Vietnamese enterprises can effectively participate in global value chains by meeting international standards and regulations. For the seafood processing industry, Vietnamese companies can create value-added products and ensure transparency to meet buyer requirements. For animal feed, companies can foster partnerships between large producers and distributors to tap new markets while supporting smallholders. For handicrafts, Vietnam needs to develop firm brands, ensure production uniformity, and strengthen linkages in the value chain through industrialization and a green approach.

1. Vietnamese Enterprises:
How to Effectively Participate in the Global Value Chain

2. Organization of Talk
What is a Global Value Chain?
VN Seafood Processing GVC
Seafood is a Buyer-Driven GVC
International Standards and Regulations
What VN Seafood Processors Can Do
VN Animal Feed GVC
Animal Feed Problems
INIVO Case Study

3. Global Value Chain (GVC)
Network of interlinked stages of production for the manufacture of goods and
services that straddles international borders.
Involves combining imported intermediate goods and domestic goods and
services into products that are then exported for use as intermediates in the
subsequent stage of production.

4. VN Seafood Processing: Three Levels
1. Sourcing and production of raw materials, including from the sea or
aquaculture
1. Processing and export, including post-harvest sale, transportation,
processing, freezing and exporting
1. Import and distribution: sale and delivery to grocery stores and restaurants

5. Seafood Processing is a Buyer-Driven GVC
Consumer demand has come to include traceability, safety and health
Led by supermarket chains, large retailers and foodservice operators
Established production requirements
Processing
Packaging
Shipping

6. Regulations and International Standards
World Trade Organization (WTO) tariff and non-tariff regulations
UN Food and Agriculture Organizaton (FAO) standards
Global Aquaculture Stewardship Best Aquaculture Practices (BAP)
Aquaculture Stewardship Council (ASC)
Marine Stewardship Council (MSC)

7. What VN Seafood Processors Can Do
Create value added products
Develop joint ventures
Ensure transparency of market information and product quality
Create new products by organizing production, procurement, storage and
processing
Meet requirements of the market and customers
Ensure the seafood chain link adheres to sustainable development
Streamline the fisheries value chain by increasing efficiency

8. VN Animal Feed GVC Problems
Vietnam does not have a domestic industrial-scale production
Animal feed producers choose what is more cost-effective
Animal feed price becomes higher with tax and fee
Livestock products cannot compete with imports

9. VN Pig Farms
80% of the total pig production comes from farms >50 sows
Average farm has ~20 sows
Large quantities of generic feed will not respond to Vietnamese farmers’ needs

10. INVIVO Case Study
Distribution Networks
Different feed products for different life stages
Dedicated network of medium and small distributors
Small quantities allowed for quick use avoiding need for specialized storage
Distributors didn’t offer the same products to farmers in the same area
Nurtured relationships with distributors and avoided direct competition
Technical Assistance
Sales staff shared their technical and managerial expertise
Technicians helped farmers improve their productivity and the quality of their
production through better use of feeds

11. Animal Feed - Lessons Learned
Economic efficiency
Foster partnerships between large farm input producers and networks of
dedicated distributors
Tap into new markets while enabling smallholder producers

12. VN Handicrafts - Problems
Vietnam doesn’t have a firm brand in the global market
Poor competitiveness with low value products produced in large quantities
Around 90% were produced following ordered designs by retail giants
Small-scale production fails to ensure uniformity
Poor linkages between trade villages and exporters
Production chain lacks originality and creativity

13. Greening the VN Handicrafts Industry
Two-pronged approach for industrialization
Reduces the use of natural resources, waste and pollution
Creates high quality environmental goods and services in an effective and
industrial manner
Sectoral strategy unlocks additional development opportunities
Drives competitiveness
Increases resource productivity
Enhances environmental performance

14. Conclusion
Three different sectors require three different strategies
GVC must be focused on verticals
Enhance value not production