AGRICULTURAL MACHINERY IN LOGISTICS AND SUPPLY CHAIN AGRICULTURAL MACHINERY IN LOGISTICS AND SUPPLY CHAIN OF RICE PRODUCTION: A CHALLENGE FOR VIETNAMOF RICE PRODUCTION: A CHALLENGE FOR VIETNAM

By Pham Van Tan, Vietnam

Vietnam Southern Institute of Agricultural Engineering and Post-harvest Technology (SIAEP)

CONTENTCONTENT

1. Background of rice production in Vietnam1. Background of rice production in Vietnam

2. History and current status of agricultural 2. History and current status of agricultural mechanisation in Vietnammechanisation in Vietnam

3. Rice mechanisation in Vietnam3. Rice mechanisation in Vietnam

4. Post-harvest losses of rice & consequences4. Post-harvest losses of rice & consequences

5. Challenges of rice mechanisation in Vietnam5. Challenges of rice mechanisation in Vietnam

6. Suggestions for development of rice mechanisation 6. Suggestions for development of rice mechanisation in Vietnamin Vietnam

7. National policies on agri. mechanisation7. National policies on agri. mechanisation

development toward 2020development toward 2020

PART I PART I

BACKGROUND OF RICE BACKGROUND OF RICE PRODUCTION IN VIETNAMPRODUCTION IN VIETNAM

VIETNAM BACKGROUNDVIETNAM BACKGROUND

- Total population: 87,375,000 people (2010)Total population: 87,375,000 people (2010)- Total land area (hectare): 33 millionTotal land area (hectare): 33 million- Land area for rice production (hectare): 3.9 mil.Land area for rice production (hectare): 3.9 mil.- Area of rice production (hectare/year): 7.44 milArea of rice production (hectare/year): 7.44 mil- Export of agri. products in 2010 (bil.US$): 19.15 Export of agri. products in 2010 (bil.US$): 19.15

* Role of rice production- Staple food for Vietnamese Staple food for Vietnamese - Jobs for 63% of the total labor forceJobs for 63% of the total labor force- National food securityNational food security- Base for industrial developmentBase for industrial development

PART IIPART II

HISTORY AND CURRENT STATUS OF HISTORY AND CURRENT STATUS OF AGRICULTURAL MECHANISATION AGRICULTURAL MECHANISATION

IN VIETNAMIN VIETNAM

* Started since 1950s.+ + Developed slowly in the subsidized stages of 1970s and 1980sDeveloped slowly in the subsidized stages of 1970s and 1980s+ Mechanisation in soil preparation: 27.3% (1980) and only 21.1% (1990) + Mechanisation in soil preparation: 27.3% (1980) and only 21.1% (1990)

because of closing all district tractor stations in VN.because of closing all district tractor stations in VN.

* Developed rapidly since 1998 after “Doi moi” policy.+ Farmers invested in farm machinery themselves.+ Farmers invested in farm machinery themselves.+ + In 1999,In 1999, mechanisation in soil preparation and rice threshing:54% and 60%, mechanisation in soil preparation and rice threshing:54% and 60%, Reached an aver. of 0.5 HP/ hectare: Reached an aver. of 0.5 HP/ hectare:

- Central High land area: 1.5 HP/hectare- Central High land area: 1.5 HP/hectare- Northern highland & mountain areas: 0.16 HP/hectare, - Northern highland & mountain areas: 0.16 HP/hectare, - Red River Delta: 0.34 HP/hectare, and - Red River Delta: 0.34 HP/hectare, and - MRD: 0.59 HP/hectare.- MRD: 0.59 HP/hectare.

+ + In 2,000,In 2,000, Vietnam had 146,000 farming tractors (mostly 2-wheel tractors of Vietnam had 146,000 farming tractors (mostly 2-wheel tractors of 6-12 HP & 4-wheel tractors of 20-60 HP with some 4-wheel tractors of 100 6-12 HP & 4-wheel tractors of 20-60 HP with some 4-wheel tractors of 100 HP from Belarus), 1 millions of farm machinery, 1 millions water pumps, HP from Belarus), 1 millions of farm machinery, 1 millions water pumps, 300,000 rice trippers/threshers, 3,000 rice dryers (mostly flatbed dryer of 4-300,000 rice trippers/threshers, 3,000 rice dryers (mostly flatbed dryer of 4-6 tons/batch), 200,000 rice millers, 111,000 transporting vehicle, 700,000 6 tons/batch), 200,000 rice millers, 111,000 transporting vehicle, 700,000 diesel engines and electrical motors for farming.diesel engines and electrical motors for farming.

