified
SHRIMP
- ASC certified: 4 farms,
795 ha and 1,483 tons
- 1,177 tons of shrimp
responsibly produced, to
be certified
- Survival rate: 80-84% for
intensive farms; 27% for
extensive farms
* The decreasing market demands led to a plunge in tilapia production, which reflected on the amount of tilapia ASC certified.
25
- FCR: 1.22 for Vannamei;
1.13 for Monodon
- 91 workers at 4 ASC
certified farms were
trained on health and
safety working, provided
protective equipment,
health insurance and other
bonus
- 1,203 ton of feed from
intensive farm with
ingredient comply with ASC
requirements
Farmer in Transition Project with SNV (Minh Phu Corp)
SNV, Minh Phu Corp., Vinh Thuan
- ASC certification: 151 ha, 3,000
tons of shrimp - Survival: 60% - FCR: 1.3-1.4
- 85 staff to be benefitted
- 1500 tons of feed meet the requirement of ASC shrimp feed
- ASC Certified: 200 ha, 1684 tons of shrimp - 816 tons of shrimp produced, and to be ASC certified
- Survival: 76-80%
- FCR: 1.4 (Vinh Thuan); 1.2
(Minh Phú) - 130 stafff benefited - 2,800 tons of responsible feed was used
Project contribution in 2015: 2,500 tons of shrimp were responsibly produced
Farmer in Transition Project with International Centre for Fisheries and Aquaculture Sustainability (ICAFIS) (AQU.31.2013.01) Note: project discontinued because of financial issues faced by the company
ICAFIS, Truong Son JSC - ASC certification: 1,250 tons of shrimp, 77 ha
Project terminated, no activities were conducted
26
Public Private Partnership for
Sustainable Fisheries of Vietnam
D-fish/MARD, GIZ, VASEP,
VIFEP, VINAFIS, WWF, open
to others
Align plans and resources with
PPP partners to promote
responsible aquaculture
production and to promote
responsibly produced products
- Cooperation Agreement
signed, with a detailed joint
action plan agreed by
relevant partners
- KPIs included in the
different items delivered as
part of PPP Action Plan
Action Plan for Implementing and up-
scaling recommendations of Certified
Aquaculture Export Potential Study
(CAEPS)
IPSARD, CIEM, MOIT,
MONRE, UNEP, VASEP,
VietTrade, D-fish
- 1 Action plan to be developed &
consulted with relevant agencies
- 1 Action plan to be
developed & consulted
with relevant agencies
Cocoa
Vietnam Sustainable Cocoa Program
(VSCP) - Public Private Partnership for
Cocoa sector Phase2
Helvetas, Mars, Cargill,
Grand Place Puratos,
Department of Crop
Production (DCP)
- Certification: 4,000 tons cocoa to
be certified by UTZ and/or RA
and/or CocoaTrace;
- Yield: 2 Kg/tree/year for mature
trees;
- Plantation: 15 million trees,
producing 8,000 tons annually
- Governance: A strengthened PPP
body for the sector management
to be established; Legislation for
post harvest & quality assurance
in place by 2015, to be enforced
by 2016;
- 100% major buyers, who have
more than 20% market share will
have system for quality
assurance and for providing
quality feedback to fermentaries
by 2016
- Certified: 2,866 tons
cocoa bean (UTZ and RA)
- Yield of trained farmers:
1.3 kg of dried bean/tree
- Plantation: 280 ha newly
planted, 6,777 tons
produced
- 10 CVC and 26 Demo
farms, 13 Nurseries
established
- 2,426 farmers trained
- Chairman of Vietnam
Cocoa Committee
proposed to MARD that a
Vice Minister co-chair VCC
to strengthen the
governance.
Cocoa Program Impact Claim:
300,000 farmers to have improved
livelihoods by 2015
Project contribution in 2015: 2,426
farmers trained
Note: the focus of the Vietnam
project is less on farmer training and
more on strengthening governance
27
- Vietnam standards on
cocoa seedlings
announced by MOST
- 01 Forum organized to
review VN cocoa
development in the past
10 years, with 120
participants mainly from
the government.
