Private sector encouraged in agricultural value chain

The Swiss Agency for Development and Cooperation (SDC) is improving cooperative relations with the private sector to bring about sustainable benefits for the impoverished in the rural communities in Vietnam, whose livelihoods principally depend on agriculture.

SDC country director Samuel Waelty made the remark at a July 3 seminar in Hanoi evaluating the private sector’s engagement in the development of the agricultural value chain for the poor. The seminar was held within the framework of the Market Access for the Rural Poor through Value Chain Promotion Programme (MARP) funded by Switzerland.

Samuel said the rural market retains many risks due to high transaction costs and a shortage of sustainable market connectivity, thus mobilising sources from the private sector for sustainable development of the poor is still a big challenge.

Sharing international and Vietnamese experience will help find the best solution for cooperation models with the private sector to raise steady income for the poor in rural areas and the sustainable development of the private sector itself, he stated.

Javier Ayala, the Executive Manager of the Vietnam Business Challenge Fund (VBCF), said doing business with low income earners is an effective way to promote economic development and poverty reduction as 70% of the world’s food is produced by farmers.

Samuel said MARP was launched in July 2013 at a total investment of US$5.2 million to support projects and organisations, mainly in Vietnam and Myanmar. The programme aims to assist poor rural households in taking part in the agricultural value chain to raise income.

He added that MARP has been implemented in 8 provinces in Vietnam covering 8 value chains: tea, rattan, bamboo, silk, brocade, cardamon, cinnamon and anise. The programme has benefitted 6,870 households in 8 localities, of which 90% are ethnic minority people and 32% are women.