1. Stimulating Local Economic Development along the Pangasius Value Chain in Mekong Delta Presentation Event Long Xuyen December 2004 Participatory Appraisal of Competitive Advantage (PACA ® )

2. Structure of this Presentation 1.Structure and Objectives of the PACA Exercise Along the Pangasius Value Chain in the Mekong Delta 2.Diagnosis of the Pangasius Value Chain in the Mekong Delta 3.Short- and Medium- and Long-term Proposals to Impove the Performance and Efficiency of the Pangasius Value Chain

3. 1.Structure and Objectives of the PACA Exercise Along the Pangasius Value Chain in the Mekong Delta

4. What is Local Economic Development (LED)? Activities by local government local business associations local companies other stakeholders which remove bureaucratic obstacles and transaction costs for local firms strengthen the competitiveness of local firms create a unique advantage for the locality and its firms

5. What is Participatory Appraisal of Competitive Advantage (PACA)? Participatory Appraisal of Competitive Advantage Involve local stakeholders Motivate local stakeholders to take an active role in an LED initiative Transfer know-how to local stakeholders and businesses Do a quick scan of the local economy Assess and refocus ongoing local economic development activities Identify strengths, skills, talents and opportunities Identify business and LED opportunities

6. What is the sequence of activities in a PACA? Prepa- ration: * Orga * Ad- vance info Kick- off Wks Results- Workshop: Diagnosis + Proposals Interviews Mini-workshops Pre- sen- tation event Imple- mentation PACA-Project PACA-Exercise (1.12 – 10.12.) Fieldwork (2.12 – 8.12.)) Hy- po- the- sis Wks Way for- ward Wks Presen- tation Event

7. What is the objective of PACA? Identify, with a rapid appraisal, the main strengths and weaknesses of the local economy and its main sectors (duration: 1 - 2 weeks) Identify options for practical activities to strengthen the competitiveness of firms -- Criteria: –feasible with local resources –quickly implementable (starting next week) –quick, visible results (with 3 months)

8. What is the immediate result of this PACA? A diagnostic of the fish value chain A set of proposals for practical activities –to strengthen the cooperation along the fish value chain –to stimulate the competitiveness of companies –to create new business opportunities Numerous local stakeholders who have a clearer idea about value chain promotion and Local Economic Development

9. What have we been doing? Kick-off workshop (2 December 2004) Interviews with businesspeople and stakeholders in Long Xuyen, Can Tho, HCMC (2 – 8 December) Mini-workshops (6) with –Fish Farmers (3 December / 9h00) –Fish Processors (3 December / 15h00) –Distributors / Buyers (4 December / 9h00) –Fingerling Producers (6 December / 9h00) –Supporting Institutions (6 December / 14h00) –Medical Treatment (7 December / 9h00) Internal Results Workshop (9 December 2004) Presentation Event (10 December / 9h00) Way-forward workshops (from 10 December onwards)

10. Why conducting PACA with the Pangasius Value Chain in the Mekong Delta? To stimulate the competitiveness of companies engaged in Pangasius production and processing and to create a unique locational advantage To increase the efficiency along the value chain by overcoming bottlenecks in the interaction between different elements of the Pangasius value chain in Mekong Delta To get profound understanding of the fish Pangasius value chain in Mekong Delta and to provide an opportunity for business contacts To jointly formulate practical proposals that will bring about more effective communication and collaboration along the value chain

11. 2.Diagnosis of the Pangasius Value Chain in the Mekong Delta

12. Map of the Pangasius Value Chain in the Mekong Delta Growing Farmers Process- ing Distribut- ors: Local Markets, Supermarket, Restaurant, Hotels, Retailing Agents, Export Agents Hatchery Nursing Feed Mills Organic & Non- Organic feed Custom- ers: Domestic, US, Europe, Japan, China, Australia Suppliers (other Value Chain): Equipment, Transportation Means, Wood, Nets, Salt, Limestone, Medicine Service Providers (Insurance, Transport, Laboratories, Medical & Environment Services, Packaging, Maintenance Support InstitutionsInfrastructure AFA, VASEP, Universities An Giang and Can Tho, Center of Techn. Application and Transfer, Banks, Center of Extension No. 9, Development Assistance Fund, Farmer‘s Association, NAVICOVET, TPCs, VCCI Roads, Bridges, Ferries, Public Utilities, Land, Water Area, Communication, Wells Waste Usage Middle Traders Cooking Oil / Cosmetics

13. Nursery/ Hatchery Problems & Shortcomings Imperfect technology Small scale & scattered production Infrequent quality control checking Unstable quality Lacking space for building nursery/ hatchery farms

14. Nursery/ Hatchery Potentials & Opportunities Big demand Strong support from the government Close to the fish farming companies in the Mekong delta (market proximity) Favourable natural conditions Simple procedures, small capital required