Coffee
Institutional Coordinator for
Sustainable Coffee Program (SCP) in
Vietnam (COF.14.2012.01)
IPSARD 1. Jointly IPSARD-SNV activity
plan developed
2. Communication information for
the SCP to be prepared and
published in website of IDH and
Global SCP
3. Support operation of the VCCB
and its policy subcommittee
1. Achieved. Jointly
IPSARD-SNV activity plan
developed for 2015
2. Achieved. 02 VCCB
newsletters prepared and
published
3. Achieved. 1
sustainability forum;
Operation of the VCCB and
its 3 subcommittees
supported; 4
communication pieces in
the form of quarterly VCCB
newsletters
Coffee Program:
25% of coffee sales worldwide to be
sustainable by 2015
Project contribution in 2015:
National stakeholder structure in
place and functional to support
responsible coffee production and
trade at sectoral level
28
National Coordinator for Sustainable
Coffee Program in Vietnam
(COF.15.2012.01)
SNV Vietnam 1. Managing the Sustainable
Coffee Program implementation
2. Progress reports reviewed from
the implementers and monitoring
meetings at provincial level with
selected site visits
3. Financial management,
administration and accounting for
the allocated programme funds
1. Financial and technical
monitoring of field level
projects and national
projects
2. 1 cross implementing
partners meeting
conducted to facilitate
learning between FLPs.
6 site visits carried out; 2
bi-annual financial and
technical reports on FLPs
and RFFs
3. Financial management
provided for contracted
FLPs and RFFS
Project contribution in 2015:
Contributed to reaching 21,035
farmers (see Field Level Projects)
Support for setting up farmer sub -
association at provinces - Phase 1
(VIE.RFF.03.2012.01)
IPSARD 1. Proposals and working
regulations on Dak Lak and Lam
Dong coffee sub-association
approved by the provinces
2. Number of farmer groups
participating in coffee sub-
associations; Number of coffee
producers know about these sub-
associations
3. A system of incentives for
associations including business
case for seft-financing developed,
which is well consulted with all
the members and others related
stakehoulders
4. Membership extended quickly
with clear incentives that
1. Partially achieved.
CuMgar + Krongnang
(Daklak) application has
been submitted to PPC.
2. Partially achieved. Lam
Dong: 133 households, 5
service cooperatives, 2
sub-associations
established.
Daklak: 300 farmers
registered to join 2 district
associations
- About 30 - 40% of
members of the farmer
union know about the
associations
3. Partially achieved.
Project contribution in 2015:
Enhancement of dialogue with
national coffee platform (VCCB) to
support responsible coffee
production and trade in the province
29
associations can provide to its
members
5. Effectives consultation
mechanism developed among the
members of associations and
sustained good connection
between the associations with
VCCB.
An input service was
negotiated to pilot with
BinhDien company but
failed due to limited scale
and lack of legal status of
sub-associations.
4 training courses
organized for farmers
4. Achieved. Membership
extended from 94 official
members to 139 members
in 2015.
5. Achieved. Both
associations participated in
policy consultation process
with VCCB and NSC, TOT,
TOF training course
organized by NAEC
Lam Dong.
Development of National
Sustainability Curriculum
(VIE.RFF.06.2013.01)
SNV Vietnam, Western
Highlands of Agriculture
and Forestry Science
Institute (WASI)
1. Harmonization of other SCP and
non-SCP activities
- Curriculum consolidated and
finalized
1. Achieved. Curriculum
consolidated with 6
training modules and
approved by MARD (DCP)
Vietnam Coffee Rejuvenation
Assessment Report and Action Plan
(VIE.RFF.08.2013.01)
SNV Vietnam, WB, WASI,
Vietnam Coffee
Coordination Board (VCCB),
IPSARD
1. Technical report identifying
rejuvenation issues, assessment of
the optimal approaches to be
under taken for coffee tree
plantation rejuvenation in key
areas. Economic and financial
report detailing economic
requirements for different options
1. Achieved. The full
research report of coffee
rejuvenation on technical,
economic and financial
issues has been completed
both in English and
Vietnamese.
