Regional Integration: Obstacles and Opportunities

DNHN - Utilizing the potential of each region and implementing linkages from the perspective of a knowledge economy and a green economy is the key to enhancing production efficiency, creating added value, and promoting economic sustainability.

In recent years, establishing strong connections between regions and between businesses and farmers has been regarded as an essential strategy for increasing the consumption of agricultural products. Nonetheless, Mr. Hoang Anh Tuan, Deputy Director of the Domestic Market Department (Ministry of Industry and Trade), asserts that regional linkages continue to face numerous obstacles. In particular, the implementation of the current regional planning and planning has not demonstrated the construction of the product value chain, an important factor in ensuring efficiency.

The tenuous relationship between businesses and farmers is one of the most notable flaws of regional connections. Even though enterprises are expected to facilitate farmers' access to the market, there are numerous obstacles in their way. Many products do not meet the quality requirements to be included in the supply chain, making it difficult for businesses to assist farmers.

Ms. Tran Thi Thu Hang, General Director of Vietnam Agro-Food Import-Export Company, discussed difficulties at the Forum "Regional linkages in economic development to promote local strengths" in Hanoi. Farmers' confidence in businesses presents the greatest challenge to regional integration. Especially in cooperatives in remote areas, the capacity of farmers to fulfill their obligations is frequently very limited. Ms. Hang provided the example of a cooperative that was committed to providing high-priced products to the company, but sold well to supermarkets and only delivered the second type of product to the company. Also of concern is the status of products that do not meet the promised quality.

Ms. Nguyen Thi Huyen, general director of Vietnam Cinnamon Anise Production and Export Joint Stock Company (Vinasamex), also mentioned a lack of trust. It took three years for Ms. Huyen to persuade farmers to join the business and adhere to international standards. As a result of training support, however, many farmer households have improved output, higher prices, and more stable output. However, commitment and trust on both sides are necessary for a successful implementation.

Mr. Ta Viet Hung, director of Ba Vi Green Farm Cooperative, emphasized that regional linkage must create real value for both parties from the producer's perspective. He stated that businesses must assume the role of "ordering" for farmers by clearly defining the products, standards, and models to be produced. In reality, however, farmers must still "swim" alone and do not have the opportunity to interact with output partners.

Vietnam had more than 30,000 cooperatives and nearly 121,000 cooperative groups as of the end of June, including over 76,000 agricultural cooperative groups. However, according to Mr. Nguyen Van Thinh, Vice Chairman of the Vietnam Cooperative Alliance, linkages between localities have not been particularly effective, and the role of linked actors such as businesses and economic organizations is still lacking. unfulfilled potential. Therefore, to establish a strong connection between the parties, effort, and concentration are required from both sides.

Mr. Le Duc Thinh, Director of the Department of Economic Cooperation and Rural Development (Ministry of Agriculture and Rural Development), has stated unequivocally that to truly achieve strong regional connectivity, it is necessary to overcome the renovation and implementation of regional linkages from the perspective of the knowledge economy, the green economy, and the fourth industrial revolution. This requires local awareness of the true benefits of regional connections and the creation of an environment conducive to economic activity and investment.

Dr. Tran Thi Hong Minh, Director of the Central Institute of Economic Management (CIEM), emphasized the need for adaptive adjustments in a developing economy with small, unconnected production. To maximize the benefits of economies of scale, it is necessary to switch from the traditional production and business model to the linked chain production model.

Consequently, Mr. Le Duc Thinh recommended that businesses and cooperatives implement stronger thinking and transformation by enhancing their cooperation and association with partners in other regions of the region. This not only contributes to greater economic efficiency but also lays the groundwork for future sustainable development.

According to Dr. Vu Manh Hung, Director of the Department of Agriculture and Rural Development (Central Economic Commission), each locality and region must be aware of its strengths, capabilities, and differences. This is especially important given the agricultural economy's uneven and restricted stage of development. To make a change, it is necessary to transition from the traditional production and business method to the linked production model, which takes advantage of economies of scale.

Mr. Hung also emphasized the significance of integrating the planning of specialized agricultural areas and commodity development. This helps to concentrate resources and policies on strong products, resulting in a larger production scale, stable output, and higher added value for agricultural products produced in Vietnam.

To achieve this objective, it is necessary to enhance the regulatory environment and establish more precise quality standards. The State's direct support and the improvement of the legal and policy framework will create favorable conditions for expanding agricultural economic development linkages.

Promoting regional connections and businesses - farmers requires a radical shift in thought and action.

Thang Phuong