HISTORY OF HISTORY OF AGRICULTURAL MECHANISATION AGRICULTURAL MECHANISATION

* * In 2007In 2007, Vietnam had:, Vietnam had:+ + 400,000 tractors used in agriculture (98.4%), forestry and fishery.400,000 tractors used in agriculture (98.4%), forestry and fishery.+ Total power of tractors: 4.5 mil. HP, increased 2.7 times compared with + Total power of tractors: 4.5 mil. HP, increased 2.7 times compared with

2001:2001:- Two-wheel tractors below 12 HP: 67 % - Two-wheel tractors below 12 HP: 67 % - Tractors of 13 to 35 HP: 27%- Tractors of 13 to 35 HP: 27%- Tractors of more than 35 HP: 6%- Tractors of more than 35 HP: 6%

HISTORY OF HISTORY OF AGRICULTURAL MECHANISATION AGRICULTURAL MECHANISATION

PART IIIPART III

RICE MECHANISATION RICE MECHANISATION IN VIETNAMIN VIETNAM

(Source: MARD, 2009)(Source: MARD, 2009)

+ + Reached 1.16 HP/hectare in rice productionReached 1.16 HP/hectare in rice production::- Northern mountain areas: 0.39 HP/hectare (the lowest)- Northern mountain areas: 0.39 HP/hectare (the lowest)- Red River Delta: 0.85 HP/hectare, and - Red River Delta: 0.85 HP/hectare, and - Mekong River Delta: 1.85 HP/hectare- Mekong River Delta: 1.85 HP/hectare

+ + Soil preparationSoil preparation::- Rice, mostly wet land: 72%- Rice, mostly wet land: 72%

+ + Rice seeding and planting in wet soil: 20% Rice seeding and planting in wet soil: 20% - Seeding: 85-90% - Seeding: 85-90% - Planting: 10-15%- Planting: 10-15%

+ + Water supply: 86%Water supply: 86% - 6.85 mil. hectares of rice - 6.85 mil. hectares of rice

+ Agri. transportation: 66%+ Agri. transportation: 66%+ Rice pesticide spraying: 20%+ Rice pesticide spraying: 20%+ + Rice harvesting: 95%,Rice harvesting: 95%, mostly using reapers and trippers mostly using reapers and trippers

- 15% using rice combine harvesters, somewhere in MRD reached 50%.- 15% using rice combine harvesters, somewhere in MRD reached 50%.+ + Rice drying for Summer-Autumn crop in MRD: 40%Rice drying for Summer-Autumn crop in MRD: 40%+ Storage capacity, mostly warehouses: 3 mil. tons + Storage capacity, mostly warehouses: 3 mil. tons + + Rice milling: > 95 % Rice milling: > 95 %

CURRENT MECHANISATION CURRENT MECHANISATION OF VIETNAM RICE PRODUCTION OF VIETNAM RICE PRODUCTION

SOIL PREPARATION SOIL PREPARATION

Ploughing

3-pole plough

7-disc ploughRotary machine

LAZER LAND LEVELLINGLAZER LAND LEVELLING* Model: Trimble-Spectra (USA)* Model: Trimble-Spectra (USA)

* Working principle: Levelling land * Working principle: Levelling land

using lazer controlusing lazer control

* Differences in heights before and after* Differences in heights before and after

levelling (cm): 50-100 to 3levelling (cm): 50-100 to 3

* Working width of levelling bucket * Working width of levelling bucket

(cm): 180-240(cm): 180-240

* Levelling capacity (h/ha): 4-20* Levelling capacity (h/ha): 4-20

* Required power: 4-wheel tractor of 50 HP* Required power: 4-wheel tractor of 50 HP