Project contribution in 2015:
Rejuvenation action plan will support
responsible coffee production at a
sectoral level
30
of rejuvenation that are
economically viable, range of
options for financing each of the
approaches
2. Rejuvenation Action plan with
clear project goals identifying
specific rejuvenation activities,
timeframes, resources and
methodology
2. Achieved. The full
National Coffee
Rejuvenation Action Plan
with clear goal, activities,
timeframe, resources and
methodology was
approved by MARD.
- 1 dissemination
workshop was organised
by DCP/VCCB in Dak Lak
with the cooperation with
VAAS and WASI.
Collaboration for Upscaling
Agricultural Cooperatives in Vietnam
(VIE.RFF.09.2013.01)
Note: this RFF was terminated by the
funders owing to perceived limited
interest in this activity by MARD
MARD, Ministry of Planning
and Investment (MPI),
DARDs of Lam Dong, Gia
Lai; PPCs of Lam Dong, Gia
Lai; District People's
Committees of project sites
1. Availability of training package
2. Number of ToT workshops
3. Total participants to become
trainers
4. Coaching sessions
1 introduction workshop
organized
Support for preparing Vietnam Coffee
Sustainable Proposal
(VIE.RFF.11.2013.01)
IPSARD, DCP 1. Support the consultation to
explore the development of
Coffee Fund
1. Achieved. Report on
international experiences
on Coffee Fund reviewed
as inputs to the proposal.
- minutes summarizing all
comments of stakeholders
by VCCB sent to MARD and
MoF
- proposal sent by VCCB to
MoF
Project contribution in 2015:
Strengthen the power of the VCCB
and improved the governance of the
sector hence supporting responsible
coffee production at a sectoral level
31
National Sustainable Curriculum -
Key National Expert and ToT
(VIE.RFF.12.2013.01)
SNV Vietnam, WASI,
National Agriculture
Extension Center (NAEC)
1. At least 5 TOT courses and
observation of 12 farmer training
2. 3000 farmers receiving training
on NSC
1. Partially achieved.
5 TOT (160 lead farmers)
courses organized
5 TOF (150 farmers)
courses organized
2. Achieved. (Est) 8000
farmers indirectly trained
by 160 lead farmers in
2015
Project contribution in 2015:
Promoted the dissemination of the NSC and responsible production practices across key coffee producing provinces
5th Coffee Forum (VIE.RFF.14.
2014.01)
MARD, VCCB, Agribank 1. At least 100 people attend the
forum, including representatives
from ministries, provinces,
domestic and foreign enterprises,
roasters, research institutes,
farmers, International Coffee
Organization, certification
organizations, NGOs, etc.
2. Recommendations to
implement current priorities of
VCCB are discussed widely in the
forum and decided in the VCCB
meeting
1. Achieved 150 people
attend the forum,
including representatives
from ministries, provinces,
domestic and foreign
enterprises, roasters,
research institutes,
farmers, certification
organizations, NGOs, etc.
2. Achieved.
Recommendations to
implement current sector
(including VCCB) priorities
are widely discussed in the
forum and incorporated in
VCCB action plan
Project contribution in 2015:
Promote responsible production at a
sector level
Field Level Projects 1. 20,144 farmers trained
2. 30% of farmers trained are
female
3. 96,485 MT of GCE produced by
1. 20,725 farmers trained
2. >30% of farmers trained
are female
Project contribution in 2015:
21,035 farmers trained directly.
