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SUMMARY OF PROJECT

Establishing a sustainable pangasius

supply chain in Vietnam (SUPA)Co-funded by EU through SWITCH-Asia programme

Le Xuan Thinh– Project manager

Vietnam Cleaner Production Centre (VNCPC)–

Hanoi University of Science and Technology

1. Background

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Concerned issues:

1. There is not much difference in prices between certified products and

not certified ones

2. Weak linkage between producers and the importers

3. Decreasing export prices due to competition between producers

themselves

4. Environmental and social impact

5. Lack of information and knowledge on sustainable production

6. Product diversification and create high-value products

7. There are many different sustainable certification

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3

Before farming Farming

Pangasius

farmers SMEsFeed mills

Processing TradingEnd-user

markets

Pangasius

farmers and

processors

SMEsDrug and

chemical

producers

Pangasius

Processors

SMEs

Hatchery Pangasius

farmers and

processors

SMEs

International

importers and

distributors

StoresVietnamese

traders

Big

retailers

2. ProjectEstablishing a sustainable pangasius supply chain in Vietnam

Duration: 48 months

Sponsor: EU (80%)

Partners: VNCPC, VASEP, WWF-VN, WWF-AT

PULLPUSH

PULLPUSH

- High feed

costs

- Hatchery:

low survival

rate

- High

production

costs

- Impact on the

environment

- Low survival

rate

- Price

fluctuations

- High

resource

consumption

- Impact on the

environment

- Monotonous

product

design

- Less value

added

products

- Weak

promotion

and

marketing

- Many middle

trading

companies

- Weak image

- Many

certifications

- Misconcepti-

ons about

Pangasius

production

process

THE CHALLENGES OF THE CHAIN

Before farming Farming

Pangasius

farmers SMEsFeed mills

Processing TradingEnd-user

markets

Pangasius

farmers and

processors

SMEsDrug and

chemical

producers

Pangasius

Processors

SMEs

Hatchery Pangasius

farmers and

processors

SMEs

International

importers and

distributors

StoresVietnamese

traders

Big

retailers

3

- Recommendations, policy

formulation

- Production cost-cutting(seed,

farming, processing)

- Improving the quality of the

product (glazing rate).

- Product innovation, creation

of high value products

- Certification support

- Strengthening marketing

and trade promotion

- Establishing good

relationships with foreign

media (blogger,

facebooker,…)

3. Activities

4. RESULTS

SOME FIGURES

Enterprises and farming areas joined in the project 220

Reduce pangasius production cost 7-10%

The average savings at each processing company 2-5 billion

VND

Average savings of water consumption the at each factory 28%

Average savings of electricity consumption the at each factory 18.6%

Reducing emissions into the environment (54 processing

plants): MT of GHG/year

21,100

Number of trainees 2,700

Certification support for farrming areas and cooperatives 33

Policy recommendations 1

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For markets – Promotion in EuropeComponent B: B.1.1-B.1.4

� Working with European retailers, importers and distributors to promote:

47 big companies (Edeka, Metro, Tesco, Aldi, ..)

� ASC/MSC Event: The first Roundtable on ASC/MSC in Austria in June

2016; 50 members attended.

� European development Day 2016 in Brusssel: 6,000 attendees

� CBI’s information about Vietnam pangasius certified ASC: Number of

likes, followers and shares: 1.368.

� The facebook “Your Everyday Fish” with 6.696 visits

� Information about SUPA "Fish Forward project website” reaching 36,000

visits, promote in 11 European countries

� 5 other publications in German with 350,000 to 1,296,000 reads.

European development Day

2016

For markets – Promotion in Europe

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For markets – Promotion in EuropeComponent B: B.1.2 – Exhibition

� Support 11 enterprises, and there’s a cooperative participated for 2 years

� Arrange pavilions for enterprises to promote products

� Set up dialogues between Vietnam (business, competent agencies) and

the EU (importers): 2 times in Europe

� Organize buyer groups with the retailers interested: 2014 and 2016

For markets – Promotion in EuropeComponent B: B.1.3 –Organize buyer groups

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For markets: Promote at international and domestic events

Vietfish 2015: Foruum:

“Pangasius quality and market

share in Europe”

� Workshops and events to set up SWITCH network ASIA: 7

� 2 VietFish exhibitions: Booth, policy and quality dialogue forums

Policy framework supportComponent B.3

� Comparing Vietnam policy framework in supporting development of

Vietnam pangasius and seafood with the EC’s

� Training, sharing of experience for Vietnamese consultants : 2

workshops in Hanoi and Ho Chi Minh City.

� Having advisory reports submitted to governing agencies of the

industry

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The model farm and training centerComponent A.3

Core factor: Support:� Push Component :

� Developed and pilotes new techniques: feed, farming

techniques,..: 20 techniques

� Introduction results to enterprises

� Pull Component: Demonstrate the benefits of new technology

Reviews the current state of more

than 120 farms, hatcheries.

- Plan setting up.

