Initiative on Role of Fertilizer and Seeds in Transforming of Agriculture in AsiaRegional Strategic Analysis and Knowledge Support Systems in Asia

(ReSAKSS-Asia) Program

WORKSHOP

STUDY OF SEED INDUSTRY IN VIETNAM

SIEM RIEP, 25-27 SEP 2013

Very important as agriculture plays vital role in national economy of Vietnam

Planted area of rice in 2011: 7.6 mil ha; maize: 1.1 mil ha; peanut: 0.22 mil ha…

in 2011: demand for rice seed is 1-1.2 mil tons, maize seed: 40 thous. tons, and potato seed 25 thous. tons (FAOSTAT, 2013)

Need improved seed (high yield and quality) as agri.land is decreasing while population is increasing; and the price of exported agri. product is lower than other countries.

Vietnam is highly dependent on imported seed: 70-80% of hybrid rice seed, vegetable seed, maize seed

1. Role of seed industry in Vietnam

It is necessary to increase the productivity due to the need to increase the production, but decrease in area

Need increase in Productivity

2. Use of improved seed by crop and varieties

Number of new crop varieties approved New varieties 1977-2006

2007-2010 2010 2011 2012 Areas under

improved seed (%)

1. Rice 177 133 9 3 8 67 2. Maize 75 55 4 5 3 83 3. Potatoes 15 4 - 4. Soybean 31 6 2 68 5. Peanut 21 4 54.6 6. Tomatoes 22 4 - 7. Coffee (new lines) 17 - 8. Sugarcane 14 - 9. Rubber 17 98.3 10. Tea 10 2 20 11. Cashew nut 10 28.6 12. Fruits 27 - 13. Other 139 12 -

Total 575 216 - - - -

Fig 4. Planted areas by rice variety type (%)19.6

13.2

2.4

9.0

6.33.8

45.6

1. Pure varieties created in Vietnam

2. Pure varieties imported from China

3. Pure varieties imported from IRRI

4. Other pure varieties

5. Hybrid varieties

6. Local varieties

7. Other varieties

Role of extension in promoting the use of improved seed

The agri-extension systems: established in 1993 Nowadays: Almost all districts (95.5%) have

extension stations Demonstration models: ~$7 mil in 2010 or 75% of

budget for agri-extention ($2.5 mil for crop models including 2093 models for hybrid rice; 3728 models for high quality rice;

Dissemination of Knowledge and Information: $1 mil in 2010 (agri. competitive festivals, agri. exhibition; mass media through TV, Newspapers, journals…)

Training: $1.1 mil in 2010, with participation of 1 mil farmers, 14.2 thousand extension staff to transfer the new improved agri. technologies and varieties

3. Seed management systemNational level: MARD

Crop Dept.- Plant Variety Protection Office - National Center for Plant

Variety Test and Certification Plant Protection Dept. Technology Dept. National center for Agri.

Extension Provincial level: DARD

Crop Dept Extension center Plant Protection Dept.

District level Crop Dept Extension station Plant Protection station

• Formal system:

- Produce certified seeds with quality standards

- Include (415 units: 243 seed companies at national level; 129 seed centers and companies at provincial level; 43 research institutes and universities..

• Information system

- Include farmers, farmers groups, and cooperatives that produced seed.

- Small scale, spontaneous, and a low level of organization

4. R&D in seed

Vietnam has 18 seed research institutes, and 6 universities to have seed research

Main methods of seed selection and creation: sexual hybrid/ reproduction (traditional); Heterosis use; Seed Importation and Selection; Biotechnology application.

Strength and weakness of R&D: Limited fund for R&D Limited human resource/staff for seed R&DWeak linkage between seed research and seed

production system

5. Development and challenges

of seed registration

systems

Table 5. Number of varieties tested for VCU and DUS in recent years

Northern region

Middle region

Southern region

Total No. of expected varieties

I. For Basic VCU test 1. Year 2008 411 132 227 770 164 2. Year 2009 346 154 252 752 106 3. Year 2010 364 277 293 936 171 4. Year 2011 411 152 129 692 150 5. Year 2012 495 272 412 1179 - II. For DUS test 1. Year 2008 136 - 50 236 - 2. Year 2009 306 2 96 408 - 3. Year 2010 145 - 98 243 - 4. Year 2011 356 44 400 - 5. Year 2012 274 14 288 -

Challenges: Increasing no. of tested varieties; Limited no. and qualification of human resources; Long duration for registration 2.5-3 years

6. Role of multinational companies/collaboration in developing seed industry Project on Agricultural Sector Program Support with one

component focusing on seed industry funded by Denmark 2000-2007

Two projects funded by ADB on Tea Development Project and Agricultural Diversification Project with the components on qualified seed use support.