* Benefits: reductions in use of water (50%), * Benefits: reductions in use of water (50%),

fertilizer, seed (25%), weeding labor (70%) fertilizer, seed (25%), weeding labor (70%)

& crop lodging and increases in land area (5-7%),& crop lodging and increases in land area (5-7%),

crop yield (25%) & environmental protectioncrop yield (25%) & environmental protection

* Applying locations: Provinces of An Giang,* Applying locations: Provinces of An Giang,

Thua Thien-Hue & Ba Ria-Vung TauThua Thien-Hue & Ba Ria-Vung Tau

* Other land leveller: Leica Rugby (Switzerland)* Other land leveller: Leica Rugby (Switzerland)

DRUM SEEDERS DRUM SEEDERS

Steel drum seeder

Plastic drum seeder

RICE TRANSPLANTERRICE TRANSPLANTER

* Model: 2ZT-9356B* Model: 2ZT-9356B

* Type: Row transplanter and self-moving* Type: Row transplanter and self-moving

* Overall dimensions (LxWxH) (cm): 241x214x130* Overall dimensions (LxWxH) (cm): 241x214x130

* Dry weight (kg): 685* Dry weight (kg): 685

* Number of rows: 6* Number of rows: 6

* Space between rows (cm): 30* Space between rows (cm): 30

* Distance between groups in row (cm): * Distance between groups in row (cm):

12, 14, 14.7, 16, 17 & 2012, 14, 14.7, 16, 17 & 20

* Number of rice stems in a group: 2 - 5* Number of rice stems in a group: 2 - 5

* Planting capacity (hectare/h): 0.12 – 0.2* Planting capacity (hectare/h): 0.12 – 0.2

* Required power: Diesel engine of 4.5 HP* Required power: Diesel engine of 4.5 HP

RICE HARVEST IN THE MEKONG DELTA RICE HARVEST IN THE MEKONG DELTA (April/2011)(April/2011)

* 4,531 rice reapers;* 4,531 rice reapers;

* 6,000 rice threshers (84% mechanized);* 6,000 rice threshers (84% mechanized);

* 9,600 rice combine harvesters (50% mechanized) (August 2012)* 9,600 rice combine harvesters (50% mechanized) (August 2012)

RICE COMBINE HARVESTERSRICE COMBINE HARVESTERSAT ANNUAL CONTESTS AT ANNUAL CONTESTS

Minh Phat Combine harvester (China)Saigon-Kim Hong rice tripper (South Korea)

Tu Sang Combine harvester (Vietnam) An Giang Combine harvester (Vietnam)

RICE CONVEYORS RICE CONVEYORS

Belt conveyor

Pneumatic conveyor

PADDY DRYING IN THE MEKONG DELTAPADDY DRYING IN THE MEKONG DELTA

1. Sun-drying: Most popular - Occupying 61,3%

2. Mechanical drying – Flat-bed type /with reversible air: More popular

3. Mechanical drying-Circulation type / high capacity (30 to 50 tons/batch):

PADDY STORAGE IN THE MDPADDY STORAGE IN THE MD

1. At farm households

Temporary storage of paddy at farm level in the MRD

MILLED RICE STORAGE MILLED RICE STORAGE IN THE MEKONG DELTAIN THE MEKONG DELTA

Simple warehouses for storage of milled rice bags

A total capacity of 3.5 mil. tons, mostly simple warehouses/bins for milled rice storage

Bulk milled rice storage bins in simple warehouses:

7 bins x 150 tons/bin

2. Private food companies

RICE MILLINGRICE MILLING

A paddy husking line, cap. of 26 * 1.2 tons/h

Mekong delta has about 6,500 rice millers meeting # 100 % of the requirement

A polishing and whitening line, cap. of 6 tons/h

MECHANISATION IN VARIOUS STAGES MECHANISATION IN VARIOUS STAGES OF RICE SUPPLY CHAIN IN THE MEKONG DELTAOF RICE SUPPLY CHAIN IN THE MEKONG DELTA

Soil Soil preparation preparation (95 – 100%)(95 – 100%)

Water Water pumpingpumping

(95 – 100%)(95 – 100%)

SeedingSeeding(85 – 90%)(85 – 90%)