- Detailed advice combined

certification support

Research & technical support for farming areas

Targets Current stateResearch

results

FCR 1.55 – 1.75 1.44 - 1.48

Survival rate

69 – 82% 83 – 92%

Production price (đ/kg)

20.700 –

21.600

18.620 – 19.890

(toC) 28.6 - 30.7 28 – 32.1

pH 7.7 -7.9 7.6 – 8.6

Oxy (mg/l) 1.2 - 1.8 1.7 – 2.9

TAN (mg/l) 0.033-4.602 0.33 – 3.1

H2S (mg/l) 0.019 – 0.035 0.01 – 0.02

1.150.71

10

16

0

2

4

6

8

10

12

14

16

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Hiện trạng Kết quả nghiên cứu

FCR TLS (%) 1,710 – 2,080

VND/kgHATCHING REARING

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� Research and technology transfer for the 9 farming areas and 9

hachering areas.

� Training, technology transfer, with 11 courses for over 650

households in An Giang, Dong Thap, Can Tho, Vinh Long

Research & technical support for farming areas

Support in technical and certification trainingComponent B.2

� Organized 55 training courses (2060 attendees) on many

different themes: certification, biological conservation diversity,

disease,…

Content: Introduce ASC standards and sustainable aquaculture

� 24 study tours with 655 attendees from the hatchery, fish farming

units

Study tour

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Certification support of ASC, Global GAPComponent C.2

� Supported 30 farm certified ASC and maintain certification

� Supported 3 cooperative to get ASC certifications

� Trained, updated information on certification for technical staff

� Held 54 on-site workshops for 1,038 people related to the

requirements of sustainable seafood certification (ASC, Global

GAP)

Training on

farming

techniques

under ASC

standards for

farmers

Training on farming techniques

under ASC standards for

technical staffs

Support for farmer groupComponent C.6

� Supported the formation of groups of households in order to

improve the capacity

� Organized training course:“Pangasius marketing and branding”;

“Negotiation skills and business plan” for 57 housholds

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RE-CP IN PRODUCERSComponent C.1

� Quick reviews for 72 plants

� Has trained, assessed RE_CP for

54 processing plants

� 7 enterprises was awarded the

certificate of RE_CP Awarded RE_CP

certification at Vietfish

2015

RECPtraining in

enterprises

Energy consumption (KWh/MT)Energy consumption (KWh/MT)

Cut down costs in processing

Water consumption (m3/MT of

product)

Water consumption (m3/MT of

product)

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RE-CP IN PRODUCERS

RECP RESULTS IN SOME UNITS

No

Power

consumption norm

(MT of products)

Water

consumption

norms(m3/MT of

products)

Reduce

power

consump

tion

%

Reduce

water

consump

tion

(%)Before

RECP

After

RECP

Before

RECP

After

RECP

1 405 379 19 14 6.4 26.3

2 1000 840 25.2 18 16.0 28.6

3 1230 1031 52 39 16.2 25.0

4 1789 955.5 98.5 35.6 46.6 63.9

RE-CP IN PRODUCERS

In 54 processing plants:

Save electricity: 33,676,245 kWh/year ~

33.676 MWh/year

Save water: 937,420 m3/year

Economic efficiency: 66,829 billion VND ~

2.78 tr EUR

CO2 reduction: 21,168 ton/year

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Sustainable product innovation SPI Component C.4

� 2 creative sessions in Europe with young consumer group and the

group having stable careers and market knowledge

Results:

- Improved packaging

- Clear information- Add information on spice,…

Sustainable product innovation SPI Component C.4

� 20 creative session in Ho Chi Minh City, Da Nang, Can tho and Ha

Noi: mainly young consumers, office staffs

Results: Collected many useful comments about consumer’

expectations and requests on Pangasius value added products

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Sustainable product innovation SPI Component C.4

EU – foreign

VN – Domestic

Experts of seafood productsProcessing

plants

New products

Fish liver

Fish liver pateCrispy seasoned fin ( Instant,

convenient products)

Fish fin ((Pelvic fin, Ventral fin,

Dorsal fin, Anal fin)

Gelatin Fish skin snack

Fish skin

Sustainable product innovation SPI

Some products developed from the by-products

Developed and delivered 20 new products to enterprises

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Sustainable product innovation SPI

Pangasius products SPI

Smoked pangasius fillet Pangasius sauce(from pangasius

scrap meat)

Pangasius sausageGround spices

(from pangasiu bones)

OPPORTUNITY……………

MARKETS:

1. Build national brand associated with quality

and environment

2. Take advantage of international events to

promote Pangasius images

ENTERPRISES

1. To cut production costs to increase the

competitiveness via: the optimization of the

production process, application of new

technology, cleaner production, product

innovation

2. Opportunities for enterprises to shift from old

mode of production to lean manufacturing.

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RECOMMENDATIONS

- Donors continue to support the pangasius industry in the

technical, standard aspects, ...

- Government, ministries have appropriate policies (anti-dumping

tax on pangasius imported in the US is still high, USDA

inspection program on catfish, smear media against Vietnamese

pangasius ,...) to support at highest level

- Improving the image of Vietnam companies through "sustainable

responsible“ production.

- State relevant agencies take over documents and results to be

able to replicate the model and techniques gained from the

project.

- Establish "Information Center" operating under the state and

businesses to promote and protest against smear media on

Vietnam seafood as well as pangasius.

- E- plattform to share information and results of the project

Web link: http://supa.vasep.com.vn

Visits : 333824

E_PLATFORM

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THANK YOU!