Lessons captured as to document
best practices
32
project target farmers
4. 96,485 MT of GCE produced by
project target farmers that is
sustainable
5. 161 first level aggregator/
service providers providing
services to farmers
6. 20,144 farmers organised in
groups that received training,
finance and/or other services
7. Key issues address: water
saving, agrochemical control,
farmer organization, access to
finance
3. 104,838 MT of GCE
produced by project target
farmers
4. 104,838 MT of GCE
produced by project target
farmers that is sustainable
5. 166 first level
aggregator/ service
providers providing
services to farmers
6. 20,725 farmers
organised in groups that
received training, finance
and/or other services
7. Key issues address:
water saving, agrochemical
control, farmer
organization, access to
finance
7/8 projects address water
saving issues
7/8 projects address
agrochemical control
issues
4/8 projects support
farmer organizations
4/8 projects provide
support to access to
finance
33
Spices
Public Private Platform for Pepper
/Spices (Spices Taskforce under PSAV)
MARD
Vietnam Pepper
Associations
European Spices Association
Nedspice, OLAM,
McCormick, Harris
Freeman, open to other
relevant
companies/partners
Establish and support a national
platform that addresses the key
sustainability issues in the
pepper/spices sector
- One meeting organized to set up the priorities for the sector - One meeting organized with
the sector to address the key
issues that ESA raised
Spices Program Impact Claim:
20% of all pepper imported in
the EU to be
sustainably produced
Project contribution in 2015:
supported sustainable
production at a national level
Promotion and guarantee of
sustainable pepper production
among the farmers in key growing
regions of Vietnam
Harris Freeman & Co/Harris
Freeman Vietnam
Nong Lam University
- 100 farmers trained
- Average yield: 2.7
tons/ha/harvest
- Average profit margin of farmer
per harvest: 6480 EUR
- 01 local institution trained
- 05 well-functioning farmer
organizations established
- 01 service provider trained
- 02 training guides / manuals
developed and shared in SSI
- 89 farmers trained
- 89 ha under sustainable
production
- Average yield: 2.9
tons/ha/harvest
- 01 local institution trained
- 05 well-functioning farmer
organizations established
- 01 service provider trained
Project contribution in 2015: 89
farmers trained, 89 ha of land
using sustainable techniques
34
Tea
"Integration of Smallholders into
Quality and sustainable tea supply
chains in Vietnam" with RA and
Unilever
Unilever
Rainforest Alliance
MARD
VECO
- 6000 small scale farmers to be
trained
- 14,000 MT of RA certified tea
- 327 lead-farmers (41% of which
are women)
- 28 factories benefited
- 4,125 small scale farmers
were trained
- 2,282 small scale farmers
were certified
- 11,093 MT were RA certified
tea
- 395 lead-farmers (41% of
which are women) were
trained
- 16 factories benefited
Tea Program Impact Claim: 20%
of global tea production to be
sustainable, and 700,000
smallholders and
500,000 workers to have better
livelihoods
by 2016
Project contribution in 2015:
4,125 farmers were trained;
11,093 tons of tea were
responsibly produced (RA
certified). Collaboration with
MARD expected to have sector
level impacts
Improving agro-chemical use in
Vietnamese tea production
Vietnam Tea Association
13 tea factories
CBI
- 26 trainers and auditors to be
trained through program activities
to deliver extension services
- 26 producers/ workers (m/f)
trained on key subjects for
sustainable production,
environmental and social
sustainability issues
- 1 agri-team to be established**
- Project team set up - Meetings organized for 28
representatives from 13 tea
factories on general activities
and mechanism of Agri-team
models
- 1 Agri-team established
Project contribution in 2015:
engagement with front running
local companies is expected to
have sectoral-level impacts in the
years to come
**
Project was contracted in October 2015, and project activity officially started in November 2015, hence several of the targets set for 2015 were postponed to 2016
35
Apparel
Race to the Top Initiative for
Sustainable Apparel and Footwear
sector of Vietnam
MOIT, MOLISA, MONRE,
Levi’s, Nike, GAP, Puma,
Saitex, Marks and Spencer,
ILO/BW, IFC, SAC, Danish
Government, Government
of the Netherlands, US
Government
- Initiating partnerships, building
coalitions, and implementing pre-
competitive improvement
programs
leading to measurable
improvements
- Increasing industry
harmonization as an enabler for
impact at scale
Note: kpis for the program still
being defined with the partners
- 2 conferences were organized
with more than 100
participants to introduce the
program and collect partners
feedback
- First tentative program design
was drafted and circulated to
the public and private partners
to collect feedback
Apparel Program Impact Claim:
Improve working conditions and
environmental performance of
textile
manufacturers
Project contribution in 2015:
Raised awareness on sustainable
issues of the sectors to the public
and private sector, on a national
and precompetitive level. Took
first steps in designing the field
level activities in Vietnam
Cotton
1st
Better Cotton Supply Chain Event
in Vietnam
Vietnam Cotton Association,
Vietnam Textile Association,
Better Cotton Iniative
Introduce Better Cotton to
Vietnamese Cotton
trader/suppliers to promote usage
of sustainably produced cotton.