8 multinational companies running seed business in Vietnam: Syngenta Vietnam (crop seeds), Bioseed Research (for hybrid maize seed), CP Seed Company Ltd. (hybrid maize seed), East West Seed (VN) Company LTD, Representative office of Monsanto Thailand, Representative office Siminis Vegetabe Seeds, Nong Huu Seed Company LTD, and Bayer Company.

7. Marketing and Distribution: Key actors in the market-private sector, seed industry association, public sector

Table 6. Number of key actors in seed marketing and distribution by region Seed production/ business units Region

Companies Crop variety Center

Other Total Seed

producing Households

1. Northern Mountain 34 19 44 97 118 2. Red River Delta 52 12 3 67 358 3. North Central Coast 37 5 24 66 50 4. South Central Coast 41 11 11 63 174 5. Central Highland 14 9 1 24 136 6. East Southern region 56 6 3 65 197 7. Mekong River delta 6 14 13 33 720

Total 240 76 99 415 1753

(VSTA, 2010)

Seed marketing and distribution channels

Seed import and export

The annual import value of seed: around $200 mil.

Hybrid seed: annual import of 15000 tons (75%): $45 mil. (mainly from China)

Hybrid Maize: 10000 tons (60%) or $40 mil. (mainly from Thailand and India)

Vegetable seed: imported 80% or $100 mil. Mainly from Thailand, China, Japan, Korea and French.

Export seed: very small or insignificantly

8. Performance and Effectiveness of Regulatory Policies

Year Main Policy

5 Feb 1996 Decree No. 7/1996/ND-CP/ on the management of plant seeds

20 Apr 2001 Decree No. 13/2001/ND-CP on protection of new plant varieties

24 Mar 2004 Seed Ordinance No. 15/2004/PL-UBTVQH11

22 Nov 2004 Decision No. 66/2004/QD-BNN promulgating the regulation on accreditation, management and supervision of agriculture crop seed testing laboratories, samplers and field inspectors

26 Aug 2005 DECISION No. 212/2005/QD‐TTg promulgating the regulation on management of biological safety of genetically modified organisms; products and goods originating from genetically modified organisms

27 Nov 2007. Decision No. 95/2007/QD-BNN promulgating the Regulation on recognition of new agricultural plant varieties

21 Jun 2010 Decree No. 69/20101ND-CP of June 21, 2010, on biosafety for genetically modified organisms, genetic specimens and products of genetically modified organisms

11 Sep 2012 Circular No. 44/2012/QD-BNN adjusting and supplementing the the list of plant varieties permitted for production and trading

Effectiveness of seed policiesSeed registration system: well operated. During 2008-2012:

1575 DUS tests and 4329 VCU tests were done. Many seed varieties were registered.

MARD usually issued the circulars on the list of additional agricultural plant varieties that can be produced and traded in Vietnam

MARD and provincial authorities organize the inspections of seeds in the market.

The share of units that violated the requirements on labeling, quality, trading conditions (storage facilities, etc.,.) were quite high (Ba Ria Vung Tau province: 54%; Dak Nong: 100% unclear origin of cashew nut seedlings; Quang Nam: 100% trading units did not have quality test certificate of rice and maize seeds, and did not have seed storage facilities as required).

The type of violated units were quite diversified: from big to small companies, and more on individual companies. Warning, penalties, public disclosures were main measures to deal with violated units.

9. Key constraints affecting seed supply and use

Weak capacity in quality control and industry management especially at provincial and district levels A number of poor quality seed have been sold in the market.

Weak capacity for seed testing and certification due to lack of high-skill staffs and inadequate and out of date equipment

Lack of information system and information sharing between state management agencies the coordination, and cooperation between these agencies are limited.

The capacity of seed industry is generally inadequate to meet domestic demand on seed.

Lack of diversification: the seed industry has a long time focused mainly on rice and maize seeds

Limited capacity in R&D, especially on basic research and plant breeding

Limited production capacity and coverage of seed supply system

10. Main implications for seed industry development in VN

Strengthen linkages between research, seed production, and extension.

Strengthen the seed quality control and management capacity of public institutions at the provincial and district levels (staff, facilities…)

Build an information system and foster information sharing between state management agencies in seed testing and certification

Promote the collaboration between formal and informal seed supply system and facilitate the establishment of efficient seed distribution system.

Continue to improve the regulatory documents/ policies on seed managements

Thank you for your attention !