country report 2015 - idh the sustainable trade initiative · aquaculture: 9,251 tons of shrimp,...

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

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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.

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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.


on the global level


for 2015 Progress


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.


on the global level


for 2015 Progress


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.


on the global level


for 2015 Progress


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.


on the global level


for 2015 Progress


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.


on the global level


for 2015 Progress


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).


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


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.


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


ICAFIS (Thong Thuan - Nui Tao &

Thong Thuan Cam Ranh)

ICAFIS

Thong Thuan (Nui Tao Binh

Thuan)


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


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)


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


- FCR: 1.14 for Vannamei

- Strengthened living and

working condition for 200

workers (i.e. system

internet, transportation

means)




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


ICAFIS (Sao Ta)

ICAFIS

Sao Ta (Soc Trang farm)


area, 600 tons of shrimp


- 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


- 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



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


- 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


- 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


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



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.


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


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


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


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


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


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


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


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


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


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


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


Create a supply chain platform

and increase visibility of BCI in

cotton trading system of Vietnam

36


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


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


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.


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

country report 2015 - idh the sustainable trade initiative · aquaculture: 9,251 tons of shrimp,...

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