01 event organized with 84
participants who representing
local companies, international
brands and relevant
government authority
Cotton Program Impact Claim:
1.5 million MT of Better Cotton
lint to be produced by 2015
Project contribution in 2015:
Create a supply chain platform
and increase visibility of BCI in
cotton trading system of Vietnam
36
Initiative for Sustainable Landscapes (ISLA)
Institutional Coordinator for
Initiative for Sustainable Landscapes
(ISLA)
MARD, PPC Lam Dong,
VEPF, Dak Lak province,
international
organizations, companies,
other programs
Provide Institutional support to
the ISLA program. Align with
other related programs & policies
supporting sustainable
landscapes
01 PPP governance established
for the landscape
ISLA Program
Issues targeted
Deforestation, Water,
Smallholders
Toxic loading
Project contribution in 2015:
Shared trend and problem
analysis as a basis for
establishing a joint vision and
governance for the landscape (in
Lam Dong province).
Improvement of water resource
management
Companies, MARD,
MONRE, PPCs
Water resource along watershed
effectively managed
Saving water practices applied
Information system on water
resource piloted in Lam Dong
Working group on water
established and operational.
Collaboration with the Food
Energy Environment Network
established. Field Level Projects
concept notes have been
submitted by partners
Project contribution in 2015: Establishing the water working group contributes to creating an integrated landscape approach among stakeholders, devising an action plan and design interventions in the province
Improvement of agro-forestry
models Companies, DARD, MARD
Agroforestry models e.g. for
coffee, pepper, tea etc. piloted
Working Group established and
operational. Field Level Projects
concept notes have been
submitted by partners
Project contribution in 2015:
The establishment of the
working group contribute to
creating an integrated landscape
approach among stakeholders,
devising an action plan and
design interventions in the
province.
37
4. Key performance indicators per commodity on country level In this table the KPIs are linked from the global level to the country level per commodity. It
shows how the achievements at country level in 2015 contributed to the overall programs
targets for 2015. Please not that for Apparel, Pulp & Paper and Tin and the Initiative for
Sustainable Landscapes (ISLA) no KPIs have been defined in the annual plan for 2015 due to the
development phase of these programs.
Aquaculture Program KPIs
KPI
Overall program
Target 2015
Result 2015
Country level 2015
Target 2015
Result 2015
Deviation
explanation
Volume of
responsibly
produced fish
(whole fish) metric
tons
Shrimp (T): 75,000
Pangasius (T): not specified
Tilapia (T): not specified
Shrimp (R): 64,059
Pangasius (R): 46,000
Tilapia (R): 28,000
Shrimp (T): 15,275
Pangasius (T): 23,400
Tilapia (T): 5,000
Shrimp (R): 9,251
Pangasius (R): 7,676
Tilapia (R): 688
Note: the results
for pangasius on
country level
indicate volumes
reaching ASC
certification.
However a total
of 46,000 tons of
pangasius were
farmed under
improved
production.
Cocoa Program KPIs
KPI
Overall program
Target 2015
Result 2015
Country level 2015
Target 2015
Result 2015
Deviation
explanation
Number of farmer
trained in
certification module
(T): 62,000
(R): 102,427
(T): 3,000
(R): 2,426
Volume of metric
tones of certified
cocoa
(T): 68,656
(R): 200,456
(T): 4,000
(R): 2,866
Coffee Program KPIs
KPI
Overall program
Target 2015
Result 2015
Country level 2015
Target 2015
Result 2015
Deviation
explanation
Number of farmers
trained
(directly and
indirectly)
directly (T): 100,000
indirectly (T): 400,000
directly (R): 120,000
indirectly (R): 100,000
directly (T): 23,144
Indirectly (T): 10,000
directly (R): 21,035
indirectly (R): 8,000
38
Spices Program KPIs
Tea Program KPIs
Number of national
stakeholder
structures
in place and
functional
(T): 7
(R): 6
(T): 1
(R): 1
KPI
Overall program
Target 2015
Result 2015
Country level 2015
Target 2015
Result 2015
Deviation
explanation
Number of
smallholders trained
on
sustainable
production practices
in Spices Producer-
support
Investment Fund
(SPIF)
(T): 3000
(R): 15,922
(T): 100
(R): 89
Number of hectares
of land managed
using sustainable
techniques
(T): 4,000
(R): 12,072
(T): 100
(R): 89
KPI
Overall program
Target 2015
Result 2015
Country level 2015
Target 2015
Result 2015
Deviation
explanation
Number of
smallholders and
workers trained in
sustainable
production practices.