HarvestingHarvesting(45 – 50%)(45 – 50%)

DryingDrying(40%)(40%)

Paddy StoragePaddy Storage(25%)(25%)

Rice millingRice milling(#100%)(#100%)

DEVELOPMENT STAGES DEVELOPMENT STAGES OF AGRICULTURAL MECHANISATION IN THE WORLDOF AGRICULTURAL MECHANISATION IN THE WORLD

(Source: Handaka, 2003)(Source: Handaka, 2003)

PART IVPART IV

POST-HARVEST LOSSES OF RICE POST-HARVEST LOSSES OF RICE & CONSEQUENCES& CONSEQUENCES

PHYSICAL LOSSES OF RICE IN THE MEKONG DELTAPHYSICAL LOSSES OF RICE IN THE MEKONG DELTA

(# 14.6%)(# 14.6%)

PHYSICAL POST-HARVEST LOSSES OF PHYSICAL POST-HARVEST LOSSES OF RICE IN THE WORLD AND MD (%)RICE IN THE WORLD AND MD (%)

StagesStages MD MD

(Vietnam)(Vietnam)

SouthEast SouthEast AsiaAsia

PhilippinesPhilippines JapanJapan

HarvestHarvest 33 1-31-3 4.6-7.24.6-7.2 22

TransportingTransporting 0.90.9 1-71-7 00

CleaningCleaning 2-62-6 0.8-2.40.8-2.4

DryingDrying 4.24.2 2-52-5 55 --

StorageStorage 2.62.6 2-62-6 2-62-6 0.30.3

MillingMilling 33 2-102-10 6-86-8 0.60.6

TotalTotal 13.713.7 10 - 3710 - 37 17.6 - 26.217.6 - 26.2 3.9 - 5.63.9 - 5.6

Physical post-harvest losses in the MD = 20 mil. tons/year * 13.7% * 5 mil.

VND/ton)/21,600 VND/US$ = 635,000,000 US$/YEAR

OTHER OTHER LOSSES LOSSES OF BY-OF BY-

PRODUCTSPRODUCTS

By-products = waste = 50 % ?

(Source: FAO, Rice Market Monitor various issues)(Source: FAO, Rice Market Monitor various issues)

US$/tonUS$/ton

EXPORT PRICES OF VIETNAM RICE EXPORT PRICES OF VIETNAM RICE AND THAILAND RICEAND THAILAND RICE

(Stage: 1990 - 2007) (Stage: 1990 - 2007)

COMPARISON IN EXPORT PRICES COMPARISON IN EXPORT PRICES OF RICE FROM VIETNAM & THAILAND OF RICE FROM VIETNAM & THAILAND

(2005-2010)(2005-2010)

US

$/ t

on

(Source: Samarendu Mohanty, IRRI, the World Rice Conference, Hochiminh City, Oct. 21, 2011)

MAJOR MARKETS OF VIET NAM RICEMAJOR MARKETS OF VIET NAM RICE

Asia; 47,53

Africa; 25,57

Middle East, 11.53

America; 9,68

Euro; 5,32

Australia;0,55

• Asia: 47.53 %

• Africa: 25.57 %

• LOW PRICE and UN-SUSTAINABLE markets

(1989 – 2005)

Asia, 3,027,688

Africa, 1,629,763

America, 451,615

Europe, 176,038

Australia, 81,387

Middle east, 253,870

(2009, Total: 6,052, 586 tonnes)

TWO MAJOR MARKETS OF VIETNAM RICE TWO MAJOR MARKETS OF VIETNAM RICE (1994-2011)(1994-2011)

• UN-SUSTAINABLE & LOW PRICE MARKETS

(Source: World Bank, June 2011)

PART V PART V

CHALLENGES OF RICE CHALLENGES OF RICE MECHANISATION IN VIETNAMMECHANISATION IN VIETNAM

(Source: A Global Rice Science Partnership, June 2010)(Source: A Global Rice Science Partnership, June 2010)

PREDICTION OF GLOBAL RICE PREDICTION OF GLOBAL RICE PRODUCTION TO 2035PRODUCTION TO 2035

GLOBAL PADDY PRODUCTION & AREAGLOBAL PADDY PRODUCTION & AREA(2001-2010)(2001-2010)