15. Fish Farming Problems & Shortcomings Master plan is not strictly followed Weak bargaining power towards processing companies and export companies Lack of long term business plans High threat of pollution Not fully meeting international standards on fish farming Lack of working capital Unstable price and quality of non-industrial feed No active disease prevention

16. Fish Farming Potentials & Opportunities Good market Experienced farmers Easy access to bank loans Receiving technical support for organic fish farming from foreign organisation High profit margin

17. Fish Processing Problems & Shortcomings Underdeveloped product distribution Weak market access Weak cooperation between processors & farmers Little product diversification Lack of modern management Lack of long-term contracts with customers Lack of capital for stock keeping

18. Fish Processing Potentials & Opportunities Increasing market demand Abundant material resources Strong support from Government and professional support institutions Pangasius is a proper substitute for other white fish products Meeting demand of international customers

19. Distribution Problems & Shortcomings Small and scattered distribution, lacking stable distribution system in domestic and foreign markets Limited marketing capabilities Market approach still limited by short term profit orientation instead of stable, long term market development Research on consumer behaviour is still limited

20. Distribution Potentials & Opportunities Stable domestic demand Reasonable Price of raw material Diversified product fulfilling domestic consumer needs Stable raw material resources

21. Feed production and supply Problems & Shortcomings Mostly imported raw material Delayed payments affect feed producers and business service providers Usage of home-made feed is still prevalent

22. Feed production and supply Potentials & Opportunities Strong market demand Diversified product meets market needs Bargaining power with customers is strong due to limited number of feed producers Buyers are easily satisfied with the quality of the feed products Good conditions to develop distribution network

23. Supporting Services (transportation, veterinary..) Problems & Shortcomings Supporting services are not diversified Quality of veterinarian medicine does not meet the demand and is not tightly controlled Undeveloped medical services to diagnose fish diseases Highly risky fish insurances High cost for transportation services

24. Supporting Services (transportaion, veterinary..) Potentials & Opportunities Strong demand and developed market Low competition High profit margin Great potential for development of veterinary services and vaccination for fish

25. Supporting Institutions Problems & Shortcomings Little researching on need of “clients” Supporting institutions are not diversified and not suitable with the need of the sector Limited foreign language and management skills Limitations to provide quick services Limited infrastructure Lack of ability to approach donors Weak cooperation among supporting institutions

26. Supporting Institutions Potentials & Opportunities Value chain sub-sectors cooperate with institutions Agriculture Extension Centre cooperates successfully with farmers Supporting activities becoming more diversified Strong demand for supporting activities from all sectors in the value chain

27. Cross-Cutting Issues along the Pangasius Value Chain Problems & Shortcomings Trade mark for Pangasisus is not developed Lack of cooperation among provinces No habit in using consultancy service No final customer focus along the value chain No codes for traceability introduced Little concern on environmental protection Lack of close cooperation between elements of the value chain (nursery/hatchery - fish farming-processing - consuming/distribution, etc.) Efficiency of supporting institutions to be improved Information is not up-to-date and delivered on time

28. Cross-Cutting Issues along the Pangasius Value Chain Potentials & Opportunities Extensive experience in Pangasius fish farming, fish processing and feed production Strong support from ministries, other supporting institutions, different levels of local Government Good logistical management despite limited infrastructure

29. 3. Short-term, mid-term and long-term proposals to improve the Pangasius value chain

30. Nursery / Hatchery Mid term proposals: Training of highly professional staffs in nursery/ hatchery -Proposed institutions: Agriculture Extension Centre, Department of Agriculture & Rural Development -Intended funding: Government/ cost sharing by companies

31. Fish Farming Short term proposals: 1. Information workshop for farmers about traceability -Proposed organisation: AFA -Possible budget: AFA 2. Business management training for farmers -Proposed organisation: Agriculture Extension Centre (Department of Agriculture & Rural Development) -Possible funding: Agriculture Extension Fund / cost sharing by farmers

32. Fish Farming Mid term proposal: Developing quality standards in fish farming - Proposed organisation: Agriculture Extension Centre/ Department of Fishery Control - Possible funding: Government

33. Fish Farming Long term proposals: Study tours -Proposed organisation: AFA -Possible funding: Farmers’ contribution (50%) + AFA’s budget

34. Fish Processing Short term proposals: Marketing-strategy development training for processing companies - Proposed project champion: Consultant companies Foreign buyers - Possible funding: Financed by participating companies

35. Fish Processing Long term proposal: 1. Customer needs survey - Proposed organisation: VASEP/AFA - Possible funding: Contribution from associations 2. Business management training for companies - Proposed organisation: VASEP; VCCI Can Tho, consultant companies, training centres - Possible funding: Contribution from participating companies (50%) + VASEP (50%)