(T): 66,000 smallholders (R): 71,764 smallholders
(T): 6,000 smallholders
(R): 4,125 smallholders
Volume (in metric tons) of certified/ verified tea available
(metric tons)
(T): 125,000 (R): 170,933
(T): 14,000
(R): 11,093
Number of farmer field schools (FFS) established
(T): 1,200 (R): 1,019
(T): 15 (R): 17
39
5. Lessons learnt
Cross program lessons
After extensive studies and partners interviews in 2015, we have identified the key sustainable issues
to be addressed, including: Smallholders inclusion and their livelihoods, Deforestation, Workers and
farmers’ working conditions, Agrochemicals misuse. These will serve as the key pillars of our efforts
in 2016, for which each program will have their own approach to fit with their sector context and
development process.
Besides private sector involvement, close engagement with the government is crucial to ensure the
effectiveness of the program and long-lasting impact, because government set and implement policy,
steer public extension services and will be in charge of following up with sustainability issues of the
sector long after IDH programs. At the same time, the local authorities when involved governing the
field level projects, will play an important role in convening resources in the areas to support the
activities as well as introduce and scale up successful models to other similar areas in their charge.
It is essential to create alignment with other initiatives in the sector to avoid duplication as well as
competition for resources and partners. IDH plays a strong role in bringing different initiatives and
sustainability issues of the sector for open discussion at different forums and dialogues and integrate
these issues into the action plan of the sector, or properly reflect them in the program/project
design. Expectation is that inefficiency and confusion created at the field level can be reduced and
the focus can shift from competitiveness to complementarity.
It is crucial to find the right social sustainability angle to address the new realities along line with
changes in political, economic and social situation of the country and the local areas where IDH is
active. It will affect tremendously projects activities and impact, and need to be carefully considered
in programs/projects designing and monitoring.
Three main learnings were gained from the field level projects. Firstly, these projects proved to be a
stepping stone for private sector and civil society to increase and intensify their activities. Secondly,
we learned that projects work better if they are close to the business practices of a company,
integrated into the normal way of working. Thirdly, learnings from these sustainable projects
empowered us to give more guidance and content support at the beginning of new projects. This will
make future projects better focused, with a higher return on investment.
Program specific lessons
Aquaculture Program
After extensive studies and industry interviews during 2015, pillars for the IDH Aquaculture
Program for 2016-2020 have been determined. Responsible health and feed management are
directly affecting investment and reputational risk, and contribute most significantly to
sustainable production and environmental impact. Ongoing disease outbreaks have led to huge
volatility in the shrimp sector in particular. This has brought a refocus of the overall program. A
farm management tool, based on pond-level data, is being developed and validated by UPEI with
our Vietnamese industry partners to demonstrate its added value in responsible health and feed
management, leading to more efficient and environmentally conscious production.
The establishment of a PPP Cooperation Agreement in aquaculture proved more difficult that in
other sector, primarily because of the “PPP-inclination” of some of the public (at department
level) leaders. Changes in leadership have since occurred. The situation will be monitored closely
and if this becomes a bottleneck for success action at higher public sector level will be sought.
40
Cocoa Program
The limited size of the Vietnamese cocoa sector was a constraint in attracting attention of the
public sector and led to a gradually reduce interest by the private sector. As IDH objective is not
to promote a specific sector but to promote its sustainable development the focus of the
program became the strengthening of the PPP governance as a safety-net for the sector, in case
growing interest in Vietnamese cocoa should lead to an “explosion” in production as we have
seen in other sectors in Vietnam.
Coffee Program
Close engagement with the government is crucial to ensure the effectiveness of the program and
long-lasting impact, because government set and implement policy, steer public extension
services and will be in charge of following up with sustainability issues of the sector long after the
SCP. IDH strongly encourages public-private platforms like the VCCB to formally engage the
government in scaling up of activities (e.g. NSC rollout and rejuvenation plan).