Mill

ions

hec

tare

Mill

ions

hec

tare

Mill

ions

tonn

esM

illio

ns to

nnes

(Source: FAO)(Source: FAO)

RICE PRODUCTION RICE PRODUCTION IN THE MEKONG DELTA (MD)IN THE MEKONG DELTA (MD)

18229.2 18637.120670 20544

384038593683.63773.9

5.355.35

5.06

4.83

0

10,000

20,000

30,000

2006 2007 2008 2009

4.5

5

5.5

6

diện tích sản lượng năng suất

Thousand tons / thousand hectarethousand hectare Yield (ton/hectare)

AreaArea OutputOutput YieldYield

MIXED RATES OF ACHIEVEMENTS OF ECONOMIC MIXED RATES OF ACHIEVEMENTS OF ECONOMIC AND SOCIAL OBJECTIVES RELATED TO MRD RICEAND SOCIAL OBJECTIVES RELATED TO MRD RICE

(Source: World Bank, June 2011)

ADVANTANGES AND CONSTRAINTS IN RICE ADVANTANGES AND CONSTRAINTS IN RICE MECHANISATION OF THE MEKONG DELTAMECHANISATION OF THE MEKONG DELTA

* Advantages* Advantages- Rural labours become rarer and more expensive; Rural labours become rarer and more expensive; - Some farmers become richer and can afford to buy farm machinery;Some farmers become richer and can afford to buy farm machinery;- More and more machinery servicing groups established.More and more machinery servicing groups established.

* Constraints* Constraints- Lacks of national strategies of development in agricultural mechanisation;Lacks of national strategies of development in agricultural mechanisation;- Weakness of the domestic manufacturing industry of agricultural machinery;Weakness of the domestic manufacturing industry of agricultural machinery;- Small scale rice production and low income farmers; Small scale rice production and low income farmers; - Small size rice fields with soft soil crossed by many rivers and canalsSmall size rice fields with soft soil crossed by many rivers and canals; ; - Lack of researchers for R&D, testing and selection of farm machinery; and Lack of researchers for R&D, testing and selection of farm machinery; and

technicians for training of machinery users; technicians for training of machinery users; - Small scale production of farm machinery with no standards causing problems for Small scale production of farm machinery with no standards causing problems for

users;users;- Weak services after salesWeak services after sales; ; - Low efficient using of machinery by non-professional servicing people; Low efficient using of machinery by non-professional servicing people; - Little government supports for servicing groups and manufacturers;Little government supports for servicing groups and manufacturers; - Lack of international supports for agricultural mechanisation; Lack of international supports for agricultural mechanisation; - Climate changeClimate change..

PART VI PART VI

SUGGESTIONS FOR DEVELOPMENT SUGGESTIONS FOR DEVELOPMENT OF RICE MECHANISATION IN OF RICE MECHANISATION IN

VIETNAMVIETNAM

RICE TRANSPLANTER AND ROW SEEDERSRICE TRANSPLANTER AND ROW SEEDERS

Rice transplanter

Rice row seeder

PESTICIDE SPRAYER PESTICIDE SPRAYER

Pest control

WAYS TO REDUCE WAYS TO REDUCE POST-HARVEST LOSSES POST-HARVEST LOSSES

CURRENT RICE TECHNOLOGY & SUPPLY CHAIN IN MD CURRENT RICE TECHNOLOGY & SUPPLY CHAIN IN MD

Harvested paddy at MC of 18-25%(After 1 to 5 days for drying, transporting and temporary storage, paddy has MCof 18-20%)

Paddy husking (Brown rice MC of 15.5 – 17.5 %)

Brown rice stored temporarily within 1-5 days in Summer-Autumn and 1-10 days in Winter-Spring seasons at MC of 15.5 – 17.5 %

Whitening, polishing and sorting. (Rice has MC of 14.5 – 16.5%)

Temporary storage in warehouseswithin 1-3 months at MC of 13- 14%

Mixing rice for required rates of broken rice, weighing and packaging for export. Rice has MC of 14%