36. Fish Processing Long term proposal: 3. Workshop to Improve information exchange between farmers and processors - Proposed organisation: Ministry of Aquaculture (champion), VASEP, AFA - Possible funding: Contribution from associations and companies

37. Feed Production and Supply Mid term proposal: Improved quality control of feed - Proposed organisation: Inspection department (Department of Agriculture and Rural Development) -Possible funding: Government Introduction of codes for traceability - Proposed organisation: Ministry of Fisheries, Ministry of Trade -Possible funding: Government

38. Supporting Services Mid term proposal: Researching customers‘ needs - Proposed organisations: AFA, VASEP, VCCI - Possible funding: companies’ contribution(50%) + associations, chambers (50%)

39. Supporting Institutions Short term proposal: 1. Training farmers in quality standards -Proposed organisation:s: Department of Agriculture & Rural Development, AFA -Possible funding: Government 2. Workshops for farmers and processor about environment -Proposed organisation: Department of Science, Technology and Environment with Department of Agriculture & Rural Development and AFA -Possible funding: Government

40. Supporting Institutions Mid term proposal: 1. Technical support for AFA to build development strategy for consulting services - Proposed organisations: donors (ACDI/VOCA, GTZ) - Possible funding: donors 2. Survey on needs for supporting services jointly conducted by different supporting institutions - Proposed organisations: AFA, VCCI, Department of Agriculture and Rural Development - Possible funding: Government budget

41. Supporting Institutions Long term proposal: 1. Improving technical and management skills of AFA - Proposed organisation: AFA - Possible funding: AFA, donors 2. Research on water pollution and its effects on the quality of Pangasius -Proposed organisations: Department of Science, Technology & Environment (champion) with department of Fishery control, Department of Agriculture & RD -Possible funding: Government

42. Cross-Cutting Issues Short term proposals: 1. Newsletter about fish value chain (market, international standards...) - Proposed organisations: Department of Agriculture & Rural Development, AFA, VCCI Can Tho, 2. Frequent round table discussion (every 3-6 month) of different súb-sectors in the value chain - Proposed organisations: AFA with Department of Agriculture & Rural Development 3. PACA presentation at the Pangasius seminar in AN Giang (14.12.04) - Proposed organisation: VCCI Can Tho

43. Cross-Cutting Issues Mid term proposals: 1. Build brand name for Vietnamese Pangasius - Proposed organisations: Ministry of Fisher + VASEP - Possible funding: Government funds / cost sharing by companies 2. Develop distribution network abroad - Proposed organisations : Ministry of Trade, Ministry of Fishery, VASEP - Possible funding: Trade Promotion Fund, Companies

44. What about the follow-up? Start of the implementation through the way-forward workshops (10 December onwards) with local stakeholders to define priorities, activities and responsibilities for implementation and monitoring Implementation of activities by local stakeholders Workshops for evaluation and definition of further activities

45. Who is supporting this PACA Exercise? DPI An Giang DARD An Giang VCCI Can Tho German Corporation for Technical Assistance (GTZ)

46. Who is the PACA Team? Christian Schoen (mesopartner) Phan Xuân Hoàng (Consultant, Aqua Service Vietnam) Đoàn Ngọc Phả (Department of Agriculture & Rural Development) Lê Quốc Chánh (Dong Thap Department of Industry) Đái Hữu Huân (VCCI Cần Thơ) Lê Thanh Tâm (Consultant, Mekong Economics) Phạm Thanh Tùng (Ministry of Industry) Vũ Thị Thuý Quỳnh (GTZ) Thomas Ganslmayr (VCCI Can Tho)

47. Contacts Christian Schoen (cs@mesopartner.com / 0909 117201)cs@mesopartner.com Phan Xuân Hoàng (aquaservice-pxh@hcm.vnn.vn / 0903 756789)aquaservice-pxh@hcm.vnn.vn Doan Ngoc Pha (doanngocpha@hcm.vnn.vn / 0918 065011)doanngocpha@hcm.vnn.vn Lê Quốc Chánh (067 851022) Đái Hữu Huân (cantho-vcci-hv@hcm.vnn.vn / 071 824918)cantho-vcci-hv@hcm.vnn.vn Lê Thanh Tâm (so-tam-ngoc@yahoo.com / 0953 356696)so-tam-ngoc@yahoo.com Phạm Thanh Tùng (tungpt@moi.gov.vn / 0903 425822)tungpt@moi.gov.vn Vũ Thuý Quỳnh (Thuyquynh@sme-gtz.org.vn / 0912 566588)Thuyquynh@sme-gtz.org.vn Thomas Ganslmayr (tga@hcm.vnn.vn / 0908 565355)tga@hcm.vnn.vn