This story is the introduction of the study named ‘Study on Enhancing Upland Food Security and Cross border Agricultural Production Supply Chains in the GMS’[1]. Through reviewing seven case studies in Thailand, Laos, China and Vietnam1 (see Table 1 below), the study focused on successful interventions in the GMS, with the aim of defining the critical elements contributing to that success”.

1. Brief of the findings of the study

Table 1. Fact sheet of the seven reviewed case studies (Summary from Zola, 2006)

Critical factors linked to the success of the seven case studies mentioned in the Table 1:

- Make sure that market linkages (domestic and regional markets)

- Permanent technical assistance to the farmers

- Familiarity and experience with activities being introduced

- Linkages to food security and quality of life issues

- Access to natural resources: farmers should get rewards on land use security if they continue with contract farming.

- Creating an enabling environment for business, agreeable terms and conditions for conducting business.

- Cooperation with district people, license, taxes, inspections,

The following conclusions were made by the study:

- Contract farming is suitable

- Public-private initiative:

- Agroforestry systems play a multi-functional role

- Blending indigenous technologies with modern agricultural techniques

- Long-term occupancy right.

Recommendations made by the study

- Business sector play important role

- Technical assistance is essential

- Local wisdom, indigenous knowledge

- Long terms but quick hit.

2. How research results can be applied in Vietnam[6]?

Long-term project is essential: The Vietnamese government pays attention to infrastructure in most of development programs. As a result, roads are built to almost 100% communes. For the success of development program, we believe that (i) Marketing, branding and market development play the first important role, following by (ii) Social capital, trusts, and (iii) Capital. If these three factors are available, (iv) social business entrepreneurship and (v) human resources development will be able to obtain.

Currently several market-oriented issues are within existing national programs and projects. For example, marketing, branding was highlighted in the government decision Number 80. However this is only for the state enterprises. There are gaps in marketing between producers and government. Success was only obtained with the products ordered by outsiders/traders, but failed with the products offered by government to traders. There is lack of consultancy on post-harvesting processing. From the supply side - farmers offend do not fulfill contracts and the reasons could be (i) due to low/no trusts, (ii) wrong perception (what government offer is for free), (iii) no obligation feelings, (iv) not understanding written contracts due to language barriers.

What we have learnt from the case studies is: long-term programs are needed. Time should be long enough (30 years as Doi Tung project in Chiang Rai) in order to make serious pre-project inventory on the need and comparative advantages of local people, for involving upland farmers in contract farming as well as education of new generation of local people, who can take over the project after project termination.

Contract farming – form of private-public partnership: Five form of contract farming we know in VN. They are:

• Four parties (Government, Scientist, Farmers, Enterprises) or Five parties model (Government, Scientist, Farmers, Enterprises, Credit). This model was proposed by the government.

• Centralized model: direct vertical between seller and buyers (for factories)

• Nuclear-estate: land belongs to the buyers such as factories, state farm.

• Informal: verbal contract.

• Through middle-man.

Current private-public partnership in Vietnam mainly is intermediately, i.e. through middle-man and personal relations and can be described as:

• Direct between farmers and middle-man/traders.

• Traders have strong links with commune leaders.

• Commune leaders have access to services that support traders in doing business.

• Commune leaders use his contacts to support ‘his favorite’ villages. This reflects much of personal relationships.

To move from middle-man to multi-stakeholders contract farming (Four partiers or five parties model) requires:

- Informal/verbal to simple contract.

- Farmers’ groups/associations, with strong leadership. Devoted person with love and powerful to community. For example: Head of a large relative in the village.

- Defining ‘niche’ market. For example Trung Nguyen coffee in highland plateaus.

- Trust is very important

- Focus for community instead for single farmers.

New Business Development Services (BDS): We discuss intervention for Vietnam and ideas on establishing New Business Development Services (BDS) formulated. Currently BDS is available in the rural areas. The services unit was developed on the basis of ‘old’ cooperative. The unit is good in supplying seeds, fertilizers and pesticides. However, for both upland and lowland, such units do not capacity in marketing, branding, processing. The New BDS, as we suggest, can be new private service organization. We may start with learning from non-benefit consultancy firm of neighboring country as Doi Tung in Chiang Rai, ThaiLand. In order to get many new ideas and innovation, we need to promote uses of existing human resource, including ‘oversee Vietnamese’ for branding products.