Re-whitening(physical loss of 3-4%)

Storage within 1 – 2 months

Drying milled rice(MC of 13.5 – 14%)

RICE TECHNOLOGY RICE SUPPLY CHAIN

Farmers

Middlemen

Rice semi processors or middlemen

Rice processing enterprises

Rice exporters

SUGGESTIONS ON A PROPER RICE TECHNOLOGY SUGGESTIONS ON A PROPER RICE TECHNOLOGY AND A RICE SUPPLY CHAIN IN THE MEKONG DELTAAND A RICE SUPPLY CHAIN IN THE MEKONG DELTA

After being harvested, paddy at MC of 18-25% is transported to silos within 12 to 24 hrs

Paddy is received, sampled for quality evaluation and buying, then loaded into silos. Paddy MC of 18– 25 %

Paddy is dried until MC of 13-14% and seperated of soil, stones,…

Paddy at MC of 13-14% is loaded into silos after being fumigated.Because of temperature control, storage time of paddy is up to 12 months

Whole rice

Loading rice out of the milling plants for export

Large broken rice

Weighing and mixing of rice

Husking

APPROPRIATE RICE TECHNOLOGY PROPER RICE SUPPLY CHAIN

Farmers and rice middlemen

Rice business/ companies responsible for rice drying, storage and processing

Whitening

Polishing

Sorting

Small broken rice

Rice sampling for quality control

Weighing and packaging

PART VII PART VII

NATIONAL POLICIES ON NATIONAL POLICIES ON AGRICULTURAL MECHANISATION AGRICULTURAL MECHANISATION

DEVELOPMENT TOWARD 2020DEVELOPMENT TOWARD 2020

NEEDS OF DEVELOPMENT IN AGRICULTURAL NEEDS OF DEVELOPMENT IN AGRICULTURAL MECHANISATION TOWARD 2020 MECHANISATION TOWARD 2020

UnitUnit 20102010 20152015 20202020

1. Average power supply in agriculture HP/hectareHP/hectare 1.201.20 1.50 – 2.001.50 – 2.00 2.50 – 3.002.50 – 3.00

- Increase in 2-wheel tractors of below 15HP- Increase in 2-wheel tractors of below 15HP 1,000 unit/year1,000 unit/year 44 44 44

- Increase in 4-wheel tractors of above 18HP- Increase in 4-wheel tractors of above 18HP 1,000 unit/year1,000 unit/year 55 55 55

2. Mechanisation in crop production

- Soil preparation- Soil preparation %% 8080 9090 >95>95

- Seeding & Planting- Seeding & Planting %% 2525 3030 >50>50

- Cultivating (spraying, weeding, etc.)- Cultivating (spraying, weeding, etc.) %% 6060 7070 >80>80

- Water supply- Water supply %% 9090 9595 >95>95

- Harvesting- Harvesting %% 2020 3030 5050

- Drying- Drying %% 3030 4040 5050

3. Mechanisation in animal husbandry

- Activities in animal houses- Activities in animal houses %% 3030 4040 >50>50

- Laughtering and meat processing- Laughtering and meat processing %% 1414 2525 3737

* National objectives of the year 2020: Vietnam becomes an industrial country

- Agricultural GDP: 10-13% of the GDP - Rural population: 50%

- Rural income: increases 2.5 times compared with the current income - Agri. labor force: 30%

(Source: Vietnam Ministry of Agriculture and Rural Development (MARD), 2010)

PROPOSAL ON SETTING UP OF NATIONAL SYSTEM PROPOSAL ON SETTING UP OF NATIONAL SYSTEM FOR SUPPORTING MANUFACTURE, SELECTION OF FARM FOR SUPPORTING MANUFACTURE, SELECTION OF FARM