Although the reach of the VCCB has been growing over the years and in 2015, the structural lack
of coordination between Ministries still hampers its ability to influence (or sometimes even be
aware) of events happening in other ministries, eg Ministry of Finance, events that have the
potential of greatly affect the sustainability of the sector. For this reason the establishment of an
inter-ministerial coffee group has been planned for 2016.
Spice Program
Agrochemical misuse in spice/pepper of Vietnam in the past years jeopardized the exporting
capabilities the local products which are subject to rejection at key markets. Addressing this issue
becomes a priority for us in the upcoming years. We will aim at both national legislative changes
(i.e. working with the government to review and revise agrochemical legislations) and field level
improvement on conducted practices and awareness of relevant stakeholders.
Tea Program
Buyers often use anti-trust regulations to avoid discussions on prices and volume commitments
to help realize sustainability changes on the ground. We were able to start these discussions
through the creation of a safe environment and strong guidance on anti-trust do’s and don’ts.
Agrochemical misuse became top concern of Vietnam tea sector, and addressing this issue via
field level projects is our priority for the next year. However, considering the malfunctioning
agrochemical retail system, getting government authority (Plant Protection Department, MARD)
and relevant stakeholders involved in the process is necessary. The development of a cross-
sectoral project with the Vietnam Tea Association is expected to support this effort.
Apparel Program
It is crucial to find the right social sustainability angle to address the new realities with the TPP
treaty and EU-VN FTA drawing closer. We have found that industrial relations developments in
Vietnam are very sensitive and require an initial response from the Vietnamese government and
the ILO, prior to industry involvement.
41
Cotton Program
Several factors (awareness of the merits of the MBA system, intensive supply chain support by
IDH to the frontrunner (BCFTP) brands to operationalize BC procurement, outreach events in
new sourcing hubs, and brands’ communications support by BCI) led to a large increase in uptake
in 2015. The event conducted in Vietnam to increase awareness on BC offered a concrete entry
point on the Vietnamese demand side. Partnership with sector associations like VCOSA should be
continued to ensure we make maximum use of existing mechanisms to promote the BC in
Vietnam.
Initiative for Sustainable Landscapes (ISLA)
IDH began to implement the landscape approach with its partners in 2015, building on engaging
the private sector and other stakeholders (especially local governments). During the reporting
year, we learned that building trust, a shared agenda and vision, and gaining commitment at the
highest level are all crucial to the success of landscape-level impact. Landscape-wide
interventions touch multiple stakeholders by definition, and there are tradeoffs that need to be
managed. This requires good stakeholder analysis of the power balance, distribution of benefits,
and risk mitigation options.
Conclusion and outlook
With 2015 as the 6th year of operation in Vietnam, IDH has collected valuable experience and lessons
to further improve its roles and responsibility as a convener of public-private stakeholders to drive
systematic changes, as an innovative thinking partner of the government in enhancing the legislation,
policies and strategies, and as a co-financing partner with companies to realize sustainable practices
at field level. During this time, IDH Vietnam was faced with various difficulties, which are particular to
every sector. However, continual learning, improvement and adaptation, the 7 IDH programs in
Vietnam have acquired measurable achievements, contributing to the sustainable development of
respective sectors.
In the upcoming years, IDH will continue to support the economic, social and environmental
sustainability of Vietnam in alignment with IDH’s global impact claims. These include: Smallholders
inclusion and their livelihoods, Deforestation (and responsible natural resource management),
Workers and farmers’ working conditions, Agrochemicals misuse.
To address the above challenges IDH will focus on:
“Thinking landscapes”, viewing sectors within those landscapes and promoting a landscape
approach also within sector interventions
Bringing public and private alignment around sustainability practices and in the promotion of
those practices
Bringing alignment in the legal framework to support the application of those practices
Aligning with other public and donor (e.g. World Bank) programs to scale up the models and
experiences generated through the IDH programs
Strengthening local PPP platforms and their link with international PPP structures as to
promote two-way communication and generate broader support for the Vietnam priorities