MACHINERY & TRAINING MACHINERY USERSMACHINERY & TRAINING MACHINERY USERS

FARM FARM MACHINERYMACHINERY

AGRI. MACHINERY MANUFACTURE AGRI. MACHINERY MANUFACTURE

RESEARCHRESEARCH& DEVELOPMENT& DEVELOPMENT

EDUCATIONEDUCATION& TRAINING& TRAINING

POLICYPOLICY& LEGISLATION& LEGISLATION

CONSULTING & CONSULTING & TECH. TRANSFERTECH. TRANSFER

ASSOCIATIONS ASSOCIATIONS OF FARMERSOF FARMERS

TESTINGTESTING& EVALUATION& EVALUATION

AGRICULTURALAGRICULTURALEXTENSIONEXTENSION

DEALERSDEALERS

SERVICES ON REPAIR SERVICES ON REPAIR & MAINTENANCE& MAINTENANCE

SERVICING GROUPS OF SERVICING GROUPS OF AGRI. MACHINERYAGRI. MACHINERY

PROPOSAL ON SETTING UP A MECHANISM PROPOSAL ON SETTING UP A MECHANISM FOR DEVELOPMENT OF SERVICING GROUPS FOR DEVELOPMENT OF SERVICING GROUPS

IN AGRICULTURAL MECHANISATIONIN AGRICULTURAL MECHANISATION

GOVERNMENT GOVERNMENT ORGANISATIONSORGANISATIONS

AGRI. MACHINERY AGRI. MACHINERY SERVICING GROUPSSERVICING GROUPS

CREDIT CREDIT INSTITUTIONSINSTITUTIONS

BENEFICIARY BENEFICIARY FARMER GROUPS FARMER GROUPS

DISTRIBUTORS OF DISTRIBUTORS OF FARM MACHINERYFARM MACHINERY

InterestInterest

Payment for repair feePayment for repair fee

Credit/loansCredit/loans

Downpayment & Downpayment & repaymentrepayment

Hiring servicesHiring services

Investment &Investment & payment for service feespayment for service fees

Delivery of Delivery of machinery &machinery &

servicesservices

Payment for Payment for buying equipment buying equipment

SubsidySubsidy

LoansLoans

Application/ Application/ suggestionsuggestion

Suggestions/ Suggestions/ requirements requirements

of agri.machineryof agri.machinery

NATIONAL POLICIES ON AGRICULTURAL NATIONAL POLICIES ON AGRICULTURAL MECHANISATION TOWARD 2020 IN VIETNAMMECHANISATION TOWARD 2020 IN VIETNAM

* Action No. 3095/VPCP-KTTH signed by the prime minister on June 18, 2004 * Action No. 3095/VPCP-KTTH signed by the prime minister on June 18, 2004 about providing financial supports (loan interest) to farmers for buying about providing financial supports (loan interest) to farmers for buying agri. Machinery;agri. Machinery;

* Decree No. 26-NQ/TW called ‘Tam Nong Policy’ meaning ‘Agriculture, * Decree No. 26-NQ/TW called ‘Tam Nong Policy’ meaning ‘Agriculture, Rural areas and Farmers’ issued by the Central Steering Board of the Rural areas and Farmers’ issued by the Central Steering Board of the Communist Party;Communist Party;

* Decree No. 24/2008/NQ-CP issued by Vietnam Government on 20 Oct. 2008 * Decree No. 24/2008/NQ-CP issued by Vietnam Government on 20 Oct. 2008 to implement the Decree No. 26-NQ/TW;to implement the Decree No. 26-NQ/TW;

* Providing supports to investments in manufacturing of diesel engines (>100 * Providing supports to investments in manufacturing of diesel engines (>100 HP), tractors (high power), agri. machinery HP), tractors (high power), agri. machinery

* Supporting Vietnamese companies to have join-venture companies with * Supporting Vietnamese companies to have join-venture companies with foreign partners in manufacture of tractors and agri. machinery in VN;foreign partners in manufacture of tractors and agri. machinery in VN;

* Encouraging activities of research and transfer in agricultural * Encouraging activities of research and transfer in agricultural mechanisation;mechanisation;

* Establishing strong linkages between farmers + Business + Scientists + * Establishing strong linkages between farmers + Business + Scientists + Government;Government;

* Building up ‘large size rice field models’ to facilitate applications of agri. * Building up ‘large size rice field models’ to facilitate applications of agri. Machinery.Machinery.

THANK YOU VERY MUCHTHANK YOU VERY MUCHFOR YOUR ATTENTION#FOR YOUR ATTENTION#